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Distinguishments which may not be liable for the full rates as assessed using the Rates Calculator

Calculating your rates
For domestic properties, the rateable capital value is multiplied by the total of the domestic regional rate and the domestic district rate. For example:

£125,000 (rateable capital value) x 00.005830 (the total of the domestic regional rate and the domestic district rate) = £725.00 (gross amount due).

If you get help to pay your bill (for example, Housing Benefit, rate relief, or transitional relief) we take these off the gross amount (the amount before deductions are made) that is due, leaving the amount you must pay for 2007/2008. Then we add on any amounts you have still not paid from previous financial years.

If this is the first time you have received a rate bill for this property, and there is a balance outstanding from a previous period, this outstanding balance will be based on the Net Annual Value (NAV) of your property, rather than its capital value.

Capping
If your home has a capital value (as at 1 January 2005) of more than £500,000 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 £500,000. This will be shown on your bill.

Transitional relief
Transitional 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. This means that if your bill has increased by more than 33% above the amount you paid in rates for this property under the old 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.

  • In the first year (1 April 2007 to 31 March 2008), we will provide transitional relief on the full amount over the 33% threshold.
  • In the second year (1 April 2008 to 31 March 2009) we will provide it on two-thirds of the amount over the 33% threshold.
  • In the third year, (1 April 2009 to 31 March 2010) we will provide it on one-third of the amount over the 33% threshold.

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 properties
Vacant 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.

Some property types and Business distinguishments will not be liable for the full rates as assessed above.

Reduction of rates on certain properties used for recreation
This provides for an allowance of 80% where the property is used for the purposes of a prescribed recreation by an organisation not established or conducted for profit and that does not employ professionals.

Community halls
From 1 April 2006, under the 2006 Order, community halls that are occupied by non-charitable organisations may qualify for a full exemption.

Distinguishment in the valuation list of properties used for public, charitable or certain other purposes
This provides for full or partial relief from rates for organisations not established or conducted for profit where their property is used for public, charitable or certain other purposes, for example, church property occupied by full time clergy.

Freight and transport
This allows for exemption for industrial and for freight transport proprties. Occupiers of such properties are entitled to 75% rate relief, and therefore pay rates at 25% of the full rate. It is granted on the condition that it is passed on to industry by lower freight charges. To qualify for freight transport derating, the use of the facilities must involve the handling and shipment of goods that are neither owned by, nor intended for, the use of the operator.

Industrial
Prior to April 2005 properties occupied and used for industrial purposes were exempt from rates in Northern Ireland. The Government decided that industrial derating would be phased out in Northern Ireland from 1 April 2005 onwards, but full rates on industrial property will not become due until 1 April 2011. The percentage amount of your full rate liability payable from 1 April 2005 onwards is as follows: