Transitional ReliefTransitional Relief helps those ratepayers who are most affected by the change to the capital value system to budget and plan for the new rate increases. If your new capital value bill has increased by more than 33% above the amount you would have paid in rates for the current rating year under the NAV system, we will provide Transitional Relief automatically over a three-year period from 1 April 2007 to 31 March 2010. Certain eligibility criteria apply.
From 1 April 2010, ratepayers will have to pay the full amount of rates. How we calculated your Transitional Relief To calculate Transitional Relief we looked at the difference between what your rate bill would have been in the current rating year using the NAV system, plus 33%, and what your rate bill is under the new capital value system. We then apply the appropriate Transitional Relief percentage to the difference between these two figures. i) How to calculate what your rate bill would have been this year under the NAV system plus 33% To calculate the rates you would have paid if the NAV system still applied this year, we multiplied your NAV by the appropriate ‘Notional’ poundage figure for your council area i.e. NAV x notional poundage (to find the poundages for your council area please see table below the worked example). We then added 33% to this figure (in order to be eligible for Transitional Relief your new rate bill must be more than 33% above what your rate bill would have been for this year had capital values not been introduced). ii) How to calculate what your rate bill is under the new capital value system To calculate the rates you would be due to pay under the new capital value system, we multiplied your capital value by the appropriate ‘actual’ poundage figure for your council area i.e. capital value x actual poundage (to find the poundages for your council area please see table below the worked example). Worked Example Property situated in Belfast NAV as at 31/3/07 = £390 Capital value as at 1/4/07 = £350,000 What the rate bill would have been in 2007/2008 under the NAV system plus 33% i.e. NAV x notional poundage + 33% £390 x 3.904766 = £1522.86 £1522.86 x 33% = £502.54 £1522.86 + £502.54 = £2025.40 What your rate bill is under the new capital value system i.e. capital value x actual poundage £350,000 x 0.006031= £2110.85 Amount eligible for Transitional Relief in 2007/2008 i.e. New capital value bill – What rate bill would have been in 2007/2008 under the NAV system + 33% £2110.85 - £2025.40 = £85.45
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
