Fairness & Equality Advantages of a Rating System Reliable Predictive Reasonably easy to collect Hard to evade Transparent Disadvantages Unpopular - fixed costs The rates liability Require Experts Need for regular revaluations Global Appeal
What is Rateable? The Hereditament 4 ingredients (all required) Actual Exclusive Beneficial Transience What's not rateable (schedule 11) Agricultural Lands & Buildings Public parks Lighthouses Cemetery “the taxing authority decides how much money it wants and apportions the burden (rateably) between ratepayer”
Who
LPS (Valuation) assess the Net Annual Values (NAV), produce and maintain the Valuation List.
Department of Finance (DoF) responsible for policy, rate reliefs and Regional Rate poundage.
11 District Councils set their own Non Domestic District Rate poundage.
LPS (Revenues & Benefits) calculate rate bills using the NAV and rate poundages, apply reliefs, collect rates and then redistribute monies.
does what
Calculation of Rates Bill NAV x (Regional Rate + District Rate) = Rates Liability Example : Non Domestic Property in Belfast with a Net Annual Value of £50,000 £50,000 x (0.279 (Regional Rate) + 0.264147 (District Rate) = £27,157* *Based on 2021/22 Rate Poundages
Revaluations in Northern Ireland
Rating – is “ad valorem”
The basis of value for non domestic property is the rental value at the statutory valuation date.
The occupier is liable
Or persons entitled to occupation (if vacant)
Businesses have called for regular revaluations
Reval 2023 puts us on a 3 year revaluation cycle
Timeline of Non Domestic Revaluations NI v GB
Revaluation – The Task
Non Domestic Revaluation Over 74,500 properties Shops, offices, factories, warehouses, pubs, playing fields, power stations, cinemas, hotels, schools, hospitals Business rates yield approx. £675 Million per year. Rates make a vital contribution to critical frontline public services and local council services Hospitals, Schools, Emergency Services Locally – Leisure, Tourism, Waste management
Key Messages
Regular revaluations are essential to maintain fairness & equality between ratepayers
A revaluation does not increase or decrease the total NI Rates revenue.
Revaluations are about redistributing the rate burden , by rebalancing business rates.
Revaluations ensures business rates stay up-to date and reflect local economic change.
Revaluations reflect relative changes between properties that occur over time
Key Dates
1 October 2021: Statutory valuation date. The valuations represent an estimated rental value of the property at this date.
1 January 2023: LPS published a draft schedule of values online where businesses can check their valuation and compare it with similar property types. There is an opportunity to request and informal review.
1 April 2023: The new Non Domestic Valuation List comes into force.
District
Antrim and Newtownabbey
£131,982,787 £129,603,974 -£2,378,813 -1.8%
Ards and North Down £101,357,194 £100,279,635 -£1,077,559 -1.1%
Armagh City, Banbridge and Craigavon £147,180,015 £143,443,542 -£3,736,473 -2.5%
Belfast £524,832,608 £524,927,591 £94,983 0.0%
Causeway Coast and Glens £96,891,400 £99,970,075 £3,078,675 3.2%
Derry City and Strabane £129,027,906 £125,772,352 -£3,255,554 -2.5%
Fermanagh and Omagh £103,642,323 £102,018,816 -£1,623,507 -1.6%
Lisburn and Castlereagh £131,190,972 £133,966,370 £2,775,398 2.1%
Mid and East Antrim £100,242,542 £98,385,598 -£1,856,944 -1.9%
Mid Ulster £105,732,676 £109,761,859 £4,029,183 3.8%
Newry, Mourne and Down £120,936,189 £114,671,056 -£6,265,133 -5.2%
Northern Ireland £1,693,016,612 £1,682,800,868 -£10,215,744 -0.6%
NI Wide • 3
• 1
• 7 see
• Newry
• Total
is down0.6%
districts see NAV increase
