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Transitional Arrangements

The 1990 Scheme

Following the introduction of the National Non-Domestic Rating Scheme in 1990 and the accompanying revaluation of business properties, some ratepayers faced significantly higher bills than their 1989/90 rates bills. The Government therefore introduced a 'Transitional Arrangements Scheme' to 'cushion' payers against the effects of the revaluation by limiting the amount by which bills could rise.

In order to make the scheme self-financing, the scheme also limited the amount by which bills could fall, so that nobody could 'gain' more than a certain amount because of the revaluation.

The maximum amount by which a bill could rise was the rate of inflation plus a certain percentage of the previous year's rates. The amount by which a bill could fall was limited to a certain percentage of the previous year's rates, but the scheme ended in respect of 'gainers' at the end of 1992/3 so from 1/4/93, they obtained the full benefit of the revaluation.

The 1990 Transitional Arrangements Scheme only lasted 5 years. In 1995 another revaluation was carried out and another Transitional Arrangements Scheme was introduced.

The 1995 Scheme

This scheme is similar to the 1990 scheme and works by comparing the gross 1995/6 rates payable to the 1994/5 rates payable and limiting the increases and reductions to certain percentages plus inflation.

In the case of losers the amount by which bills could increase, in addition to inflation, was as follows:

Year

RV 10,000 +

RV less than 10,000
1995/96
10% of the 94/5 net rates
7.5% of the 94/5 net rates(5% in the case of composite properties)
1996/97
7.5% of the 95/6 net rates
5% of the 95/6 net rates(2.5% in the case of composite properties)
1997/98
10% of the 96/7 net rates
0% of the 96/7 net rates(0% in the case of composite properties)
1998/99
10% of the 97/8 net rates
7.5% of the 97/8 net rates (5% in the case of composite properties)
1999/00
10% of the 98/9 net rates
7.5% of the 98/9 net rates (5% in the case of composite properties)

In the case of those facing lower bills the amount by which bills could decrease was as follows:

Year

RV 10,000 +

RV less than 10,000
1995/96
5% of the 94/5 net rates
10% of the 94/5 net rates
1996/97
5% of the 95/6 net rates
10% of the 95/6 net rates
1997/98
15% of the 96/7 net rates
20% of the 96/7 net rates
1998/99
30% of the 97/8 net rates
35% of the 97/8 net rates
1999/00
30% of the 98/9 net rates
35% of the 98/9 net rates

The 2000 Scheme

The following table shows the maximum increase each year over the life of the 2000 Revaluation scheme (before allowing for inflation).

Year
RV 12,000 +
RV less than 12,000
2000/2001
12.5% of the 99/00 net rates
5% of the 99/00 net rates
2001/2002
15.0% of the 00/01 net rates
7.5% of the 00/01 net rates
2002/2003
17.5% of the 01/02 net rates
7.5% of the 01/02 net rates
2003/2004
17.5% of the 02/03 net rates
7.5% of the 02/03 net rates
2004/2005
17.5% of the 03/04 net rates
7.5% of the 03/04 net rates

However, if the amount you pay goes down, and the reduction would exceed the limits given in the table below, the reduction would be limited.

This table shows the maximum reduction each year over the life of the scheme (before allowing for inflation)

Year
RV 12,000 +
RV less than 12,000
2000/2001
2.5% of the 99/00 net rates
5% of the 99/00 net rates
2001/2002
2.5% of the 00/01 net rates
5% of the 00/01 net rates
2002/2003
5% of the 01/02 net rates
10% of the 01/02 net rates
2003/2004
7.5% of the 02/03 net rates
12.5% of the 02/03 net rates
2004/2005
15% of the 03/04 net rates
25% of the 03/04 net rates

The 2005 Scheme

The following table shows the maximum increase each year over the life of the 2005 Revaluation scheme (before allowing for inflation).
Year
RV 15,000 +
RV less than 15,000
2005/2006
12.5% of the 04/05 net rates
5% of the 04/05 net rates
2006/2007
17.5% of the 05/06 net rates
7.5% of the 05/06 net rates
2007/2008
20% of the 06/07 net rates
10% of the 06/07 net rates
2008/2009
25% of the 07/08 net rates
15% of the 07/08 net rates
2009/2010
not applicable
not applicable

However, if the amount you pay goes down, and the reduction would exceed the limits given in the table below, the reduction would be limited.
This table shows the maximum reduction each year over the life of the scheme (before allowing for inflation)

Year
RV 15,000 +
RV less than 15,000
2005/2006
12.5% of the 04/05 net rates
30% of the 04/05 net rates
2006/2007
12.5% of the 05/06 net rates
30% of the 05/06 net rates
2007/2008
14% of the 06/07 net rates
35% of the 06/07 net rates
2008/2009
25% of the 07/08 net rates
60% of the 07/08 net rates
2009/2010
not applicable
not applicable

The 2010 Scheme

The following table shows the maximum increase each year over the life of the 2010 Revaluation scheme (before allowing for inflation).


Year

RV 18,000 +

RV less than 18,000

2010/2011

12.5% of the 09/10 net rates

5% of the 09/10 net rates

2011/2012

17.5% of the 10/11 net rates

7.5% of the 10/11 net rates

2012/2013

20% of the 11/12 net rates

10% of the 11/12 net rates

2013/2014

25% of the 12/13 net rates

15% of the 12/13 net rates

2014/2015

25% of the 13/14 net rates

15% of the 13/14 net rates

However, if the amount you pay goes down, and the reduction would exceed the limits given in the table below, the reduction would be limited

This table shows the maximum reduction each year over the life of the scheme (before allowing for inflation)


Year

RV 18,000 +

RV less than 18,000

2010/2011

4.6% of the 09/10 net rates

20% of the 09/10 net rates

2011/2012

6.7% of the 10/11 net rates

30% of the 10/11 net rates

2012/2013

7% of the 11/12 net rates

35% of the 11/12 net rates

2013/2014

13% of the 12/13 net rates

55% of the 12/13 net rates

2014/2015

13% of the 13/14 net rates

55% of the 13/14 net rates

If you have a specific query on your account, in the first instance please contact the Business Rates Section for advice. The telephone numbers can be found in 'How to get in touch with us'.