Transitional Arrangements

Many businesses will see significant increases in the rateable values of their properties. To help phase in the consequent increase in rates payable, the Government has introduced a new transitional arrangement scheme from 1 April 2005.

Under the scheme, both increases and decreases in rates payable resulting from the revaluation will be phased in over the next four years (or until the amount of rates payable with transitional relief equals the amount payable without transitional relief (i.e.: the rateable value multiplied by the rate poundage).

The reason for decreases being phased in is to help cover the cost of phasing in the increases, the Government's overall aim being for the scheme to be self financing.

The transitional arrangements will limit the annual increase or decrease in rates payable to a given percentage before allowing for inflation. For businesses in the Royal Borough, the effect of this will be to limit increases and decreases in rates payable in real terms before the addition of inflation to:


Financial Year 2008/2009	Small Property	Large Property
Maximum Increase (before inflation)	15 per cent	25 per cent
Maximum Decrease (before inflation)	60 per cent	25 per cent

* Small properties are those with rateable values below 21,500 pounds large properties are those with rateable values of 21,500 pounds and above. The inflation factor applied for 2008/2009 is 3.8 per cent.

If you are eligible for transitional phasing it will be shown automatically on your rate bill. If you wish to query any aspect of the transitional arrangements please contact the Royal Borough at the address shown on your rate bill.

Further information concerning business rates can be viewed at: www.mybusinessrates.gov.uk.

Local Taxes