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 If we use rateable values based on outdated levels of rents, this undermines the fairness and equality of the system.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 2021 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 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 a 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.
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