Transitional Arrangements
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation.
To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not apply to the part of a bill that applies to any increase in rateable value due to those changes.
For 2005/06 the limits are:
Up to Rateable Value £14,999
Increase 5%
Reductions 30%
Rateable Value £15,000+
Increase 12.5%
Reductions 12.5%
After these limits have been applied, the bill is increased by the rate of inflation. For 2005/06 this is 3.1%.
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