Transitional arrangements

Definition

Property values normally change a good deal between each revaluation. Transitional arrangements phase in the changes so that businesses do not face huge increases in their bills. From 2005, a ratepayer’s bill cannot increase before applying inflation by more than the figures shown in the tables below. This is paid for by also phasing in the reductions to other businesses’ bills. These limits are also shown in the tables.

The transitional adjustment will automatically be shown on the ratepayers bill. However, some people might be confused as an additional layer of complexity has resulted from the interaction between the chargeable amount regulations and small business rate relief and their bills may seem to have increased more than the limited amount or reduced less than the limited amount. This is because inflation is added after the increase or decrease. Then added is an extra amount of 0.7% for 2005/06 & 2006/07, 0.3% for 2007/08, then 0.4% for 2008/09 of the new rateable value to pay for the small business rate relief - for those who do not qualify for rate relief.

Further details can be obtained from Wealden District Council business rates office or visit the website for Communities and Local Government (CLG).

The amount your business has to pay

The government has fixed a multiplier (rate in the pound) of 46.2p for 2008/09. The multiplier for small businesses is 45.8p for 2008/09.

Properties with a rateable value of £15,000 or over

Increase in rates bills for 2005/06 caused by the revaluation will be limited to no more than 12.5% before allowing for inflation and reductions will be limited to no more than 12.5% again before inflation. Many will change by less than these amounts depending on a number of factors.

For each of the five years the limits will be :

	Increase	Reduction
2005/06	12.5%	12.5%
2006/07	17.5%	12.5%
2007/08	20%	14%
2008/09	25%	25%
2009/10	n/a	n/a

Properties with a rateable value below £15,000

Increase in rates bills for 2005/06 caused by the revaluation will be limited to no more than 5% before allowing for inflation and reductions will be limited to no more than 30% again before inflation. Many will change by less than these amounts depending on a number of factors.

For each of the five years the limits will be :

	Increase	Reduction
2005/06	5%	30%
2006/07	7.5%	30%
2007/08	10%	35%
2008/09	15%	60%
2009/10	n/a	n/a

We will automatically show any transitional adjustment on your bill.

If you do not understand your bill or want an explanation of how it has been worked out please phone the rates office on 01323 443387 or e mail: businessrates@wealden.gov.uk