This revaluation will result in a new valuation list from 1 April 2023.
What is a Non-Domestic Rates Revaluation?
A rates revaluation is the reassessment of the individual Net Annual Values (NAVs) of over 74,000 business properties in Northern Ireland. Our valuation teams will assess the information each business submits and calculate new NAVs. These will be used to calculate business rate bills in April 2023.
Business rate bills are calculated by multiplying the NAV by the total non-domestic rate poundage (made up of the regional rate plus the district rate for the council area in which the property is located).
Why hold a revaluation now?
LPS will carry out this revaluation to ensure that business rates stay up-to-date and reflect local economic changes. It will distribute the rate liability fairly across all sectors, and in line with changes to rental values.
Social, economic and environmental circumstances change over time and do not affect all property sectors or geographical areas in the same way. If we use rateable values based on outdated levels of rents, this undermines the fairness and equality of the system.
The last Non-Domestic Revaluation was in 2020 and was based upon a valuation date of 1 April 2018. The new values will be based on a valuation date of 1 October 2021.
How will this affect me?
LPS will request business ratepayers to provide their rental and/or trading information in October 2021. The information collected will be analysed and used to produce new rateable values. These values will then be used to calculate rate bills from April 2023.
Why should I submit my information?
Our team of valuers will assess all the information you send to calculate your new rateable value. Completing the questionnaire fully and providing updated information will help ensure that you pay the correct amount of business rates from April 2023.
Legislation requires that business ratepayers must provide the information; there may be a penalty for non-compliance.
LPS is consulting with professional bodies and trade associations during the revaluation project and will provide help and advice for businesses.
How long will this revaluation take?
The process to gather information from businesses will begin at the beginning of October 2021. You will receive a letter inviting you to complete a Rent & Lease questionnaire (RALQ), either an online or paper version. All information must be submitted by 31 December 2022 to allow our teams to calculate the new rateable values. These will be used to produce April 2023 rate bills.
Is the revaluation about collecting more money?
The amount of money to be raised through rates will not change as a direct result of NI Reval2023. The purpose of a revaluation is to maintain fairness in the rating system by rebalancing business rates and not to raise more revenue.
What impact will the revaluation have on my rate bill?
As a result of the revaluation many business rate bills may change but some will stay the same. There may be some fluctuation but NI Reval2023 will rebalance business rates so that they remain fair and equitable.
The total amount of revenue to be raised through rates in general terms is fixed and will not change as a result of NI Reval2023. This revenue is the total amount of money needed to be raised from rates to pay for public services such as health, education and infrastructure as well as leisure facilities, tourism and waste management.
What may change is the proportion of the burden each ratepayer contributes. In general terms the impact on business ratepayers will depend on the relative changes in local rental values from the last non-domestic revaluation (that is from the valuation date of 1 April 2018).
When ratepayers are paying rate bills which reflect current property values the system is rebalanced.
How will my property be valued?
There are three industry standard methods to assess a rental value:
LPS analyses all actual rents collected, this method is used for the majority of properties such as shops, offices, warehouses and factories.
Receipts and Expenditure method
LPS analyses trading information such as turnover or throughput. This method is used to assess the rental value of a property where there is limited or no rental evidence available and the property’s rental value is related to its level of trade. A pub would be an example.
LPS analyses building costs and land values, this method is used to assess the rental value of a property where there is no rental or trading information available, for example a school or hospital.
Will domestic properties be revalued?
There are no plans to have a domestic revaluation.
Do online retailers pay rates?
Yes. Rates are a tax on the occupation of property. If an online retailer occupies a property in Northern Ireland they are liable for the rates on that property.
Why do businesses see increases or decreases in their valuations after a revaluation exercise?
The basis of valuation for non-domestic properties is their estimated rental value at the valuation date. This is set by legislation. Only the factors that are known by a landlord and a tenant when they agree on a rent can be considered when valuing a property.
