Explanatory note

These Regulations prescribe the decapitalisation rate to be applied when determining the net annual value of any hereditament by reference to the contractor’s principle for the purposes of any NAV list coming into force on or after 1st April 2023. The contractor’s principle is the method of ascertaining the net annual value of a hereditament by reference to its actual or notional cost of construction or provision or to its capital value.

The decapitalisation rate is 2.27% in the case of a church hereditament, educational hereditament or healthcare hereditament, all of which are defined in regulation 2, and 3.4% in any other case. These Regulations have the effect of moving defence hereditaments from the lower of the two decapitalisation rates to the higher rate following consultation on this issue.

These Regulations revoke the Valuation for Rating (Decapitalisation Rates) Regulations (Northern Ireland) 2015, with savings provision made for previous decapitalisation rates in respect of previous valuation lists.