Transitional arrangements phase is the effect of significant changes in liability which arise from the revaluation of non-domestic property. There are limits on the percentage by which bills may increase or decrease in real terms each year.

Inflation Adjustment

After the limits have been applied, an adjustment for the effects of inflation is made to calculate the amount payable. The inflation factor to be used in 2008/09 is 3.8%, which is the annual increase in the Retail Prices Index measured at September 2007.

Supplement to the Rating Multiplier

The supplement to the Rating Multiplier to finance small business relief is then applied to the bill, and so for 2008/09 rateable value x 0.004 is added.

Changes in Rateavle Values

Special rules deal with changes in rateable values and the merger or splitting of existing properties.

Maximum Increases

The maximum increases and reductions for 2008/09, as specified by the Government, prior to inflation, and the supplement, are as follows:

Maximum Increases and Reductions

Further Information

More details are included in the Communities and Local Government website (www.communities.gov.uk/corporate).