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2005 Revaluation – September 2004 Update
The Government has recently announced its proposals for implementing the 2005 rates revaluation which comes into effect from 1st April next year. The key proposals contained in their consultation document are:-
1.0 Uniform Business Rate - A potential reduction from the current level of 0.456 to 0.415. As always the Government excludes inflation from their calculations so the actual figure for April next year is likely to be 2½% higher, i.e. 0.425. (But see paragraph 3.0 below).
2.0 Rates transition – A scheme will be introduced for the first four years of the new list only i.e. expiring 1st April 2009. This will limit both increases and decreases in rate liability. The annual percentage limits, again excluding inflation, are:-
| Rate Year
|
Rates Increases (%)
|
Rates Decreases (%)
|
| 2005/06
|
12.5
|
7.0
|
| 2006/07
|
17.5
|
10.0
|
| 2007/08
|
20.0
|
17.5
|
| 2008/09
|
25.0
|
20.0
|
| 2009/10
|
Full rates apply
|
Full rates apply
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