All rateable values are reassessed at a general revaluation. The 2017 revaluation takes effect from 1st April 2017 and for most properties is based on rental values in April 2015. Revaluation does not raise extra money for Government or Local Authorities.
However the change in the change in the rateable values of individual properties will vary widely depending on changes in the rental market for different types of property in different locations since the last revaluation in 2010.
For those that would otherwise see significant increases in their rates liability, the Government has put in place transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills.
Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate 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 1st April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes.
Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements.
The maximum increase/decrease is dependent on the rateable value of the property, the table below details the transitional relief scheme for the 2017 rating list:
|Final: Transitional Arrangements 2017 revaluation (before inflation) funded by 3 caps on reductions|
|Property size: rateable value||2017/18||2018/19||2019/20||2020/2021||2021/2022|
||Small: £20,000 or less||5.0%||7.5%||10.0%||15.0%||15.0%|
|Medium: £21,000 - £100,000||12.5%||17.5%||20.0%||25.0%||25.0%|
|Large: over £100,000||42.0%||32.0%||49.0%||49.0%||6.0%|
|Small: £20,000 or less||20.0%||30.0%||35.0%||35.0%||55.0%|
|Medium: £21,000 - £100,000||10.0%||15.0%||20.0%||20.0%||25.0%|
|Large: over £100,000||4.1%||4.6%||5.9%||5.9%||4.8%|
The above are also subject to an allowance for inflation of 2%.
The transitional arrangements are applied automatically and are shown on the front of your bill. Further information about transitional arrangements and other reliefs may be obtained from the gov.uk website.