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Transitional Phasing Scheme 2017-2021
Rates revaluations are fiscally neutral across England, however individual rateable values and rates bills will increase or decrease. The government specifies how we phase in the resulting changes in rate bills.
In simple terms:
The charge based on the 1 April 2017 rateable value and small business multiplier is calculated
We compare this to the charge payable on 31 March. This determines whether an increase or decrease applies.
We apply the appropriate transitional phasing calculation (see tables below)
And compare this with the calculation at 1.
a. For increases if the calculation at 3 exceeds the calculation at 1, transition ceases to apply
b. For decreases if the calculation at 3 is less than the calculation at 1, transition ceases to apply
c. If transition applies we will show it on your rate demand
Where there are subsequent changes in rateable value, we modify the calculations in accordance with The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016 SI 1265. Legislation.gov.uk
Phasing calculations outside Greater London.
NB inflation is as at September of the previous year and for 2019/20 is 2.3%
Increases | 1 April 2017 rateable value less than or equal to £20,000 | 1 April 2017 rateable value greater than £20,000 and less than or equal to £100,000 | 1 April 2017 rateable value greater than £100,000 |
2017-2018 | add 5% and then add inflation | add 12.5% and then add inflation | add 42% and then add inflation (2%) |
2018-2019 | add 7.5% and then add inflation | add 17.5% and then add inflation | add 32% and then add inflation (3%) |
2019-2020 | add 10% and then add inflation | add 20% and then add inflation | add 49% and then add inflation (2.3%) |
2020-2021 | add 15% and then add inflation | add 25% and then add inflation | add 16% and then add inflation |
2021-2022 | add 15% and then add inflation | add 25% and then add inflation | add 6% and then add inflation |
Decreases | 1 April 2017 rateable value less than or equal to £20,000 | 1 April 2017 rateable value greater than £20,000 and less than or equal to £100,000 | 1 April 2017 rateable value greater than £100,000 |
2017-2018 | multiply by 80% and then add inflation | multiply by 90% and then add inflation | multiply by 95.9% and then add inflation (2%) |
2018-2019 | multiply by 70% and then add inflation | multiply by 85% and then add inflation | multiply by 95.4% and then add inflation (3%) |
2019-2020 | multiply by 65% and then add inflation | multiply by 80% and then add inflation | multiply by 94.1% and then add inflation (2.3%) |
2020-2021 | multiply by 45% and then add inflation | multiply by 75% and then add inflation | multiply by 94.2% and then add inflation |
2021-2022 | multiply by 45% and then add inflation | multiply by 75% and then add inflation | multiply by 95.2% and then add inflation |
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