Statutory Rules of Northern Ireland
2007 No. 61
RATes
The Rates Regulations (Northern Ireland) 2007
Made
6th February 2007
Coming into operation
27th February 2007
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Rates Regulations (Northern Ireland) 2007 and shall come into operation on the 27th February 2007.
(2) In these Regulations—
“the 1977 Order” means the Rates (Northern Ireland) Order 1977;
“capital value list” has the same meaning as in Article 2(2)(3) of the 1977 Order;
“capital value rate” means a rate levied on a hereditament or part of a hereditament within the capital value list;
“NAV list” has the same meaning as in Article 2(2)(4) of the 1977 Order;
“NAV rate” means a rate levied on a hereditament or part of a hereditament within the NAV list.
Time of making notification of district rate
2.—(1) The date in any year not later than which a district council must make the district rates for the next following year shall be the 15th February.
(2) The period within which a district council must notify the Department under Article 8(4) of the 1977 Order of the amounts in the pound of the district rates made by the council shall be 7 days.
(3) The notification referred to in paragraph (2) shall be in writing.
Payments to district councils on account of district rates
3.—(1) Not later than 1st March in any year each district council shall serve on the Department notice of the amounts estimated by the council under section 53(2)(e) of the Local Government Act (Northern Ireland) 1972(5) to be required to be raised by means of capital value and NAV rates made by the council for the next following year.
(2) Subject to paragraphs (4), (5)(b) and (6) the Department shall each year pay to each district council sums equal to the amounts of the estimates notified to the Department under paragraph (1) in respect of that year.
(3) The sums mentioned in paragraph (2) shall be paid by monthly instalments on the first day of each month and, subject to paragraphs (4), (5)(b) and (6), the instalments shall, as nearly as may be, be of equal amounts, except that the Department may round off the amount of any instalments other than either the first or the last to the nearest hundred pounds and adjust the amount of the first or, as the case may be, the last of the instalments accordingly.
(4) If it appears to the Department that the amount of any estimate notified to the Department by a council under paragraph (1) in respect of any year is likely to be substantially greater than the product of a district rate to which the estimate relates in respect of that year, the Department may determine to pay the council during that year (subject to paragraphs (5)(b) and (6)) a sum equal to the amount which is estimated by the Department to be the likely product of that rate instead of the sum mentioned in paragraph (2), and any instalments under paragraph (3) which have not yet been made may be reduced accordingly.
(5) When the amount of the product of a district rate for any year has been ascertained—
(a)if that amount exceeds the amount paid to the council in respect of that year under paragraph (2) or as the case may be, paragraph (4), the balance shall, subject to paragraph (6), be paid by the Department to the district council;
(b)if that amount is less than the amount so paid, the balance shall be set off against any sum which would otherwise be payable by the Department to the district council under this regulation.
(6) The Department may defer payment of any sum under paragraphs (2) and (3) by any amount not exceeding the appropriate amount.
(7) In paragraph (6) “appropriate amount” is an amount equal to the proportion of the product of the rate estimated under paragraph (1) or (4) for the last preceding year which is carried forward as arrears and which is for the time being outstanding as such.
(8) Before—
(a)making under paragraph (4), any reduction in the amount of any instalment; or
(b)deferring, under paragraph (6), payment of any sum,
the Department shall consult the district council concerned.
Ascertainment of rate product: introductory
4. Where, under regulation 5,6 or 7 it is necessary to ascertain the amount of the product of a rate in the pound which is more or less than one penny, that amount shall be ascertained proportionately from the amount of the product of a rate of one penny in the pound.
Determination of the sums payable to a district council in respect of any year as being equal to the products of the rates made by that council for that year
5. For the purpose of determining under Article 34(1) of the 1977 Order the sums payable to a district council in respect of any year as being equal to the products of the rates made by that council for that year, the products of the rates of one penny in the pound for the district council for that year shall be ascertained in accordance with Schedule 1 or 2.
The resources element of the General Grant
6.—(1) Subject to paragraph (2), for the purpose of determining under the Local Government (General Grant) Regulations (Northern Ireland) 2003(6) the amount of the resources element of the General Grant which is payable to a district council for any year, the products of the rates of one penny in the pound for the district of the council for that year shall be ascertained in accordance with Schedule 1 or 2.
(2) In determining the products of the rates of one penny in the pound for any district for that purpose—
(a)there shall be added to the amount of the NAV gross rate income the amount of the derating element of the General Grant which is payable to the council for that year; and
(b)there shall be disregarded any rebate under the Social Security Administration (Northern Ireland) Act 1992(7).
Expenditure limited by reference to a stated rate product
7.—(1) For the purpose of any transferred provision which limits the expenditure of a district council for any purpose in any year by reference to the product of a rate of a stated amount in the pound on the rateable value of the district of the council, the product of a rate of one penny in the pound for the district shall be taken to be the amount obtained by dividing the amount estimated by the council under section 53(2)(e) of the Local Government Act (Northern Ireland) 1972 to be required to be raised by means of—
(a)a capital value rate; or
(b)a NAV rate,
by the appropriate divisor.
