Landlord and Tenant, who is responsible for rates?

October 4, 2013

Articles 20 and 21 of the Rates (Northern Ireland) Order 1977 (as amended) state that the following parties are legally responsible for the payment of rates on rental homes, regardless of the tenancy agreement details.

Domestic properties

Capital Value*                                     Frequency of rent payment                          Who pays?
£0 – £55,000.00                                 Any frequency                                                 Owner (landlord)
£55,001.00 – £150,000.00               Monthly or weekly (less than quarterly)   Owner (landlord)
£55,001.00 – £150,000.00               Quarterly or longer                                        Occupier (tenant)
£150,001.00 and above                     Monthly or weekly (less than quarterly)   Occupier (tenant)

Non Domestic properties

Net Annual Value (NAV)                   Frequency of rent payment                             Who pays?
£0 – £750.00                                         Any frequency                                                 Owner (landlord)
£751.00 – £1,590.00                            Monthly or weekly (less than quarterly)    Owner (landlord)
£751.00 – £1590.00                             Quarterly or longer                                         Occupier (tenant)
£1,591.00 and above                            Monthly or weekly (less than quarterly)    Occupier (tenant)

*For houses in multiple occupation (HMO) the owner of the property is responsible for the collection and payment of rates regardless of the capital value or frequency of rent payment. An HMO is defined as a property ‘which is let to three or more tenants who form two or more households” for example a house let out to a number of students.