|
National Non-Domestic Rating
Multiplier
| The local authority works out the Business Rates
bill by multiplying the rateable value of the property by the
appropriate multiplier. From 1 April 2005 there are two
multipliers, the standard non-domestic rating multiplier and the
small business non domestic rating multiplier. The former is higher
to pay for small business rate relief. |
 |
The Government sets the multiplier for
each financial year for the whole of England. The Government
normally changes both multipliers every year in line with
inflation. By law, the multipliers cannot go up by more than the
rate of inflation apart from some minor adjustments to counteract
losses from appeals, and in relation to the standard multiplier, to
pay for small business rate relief. In the year of a revaluation it
is set at a level which will keep the total amount raised in rates
after the revaluation the same as before, plus inflation for that
year.
The multipliers for each financial year are
shown below:
|
Financial Year |
National Non-
Domestic Multiplier
(rate in the pound) |
Small Property
Multiplier |
Small
Business
Rate
Relief |
|
1990/1991 |
0.348 |
|
|
|
1991/1992 |
0.386 |
|
|
|
1992/1993 |
0.402 |
|
|
|
1993/1994 |
0.416 |
|
|
|
1994/1995 |
0.423 |
|
|
|
1995/1996 |
0.432 |
|
|
|
1996/1997 |
0.449 |
|
|
|
1997/1998 |
0.458 |
0.449 |
|
| 1998/1999 |
0.474 |
0.465 |
|
|
1999/2000 |
0.489 |
0.480 |
|
|
2000/2001 |
0.416 |
|
|
|
2001/2002 |
0.430 |
|
|
|
2002/2003 |
0.437 |
|
|
|
2003/2004 |
0.444 |
|
|
|
2004/2005 |
0.456 |
|
|
|
2005/2006 |
0.422 |
|
0.415 |
|
2006/2007 |
0.433 |
|
0.426 |
|
2007/2008 |
0.444 |
|
0.441 |
|
2008/2009 |
0.462 |
|
0.458 |
|
2009/2010 |
0.485 |
|
0.481 |
| 2010/2011 |
0.414 |
|
0.407 |
Transitional Arrangements
Property values normally change a good deal between each
revaluation. Transitional arrangements help to phase in the effects
of these changes by limiting increases in bills. To help pay for
the limits on increases in bills, 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 amount is
due (rateable value times the appropriate
multiplier).
The scheme applies only to the bill based on a property at the time
of the revaluation. If there are any changes to the property after
1st April 2005, transitional arrangements will not normally apply
to the part of a bill that relates to any increase in rateable
value due to those changes. Any transitional adjustments are shown
on the front of this
bill.
2010 REVALUATION - TRANSITIONAL RELIEF
SCHEME
Transitional Relief is designed to reduce the impact of any
significant changes in the rateable value resulting from
Revaluation whether the change is up or down. Tendring District
Council will automatically include transitional relief when we
calculate your
bill.
Transitional relief limits the percentage your business rates bill
can be increased or decreased each year following revaluation. The
transitional relief will apply each year until your bill reaches
what your full bill would have been in 2010. The full 2010 bill is
calculated by multiplying the rateable value by the
multiplier.
The scheme will cap increases to rates bills over a five-year
period and will be funded by capping reductions in other rates
bills. The caps will be structured as
follows:
| Rating Year |
2010/11 |
2011/12 |
2012/13 |
2013/14 |
2014/15 |
| upward cap (small properties) |
5% |
7.5% |
10% |
15% |
15% |
| upward cap (large properties) |
12.5% |
17.5% |
20% |
25% |
25% |
| downward cap (small properties) |
20% |
30% |
35% |
55% |
55% |
| downward cap (large properties) |
4.6% |
6.7% |
7% |
13% |
13% |
| Note: there are year on year caps on increases. For instance,
the maximum increase for small properties over 5 years would be
64%. But a small property with an increase of 7% would reach their
full bill in year 2. |
What are small and large properties?
A small property is a property with a 2010 rateable value below
£18,000 All other properties are large
properties. |