11. 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% |
The following examples have been calculated based on the following:
Inflation ; Standard Multiplier ; Small Business Rate Multiplier
2016/17 0.8% 49.7 48.4
2017/18 2% 47.9 46.6
2018/19 3% 49.3 48.0
2019/20 2.3% 50.4 49.1
Example 1 – Medium RV increase
2010 RV = £7,500
2017 RV = £44,700
2017/18 Year 1
Base Liability [BL]: £7,500 x 48.4p = £3,630
Appropriate Fraction (transition limit & inflation)[AF]: 1.125 x 1.02 = 1.1475
Notional Chargeable Amount [NCA]: £44,700 x 46.6p = £20,830.20
Transition = (BL x AF) – NCA = £4,165.42 - £20,830.20 = -£16,664.78
2017/18 Bill:
Gross Charge £20,830.20
Transitional Relief -£16,664.78
Amount Due £4,165.42
2018/19 Year 2
BL: £4,165.42
AF: 1.175 x 1.03 = 1.21025
NCA: £44,700 x 48.0p = £21,456.00
Transition = £5,041.21 - £21,456.00 = -£16,414.79
2018/19 Bill:
Gross Charge ) £21,456.00
Transitional Relief -£16,414.79
Amount Due £5,041.21
2019/20 Year 3
BL: £5,041.21
AF: 1.20 x 1.023 = 1.2276
NCA: £44,700 x 49.1p = £21,947.70
Transition = £6,188.59 - £21,947.70 = -£15,759.11
2019/20 Bill:
Gross Charge £21,947.70
Transitional Relief -£15,759.11
Amount Due £6,188.59
Example 2 – Small RV decrease
2010 RV = £9,000
2017 RV = £2,250
2017/18 Year 1
Base Liability [BL]: £9,000 x 48.4p = £4,356.00
Appropriate Fraction (transition limit & inflation)[AF]: 0.80 x 1.02 = 0.816
Notional Chargeable Amount [NCA]: £2,250 x 46.6p = £1,048.50
Transition = (BL x AF) – NCA = £3,554.50 - £1,048.50 = £2,506.00
2017/18 Bill:
Gross Charge (£2,250 x 46.6p) £1,048.50
Transitional Premium £2,506.00
Amount Due £3,554.50
2018/19 Year 2
BL: £3,554.50
AF: 0.70 x 1.03 = 0.721
NCA: £2,250 x 48.0p = £1,080.00
Transition = £2,562.79 - £1,080.00 = £1,482.79
2018/19 Bill:
Gross Charge £1,080.00
Transitional Premium £1,482.79
Amount Due £2,562.79
2019/20 Year 3
BL: £2,562.79
AF: 0.65 x 1.023 = 0.66495
NCA: £2,250 x 49.1p = £1,104.75
Transition = £1,704.13 - £1,104.75 = £599.38
2019/20 Bill:
Gross Charge £1,104.75
Transitional Premium £ 599.38
Amount Due £1,704.13