stays the same
NAV decline
largest at 5%
NAV
Change in NAV between Valuation Lists
NAV
NAV 2020 List Total NAV 2023 List Change in Total NAV % Change
Reval Outcomes • 74,569 properties in new list • 33 Primary Classes – 16 see a fall in total NAV • Warehouses up 11% • Offices up by 10% • Shops down by 4% • Hotels down by 24% • Over 75% have an NAV under £15K Antrim and Newtownabbey 0.08 Ards and North Down 0.06 Armagh City, Banbridge and Craigavon 0.09 Belfast 0.31 Causeway Coast and Glens 0.06 Derry City and Strabane 0.08 Fermanagh and Omagh 0.06 Lisburn and Castlereagh 0.08 Mid and East Antrim 0.06 Mid Ulster 0.06 Newry, Mourne and Down 0.07 NAV Breakdown by District Council
Early
Early Reval Outcomes
Total NAV Change per district between lists (6 Dec)
Count H Total NAV 2023 List Change in Total NAV % change NAV Antrim and Newtownabbey 4,486 £129,524,024 -£2,976,903 -0.02 Ards and North Down 5,043 £100,416,640 -£985,022 -0.01
District
Armagh 7,765 £142,741,722 -£4,301,783 -0.03 Belfast 16,909 £522,238,926 -£1,964,502 0.00 Causeway Coast and Glens 6,077 £99,481,075 £2,565,175 0.03 Derry City and Strabane 5,621 £125,809,752 -£3,269,204 -0.03 Fermanagh and Omagh 5,927 £101,931,896 -£1,869,957 -0.02 Lisburn and Castlereagh 4,438 £133,813,580 £2,624,498 0.02 Mid and East Antrim 4,938 £98,795,547 -£1,921,205 -0.02 Mid Ulster 6,530 £108,490,312 £2,001,466 0.02 Newry, Mourne and Down 6,865 £114,723,656 -£6,012,083 -0.05 Northern Ireland 74,599 £1,677,967,130 -£16,109,520 -0.01
• Valuation list change is down 1% overall • 33 Primary Classes – 16 see a fall in total NAV
• Shops down by 4%
Over
• Hotels down by 24% • Warehouses up 11% • Offices up by 10% •
75% have an NAV under £15K
DISTRICT
Retail
Count 8th List Total NAV 9th List Total NAV Diff Multiplier
Antrim and Newtownabbey 1,022 £29,169,540 £28,516,440 -£653,100 0.98
Ards and North Down 1,521 £28,905,520 £28,807,230 -£98,290 1.00
Armagh City, Banbridge and Craigavon 2,116 £40,190,050 £38,244,575 -£1,945,475 0.95 Belfast 4,375 £103,771,750 £95,126,795 -£8,644,955 0.92
Causeway Coast and Glens 1,498 £20,577,280 £20,609,370 £32,090 1.00
Derry City and Strabane 1,451 £29,658,765 £27,604,597 -£2,054,168 0.93
Fermanagh and Omagh 1,233 £21,618,790 £19,788,180 -£1,830,610 0.92
Lisburn and Castlereagh 1,044 £31,936,360 £31,394,920 -£541,440 0.98
Mid and East Antrim 1,398 £21,422,340 £20,969,840 -£452,500 0.98
Mid Ulster 1,428 £19,212,250 £18,635,330 -£576,920 0.97
Newry, Mourne and Down 1,856 £30,297,990 £28,646,800 -£1,651,190 0.95
Grand Total 18,942 £376,760,635 £358,344,077 -£18,416,558 0.95
Shops • 18,942 properties in new list • Total NAV £376 Million • Total NAV is down 4% between lists • Total NAV for 9 districts down between lists • Change in Ards/Causeway is neutral • Belfast largest decrease at 8%
Shops
• 3 districts – more than 90% of retail will see NC or a decrease
• Some neighbourhood shops will see increases – circa 10%
• NI wide 86.5% of retail will see NC or decrease
• Belfast 84% no change or decrease
• Derry & Strabane 93% no change or decrease
• Shopping centres in general are down
Reliefs
75% of non domestic properties are entitled to some form of rates relief.
This amounts to £243 million of relief
Reliefs include small business rates relief (29,511)
Exemptions (10,006)
Industrial distinguishment (4,562)
Sport & Recreational Relief (831)
Next Steps • Jan 11 Draft schedule of values released online • Early opportunity for ratepayers to check their NAV • Informal review process • Contact LPS and provide Rent/evidence & rationale • Contact via Phone or online contact form • Ralq website no longer available • Rate Poundages yet to be set so cant est accurate bill
