Understanding transitional relief/surcharge
Business Rates customers face a periodic general revaluation of the rateable values of their business premises. This process ensures that the rateable values given to each property, and which ultimately are used to calculate business rates bills, are a true reflection of the current rental values of properties at that time.
As a result of this process, businesses may find that they face a large increase or decrease in their Non-Domestic Rates bill.
To try to minimise the financial effect that a general revaluation may have on businesses, the government introduced Transitional Arrangements.
These regulations aim to ‘phase in’ any adjustments to the amount payable by a business. The phasing in process is aimed at customers facing increases in their bills and businesses receiving large reductions may also be affected by transitional arrangements. This may be reflected in your bill as transitional relief or transitional surcharge.
The principle behind this scheme is to ensure that businesses will not either be expected to pay, or receive a reduction in their bills, by more than a pre-set percentage each year which is determined by the Government.
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