Property values can change considerably between each revaluation.  Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation.  To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills.

Under the transition scheme, limits continue to apply to yearly increases and decreases until the full new amount is due.

The scheme only applies to the bill raised on a property at the time of the revaluation.  If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in the rateable value due to those changes.

Any transitional adjustments will be shown on the front of your rates bill.

A new, four year transition scheme came into effect from 1 April 2005 and increases are capped at the following levels:

Large properties: 12.5% in the first year, 17.5% in the second year, 20% in the third year, and 25% in the fourth year.

Small properties:  5% in the first year, 7.5% in the second year, 10% in the third year, and 15% in the fourth year.

Reductions in rates will be capped at the following levels:

Large properties:  12.5% in the first year, 12.5% in the second year, 14% in the third year, and 25% in the fourth year.

Small properties:  30% in the first and second years, 35% in the third year, and 60% in the fourth year.

For further information about transitional arrangements please telephone 01756 706281 or email: localtaxation@cravendc.gov.uk. Alternatively you can visit the Office of the Deputy Prime Minister website at www.local.odpm.gov.uk/finance/busrats/guide/index.htm