Non-domestic rates are the way in which businesses and other occupiers of non-domestic property indirectly contribute towards the costs of local authority services.
Business rates (national non-domestic rates) are payable for most non-domestic properties. They are collected by the council, paid into a central pool and redistributed to local authorities to pay for services.
Rates payable are calculated by applying a ‘poundage’ or ‘multiplier’ to the rateable value. The multiplier is set annually by the Welsh Government and except in a revaluation year cannot rise by more than the increase in the Consumer Price Index (CPI). From 2019/20 to 2023/24 the multiplier was 0.535. For 2024/25, Welsh Government have confirmed that the Non Domestic Rating Multiplier will be 0.562
The Valuation Office Agency (VAO) values all business properties for business rates. The valuation is based on the information the VOA holds about your property. This Rateable Value is used by the council to calculate the business rates for the property. You can find more information at Business rates: Overview – GOV.UK (www.gov.uk)
Non Domestic Rates Revaluation 2023-2024
The non-domestic rating list came into force on 1st April 2023, following a revaluation exercise by the Valuation Office Agency (VOA). Click Here for more information.
Business Rates Relief
There are various reliefs available that may reduce your business rate bill.
Small Business Rate Relief (SBRR) provides 100% relief for properties with a rateable value up to £6,000. For properties valued between £6,001 and £12,000 relief is tapered. There is no entitlement to this relief if the premises are empty.
Hardship Relief. Councils can grant relief to businesses who are experiencing hardship if it is in the interest of the local community to do so and if the ratepayer would sustain hardship if relief was not awarded. Applications should be made in writing and include evidence to support the request.
Our Business Rates Explanatory Note explains some of the terms used on a non domestic rates demand.
From 1st April 2024, Welsh Government introduced two new rate relief schemes:-
Improvement Relief is available to ratepayers investing in improvements to their non domestic properties which will support their business.
You do not need to apply for improvement relief. If you meet the necessary requirements you will receive a certificate from the Valuation Office Agency (VOA). The VOA will give the same information to your local council. As long as you occupy the building before and after the improvement works, the relief will be applied to your rate account and a revised bill issued. Click Here for more information.
Heat Networks Relief has been introduced to help support growth in this low carbon area. Click Here for more information.
Retail, Leisure and Hospitality Rates Relief in Wales – 2023/24
This relief is aimed at businesses and other ratepayers in Wales in the retail, leisure and hospitality sectors, for example shops, pubs and restaurants, gyms, performance venues and hotels.
The Welsh Government will provide grant funding to all 22 local authorities in Wales to provide the Retail, Leisure and Hospitality Rates Relief scheme to eligible businesses for 2023/24.
The scheme aims to provide support for eligible occupied properties by offering a discount of 75% on non-domestic rates bills for such properties. The scheme will apply to all eligible businesses, however the relief will be subject to a cap in the amount each business can claim across Wales. The total amount of relief available is £110,000 across all properties occupied by the same business.
More detail on the scheme is available at https://businesswales.gov.wales
All businesses are required to make a declaration that the amount of relief they are seeking across Wales does not exceed this cap, when applying to individual local authorities.
This scheme has now closed.
Retail, Leisure and Hospitality Rates Relief in Wales – 2024/25
This relief is aimed at businesses and other ratepayers in Wales in the retail, leisure and hospitality sectors, for example shops, pubs and restaurants, gyms, performance venues and hotels.
The Welsh Government will provide grant funding to all 22 local authorities in Wales to provide the Retail, Leisure and Hospitality Rates Relief scheme to eligible businesses for 2024/25.
The scheme aims to provide support for eligible occupied properties by offering a discount of 40% on non-domestic rates bills for such properties. The scheme will apply to all eligible businesses, however the relief will be subject to a cap in the amount each business can claim across Wales. The total amount of relief available is £110,000 across all properties occupied by the same business.
More detail on the scheme is available at https://businesswales.gov.wales
All businesses are required to make a declaration that the amount of relief they are seeking across Wales does not exceed this cap, when applying to individual local authorities.