Property values can change between each revaluation, which takes place every five years. The last revaluation was on 1 April 2010.
Transitional arrangements 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 will show on your bill if applicable.
Under the scheme (up until the latest revaluation on 1 April 2010), limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier). Following the 2010 revaluation, this is changed so that the transitional scheme only runs for five years, after which time everyone pays the full amount (rateable value times the multiplier).
The next revaluation has been delayed and will become effective on 1 April 2017.
Note: There are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64 per cent. But a small property with an increase of 7 per cent would reach their full bill in year 2.
Small Property - Rateable Value less than £18000
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.
For further information please contact us.