Friday, 5 September 2008
You may find that either transitional relief or transitional surcharge appears on your Business Rate bill in addition to the rateable value and the national non-domestic multiplier.
Every five years when all business and non-domestic properties are re-valued, some rateable values increase considerably and others may be reduced. When these new rateable values are introduced, some ratepayers would find that their rates bill had risen considerably. To cushion the effect of these increases, the government introduced transitional arrangements, so that ratepayers would not have to pay the whole increase at once, rather their bill would rise gradually by a fixed amount each year. This adjustment to the amount payable appears on your business rate bill as transitional relief.
For other ratepayers whose bills have actually gone down because of the re-valuation, they are not allowed to enjoy the full reduction immediately, their bills will be reduced gradually. This adjustment appears on your business rates bill as transitional surcharge.
Transitional arrangements will phase in the effect of significant changes in liability which arise from the 1995, 2000 and 2005 revaluation of non domestic properties. There are limits on the percentage by which bills may increase or decrease each year. Special rules deal with the changes in rateable value or the splitting or merging of properties.
