The highest-valued homes in Northern Ireland could end up paying almost £900 more in rates per year as the Finance Minister confirmed proposed changes that could impact both domestic and business charges.
Caoimhe Archibald announced the start of a series of reviews of the rates system in Northern Ireland.
The proposed changes will generate relatively modest amounts of income, but are aimed at creating a more equitable rates system.
The Belfast Telegraph understands that Mrs Archibald has repeatedly failed to gain wider Executive approval for the consultation plan.
It will begin with a rise in the current rate cap from £400,000 to £485,000. Rates bills for properties stop increasing beyond the value of the cap.
This will take the highest rates bill up £894 a year to £5,389. There are around 8,000 houses, or 1% of the overall rate-paying stock, valued above £400,000.
Northern Ireland’s Finance Minister Caoimhe Archibald (PA).
The department is also considering halving the early payment discount from 4% to 2%, in a move that on average could cost people around £25.
The previous secretary of state had considered abolishing the cap altogether. The minister decided against this as some houses could then see rates bills of £25,000. These homes would be valued as being worth millions of pounds.
The consultation will also consider changes to the Small Business Rate Relief Scheme and the Non-Domestic Vacant Rating exclusions.
Mrs Archibald is considering methods to reduce the risk of development by allowing a period of vacant rating exclusion. The minister told the Assembly that she wanted rates to “tackle the blight of vacant properties in our towns and cities”.
She will also commission academic research into the cost of doing business in Northern Ireland.
Retail NI welcomed the review, and said there was “need for radical change to our broken and antiquated system of business rates”.