NI businesses urged to take part in rates revaluation

The rateable value of a property is worked out using its Net Annual Value, in many cases significantly impacted by the Covid-19 pandemic

The process of revaluing commercial properties in Northern Ireland for rates is beginning this week.

Rates are a property tax based on the rental value of a property.

Business owners will receive an online code or paper questionnaire to provide Land and Property Services (LPS) with all the information required to revalue their properties.

The pandemic has had significant impact on the value of different types of property.

For example, logistics facilities and retail parks have been in high demand.

Some of the longer term impacts are not yet clear, such as how working from home will impact office valuations.

Finance Minister Conor Murphy urged businesses to participate, saying: "Business owners and trade bodies have been calling for more regular revaluations

"Reval2023 responds to these calls, putting us on a three year revaluation cycle."

• Commercial properties in NI to have rates revalued

• Firms express 'unhappiness' at rates revaluation

The rateable value of a property is worked out using its Net Annual Value (NAV).

NAV is an assessment of the annual rental value that the property could reasonably be let for at a fixed point in time.

The NAV is then multiplied by the "rate in the pound" to produce the annual bill.

Currently the NAV is based on 2018 values. The new valuation list will be based on October 2021 rental values.

This new list will then be used to calculate rates bills from 1st April 2023.

The valuation of pubs and hotels is partially based on their turnover.

LPS is working with industry groups to deal with the complications arising from the facts that those businesses were closed or restricted for long periods during the pandemic.