Update Preparation for the Revaluation in Northern Ireland is well underway and the New Valuation List will come into effect on 01 April 2015.
Land and Property Services (LPS), the body responsible for the Revaluation, is currently in the process of re-valuing all 72,500 non-domestic properties and by 01 April 2015 Certificates of Net Annual Value (NAV) and bills will be issued to all occupiers setting out the rates payable for 2015/2016. Some rate payers will see significant increases in their liability and even those with a lower NAV may end up paying more.
Alongside the Revaluation, a Review of Public Administration (RPA) is taking place, which will result in a reduction in the number of local Councils from 26 to 11 also from 01 April 2015. In addition to the effects of the Revaluation, RPA will impact on some rate liabilities as lower cost and higher cost Councils merge pushing up business rate poundages. The exact impact will remain unclear until the new Councils’ budgets and poundages are known in February 2015.
The Northern Ireland Executive has committed up to £30 million for a transitional rates relief scheme for rate payers who face excessive increases as a result of the creation of the new Councils. This is separate from any Revaluation transition scheme, which is still under consideration by LPS. The lack of detail of how the transition schemes will work and who will qualify is creating considerable uncertainty for rate payers.
Notwithstanding the complex nature of the Revaluation, which is being undertaken in particularly challenging market conditions, coupled with RPA, there are opportunities for occupiers to ensure their NAVs are fair and correct.
McAfee Commercial are actively advising clients on the impact of the Revaluation and influencing the new NAVs. McAfee Commercial can support you throughout the Revaluation process including dealing with prior agreement, NAV estimates and appeals, and if you would like to discuss any aspect of the Revaluation please contact Richard McLaughlin MRICS