Removal of NDVR Relief (draft Rural Needs Impact Assessment (RNIA) Screening)

Section 1 - Defining the activity subject to Section 1(1) of the Rural Needs Act (NI) 2016

1A. Name of Public Authority

Department of Finance

1B. Please provide a short title which describes the activity being undertaken by the Public Authority that is subject to Section 1(1) of the Rural Needs Act (NI) 2016.

Removal of Non-domestic Vacant Rate Relief (NDVR)

1C. Please indicate which category the activity specified in Section 1B above relates to.

• revising a Policy
• delivering a Public Service

1D. Please provide the official title (if any) of the Policy, Strategy, Plan or Public Service document or initiative relating to the category indicated in Section 1C above

Removal of 50% NDVR Relief

1E. Please provide details of the aims and/ or objectives of the Policy, Strategy, Plan or Public Service.

The change would regularise the treatment of NDVR properties with other non-domestic properties within the taxation regime by aligning them with the level of occupied liability. Vacant properties only pay 50% of the occupied rate at present.

1F. What definition of ‘rural’ is the Public Authority using in respect of the Policy, Strategy, Plan or Public Service?

• Population Settlements of less than 5,000 (Default definition).

Details of alternative definition of ‘rural’ used - N/A

Rationale for using alternative definition of ‘rural’ - N/A

Reasons why a definition of ‘rural’ is not applicable - N/A

Section 2 - Understanding the impact of the Policy, Strategy, Plan or Public Service

2A. Is the Policy, Strategy, Plan or Public Service likely to impact on people in rural areas?

Yes

2B. Please explain how the Policy, Strategy, Plan or Public Service is likely to impact on people in rural areas.

This measure has application across the non-domestic taxbase in NI regardless of location.

The change would regularise the treatment of NDVR properties with other non-domestic properties within the taxation regime by aligning them with the level of occupied liability. Vacant properties only pay 50% of the occupied rate at present.

In terms of impact the change is likely to create an enhanced incentive for property owners and persons entitled to possession to bring vacant non-domestic property into use via a higher liability level than at present. This will apply to all relevant vacant non-domestic property in urban, mixed and rural wards.

2C. If the Policy, Strategy, Plan or Public Service is likely to impact on people in rural areas differently from people in urban areas, please explain how it is likely to impact on people in rural areas differently.

N/A

2D. Please indicate which of the following rural policy areas the Policy, Strategy, Plan or Public Service is likely to primarily impact on.

Rural Development

2E. Please explain why the Policy, Strategy, Plan or Public Service is NOT likely to impact on people in rural areas.

N/A

Section 3 - Identifying the Social and Economic Needs of Persons in Rural Areas

3A. Has the Public Authority taken steps to identify the social and economic needs of people in rural areas that are relevant to the Policy, Strategy, Plan or Public Service?

No

If the response is NO GO TO Section 3E.

3E. Please explain why no steps were taken by the Public Authority to identify the social and economic needs of people in rural areas?

No steps have been taken in this area as the measure serves to regularise the treatment of vacant non-domestic property with occupied non-domestic properties within the taxation regime. This process applies to all relevant properties in NI regardless of location (urban, rural or mixed).
In terms of impact the change is likely to create an enhanced incentive for property owners and persons entitled to possession to bring vacant non-domestic property into use via a higher liability level than at present.

Section 4 - Considering the Social and Economic Needs of Persons in Rural Areas

As per 3E.

Section 5 - Influencing the Policy, Strategy, Plan or Public Service

5A. Has the development, adoption, implementation or revising of the Policy, Strategy or Plan, or the design or delivery of the Public Service, been influenced by the rural needs identified?

No

If the response is NO GO TO Section 5C.

5C. Please explain why the development, adoption, implementation or revising of the Policy, Strategy or Plan, or the design or the delivery of the Public Service, has NOT been influenced by the rural needs identified.

As per 3E, no steps have been taken in this area. This measure has application across the non-domestic taxbase in NI regardless of location.

The change would regularise the treatment of NDVR properties with other non-domestic properties within the taxation regime by aligning with the level of occupied liability. Vacant properties only pay 50% of the occupied rate at present.

In terms of impact the change is likely to create an enhanced incentive for property owners and persons entitled to possession to bring vacant non-domestic property into use via a higher liability level than at present. This will apply to vacant non-domestic property in urban, mixed and rural wards.

Section 6 - Documenting and Recording

6A. Please tick below to confirm that the RNIA Template will be retained by the Public Authority and relevant information on the Section 1 activity compiled in accordance with paragraph 6.7 of the guidance.

I confirm that the RNIA Template will be retained and relevant information compiled. X

Rural Needs Impact Assessment undertaken by:

• Andrew McAvoy
• Position/ Grade:
  Principal Officer
• Division/ Branch
  Rating Policy Division
• Signature:
  Andrew McAvoy
• Date:
  26 September 2023 (following direction from NIO)

Rural Needs Impact Assessment approved by:

• Sharon Magee
• Position/ Grade:
  Grade 5
• Division/ Branch:
  Rating Policy Division
• Signature:
  Sharon Magee
• Date:
  19 October 2023