*Estimate based upon predicted Sept 2020 CPI
Uniform Business Rate
In Wales there is no separate UBR supplement for large properties.
All businesses in receipt of Small Business Rate Relief (SBRR) on 31st March 2017 who are facing increases in Rateable Value as a result of the revaluation will have transitional relief applied. This relief will apply even if the business no longer qualifies for any SBRR from 1st April 2017. The increases in liability will be phased in over three years, 25%, 50% & 75% & respectively. Any increase for the 2019-20 Year will be phased in at 75%. Currently no transition is applicable for the 2020-21, 2021-22 or 2022-23 year.
COVID-19 SPECIAL MEASURE
Retail, Leisure and Hospitality Relief– (1st April 2020 – 31st March 2021) With effect from 1st April 2020, for a period of 12 months, 100% relief will be applied to all Occupied Retail, Leisure and Hospitality Businesses with and RV up to and including 500,000. With effect from 1st April the above relief has been extended for the period of a further 12 months, for hospitality and leisure, the RV cap of 500,000 will be removed and the 100% relief will be available for properties that fall within those sectors and meet the qualifying criteria whose RV is over 500,000. Hereditaments which have closed temporarily due to the government’s advice on Covid-19 are to be treated as occupied for the purposes of this relief.
State Aid/Subsidy Allowances under Article 3.2(4) EU-UK Trade and Cooperation Agreement by Subsidy Control- The Government’s assessment is that, given the impact of Covid-19, the ‘Relief’ outlined above is not subject to either of these restrictions on subsidy funding.
SMALL BUSINESS RATES RELIEF
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 RV of up to 6,000 will receive 100% relief; and
- Those with a RV between 6,001 and 12,000 will receive relief on a tapered basis from100% to zero
The following types of businesses will continue to get relief as follows:
Registered Childcare Premises
- Eligible registered childcare premises with a RV of up to 6,000 receive 100% relief; and
- Those with a RV between 6,001 and 20,500 receive relief on a tapered basis from 100% to zero.
From the 1st April 2019, The Small Business Rates Scheme for “Childcare Providers” will be extended to provide 100% relief to all “Registered Childcare Providers” in Wales. This higher level of relief will be effective until 31st March 2022 - during this the Welsh Assembly will be evaluating the effectiveness of the relief.
- Post offices with a RV up to 9,000 receive 100% relief
- Post offices with a RV 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 RV conditions, the ratepayer will only receive relief for a maximum of two such properties.
CHARITABLE RATE RELIEF+
If your property is occupied by a registered charity or community amateur sports club, and used for charitable purposes, you automatically qualify for 80% mandatory rates relief. You may qualify for relief of up to 100% at the discretion of the Billing Authority if your property is occupied by a non-profit making body.
Billing Authorities can also grant hardship relief to businesses if they believe that it is in the interests of the local community to do so.
PUBLIC TOILET RELIEF
The Non-Domestic Rating (Public Toilets) Act received Royal Assent on 29 April. This Act provides a 100% business rates relief for separately assessed public toilets in England and Wales, including those being operated by local authorities. This relief applies retrospectively from 1 April 2020.
ENTERPRISE ZONES BUSINESS RATES SCHEME+
The Enterprise Zones Business Rates Scheme was introduced as a means of providing small and medium sized enterprises (SMEs) in Enterprise Zones with support in paying their Business Rates bills. The scheme targets SMEs demonstrating business growth characteristics, that is, new starts or those increasing the size of their full-time workforce. It forms part of the wider set of actions aimed at delivering growth and sustainable jobs in each Enterprise Zone. The scheme is only available within specific time frames.
Grants are available to help eligible hydropower projects with their Business Rates. Hydropower projects extract energy from water courses to generate electricity. Hydropower projects with an RV of up to 50,000 can apply for support for 2017-18 and for 2018-19 (this relief can be applied retrospectively).
EMPTY PROPERTY: RELIEF AND EXEMPTIONS
Since 1st April 2011, the threshold at which empty properties become liable to pay rates dropped from 18,000 to 2,600. The remaining reliefs are the same as those in England and are set out below:
* Exemption applies when property is newly assessed for rates or when it is vacated provided a period of “rateable occupation” exceeding 42 days has occurred ** Exemption applies where Local Authority are of the view that the property will next be occupied by a Charity.
In Wales, if your property is commercially available for short term self- catering lets, provided certain criteria are met, it will be rated and valued for Business Rates rather than be valued and banded for Council tax From 1st April 2010 in Wales, self-catering property is ‘Non-Domestic’ and therefore liable for ‘Non-Domestic Rates’, if:
- The property 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 been commercially let for amounted to at least 70 days during that period
From 1st 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 letting days of the properties to meet the 70-day criterion where they are let by the same or connected businesses.
+ Relief is subject to Subsidy Allowances under Article 3.2(4) EU-UK Trade and Cooperation Agreement by Subsidy Control, This allowance is 325,000 Special Drawing Rights, to a single economic actor over any period of three fiscal years, which is the equivalent of £335,000 as at 2 March 2021.