Transition scheme
If there has been a large rise or drop in the rateable value of your property from the 1 April 2005, it will probably be affected by transitional arrangements.

Different transitional arrangements will apply, depending on whether your bill has increased or decreased and whether your business is classed as small or large.

A small business is defined as a property with a rateable value of under £15,000 outside London and under £21,500 within London.
Transitional arrangements are based on the change in your rates bill from 2004/05 to your new rates bill in 2005/06. They are not dependent on the change in your rateable value itself.

The transition scheme, operates over a four year period. Every ratepayer will pay their true rates liability in the fifth year and many will pay it well before this.

Table 1 shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply:

Table 1

Year       Small business   Large business
2005/06  5%                   12.5%
2006/07  7.5%                 17.5%
2007/08  10%                  20%
2008/09  15%                  25%
2009/10  N/A                   N/A

Slightly different arrangements apply for the proposed limits by which a rates bill can decrease in a single year, shown in table 2 below.

Table 2

Year       Small business   Large business
2005/06  30%                 12.5%
2006/07  30%                 12.5%
2007/08  35%                 14%
2008/09  60%                 25%
2009/10  N/A                  N/A

If the transitional scheme applies to your bill, it will automatically be shown.

For properties where transition does not apply, the annual rate bill will increase in line with inflation until the next revaluation in April 2010.

Examples of how the transitional scheme works in practice can be viewed at www.mybusinessrates.gov.uk