The Rates (Transitional Relief) Order (Northern Ireland) 2015

Made: 26th February 2015

Coming into operation: 1st April 2015

Accordingly the Department makes the following Order.

Citation, commencement and interpretation

1

• (1) This Order may be cited as the Rates (Transitional Relief) Order (Northern Ireland) 2015 and shall come into operation on 1st April 2015.

• (2) In this Order—

• “capital value district rate” means a district rate made by a district council on the rateable capital values of hereditaments in its district;

• “former district” means a local government district established in pursuance of the Local Government Boundaries Act (Northern Ireland) 1971[^f00002];

• “hereditament in the social sector” has the meaning assigned to it by Article 23A(3) of the Rates (Northern Ireland) Order 1977[^f00003];

• “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975[^f00004]; and

• “net annual value district rate” means a district rate made by a district council on the rateable net annual values of hereditaments in its district.

Transitional relief

2

Subject to Article 4, the amount of the sum which would be chargeable in respect of a capital value district rate in respect of a hereditament which, but for the coming into operation of section 1 of the Local Government (Boundaries) Act (Northern Ireland) 2008[^f00005], would have been in a former district specified in column 1 of Schedule 1 and which, on or after 1st April 2015, is in a district specified in column 2 of that Schedule, shall be reduced—

• (a) in the year ending on 31st March 2016, by 80% of the amount attributable to the part of the capital value district rate specified in the corresponding entry in column 3 of that Schedule;

• (b) in the year ending on 31st March 2017, by 60% of the amount mentioned in paragraph (a);

• (c) in the year ending on 31st March 2018, by 40% of the amount mentioned in paragraph (a); and

• (d) in the year ending 31st March 2019, by 20% of the amount mentioned in paragraph (a).

3

Subject to Article 4, the amount of the sum which would be chargeable in respect of a net annual value district rate in respect of a hereditament which, but for the coming into operation of section 1 of the Local Government (Boundaries) Act (Northern Ireland) 2008, would have been in a former district specified in column 1 of Schedule 2 and which, on or after 1st April 2015, is in a district specified in column 2 of that Schedule, shall be reduced—

• (a) in the year ending on 31st March 2016, by 80% of the amount attributable to the part of the net annual value district rate specified in the corresponding entry in column 3 of that Schedule;

• (b) in the year ending on 31st March 2017, by 60% of the amount mentioned in paragraph (a);

• (c) in the year ending on 31st March 2018, by 40% of the amount mentioned in paragraph (a); and

• (d) in the year ending on 31st March 2019, by 20% of the amount mentioned in paragraph (a).

4

This Order shall not apply to a hereditament specified in column 2 of Schedule 3.

SCHEDULE 1 — The Part of the Capital Value District Rate on which Transitional Relief is calculated

SCHEDULE 2 — The Part of the Net Annual Value District Rate on which Transitional Relief is calculated

SCHEDULE 3 — Hereditaments to which this Order does not apply

Signed

Sealed with the Official Seal of the Department of Finance and Personnel on 26th February 2015

Brian McClure — A senior officer of the Department of Finance and Personnel

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

Changes to local government districts, involving a reduction in the number of district councils from 26 to 11, take effect on 1st April 2015. This Order provides for transitional rate relief to ensure that there is no sudden and excessive increase in the district rates payable in respect of any property arising out of local government reorganisation. The relief takes the form of reductions in the amounts chargeable in respect of district rates. The reductions will be progressively decreased over a four year period and end on 31st March 2019.

Article 2 and 3 and Schedules 1 and 2 provide for the reductions.

Article 4 and Schedule 3 exclude certain classes of property from the relief.

Footnotes

[^f00001]: S.I 1977/2157 (N.I.28); Article 33A was inserted by Article 5 of the Rates (Amendment) Northern Ireland Order 1996, S.I. 1996/3162 (N.I.25); paragraph (2A) was inserted in Article 33A by section 112 of the Local Government Act Northern Ireland) 2014 (2014 c.8 (N.I)

[^f00002]: 1971 c.9 (N.I.)

[^f00003]: Article 23A was inserted by Article 7 of the Rates (Amendment) (Northern Ireland) Order 2006, S.I. 2006/2954 (N.I. 18)

[^f00004]: 1975 c.26

[^f00005]: 2008 c. (N.I.)7