How Are Rates Calculated?This section contains information on
Domestic properties:The following calculation is used to calculate your domestic rate bill. Rateable Capital Value X (Domestic Regional Rate + Domestic District Rate) = Rates Payable Rateable Capital Value is worked out by taking the capital value of your property i.e. the amount your property could reasonably have sold for on 1 January 2005 and deducting any exemptions. Domestic rates are charged on the Rateable Capital Value of a property up to a maximum value. This maximum is applied automatically to properties which have a Rateable Capital Value above the maximum. The Rateable Capital Value on which your your rates are assessed is shown on your bill. Domestic Regional Rate is the number of pence in each pound of the value of your property that you will pay in rates to the central government. The Northern Ireland Executive (The Assembly) sets this rate. This revenue helps fund public services such as roads, education and healthcare. Domestic District Rate is the number of pence in each pound of the value of your property that you will pay in rates to your district council. Your district council sets this rate. The revenue generated helps fund district council services such as bin collection, tourism and recreational facilities. If your property has mixed use, each part will be assessed separately for rates. An example of "mixed use" is a shop (non-domestic) with a flat (dmestic). Rates Payable. If you get help to pay your bill (for example, Housing Benefit, Rate Relief or Lone Pensioner Allowance) we take this off the amount of rates due, leaving the amount you must pay for 2009/2010. CappingIf your home has a capital value of more than £400,000 your rate bill will be automatically ‘capped’. This means that the amount you need to pay will be worked out as if your capital value was £400,000. This will be shown on your bill. Transitional reliefIn April 2007 changes took place to the domestic rating system in Northern Ireland. Transitional relief helps ratepayers whose rate bill has increased by more than 33% above the amount that would otherwise have been payable in rates for the property under the old Net Annual Value (NAV) system. Transitional relief will be provided automatically over a three-year period from 1 April 2007 to 31 March 2010.
From 1 April 2010, ratepayers will have to pay the full amount of rates. Additional information on Transitional Relief and a Transitional Relief Calculator is also available. Non-domestic propertiesWe will continue to work out rate bills for non-domestic properties using the Net Annual Value (NAV) multiplied by the total of the non-domestic regional rate and the non-domestic district rate. If your property has mixed use, (such as a shop (non-domestic) with a flat (domestic) above it) each part will be assessed separately for rates. Non-domestic vacant propertiesVacant non-domestic properties with a rateable value of £2000 or above are liable for vacant rating. This means that the person entitled to possession (usually the owner) is liable to pay 50% of the rates due after the three-month exemption period that applies to vacant properties. Certain other exemptions may apply. For more information:
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