WELSH BUSINESS RATES

Welsh Business Rates

Overview

Non Domestic Rates (NDR) are also known as business rates and are taxes to help pay for local services. These are charges on most non domestic properties. If you pay business rates, your property may be eligible for business rates relief.

Some premises will be exempt from business rates, while others may qualify for:

the small business rates relief scheme

the charitable and non-profit organisations rates relief

relief on empty properties

How your business rates are calculated

Your business rate is calculated by taking the Rateable Value (RV) of your property and multiplying it by the current non domestic rates ‘multiplier’ (or ‘poundage’). The Valuation Office Agency (VOA) values properties and assigns the RV. You can appeal against its RV if you think it is incorrect. From April 2018 the Welsh Government has set the multiplier according to the Consumer Price Index (CPI) and for the financial year 2019-20 the multiplier will be 0.526.

Appeals against property valuations

If you want to appeal contact the VOA. If you and the VOA cannot reach agreement, the VOA must pass your appeal to the Valuation Tribunal Wales (VTW).

Small Business Rate Relief in Wales

A new permanent scheme came into force on 1 April 2018. The Welsh Government provides non-domestic rates relief to eligible small businesses. Eligible business premises with a rateable value of up to £6,000 will receive 100% relief; and those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero.
The following types of business will continue to get relief:

Registered Childcare Premises- eligible registered childcare premises with a rateable value of up to £6,000 receive 100% relief; and those with a rateable value between £6,001 and £20,500 receive relief on a tapered basis from 100% to zero the small business rates relief scheme for the childcare providers will be further enhanced to provide 100% relief to all registered childcare providers in Wales, this higher level of relief will start on 1 April 2019, it will be in place for three years to 31 March 2022, during which time it will be evaluated to assess its effect

Post Offices- Post offices with a rateable value up to £9,000 receive 100% relief. Post offices with a rateable value between £9,001 and £12,000 receive 50% relief

Multiple Occupation Limit -Where a ratepayer is liable for more than two properties on a single local non-domestic rating list (“local list”), and those properties meet only the rateable value conditions, the ratepayer will only receive relief for a maximum of two such properties.

High Street and Retail Rates Relief

The £23.6 million High Street Rate Relief Scheme is aimed at all retailers in Wales, for example shops, pubs, restaurants and cafes. The enhanced scheme will provide support to all retailers in Wales with a rateable value of up to £50,000. It will be for individual local authorities to decide in each individual case when to grant relief, which will be available from 1 April 2019 until 31 March 2020.

Hydropower Projects

We are providing grants to help eligible hydropower projects with their business rates. Hydropower projects extract energy from water courses to generate electricity. Hydropower projects with a rateable value up to £50,000 can apply for support towards their 2019-20 business rates.

Rates relief for empty properties

Empty business properties are exempt from paying business rates for 3 months after the property becomes vacant. There are additional exemptions for certain types of property or for properties under a set rateable value. These include:

industrial premises, such as warehouses, which are exempt for a further 3 months

listed buildings which are exempt until they become occupied again

buildings with a rateable value under £2,600 which are exempt until they become occupied again

properties owned by charities, which are exempt if the property’s next use is likely to be wholly or mainly for charitable purposes

community amateur sports club buildings which are exempt if their next use is likely to be wholly or mainly for a sports club

a business whose owner is a company which is subject to a winding-up order made under the Insolvency Act 1986 or which is being wound up voluntarily under that Act

a business whose owner is a company in administration within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 or is subject to an administration order made under the former administration provisions within the meaning of article 3 of the Enterprise Act 2002 (Commencement No. 4 and Transitional Provisions and Savings) Order 2003.

a business whose owner is entitled to possession only in his or her capacity as the personal representative of a deceased person.

After the exemption period ends, you will be liable for the full business rate bill.

You should notify your local authority when your property becomes vacant and also when it becomes re-occupied.

Self Catering Properties

If your property is in Wales and is commercially available to let as a self catering property, provided certain criteria are met it will be rated and valued for non-domestic rates. The Valuation Office Agency (VOA) works out the rateable value based on the property type, size and location. From 1 April 2010 in Wales, self catering property is non-domestic and therefore liable for non-domestic rates, if the VOA is satisfied that:

it will be available for letting commercially as self-catering accommodation for short periods totalling 140 days or more in the following 12 month period

the ratepayer’s interest in the property enables them to let it for such periods

in the 12 months prior to assessment it has been available for letting commercially as self catering accommodation for short periods totalling 140 days or more

the short periods it has actually been commercially let for amounted to at least 70 days during that period

From 1 April 2016 in Wales, the criteria above will continue to apply but there is also a new provision so that: businesses consisting of several self catering properties at the same location or within very close proximity have the option to average the number of lettings days of the properties to meet the 70-day criterion where they are let by the same or connected businesses.

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WELSH BUSINESS RATES