The latest information on transitional arrangements is now available.
The rateable values for all non domestic property (which includes all business premises) are recalculated every 5 years. The next revaluation is due to take affect from the 1st April 2010.
The assessment is carried out by the Valuation Office Agency, part of HM Revenue and Customs. The new values have now been published and can be viewed on their website at www.voa.gov.uk/2010.
The Valuation Office Agency will send a notification to each property throughout October and November 2009, giving details of the new rateable value and how it has been calculated. Queries regarding the 2010 rateable value should be made directly to Valuation Office on their dedicated helpline 0845 602 2010.
In line with the revaluation of properties, the Government has recently announced the thresholds for small business rate relief that will be used from 1st April 2010 these are shown below:
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Less than £6,000
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50% reduction in your business rates
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£6,000 to £11,999
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Between 1% and 49% of your business rates.
(The relief will be reduced by 1% for every £120 of rateable value above £6,000.)
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£12,000 to £17,999
(The ‘Buffer Zone’)
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You won’t get relief but you can claim exemption from the ‘small business rate supplement’
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Further announcements regarding the non domestic rate multiplier for 2010, the transitional relief scheme and the threshold for unoccupied property exemption are expected from the Government in the coming months.
Update December 2009 - Transitional Arrangements
The Government have announced the transitional arrangements that will apply from April 2010. These limit in the increase in the rates bill faced by some businesses as a result of the 2010 revaluation. This will be paid for by similarly phasing in the reduction in the rates bill that other businesses will benefit from following the revaluation.
The scheme will apply for the next five years, as shown below.
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2010/11
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2011/12
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2012/13
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2013/14
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2014/15
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Upward cap (small properties RV Less than £18,000)
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5%
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7.5%
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10%
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15%
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15%
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Upward Cap (large properties RV £18,000 and above )
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12.5%
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17.5%
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20%
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25%
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25%
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Downward Cap (small properties RV Less than £18,000)
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20%
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30%
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35%
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55%
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55%
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Downward Cap (large properties RV £18,000 and above )
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4.6%
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6.7%
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7%
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13%
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13%
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Please note that the percentage figures above will be subject to adjustment each year for inflation, which for 2010/2011 is taken to be -1.4% (as at Sept 2009).
This means that the largest increase in their rates faced by a business with a rateable value of under £18000 in 2010/11 will be 3.5%, following the adjustment for inflation, and for larger properties 11%.
Your entitlement to any relief under the transitional arrangement will be calculated automatically - there is no need to apply.
The Provisional Multiplier for 2010/2011 financial year
There are two multipliers; the small business non domestic rate multiplier, which is applicable to those that qualify and successfully apply for the small business relief, and the non-domestic rating multiplier, which includes the supplement to pay for the small business rate.
The small business non-domestic rate multiplier for 2010/2011 is 40.7p.
The non-domestic multiplier for 2010/2011 is 41.4p