Rates valuation
The Rating and Valuation Act 1953 sets out a system of property taxation used to pay for community, water and sewerage services applied to each property and are better known as 'rates'.
Rates are a property tax which is used to pay for services provided to a property:
- Local services provided by a local authority
- Burial grounds provided by churchwardens; and
- Water and sewerage services by the Manx Utilities Authority
Braddan Parish Commissioners, Douglas Borough Council and Onchan District Commissioners collect their own community rates and the Treasury collects all other rates.
Appeal
Where a ratepayer is not content with the decision of Treasury Valuations Office with regard to the gross (rental) value of a property they can appeal this decision to the independent Rent and Rating Appeal Commissioners.
The Treasury
Rating and Valuation Act 1953
The 2026 sitting of the Isle of Man Rent and Rating Appeal Commissioners will be held:
- Tuesday 7 April 2026
- Monday 21 September 2026
- Monday 7 December 2026
at:
Committee Meeting Room
Murray House
Mount Havelock
Douglas
The hearing is open for members of the public to attend.
A copy of the amendments to the valuation lists are available for inspection at each Local Authority offices.
If you wish to attend, please contact this office for the correct time schedule.
How rates are calculated
Gross value
For rating purposes each property has a gross value which is the annual rent at which the property might reasonably be let, where the landlord was responsible for the payment of the tenant’s rates and taxes and the cost of repairs and maintenance.
A gross value can be calculated for each property even if it is owned by the occupier. The current gross value for each property was established in 1969 or if a property was built or improved after this date, is based on the rental value of a similar property built before this date.
Rateable value
The rateable value of a property is calculated by reducing the gross value by a percentage set out in the Rating and Valuation Act 1953 as follows:
- Class 1. Land without or exclusive of buildings - No deduction
- Class 2. Dwelling-houses and other buildings, or other buildings, only - 20% maximum rate of deductions
- Class 3. Cotton, woollen, silk, flax, and fulling mills, corn mills, machine and engineering works, breweries, tanneries, bleaching and dyeing works, and other mills, manufactories, and works not specifically included in this schedule - 33.33% maximum rate of deductions
- Class 4. Glass and earthenware works, chemical works, blast and smelting furnaces, and works for the manufacture of iron - 50% maximum rate of deductions
- Class 5. Mines and quarries to be determined under the provisions of the Rating Act, 1881 - 50% maximum rate of deductions
- Class 6. Rateable hereditaments not included in any of the foregoing classes - Maximum rate of deductions to be determined in each case according to the circumstances and the general principles of law as amended by this Act
Provided that if the amount of the rateable value as determined as aforesaid includes a fraction of a pound, the amount of the rateable value shall be increased or reduced, as the case may be, to the nearest complete pound, or if the fraction is 50p the fraction shall be disregarded.
The Treasury maintains a list which sets out the rateable value of each property. This figure can be found in the annual rates bill issued each April for payment in June, or by contacting the Treasury Valuations Office (Tel. +44 1624 685658) or rates@gov.im
Rates bill
The amount of money raised by property taxes is determined by local authorities or the Manx Utility Authority and not by Treasury. The total amount to be collected is divided amongst properties based on the rateable value; a property with a large rateable value will pay more than one with a smaller rateable value.
To calculate the amount of rates payable on each property the rateable value is multiplied by a local rate in the pound to determine the total. The rateable value is also used to determine the charge for providing clean water and sewerage services in a similar manner.
For properties across the Island with the same rateable value the water and sewerage rates are the same but the local authority rates will vary in each area.
Example of rates calculation
A four bedroom semi-detached house was sold in 2013 for £320,000 and had a rateable value of £128 based on the rental value in 1969.
Property taxes for this property in 2015/16 are as follows:
| Rating authority | Rates calculation | Amount payable |
|---|---|---|
| Local Authority | 345.5p x £128 | £442.24 |
| Burial ground | 7.00p x £128 | £8.96 |
| Swimming pool | 2.5p x £128 | £3.20 |
| Local Authority Total | - | £454.40 |
| Water rate | 313.97p x £128 | £401.88 |
| Sewerage rate | 61.29p x £128 | £78.45 |
Changes to properties
Anything which would affect the rental value of a property (whether it is rented or owned) can change the rateable value of a property and therefore the amount of property tax (rates) payable.
Where the size of a property is increased e.g. it has extra rooms added, or the property is sub-divided this may change the gross value of a property. When this occurs there is a requirement set out in law for the owner to contact the Treasury Valuations Office (Tel. +44 1624 685658).
Where external factors such as immediate adjacent building works or significant flooding for example impact on the potential rental value of the property the gross value a ratepayer can contact the Treasury Valuations Office (Tel. +44 1624 685658) to ask to have their property revalued.
