https://www.belfasttelegraph.co.uk/business/northern-ireland/most-valuable-ni-homes-face-a-huge-bill-if-the-domestic-rates-cap-abolished/a1366846488.html
The days of Northern Ireland’s multi-millionaires paying the same in rates as homeowners living in a property a fraction of the value could be drawing to an end.
Proposals to reform rates relief and allowances — one of which could increase some annual domestic rates bills by as much as £20,000 — have drawn 900 responses in a public consultation, the Belfast Telegraph can reveal.
The Department of Finance is asking for the public’s views on revenue-raising measures ranging from getting rid of industrial de-rating, abolishing a discount for the early payment of rates and ending the cap on house valuations.
Home valuations are used to calculate rates in Northern Ireland, but the cap is £400,000.
That means that houses valued at more than that level — even the most expensive homes in Northern Ireland costing well over £2m — are paying the same rates as much cheaper, smaller homes.
The lifting of the cap could mean rates bills for expensive homes rise from £4,219, currently the level of the highest rates bill here, to an eye-watering £25,000.
Documents forming part of the consultation, which closes on Tuesday, say that the valuation cap will cost the government £11m in lost revenue in 2023/24.
At the moment, around 7,900 homes benefit, with around 65% of the homes in Ards & North Down and Belfast council areas, where house prices tend to be highest.
REVEALED | Most valuable NI homes face a huge bill if the domestic rates cap abolished
Public consultation on proposals to increase revenue is drawing to a close
SDLP MLA and Stormont Opposition leader Matthew O’Toole (PA)
SDLP MLA and Stormont Opposition leader Matthew O’Toole (PA)
Margaret Canning
Today at 07:00
The days of Northern Ireland’s multi-millionaires paying the same in rates as homeowners living in a property a fraction of the value could be drawing to an end.
Proposals to reform rates relief and allowances — one of which could increase some annual domestic rates bills by as much as £20,000 — have drawn 900 responses in a public consultation, the Belfast Telegraph can reveal.
The Department of Finance is asking for the public’s views on revenue-raising measures ranging from getting rid of industrial de-rating, abolishing a discount for the early payment of rates and ending the cap on house valuations.
Home valuations are used to calculate rates in Northern Ireland, but the cap is £400,000.
That means that houses valued at more than that level — even the most expensive homes in Northern Ireland costing well over £2m — are paying the same rates as much cheaper, smaller homes.
The lifting of the cap could mean rates bills for expensive homes rise from £4,219, currently the level of the highest rates bill here, to an eye-watering £25,000.
Documents forming part of the consultation, which closes on Tuesday, say that the valuation cap will cost the government £11m in lost revenue in 2023/24.
At the moment, around 7,900 homes benefit, with around 65% of the homes in Ards & North Down and Belfast council areas, where house prices tend to be highest.
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A spokesperson for the Department of Finance said respondents to the consultation were engaging with a range of the proposals. They said: “To date over 900 responses have been received with further responses expected before the closing date.
“Responses have been received from both domestic and non-domestic sectors, including those providing views on the cap proposals.”
In response to a Freedom of Information request, the department has published a breakdown of the district council areas where removal of the cap would hit hardest.
Belfast would be the most affected, with 2,978 ratepayers facing higher bills if the cap is abolished.
Many of NI’s most expensive homes are located in south Belfast, including the most expensive listed at present on Propertynews.com. The six-bedroom Malone Park house has an asking price of £2.75m.
Ards and North Down, the location of the so-called Gold Coast of Cultra and Helen’s Bay, has the next highest concentration of affected homes, at 2,180.
Derry and Strabane has the lowest number of houses which would be affected, at 111.
Matthew O’Toole, SDLP leader of the opposition and South Belfast MLA, said he was not in favour of sudden changes to the rates system which would cause financial pain.
“The SDLP has said consistently that it would be unacceptable to inflict sudden new charges on the people of Northern Ireland, who have not had a government for years and have experienced collapsing public services.
“We have also been clear there needs to be a mature conversation about how we manage our public finances, but no measure can be crudely forced on people in the absence of a detailed, costed plan for public service recovery and clarity from the Executive and British Government on the financial package they have agreed for the north.”
Dr Colm Murphy of Ulster University, author of the Sunday Times Ireland Rich List for 24 years, said last month that the cap made living in a pricey home much more affordable.
But he said that could change if the cap was removed and residents were suddenly faced with a £25,000 rates bill.
by LoveLaughLarne
12 comments
That quote at the end makes it sound like they couldn’t even get someone effected by this to say something against it.
Why are rates based on property values in the first place?
We all get the same (terrible) levels of public services, get a bin emptied every few weeks.
Do you really think someone paying £4219 a year for that is getting away with not paying their fair share?
Madness
A full land value tax would be better, rather than taxing the value of property, but in the absence of that, this is the next best proposal.
You were like a new account last time I was on Reddit and motivated me to take a break.
I just broke that rule but some how wanted you to know
Another Stealth Tax 🥷
Fuck that. I already get fleeced.
In Lisburn Castlereagh council area, my house is valued at well below the gap, but rates are almost £2.5k – and that comes out of income post income tax. That makes it a fairly hefty tax.
What services or value would you get if rates get hiked a lot – nothing. Although I kind of see the point of forcing people out of houses by making this sort of tax unaffordable, it seems like an unfair way to do it when it’s nominally a tax for services used.
Rates aren’t really the answer to anything, but I’ll not cry over this one. This seems to affect people in houses over 500K, so it will never be anything for me to worry about.
A tax on vacant properties and land would, however be much more beneficial. Dereliction is vandalism.
Happened to an uncle in Dublin in the 2000s, he moved there in the 70s bought a house for 20k and man knocked on his door and offered him 1.2m in 2006, he said OK now where do I move to??
Just to be a citizen is getting costly here before you put a bite in your mouth and the heat on!
How about a single occupancy discount, same as England.
Seems like this could price lower incomes out of nicer areas. There should be some kind of income assessed component.