24 March 2004 Minister Announces Countdown To Rating Of Vacant Commercial Property
A new law comes into operation next month, which will require owners of unoccupied commercial buildings in Northern Ireland to pay rates on their property.
Under legislation which comes into force on 1st April 2004, the first rates bills will become payable on vacant commercial premises from 1st July. This takes account of an initial three-month exemption period, which will be applied to all such properties when they become liable.
A second feature of the new rate is that it will be set at half the normal occupied rate, with liability falling to the person entitled to possession of the property.
Welcoming the move, Finance Minister, Ian Pearson MP, said:
"This change is part of a major programme of rating reform being carried out by Government, following extensive public consultation in 2002. The findings of that survey showed that this measure had wide support. A second public consultation took place last October, once the necessary legislation had been drawn up.
"Government's aim in driving forward this and other rating reforms is to modernise and inject a greater degree of fairness into the rating system in Northern Ireland. It will encourage better asset management and provide an incentive to owners to bring their vacant property back into occupation and use.
"It will also generate additional revenue, which Government will use to improve local public services and infrastructure."
From next month, Rate Collection Agency staff will be able to serve notices upon certain individuals and bodies requiring them to provide information to help identify those liable to pay this new rate where their identity is unknown.
The new charge will apply to all vacant non-domestic buildings, including newly constructed premises, together with any land earmarked for use in connection with them.
However, as in the rest of the UK there will be some exceptions.
Industrial property such as factories, mines and quarries, will be exempt because these have usually been constructed or adapted for an industrial or manufacturing purpose and cannot readily be converted for sale or to let for other use. The same cannot be said of warehouses, which will not be exempt unless they are part of an industrial complex.
Property with a rateable value of less than £2,000 will be exempt, as will listed buildings.
Other exemptions will apply where the use of buildings is restricted or prohibited in some way, or where a person would be liable to the rate only when acting on behalf of someone else, eg: as a trustee or a liquidator. Special provision has also been made for vacant premises intended for use as sports clubs, nursing homes, or charitable purposes.
The additional revenue the rating of vacant commercial property will raise over the next few years has, in part, made possible a major investment programme in local public services and infrastructure to the value of £2.7 billion. This scale of investment will have very direct and visible benefits for everyone in Northern Ireland.
NOTES TO EDITORS
- Anyone needing advice about how the new rate might affect them should contact their local Rate Collection Agency office, or any district office of the Valuation & Lands Agency.
- Further information, including a copy of the relevant legislation, is available at: www.nics.gov.uk/ratingpolicy/
