The Northern Ireland Executive today published agreed outcomes following the Commercial Rating consultation and in particular the proposal to introduce an extension to the Small Business Rates Relief Scheme (SBRR) which will be funded through a supplementary levy which will be applied to large retail premises.

RICS Northern Ireland responded to the public consultation and provided evidence to the Northern Ireland Assembly Finance & Personnel Committee which reviewed the proposals.

In the evidence session RICS expressed concern that if a 20% levy were introduced it could impact on employment and investment in Northern Ireland. RICS advised that  rates support should be provided to genuine start up businesses occuppying vacant retail premises and sought assurances that if the levy is introduced it would only be in place for a three year period.

The proposals agreed by the Executive include:

  • the provision of 20% small business rate relief on eligible premises with a net annual value of £5,001 - £10,000;
  • the small business rate relief scheme will be modified so that those ratepayers that occupy multiple (more than 3) premises, of any size, are not eligible for small business rate relief;
  • a supplementary levy to be applied to retail properties with a rateable value of £500,000 or more. The levy will be set an an average 15%, rather than the 20% proposed in the consultation document;
  • where shop fronts or shop windows of empty retail premises are used for non-commercial purposes rate payers will continue to receive 50% empty property relief;
  • a committment that the measures will apply for three years until 31 March 2015;
  • support for new occupiers in long term empty shops (retail premises empty for 12 months or more) to retain 50% empty property relief for a year; and
  • clarifying assumptions used at non-domestic revaluation the legislation will set these changes out to ensure that the revaluation can proceed in 2015.

The measures will be effective from 1 April 2012, subject to Northern Ireland Assembly approval of the associated primary and subordinate legislation.