Business rates - transitional arrangements

Transitional arrangements

The Government introduced a scheme known as Transitional Arrangements to help reduce the impact of a revaluation. The rules ensure that individual rate bills cannot go up or down in any year by more than fixed percentage amounts, after allowing for inflation. The scheme works in two ways, either allowing Transitional Relief or charging a Transitional Premium and will usually last for the entire period of the new Rating List.

This scheme is therefore a phasing in of either an increase in the amount that you have to pay because of a revaluation or a reduction in the amount you have to pay because of a revaluation.

This scheme operates in addition to the limit of the increase in the Rating Multiplier.

Transitional relief

This part of the scheme will look at the amount by which a rate bill has increased when compared with what was charged for the previous year. If your rate bill increases by more than a fixed percentage, you will qualify for Transitional Relief, which is a reduction in the amount calculated to limit the increase in your bill. Details of the calculation will always be shown on your bill.

Transitional premium

This part of the scheme will look at the amount by which a rate bill has reduced when compared with what was charged for the previous year. If your rate bill decreases by more than a fixed percentage, you will be liable to pay a Transitional Premium, which is an increase in the amount calculated to limit the reduction in your bill. Details of the calculation will always be shown on your bill.