How are properties revalued?
All properties were revalued based on the rental values as at 1 April 2015. This came into effect on 1 April 2017.
When properties are revalued and there is a large increase in your liability you may receive a transitional relief. Equally, if your liability decreases by a large amount you may have to pay a transitional premium.
The transitional relief scheme is used to phase in the increase/decrease in rates payable following the revaluation. This relief or premium is automatic and will be applied to your bill if the difference is within a specified percentage.
Following the 2017 revaluation, the transitional scheme runs for five years, after which time everyone pays the full amount (rateable value times the multiplier).
Note: these are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64%. But a small property with an increase of 7% would reach their full bill in year 2.
Small property: Rateable value less than £20,000
Medium property: £20,001 - £100,000
Large property: above £100,000
The scheme applies only to the bill based on a property at the time of a revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. For further information please contact us.
Business Rates Section