Notional PoundagesTransitional relief is awarded to those ratepayers whose rate bill under the new system in 2007/08 is at least 33% higher than what it would have been had the old NAV based system been in place this year. Since domestic rates were set only on the basis of individual capital values in 2007/08, no NAV based poundages were available. The Department therefore had to estimate notional domestic NAV poundages for each of the district councils and a notional domestic regional rate on an NAV basis for 2007/08 for the purposes of calculating transitional relief. Councils, when striking their rates, actually only set one single rate for each year. This is then converted into a separate domestic and non domestic rate. However, the Increase in both rates is the same year on year. Since the non domestic rate continues to be set on an NAV basis, the Department was therefore able to use the increase in this rate as a proxy for what the increase in the domestic rate would have been, had that been on an NAV basis. This increase was then applied to the previous year's domestic NAV poundages to arrive at notional values for 2007/08. In terms of the domestic regional rate, it had already been decided that this rate should increase by 6% between 2006/07 and 2007/08. Therefore, this percentage increase was applied to the 2006/07 NAV based domestic regional poundage to arrive at a notional domestic regional poundage for 2007/08 |
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