Frequently asked questions about Transitional relief

What is transitional relief ?
Transitional relief is a Government scheme which ensures that large increases or large decreases in rates bills which are due to the revaluation are phased in gradually over a number of years.

For England
Individual rates bills for 2000/01 will not go up by more than 12.5%, before allowing for inflation, or down by more than 5% again before inflation.

For Wales
In Wales transitional relief in respect of increases in rates bills will apply to all businesses which face an increase of 10% or more and whose rateable value is £25,000 or less.
In the first year relief will be given limiting increases to 10%, the relief given in 2000-01 will be reduced by one third in each of the following two years, with all businesses paying the full rates bill in 2003-04.
The new scheme will also limit the amount by which rates bills can fall. All businesses seeing a reduction in rates bills will benefit. Bills will be decreased by a maximum of 15% for 2000-01 rising to 30% and 45% in the following two years, and every business that benefits from the revaluation will benefit in full no later than 2003-04.

What is the uniform business rate?
The uniform business rate (sometimes known as the multiplier) is an amount set by the Government each year. There is a UBR for England and one for Wales. It is set to ensure that the overall amount collected in rates only ever increases by the rate of inflation.

The business multiplier for 2006/2007 is:

England – 43.3p in the pound
Small businesses in England* - 42.6p in the pound

All businesses in Wales – 43.2p in the pound

(*For England a small business = is one where the total rateable value is under £15,000 [under £21,500 in London.] Some businesses may be eligible for small business relief, which can affect the amount of rates that you pay. Contact your local authority for information and to register.)

Example:

A property with a rateable value of £22,000 would be:

£22,000 x 0.433p = £9526 less any reliefs that are applicable

If you would like more information about transitional relief visit the ODPM website at www.local-regions.odpm.gov.uk or contact your local authority.