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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%

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