Rates Bill passes its final stage - Wilson

Finance Minister, Sammy Wilson welcomed the support for the Rates (Amendment) Bill which passed its final stage in the Assembly today.
~ Tuesday, 7 February 2012

Some of the measures in the Bill provide for a large retail levy to fund additional help for small businesses as well as brightening up and encouraging use of long term empty retail premises typically found on Northern Ireland’s high streets. Following Royal Assent the legislation will come into effect on 1 April 2012.

Sammy Wilson said: “Today is a significant milestone for a vast number of Northern Ireland’s small businesses who continue to struggle in the current harsh economic climate and who will now benefit from the funding contained in the Rates (Amendment) Bill.

“The support of the Executive and Assembly for the introduction of this Bill demonstrates a clear commitment from Government to its responsibility to help stimulate the economy and to assist in any way possible to get Northern Ireland on the road to recovery.

“The large retail levy will fund much needed additional help for our small businesses while the Assembly has also approved measures aimed at making long term empty retail premises more attractive or getting them back into business.”

Although the small business rates relief scheme and large retail levy will be applied automatically, ratepayers are encouraged to submit applications to Land and Property Services (LPS) for other commercial rate reliefs.

The Minister continued: “The Bill allows business ratepayers to brighten up shop windows with non-commercial window displays without incurring full occupied rates. It also provides for a one year concession, during 2012/13, that will effectively allow 50% empty property relief to continue for a year. To receive the 50% rebate on retail properties empty for a year or more ratepayers must submit an application to LPS with evidence that the property, when last used, was for retail purposes.”

Referring to those who may be holding multiple premises. the Minister said: “From 1 April ratepayers occupying multiple premises, that is more than three in total regardless of size, will not be entitled to relief under the small business rate relief scheme.”

The Minister noted that there could be some teething difficulties in identifying multiples saying: “I would prefer to take action and be criticised for some imperfections than to take no action at all. This Assembly must recognise that the system is not perfect. Land & Property Services has already written to those that will be affected and urges those who have incorrectly been identified as multiples to contact the Agency and this issue can then be resolved.”

The Bill also includes the provision to clarify the valuation assumptions used at a non-domestic revaluation and also repeal the rule applied to properties referenced by their volume of trade, for example public houses. These changes will take effect at the next general revaluation scheduled for 2015.

Notes to editors:

1. The Rates (Amendment) Bill contains a number of measures that were subject to consultation in 2011. It is envisaged that the Bill should receive Royal Assent in March, subject to Assembly approval. Key measures such as the large retail levy, window displays in empty shops, temporary rebate for previously unoccupied hereditaments and the clarification of valuation assumptions will be operational from April.

2. The main provisions in the Bill are as follows:

(i) Clause 1: A provision to enable the Department to introduce a levy on large retail properties with a rateable value of £500,000 or more.
(ii) Clause 2: A provision to grant 50% relief on long term empty retail premises, where the property is first occupied during the 2012/13 rating year.
(iii) Clause 3: A provision to enable the Department to allow the use of shop fronts or shop window displays, for non-commercial purposes, with ratepayers continuing to receive 50% empty property relief or an exclusion if that is applicable.
(iv) Clause 4: A change to clarify the legislation in relation to the valuation assumptions used at a non-domestic revaluation.
(v) Clause 5: A change to repeal the rule applied to properties referenced by their volume of trade, for example public houses, which will clarify the legislation and provide for greater consistency of treatment with other non domestic properties.

3. The detail of the Bill, as well as the Explanatory and Financial Memorandum can be found at on the Rating Review section of the DFP website .

4. Media enquiries should be addressed to the Department of Finance and Personnel Communications Office on Tel: 028 9016 3389. Out of Office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.