NI Reval 2023 - Land & Property Services

Fairness & Equality 

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Advantages of a Rating System 

Reliable

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Predictive

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Reasonably easy to collect

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Hard to evade

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Transparent

Disadvantages 

Unpopular - fixed costs

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The rates liability

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Require Experts

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Need for regular revaluations

Global Appeal

What is Rateable? 

The Hereditament 

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4 ingredients (all required) 

Actual

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Exclusive

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Beneficial



Transience

What's not rateable (schedule 11) 

Agricultural Lands & Buildings

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Public parks

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Lighthouses

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Cemetery

“the taxing authority decides how much money it wants and apportions the burden (rateably) between ratepayer”

Who does what 

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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.

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11 District Councils set their own Non Domestic District Rate poundage.

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LPS (Revenues & Benefits) calculate rate bills using the NAV and rate poundages, apply reliefs, collect rates and then redistribute monies.

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”

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The basis of value for non domestic property is the rental value at the statutory valuation date.

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The occupier is liable

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Or persons entitled to occupation (if vacant)

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Businesses have called for regular revaluations

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Reval 2023 puts us on a 3 year revaluation cycle

Timeline of Non Domestic Revaluations NI v GB

Revaluation – The Task 

Non Domestic Revaluation

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Over 74,500 properties

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Shops, offices, factories, warehouses, pubs, playing fields, power stations, cinemas, hotels, schools, hospitals

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Business rates yield approx. £675 Million per year.

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Rates make a vital contribution to critical frontline public services and local council services

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Hospitals, Schools, Emergency Services

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Locally – Leisure, Tourism, Waste management

Key Messages 

Regular revaluations are essential to maintain fairness & equality between ratepayers

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A revaluation does not increase or decrease the total NI Rates revenue.

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Revaluations are about redistributing the rate burden , by rebalancing business rates.

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Revaluations ensures business rates stay up-to date and reflect local economic change.

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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.

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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.

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1 April 2023: The new Non Domestic Valuation List comes into force.

NI Wide

Change in NAV between Valuation Lists District

NAV 2020 List

Total NAV 2023 List

Change in Total NAV

% Change NAV

• 3 districts see NAV increase

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%

• 1 stays the same

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%

£1,693,016,612

£1,682,800,868

-£10,215,744

-0.6%

• 7 see NAV decline • Newry largest at 5% • Total NAV is down 0.6%

Northern Ireland

NAV Breakdown by District Council

Early Reval Outcomes • 74,569 properties in new list • 33 Primary Classes – 16 see a fall in total NAV • Warehouses up 11%

Newry, Mourne and Down 0.07 Mid Ulster 0.06

Mid and East Antrim 0.06

Antrim and Newtownabbey 0.08 Ards and North Down 0.06

Armagh City, Banbridge and Craigavon 0.09

Lisburn and Castlereagh 0.08

• Offices up by 10% • Shops down by 4%

Fermanagh and Omagh 0.06

• Hotels down by 24% • Over 75% have an NAV under £15K

Derry City and Strabane 0.08 Causeway Coast and Glens 0.06

Belfast 0.31

Early Reval Outcomes • Valuation list change is down 1% overall • 33 Primary Classes – 16 see a fall in total NAV • Shops down by 4% • Hotels down by 24% • Warehouses up 11% • Offices up by 10% • Over 75% have an NAV under £15K

Total NAV Change per district between lists (6 Dec) Total NAV Change in Total District Count H 2023 List NAV Antrim and Newtownabbey 4,486 £129,524,024 -£2,976,903 Ards and North Down 5,043 £100,416,640 -£985,022 Armagh Belfast Causeway Coast and Glens Derry City and Strabane Fermanagh and Omagh Lisburn and Castlereagh Mid and East Antrim Mid Ulster Newry, Mourne and Down Northern Ireland

7,765 16,909 6,077 5,621 5,927 4,438 4,938 6,530 6,865 74,599

£142,741,722 £522,238,926 £99,481,075 £125,809,752 £101,931,896 £133,813,580 £98,795,547 £108,490,312 £114,723,656 £1,677,967,130

-£4,301,783 -£1,964,502 £2,565,175 -£3,269,204 -£1,869,957 £2,624,498 -£1,921,205 £2,001,466 -£6,012,083 -£16,109,520

% change NAV -0.02 -0.01 -0.03 0.00 0.03 -0.03 -0.02 0.02 -0.02 0.02 -0.05 -0.01

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%

DISTRICT Antrim and Newtownabbey Ards and North Down Armagh City, Banbridge and Craigavon Belfast Causeway Coast and Glens Derry City and Strabane Fermanagh and Omagh Lisburn and Castlereagh Mid and East Antrim Mid Ulster Newry, Mourne and Down Grand Total

Count 1,022 1,521 2,116 4,375 1,498 1,451 1,233 1,044 1,398 1,428 1,856 18,942

Retail 8th List Total NAV 9th List Total NAV £29,169,540 £28,516,440 £28,905,520 £28,807,230 £40,190,050 £38,244,575 £103,771,750 £95,126,795 £20,577,280 £20,609,370 £29,658,765 £27,604,597 £21,618,790 £19,788,180 £31,936,360 £31,394,920 £21,422,340 £20,969,840 £19,212,250 £18,635,330 £30,297,990 £28,646,800 £376,760,635 £358,344,077

Diff Multiplier -£653,100 0.98 -£98,290 1.00 -£1,945,475 0.95 -£8,644,955 0.92 £32,090 1.00 -£2,054,168 0.93 -£1,830,610 0.92 -£541,440 0.98 -£452,500 0.98 -£576,920 0.97 -£1,651,190 0.95 -£18,416,558 0.95

Shops • 3 districts – more than 90% of retail will see NC or a decrease • Some neighbourhood shops will see increases – circa 10% • Shopping centres in general are down

• NI wide 86.5% of retail will see NC or decrease • Belfast 84% no change or decrease • Derry & Strabane 93% no change or decrease

Reliefs 

75% of non domestic properties are entitled to some form of rates relief.

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This amounts to £243 million of relief

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Reliefs include small business rates relief (29,511)

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Exemptions (10,006)

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Industrial distinguishment (4,562)

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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