Transitional arrangements phase in disproportionate increases or decreases in the rate bill for individual properties following the 5 yearly revaluation. The cause is the disproportionate increases or decreases in the rateable value of those individual properties compared to the general level of changes. The arrangements work by looking at 'last year's' amount due and adjusting it by a set percentage, specified by the Government, and the rate of inflation. Any increase is restricted so that the ratepayer does not pay the full disproportionate increase immediately the increase is phased in over a number of years.

 

Whether transitional arrangements are applicable to an individual property is determined by identifying small and large properties by reference to their rateable value and applying increase or decrease limits that reflect both inflation and the previous year's bill.

 

Different limits apply to small and large properties and to properties inside and outside Greater London. Outside Greater London a 'small' property is classified as a property with a rateable value of less than £18,000 and a 'large' property is classified as a property with a rateable value of £18,000 or over. Inside Greater London the same principle applies except that the threshold is £25,500.