NI Reval2023 will reflect market changes that have taken place between the last valuation date of 1 April 2018 and the new valuation date of 1 October 2021.
LPS has asked non-domestic occupiers to complete a Rent & Lease Questionnaires. This is an opportunity for ratepayers to contribute to the production of a fair and equitable valuation list as the analysis of this evidence is used to develop the new valuation list.
Can I check my valuation?
Valuations can be checked via the Valuation Lists page.
Remember to compare your property with others that have similar characteristics such as the year the property was built, and the size, location or type of property. For example if you occupy a shop in a row of shops, then a useful comparison would be to view the valuation of the other shops in the same row. If everything is the same in terms of property size, building layout etc then the values of these properties should be similar.
Comparing a small neighbourhood shop with a large out of town shop for example would not be useful in terms of property valuation because the property characteristics are very different.
How do I request a review if I think my valuation is inaccurate?
If you think that your valuation is inaccurate you can submit an application for a revision of the valuation list to the District Valuer. This can be submitted at any time and the application form can be found on the nidirect website at Application to district valuer for revision of the valuation list.
On receipt of an application the District Valuer’s office will contact you to arrange an inspection and discuss any concerns you may have. It is important to make you aware that requesting a revision of the valuation list may also lead to an increase in the valuation of your property.
Will Reval2023 change the system used to calculate rates on non-domestic properties?
NI Reval2023 will not review or reform the rating system for non-domestic properties. Decisions on rates reform are a matter for the NI Executive. NI Reval2023 is a revaluation exercise to rebalance the rates liability fairly across all business sectors in line with changes to rental values that have occurred since the previous revaluation.
The current valuation list is based upon a valuation date of 1 April 2018. After NI Reval2023 the valuation date will become 1 October 2021.
How are rates bills calculated?
A rateable valuation is known as a net annual value (NAV). To arrive at your rates bill the NAV is multiplied by a combination of the district and regional rates in the pound (rate poundages). The rate poundages are reviewed annually to pay for critical frontline and local services.
The district rate is set by the 11 district councils. Each council area sets their own rate.
The regional rate is determined by the Department of Finance.
As example of how a rates bill is calculated is shown below. It is based on a non domestic property in Belfast City Council area with a valuation of £50,000:
Net Annual Value x (Regional Rate+ District Rate) = Rates Bill
£50,000 x (0.279 (Regional Rate) + (0.264147 (District Rate) = £27,157*
*Based on 2021/22 Rate Poundages
You can find further information on the NI Business Info website at How business rates are calculated.
If my property is reduced in value following NI Reval2023 will this lead to a reduction in my rate bills?
It is too early to say. The valuation produced by NI Reval2023 is only one part of the rates calculation process and the impact on individual rate bills will not be fully known until the rate poundages are set for 2023/2024.
NI Reval2023 is a revaluation exercise to rebalance rates liability fairly across all business sectors. Even if property values following NI Reval2023 decline or increase, the NI Executive and NI district councils have the ability to adjust the tax rate (regional rate) or rate in the pound (district rate) each year in order to raise a given amount of money to pay for public services.
Is the information I supply covered by Data Protection Legislation?
Yes, all the information gathered from the questionnaire is subject to the Data Protection Act and General Data Protection Regulation. LPS will use the information you supply for rating and valuation purposes and maintenance of your rate account. Your information will not be disclosed to third parties or other government departments unless the law requires or allows LPS to do so.
More information can be found in the LPS Privacy Notices.
What happens next?
From 1 October 2021, you will receive a letter inviting you to complete a Rent & Lease questionnaire (RALQ). Some business sectors will be asked to complete the RALQ online, and others will receive a paper version that will be posted to you directly.
If you have a query about NI Reval2023, we’re here to help. You can contact us through the online contact form.
More useful links
- NI Reval2023
- NI Reval2023: Calculating business rates
- NI Reval2023: Rent and lease questionnaires
- Contact the NI Reval2023 team