What are transitional arrangements?
As the market for rented property has changed a great deal between the 1990, 1995, 2000, 2005 and 2010 revaluations, these changes have resulted in increases in the rateable value of some properties and decreases for others. This could have pushed individual rate bills very sharply up or down.
The Government therefore decided to phase in the changes gradually to give businesses time to adjust. The rules ensure that (because of the revaluation) individual rate bills cannot go up or down in any year by more than fixed percentage amounts, Below is a table showing the increased and decreases set by Central Government for the current rating list which ends on 31 March 2015.
Applying an adjustment for inflation
Once the percentage increase or decrease are applied to last years charge, we have to add an adjustment for inflation. This is the level of inflation as at the previous September.
Capping Levels 2010-2015
| Year | Upward Caps | Downward Caps |
| Large | Small (less than 18,000 in Rateable Value) | Large | Small (less than 18,000 in Rateable Value) |
| 2010-11 | 12.5% | 5% | 4.6% | 20% |
| 2011-12 | 17.5% | 7.5% | 6.7% | 30% |
| 2012-13 | 20% | 10% | 7% | 35% |
| 2013-14 | 25% | 15% | 13% | 55% |
| 2014-15 | 25% | 15% | 13% | 55% |