(2) In paragraph (1) the “appropriate divisor” means—
(a)in the case of a capital value rate made by the council for that year, the total pence in the pound in respect of hereditaments or any part of any hereditaments in the capital value list; or
(b)in the case of a NAV rate made by the council for that year, the total pence in the pound in respect of hereditaments or any part of any hereditaments in the NAV list.
Revocations
8.—(1) Subject to paragraph (2), the Rates Regulations (Northern Ireland) 2000(8) and the Rates (Amendment) Regulations (Northern Ireland) 2005(9) are revoked.
(2) The Regulations set out in paragraph (1) shall continue to apply in respect of any year ending before 1st April 2007.
Sealed with the Official Seal of the Department of Finance and Personnel on 6th February 2007
Brian McClure
A senior officer of the Department of Finance and Personnel
Regulations 5 and 6
SCHEDULE 1DETERMINATION OF THE PRODUCT OF A CAPITAL VALUE RATE OF ONE PENNY IN THE POUND
Interpretation
1. In this Schedule the definition of “capital value rate” in regulation 1 shall be construed as meaning, except in paragraph 4, capital value regional rate and capital value district rate and, in that paragraph capital value regional rate and capital value district rates.
Manner of determination
2. The product of a capital value rate of one penny in the pound in any district for any year shall be determined by deducting from the gross rate income from each hereditament or part of a hereditament in the capital value list in the district the cost of collection and the loss on collection attributable to those hereditaments or part hereditaments and dividing the remainder by the total of the pence in the pound of the capital value rates made for the year.
Gross rate income
3. In this Schedule the gross rate income for any district for any year shall be ascertained by adding together the following amounts—
(a)the total amounts produced by calculating, from the rateable capital value of each hereditament or any part of any hereditament appearing in the capital value list in the district shown in the record kept by the Department of rates payable for that year, the gross liability of the hereditaments or any parts of any hereditaments to rates for the year; and
(b)the total amounts by way of rates for an earlier year found during the year to be recoverable under Article 13 in respect of—
(i)hereditaments or any parts of any hereditaments in the capital value list; or
(ii)hereditaments or any parts of any hereditaments used for private dwelling, private storage or private garages that were included in a valuation list prior to 1st April 2007.
Cost of collection
4.—(1) For the purpose of this paragraph and paragraph 4 of Schedule 2—
(a)the total cost of collection for any district for any year shall be the proper proportion of the total cost of collection for that year for the whole of Northern Ireland;
(b)the total cost of collection for any district shall be determined by ascertaining the net cost of levying rates during the year including such proportion as the Department considers appropriate of—
(i)expenses attributable in part to the matters aforesaid and in part to other matters; and
(ii)expenses incurred by way of superannuation and of compensation for loss of office or loss of diminution of emoluments,
but not including any allowances made to owners under Articles 20 or 21;
(c)the proper proportion for any district of the total cost of collection for any year is the proportion which the total rateable NAV of hereditaments or any parts of any hereditaments in the NAV list and the total rateable capital value of hereditaments or any parts of any hereditaments in the capital value list in the district bears to the total rateable NAV of hereditaments or any parts of any hereditaments in the NAV list and the total rateable capital value of hereditaments or any parts of any hereditaments in the capital value list in Northern Ireland; and
(d)in making any apportionment of costs, whether between districts or between hereditaments or any parts of any hereditaments in the capital value list and hereditaments or any parts of any hereditaments in the NAV list in a district, the Department may take into account, as it considers appropriate, the changes which occurred as a result of the coming into effect of the Rates (Capital Values, etc.) (Northern Ireland) Order 2006(10) and the Rates (Amendment) (Northern Ireland) Order 2006(11).
(2) For the purpose of this paragraph, when the cost of collection for any district has been ascertained the cost of collection of capital value rates for the district shall be determined in accordance with sub-paragraphs (3) and (4).
(3) The cost of collection of capital value rates for any district for any year shall be the proper proportion of the total cost of collection for that year of rates for the district.
(4) The proper proportion of the total cost of collection for any year is the proportion which the aggregate rateable capital values of hereditaments or any parts of any hereditaments in the capital value list in the district bears to the total rateable NAV of hereditaments or any parts of any hereditaments in the NAV list and the total rateable capital value of hereditaments or any parts of any hereditaments in the capital value list.
Loss on collection
5. The loss on collection of capital value rates for any district for any year shall be the aggregate of the following amounts—
(a)The total amount for the year of rates written off in respect of—
(i)hereditaments or any parts of any hereditaments in the capital value list in the district; or
(ii)hereditaments or any parts of any hereditaments used for private dwelling, private storage or private garages that were included in a valuation list prior to 1st April 2007 in the district,
including allowances made by way of discount under Articles 20 and 21 of the 1977 Order but not including allowances made by way of discount under Article 30 of the 1977 Order; and
(b)3 per cent. of the total amount of rebates afforded in the year under the Social Security Administration (Northern Ireland) Act 1992 in respect of hereditaments or any parts of any hereditaments in the capital value list or hereditaments or any parts of any hereditaments used for private dwelling, private storage or private garages that were included in a valuation list prior to 1st April 2007,
less any amount falling under sub-paragraph (a) or (b) for an earlier year found during the year to be recoverable.
