Glossary · UK
What is Northern Ireland Domestic Rates?
Northern Ireland's property tax, replacing council tax, charged annually on a home's capital value using combined regional and district rate poundages.
Full Definition
Unlike the rest of the UK, Northern Ireland does not use council tax or business rates banding in the same way; instead it operates a system of domestic rates administered by Land & Property Services. Your bill is calculated by multiplying the capital value of your home (its assessed open-market value at a fixed valuation date, currently January 2005) by a combined poundage. That poundage has two parts: the regional rate, set by the NI Executive to fund Stormont-wide services, and the district rate, set annually by your local council, which varies between the eleven council areas. The two are added together and applied to your property's capital value to produce the annual charge. Various reliefs exist, including the Lone Pensioner Allowance, Disabled Person's Allowance, Low Carbon Homes scheme and Rate Relief for those on low incomes, plus a Housing Benefit-linked rebate. By contrast, England, Wales and Scotland levy council tax on banded property values, while Wales also has its own band system; only Northern Ireland uses individual capital values. Rates are billed by LPS, and owners of empty or rental properties may also be liable. Always check your council's current district rate and the regional rate when budgeting.