When calculating business rates for retail units Land & Property Services (LPS) assess the Net Annual Value (NAV) by using zoning. Zoning is a methodology used in assessing the rental value of retail units and is used for shops, hair salons, banks, betting shops and most restaurants. LPS use zoning as it helps take into account different sizes and shapes of shops and awkward layouts.
LPS also consider other parts of the property that are ancillary or tertiary spaces such as upstairs offices and store rooms. They are rated but zoning is not applied for these areas of the property. Some spaces are not considered useable retail areas and are excluded from valuation. These spaces include toilets, lobbies, plant rooms and stairwells.
The short video below explains the revaluing process, known as Reval2020, and how LPS calculate business rates for retail units.
LPS is revaluing all business properties in Northern Ireland and the new values will be used to calculate rate bills for businesses and organisations from April 2020. View the Reval2020 draft schedule of values.