Transitional arrangements phase is the effect of significant changes in liability which arise from the revaluation of non-domestic property. There are limits on the percentage by which bills may increase or decrease in real terms each year. After the limits have been applied, an adjustment for the effects of inflation is made to calculate the amount payable. The inflation factor to be used in 2008/09 is 3.8%, which is the annual increase in the Retail Prices Index measured at September 2007. The supplement to the Rating Multiplier to finance small business relief is then applied to the bill, and so for 2008/09 rateable value x 0.004 is added. Special rules deal with changes in rateable values and the merger or splitting of existing properties.
The maximum increases and reductions for 2008/09, as specified by the Government, prior to inflation, and the supplement, are as follows:
| Percentage Increase |
Percentage Redution |
|
|---|---|---|
| 1. Rateable Value £15,000 or More |
+25 | -25 |
| 2. Rateable Value Below £15,000 |
+15 | -60 |
Further information about transitional arrangements may be obtained from the business rates section of the Department for Communities and Local Government website.
Accessibility Guideline Notes
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