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Property values normally change a good deal 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 amount is due (rateable value times the 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 the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to those changes.
The restrictions in increases and reductions for rates payable from 1 April 2005 are:
| Year | Upward Cap | Upward Cap | Downward Cap | Downward Cap |
| Large RV | Small RV | Large RV | Small RV | |
| £15,000 or above | Below £15,000 | £15,000 or above | Below £15,000 | |
| 2005-06 | 12.5% | 5% | 12.5% | 30% |
| 2006-07 | 17.5% | 7.5% | 12.5% | 30% |
| 2007-08 | 20% | 10% | 14% | 35% |
| 2008-09 | 25% | 15% | 25% | 60% |
| 2009-10 | n/a | n/a | n/a | n/a |
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Last reviewed 26 August 2008
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