East Devon District Council

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Guide A guide to rates relief and reductions

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9. Transitional phasing

Transitional phasing limits how much your bill can change each year as a result of revaluation. This means changes to your bill are phased in gradually, if you’re eligible.  The scheme applies only to the bill based on a property at the time of revaluation, not to RV changes due to changes to the property after the revaluation date.  

We will adjust your bill automatically if your property is eligible.

Changes are limited to the following per cent plus inflation.

 

RV

2017/18

2018/19

2019/20

2020/21

2021/22

UPWARDS CAP

SMALL

<£20,000

5%

7.5%

10%

15%

15%

MEDIUM

£20,000 to £100,000

12.5%

17.5%

20%

25%

25%

LARGE

>£100,000

42%

32%

49%

16%

6%

DOWNWARDS CAP

SMALL

<£20,000

20%

30%

35%

55%

55%

MEDIUM

£20,000 to £100,000

10%

15%

20%

25%

25%

LARGE

>£100,000

4.1%

4.6%

5.9%

5.8%

4.8%

Inflation 2%; standard multiplier 47.9p; small business multiplier 46.6p

Example 1 - Large RV - increase

2010 RV = £65,000, 2017 RV = £200,000
2016 BILL = £65,000 x 49.7p = £32,305.00

Base Liability (BL) = £65,000 x 48.4p = £31,460.00
Appropriate Fraction (AF)  = (142.0 x 1.02)/100 = 1.44840
Notional Chargeable Amount (NCA) = £200,000 x 46.6p = £93,200.00

BL x AF = £45,566.66

Transition = £45,566.66 - £93,200.00 =- £47,633.34

Small Business Premium (SBP) = £200,000 x (47.9p – 46.6p) = £2,600.00

Due = (BL x AF) + SBP =£45,566.66 + £2,600.00 = £48,166.66

2017/18 Bill:

£200,000 x 47.9p = £95,800.00
Less transition = -£47,633.34

Amount payable = £48,166.66

Example 2 - Large RV - reduction

2010 RV = £120,000, 2017 RV = £110,000
2016 BILL = £120,000 x 49.7p = £59,640.00

BL = £120,000 x 48.4p = £58,080.00
AF = (95.9 x 1.02)/100 = 0.978180
NCA = £110,000 x 46.6p = £51,260.00

BL x AF = £56,812.69

Transition = £56,812.69 – £51,260.00 = £5,552.69

SBP = £110,000 x (47.9p – 46.6p) = £1,430.00

Due = (BL x AF) + SBP =£56,812.69 + £1,430.00 = £58,242.69

2017/18 Bill:

£110,000 x 47.9p = £52,690.00

Plus transition = £5,552.69