Property values normally change a good deal between each revaluation. Transitional arrangements phase in the changes so that businesses do not face a huge increase in their bills.
The Government introduced a scheme from 1 April 2005 that gave small businesses a reduction of up to 50% in the amount of business rates they paid. All other ratepayers pay for the cost of this relief. The non-domestic rating multiplier this year includes a supplement on your annual bill to help fund the small business rate relief.
Transitional limits apply if, in any year, the amount you would have to pay (based on your rateable value times the small business multiplier) is higher than the previous year's bill (based on the amount due on 31 March) by more than the amounts shown below. If this is the case, your bill will be increased by these amounts.
Any transitional adjustments will be shown on the front of your bill.
From 1 April 2009 the government decided to amend legislation and remove the transition scheme arranged at the start of the 2005 rating list. There was a re-valuation 2016 by the Valuation Office which has forced the Government to decide to put in place a further transition scheme. Therefore, with effect from 2017/18 the thresholds for the transitional scheme have been amended as follows;
Small (0-28,000 RV) 5%
Medium (28,001-100,000 RV) 12.5%
Large (100,001+ RV) 42%
Small (0-28,000 RV) 20%
Medium (28,001-100,000 RV) 10%
Large (100,001+ RV) 4.1%