A revaluation of all non-domestic properties in Scotland will come into affect on 1st April 2005. A new Valuation Roll will be published, containing these revised rateable values. The revaluation of these properties will result in some rateable values increasing and other rateable values decreasing. To protect businesses from sharp changes in the amount of their rates bills and to assist them to plan for the consequences of this revaluation, the Scottish Government introduced a Transitional Arrangements scheme.
The Transitional Arrangements scheme will limit the amount of the increase or the decrease in a business's Non-Domestic Rates bill following this revaluation. Initially, no business would face an increase in real terms in their rates bill of more than 12.5% or a decrease in real terms of more than 10%. This will be achieved by making an award of transitional relief. The initial award will be progressively phased out over a three-year period so by 2008-09 all businesses will be paying the true Non-Domestic Rates bill determined by its property's increased rateable value or will be benefiting to the full extent of its reduced rateable value.
To meet the Scottish Government's aim of phasing out transitional arrangements within a three-year period, entitlement to relief is being reduced in a structured manner. Consequently, in 2008-09 ratepayers will by paying the amount determined by the rateable value assigned to their property in the 2005 Revaluation. For example, if you received £249 in transitional relief in 2005-06:
(Please note: for the purposes of this example, an annual increase of 2.5% in the rates poundage has been assumed)
Entitlement to transitional arrangements is automatically calculated by us and will be shown on your Non-Domestic Rates bill.
If you currently pay Non-Domestic Rates to the Moray Council and you would like to ask a question about this transitional arrangements, please e-mail the Moray Council's Non Domestic Rates Team.