Transitional arrangements
Transitional arrangements phase in the effect of significant changes in liability which arose from the 2010 revaluation of non-domestic property. Where appropriate, these arrangements will operate until March 2015 (when all non-domestic property will be revalued again). There are limits on the percentage by which bills may increase or decrease in real terms each year. After the limits have been applied, an adjustment for the effects of inflation is made to calculate the amount payable. The inflation factor used is based on the annual increase in the Retail Prices Index. Special rules deal with changes in rateable values and the merger or splitting of existing properties.
How are increases limited by Transitional Relief?
Your bill each year will be based on your rateable value times the multiplier. However, if this means the amount you have to pay goes up and the increase would exceed the limits given in the table below, you will qualify for transitional relief.
The following table shows the maximum increase each year over the life of the scheme (before allowing for inflation). These limits will be applied each year until you are paying the full amount.
|
Year |
Small property (RV less than £18,000) |
Large property (RV £18,000 and above) |
|
2010/11 |
5% |
12.5% |
|
2011/12 |
7.5% |
17.5% |
|
2012/13 |
10% |
20% |
|
2013/14 |
15% |
25% |
|
2014/15 |
15% |
25% |
Your bill each year will be based on your rateable value times the multiplier. However, if this means the amount you have to pay goes down and the reduction would exceed the limits given in the table below, the reduction will be limited.
The following table shows the maximum reduction each year over the life of the scheme (before allowing for inflation). These limits will be applied each year until you are paying the correct amount.
|
Year |
Small property (RV less than £18,000) |
Large property (RV £18,000 and above) |
|
2010/11 |
20% |
4.6% |
|
2011/12 |
30% |
6.7% |
|
2012/13 |
35% |
7% |
|
2013/14 |
55% |
13% |
|
2014/15 |
55% |
13% |
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to that part of a bill which applies to any increase in rateable value due to those changes. Further information about transitional arrangements may be obtained from the Business Rates Section of Warwick District Council or the Department for Communities and Local Government website.
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