Transitional Relief

Government recognises that it has been around 30 years since the last revaluation, and while the new system will be fairer overall, the changes being introduced may mean some rate payers will be faced with significant increases.
There was strong support for transitional measures during the 2004 consultation, but there also needed to be a balance between the period and extent of the transition and the impact on other ratepayers who will pay a little extra to fund the relief.
The Scheme will provide for householders whose bills have increased by more than 33% over and above what their bill would otherwise have been under the current rental based system to receive relief.
It will be awarded over three years, from April 2007 to 31 March 2010 on the basis that in the first year the relief will be awarded on the full amount over the 33% threshold, in the second year two thirds and in the third year one third. The full rates will become payable in April 2010.
Almost 100,000 households will receive transitional relief, with an average award of £178 in 2007/08.
The details of the arrangements will be published well in advance of the issue of rate bills.
Below we have included three examples of how transitional relief is calculated as well as a link to a ready reckoner which will calculate levels of relief automatically.