Transitional Scheme
An explanation of the scheme and how it works.
Property values normally change a good deal between each revaluation, which take place every five years. Transitional arrangements will phase in the effect of significant changes by limiting the amount by which a bill may rise following a revaluation. This form of rate relief is known as Transitional Relief and will show on your bill if applicable.
To help pay for this rate relief, there is also a limit placed on reductions in bills following a revaluation. This is known as Transitional Premium and again will show on your bill if applicable.
Under the scheme (up until the last revaluation which took place on 1 April 2005), limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier). Following the 2005 revaluation, this was changed so that the transitional scheme only runs for four years, after which time everyone pays the full amount (rateable value times the multiplier).
Transitional Limits for Non-Composite and Composite Properties (2005 - 2010)
increase in bills reduction in bills
| Year | Small Property | Large Property | Year | Small Property | Large Property |
| 2005 / 06 | 5% | 12.5% | 2005 / 06 | 30% | 12.5% |
| 2006 / 07 | 7.5% | 17.5% | 2006 / 07 | 30% | 12.5% |
| 2007 / 08 | 10% | 20% | 2007 / 08 | 35% | 14% |
| 2008 / 09 | 15% | 25% | 2008 / 09 | 60% | 25% |
| 2009 / 10 | N/A | N/A | 2009 / 10 | N/A | N/A |
Small Property - Rateable Value less than £15000
Large Property - all others
The scheme applies only to the bill based on a property at the time of a revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Further information can be obtained from the Business Rate section, or on the ODPM website: http://www.odpm.gov.uk.