Rating Multiplier (Rate Poundage)
The local authority works out the Business Rates by multiplying the rateable value of the property by the appropriate multiplier. From 1 April 2012 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 multipliers for each financial year for the whole of England. They normally change both multipliers every year in line with inflation and to take account of the cost of 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 the year.
The relevant multipliers from 1 April 2000 to 31st March 2016 are available to view in the table below.
Transitional arrangements phase in the effect of significant changes in liability which arose from the 2010 revaluation of non-domestic property. Where appropriate, these arrangements will operate until March 2013 when the current transitional scheme is due to finish. There are limits on the percentage by which bills may increase or decrease in real terms each year. After the limits have been applied, an adjustment for the effects of inflation is made to calculate the amount payable. The inflation factor to be used in 2012/13 is 1.056%. Special rules deal with changes in rateable values and the merger or splitting of existing properties.
How are increases limited by Transitional Relief?
Your bill each year will be based on your rateable value times the multiplier. However, if this means the amount you have to pay goes up and the increase would exceed the limits given in the table below, you will qualify for transitional relief.
A table showing the maximum increase each year over the life of the scheme (before allowing for inflation) is available to download below. The limits shown in the table will be applied each year until you are paying the full amount.
Again your bill each year will be based on your rateable value times the multiplier. However, if this means the amount you have to pay goes down and the reduction would exceed the limits given in the table below, the reduction will be limited.
A table showing the maximum reduction each year over the life of the scheme (before allowing for inflation) is available to download below. The limits shown in the table will be applied each year until you are paying the correct amount.
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 which relates to any increase in rateable value due to those changes. Further information about transitional arrangements may be obtained from the Business Rates Section of Cannock Chase District Council or the official government website.
Last Updated: 15/03/2017