Revaluations of non-domestic properties are carried out at regular intervals to reflect changes in the property market.
The last revaluation was effective from 1 April 2023 based on property values on 1 April 2021.
Although a revaluation is meant to be revenue neutral - so the overall tax burden for the country as a whole is not altered (in real terms) - individual ratepayers can potentially face large increases in their rates bills.
Relief
To mitigate the effects of these potential large increases the Government has introduced a transitional scheme that limits the amount of increase a property can face when comparing the 2022/2023 liability with the 2023/2024 liability.
To do this the Government has set the amounts by which a property’s rates can increase (taking into account inflation) year on year during the life of the list and depending on the rateable value of the property as follows:
Maximum increase in rates
2023 / 2024
- RV less than £20,001 - 5%
- RV greater than £20,000 and less than £100,001 - 15%
- RV greater than £100,000 - 30%
2024 / 2025
- RV less than £20,001 – 10%
- RV greater than £20,000 and less than £100,001 – 25%
- RV greater than £100,000 – 40%
2025 / 2026
- RV less than £20,001 - 25%
- RV greater than £20,000 and less than £100,001 - 40%
- RV greater than £100,000 - 55%
From 1 April 2023 there is no corresponding scheme to limit the amount a property’s rates can decrease following revaluation.
For further information concerning the calculation of Transitional Relief, please contact the Business Rates section on 01246 345471 or email revenues.businessrates@chesterfield.gov.uk