Transitional arrangements

As the market for rented property has changed a great deal between the 1990, 1995, 2000, 2005, 2010 and 2017 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 2022.

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 2017-2022

  Small hereditment
20,000 or below
Medium hereditament
20,001 to 100,000
Large hereditament
100,001 and over
  Increase %
(Relief)
Decrease %
(Premium)
Increase %
(Relief)
Decrease %
(Premium)
Increase %
(Relief)
Decrease %
(Premium)
2017-18 5% 20% 12.5% 10% 42% 4.1%
2018-19 7.5% 30% 17.5% 15% 32% 4.6%
2019-20 10% 35% 20% 20% 49% 5.9%
2020-21 15% 55% 25% 25% 16% 5.8%
2021-22 15% 55% 25% 25% 6% 4.8%

What is the base bill for calculating transition?

In order to decide whether your property is subject to transitional arrangements, the council works out your full bill for each year and compares it with one based on the amount you, or the previous occupier, were liable to pay in the previous year. The 'base bill' takes account of any transitional relief you may have received in 2016/2017. If the difference in bills is more than the percentage limit, you only pay the limited amount. The limited amount for one year forms the base bill for the following year. Limits on increases or decreases to your bill will continue to apply each year until you reach your full rates liability.

Contact the business rates section on 01773 841444 or nndr@ambervalley.gov.uk if you require further information on how transitional arrangements have been calculated in your case.

Please note that all calculations for transitional arrangements will be worked out using the lower SBRR multiplier of 46.6p.

Need further help or information?

Contact the team directly on 01773 841444 or email nndr@ambervalley.gov.uk