What is transitional relief/surcharge?

Every five years when all business and non-domestic properties are re-valued, some rateable values increase considerably and others may be reduced. The latest revaluation came into effect from the 1st April 2010.

Transitional relief or surcharge may appear on your business rate bill in addition to the rateable value and the national non-domestic multiplier. These arrangements will phase in the effect of significant changes in liability which arise from the 2005 and 2010 revaluation of non-domestic properties.

Transitional relief

Where rateable values had increased, some ratepayers would find that their rate bill would rise considerably. To cushion this rise, the government introduced transitional arrangements, so that ratepayers would not have to pay the whole increase at once, rather the bill would rise by a pre determined % each year. The yearly % rise would be applied until the correct charge is achieved or for a maximum period of 4 years for the 2005 list and 5 years for the 2010 list. This is shown on your business rate bill as transitional relief.

Transitional surcharge

Where rateable values had decreased, other ratepayers would find that their bill would fall considerably. Where bills had actually gone down because of the re-valuation, they were not allowed to enjoy the full reduction immediately, their bills would be reduced by a pre determined % each year. The yearly % reduction would be applied until the correct charge is achieved or over a maximum period of 4 years for the 2005 list and 5 years for the 2010 list. This is shown on your business rate bill as transitional surcharge.

There are limits on the percentage by which bills may increase or decrease each year. Special rules deal with the changes in rateable value or the splitting or merging of properties.

Please contact the business rate section for further information.

Last Updated: 26/04/2012