Regulations 5 and 6
SCHEDULE 2DETERMINATION OF THE PRODUCT OF A NAV RATE OF ONE PENNY IN THE POUND
Interpretation
1. In this Schedule the definition of “NAV rate” in regulation 1 shall be construed as meaning, except in paragraph 4, NAV regional rate and NAV district rate and, in that paragraph, NAV regional rate and NAV district rates.
Manner of determination
2. The product of a NAV rate of one penny in the pound in any district for any year shall be determined by deducting from the gross rate income from each hereditament or any part of any hereditament in the NAV list in the district the cost of collection and the loss on collection attributable to those hereditaments or any part hereditaments and dividing the remainder by the total of the pence in the pound of the NAV rates made for that year.
Gross rate income
3. In this Schedule the gross rate income for any district for any year shall be ascertained by adding together the following amounts—
(a)the total amounts produced by calculating, from the rateable NAV of each hereditament or any part of any hereditament in the NAV list in the district shown in the record kept by the Department of rates payable for that year, the gross liability of the hereditaments or any parts of any hereditaments to rates for the year less the total amount of any reliefs granted in respect of hereditaments under Article 31 of the 1977 Order; and
(b)the total of amounts by way of rates for an earlier year found during the year to be recoverable under Article 13 of the 1977 Order in respect of—
(i)hereditaments or any parts of any hereditaments in the NAV list; or
(ii)hereditaments or any parts of any hereditaments not used for private dwelling, private storage or private garages that were included in the valuation list prior to 1st April 2007.
Cost of collection
4.—(1) When in accordance with paragraph 4(1) of Schedule 1, the cost of collection for any district has been ascertained, the cost of collection of NAV rates for the district shall be determined in accordance with sub-paragraphs (2) and (3).
(2) The cost of collection of NAV rates for a district for any year shall be the proper proportion of the total cost of collection for that year of rates for the district.
(3) The proper proportion of the total cost of collection for any year is the proportion which the aggregate rateable NAV of hereditaments or any parts of any hereditaments in the NAV list in the district bears to the rateable NAV of hereditaments or any parts of any hereditaments in the NAV list and the total rateable capital value of hereditaments or any parts of any hereditaments in the capital value list of the district.
Loss on collection
5. The loss on collection of NAV rates for any district for any year shall be the aggregate of the following amounts—
(a)the total amount for the year of rates written off in respect of—
(i)hereditaments or any parts of any hereditaments in the NAV list; or
(ii)hereditaments or any parts of any hereditaments not used for private dwelling, private storage or private garages that may have appeared in a valuation list prior to 1st April 2007 in the district,
including allowances made by way of discount under Articles 20 and 21 of the 1977 Order; and
(b)a sum equal to 25 per cent. of the total amount by which the liability of persons to pay rates for the year in respect of—
(i)hereditaments or any parts of any hereditaments in the NAV list; or
(ii)hereditaments or any parts of any hereditaments not used for private dwelling, private storage or private garages that were included in a valuation list prior to 1st April 2007 in the district,
was reduced or remitted in accordance with the Regulations made under Article 33B of the 1977 Order,
less any amount falling under sub-paragraphs (a) or (b) for an earlier year found during the year to be recoverable.
EXPLANATORY NOTE
(This note is not part of the Regulations)
From 1st April 2007 the basis of valuation in respect of dwelling houses, private garages and private storage premises (“domestic properties”) will change from rental to capital value. The capital value of all domestic properties will be included in the capital value list. Non-domestic properties however will remain subject to rental values and will be included in the NAV list.
The purpose of these Regulations in the context of the new capital values is to provide for—
(a)the periods within which district rates must be made and notified to the Department of Finance and Personnel in any financial year;
(b)the payments which are to be made to district councils by that Department on account of district rates; and
(c)the manner in which the product of the new capital value rates and the product of NAV rates are to be ascertained.
These Regulations revoke and replace, subject to the saving provision in regulation 8(2), the Rates Regulations (Northern Ireland) 2000 and the Rates (Amendment) Regulations (Northern Ireland) 2005.
Formerly the Department of Finance; see S.I. 1982/338 (N.I. 6) Article 3
S.I. 1977/2157 (N.I. 28); Article 61(2B) was inserted by paragraph 38(4) of Schedule 2 to the Rates (Amendment) (Northern Ireland) Order 2006 (S.I. 2006/2954 (N.I. 18))
Article 2(2) the definition of “capital value list” was inserted by Article 11(3)(a) of the Rates (Amendment) (Northern Ireland) Order 2006
Article 2(2) the definition of “NAV list” was inserted by Article 11(3)(b) of the Rates (Amendment) (Northern Ireland) Order 2006