Business Rates - Transitional Arrangements

What are Business Rates Transitional Arrangements?

 

Transitional arrangements have been in force since 1990 and the latest scheme commenced in April 2005 following introduction of the current Rating List.

The arrangements apply to the property and help phase in the effects of the changes on ratepayers bills arising from the 2005 revaluation.The arrangements limit the amount by which a bill can increase or decrease in real terms each year. Increased charges are limited by 'transitional relief' and 'transitional limit on gains' limits decreases in charges. Rate charges are limited each year to a percentage of the previous years charge plus an amount for the rate of inflation which is determined by the Government.

Limits on Charges

The following table shows the maximum increases and decreases each year over the life of the 2005 scheme.

	Cap levels 2005 - 2010
Year	Upward Caps		Downward Caps
	RV>£15000	RV<£15000	RV>£15000	RV<£15000
2005-06	12.5%	5%	12.5%	30%
2006-07	17.5%	7.5%	12.5%	30%
2007-08	20%	10%	14%	35%
2008-09	25%	15%	25%	60%
2009-10	n/a	n/a	n/a	n/a

The transitional arrangements scheme will 'phase in' increases and decreases in charges until 2008/9 unless a property is phased in before that time, in which case charges will be based on the rateable value multiplied by the relevant multiplier. There will be no transition in the last year of the 2005 List, 2009/10.

 

When do they apply?

Transitional arrangements apply where there has been an increase or decrease in rate charges arising from the 2005 revaluation of business properties which are outside the set limits for such changes.

The arrangements are automatically applied to rate accounts.

If you require more information on transitional arrangements please contact the Council's Rates Office for help and advice.

 

 

 For other information including:-

• Contact details - for general enquiries and to request application forms

• Viewing your account online

• Methods of payment

see Business Rates - Enquiries

Please quote your bill number when making an enquiry.

 

How You Can Help

Please contact the Council's Rates Office immediately if you have any difficulty understanding any transitional arrangement applied to your account.

Other Useful Websites

 

Frequently Asked Questions

 

Q. What are Transitional Arrangements?

A. The 2005 revaluation resulted in increases in the rateable value of some properties and decreases for others. This could affect the amount of Business Rates payable by significant amounts. The Government decide to continue with a transitional arrangements scheme to phase in these changes.

The basic principles are that your Rates bill should not go up or go down by more than set amounts, including inflation.

Q. I own/rent a business property which is empty, do I have to pay the full amount of Business Rates?

A. Business properties that are not in use may be liable to unoccupied property rates. After a 3 month empty rate free period, Rates are charged at 50 per cent of the full rate bill or of the transitional bill where transitional arrangements apply.

Certain properties are exempt from empty rates, e.g. listed buildings, those with a Rateable Value of less than £2200, industrial properties have a 6 month exemption. For more information contact the Rates Office helpline on Barnsley (01226) 773739.

Last modified on 11/9/2008