Non Domestic Rates
The information given below explains some of the terms which may be used on a non-domestic rate demand and in the supporting information. Further information about liability to non-domestic rates may be obtained from billing authorities.
Non-domestic rates
The non-domestic rates collected by billing authorities are paid into a central pool and redistributed to county and county borough councils and police and crime commissioners. Your council and police and crime commissioner use their shares of redistributed rate income, together with income from their council tax payers, revenue support grant provided by the Welsh Ministers and certain other sums, to pay for the services they provide. Further information about the non-domestic rates system, including what reliefs are available may be obtained via businesswales.gov.wales.
Rateable value
The rateable value of non-domestic property is fixed in most cases by an independent valuation officer of the Valuation Office Agency which is an Executive Agency of Her Majesty’s Revenue and Customs (HMRC). They compile and maintain a full list of the rateable values of all non-domestic properties in Wales, available on their website at www.gov.uk/government/organisations/valuation-office-agency. All non-domestic property is normally revalued every 5 years. From 1 April 2017 the rateable value of a property represents its annual open market rental value as at 1 April 2015.
For composite properties which are partly domestic and partly non-domestic the rateable value relates to the non-domestic part only. The values of all property in respect of which rates are payable to your authority are shown in the local rating list, a copy of which may be inspected at, The Valuation Officer & Chief Valuer Wales, Non Domestic Rates Wales, Valuation Office Agency, Ty Rhodfa, Ty Glas Road, Llanishen, Cardiff, CF14 5GR or Ceredigion County Council, Canolfan Rheidol, Rhodfa Padarn, Llanbadarn, Aberystwyth, Ceredigion, SY23 3UE.
Alteration of rateable value
The rateable value may alter if the valuation officer believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) may also in certain circumstances propose a change in value. If the ratepayer and the valuation officer do not agree the valuation within 3 months of the proposal being made, the matter is referred by the valuation officer as an appeal by the proposer to the Valuation Tribunal for Wales. Further information about how to propose a change in a rateable value is available from valuation offices.
Non-domestic rating multiplier
This is the rate in the pound by which the rateable value is multiplied to give the annual rate bill for a property. The multiplier set annually by the Welsh Ministers is the same for the whole of Wales and except in a revaluation year cannot rise by more than the rate of the increase in the retail prices index.
Proposals and appeals
Information about the circumstances in which a change in rateable value may be proposed and how such a proposal may be made is available from the local valuation office shown above. Further information about the appeal arrangements may be obtained from, Ceredigion County Council, Canolfan Rheidol, Rhodfa Padarn, Llanbadarn, Aberystwyth, Ceredigion, SY23 3UE or from the Valuation Office Agency.
The Valuation Tribunal for Wales provides a free independent appeals service dealing with appeals about Non-Domestic Rates and Council Tax. Their contact details can be found here www.valuationtribunal.wales/home.html.
Unoccupied property rating
Owners of unoccupied non-domestic properties may be liable to empty property rates which are charged at 100 per cent of the normal liability. Liability begins after the property has been empty for 3 months or, in the case of certain industrial properties, after the property has been empty for 6 months. Certain types of property are exempt from empty property rates.
Mandatory Rate Relief
To qualify for Mandatory Rate Relief an organisation must not be conducted for profit and the property they occupy must be wholly or mainly used for charitable purposes or those of a Community Amateur Sports Club.
An annual check to confirm entitlement and on a set three yearly cycle a full review will be undertaken.
Mandatory Rate Relief Application Form
Non-Domestic Rates Policy Framework for Mandatory, Discretionary and Hardship Rate Relief
Discretionary Rate Relief
Organisations that have been awarded 80% Mandatory Rate Relief, may apply for an additional 20% Discretionary Rate Relief ‘top-up’. The additional Discretionary Rate Relief ‘top-up’ will not be granted to the following organisations:
- Universities or other Educational establishments;
- Charity shops
Not-for-profit sporting organisations that apply for Discretionary Rate Relief will be granted 100% relief.
Please note that organisations that are applying for both 80% Mandatory Rate Relief and 20% Discretionary Rate Relief will only need to complete one application form but will need to indicate that they are applying for both reliefs.
Discretionary Rate Relief Application Form
Hardship Rate Relief
The Council has discretion under Section 49 if the Local Government Finance Act 1988 to grant relief of up to 100% where hardship is experienced.
Hardship Rate Relief will be considered where the business is suffering from unexpected hardship which is outside of normal risks associated with the business. Any relief on the grounds of hardship will only be awarded in exceptional circumstances.
Hardship Rate Relief Application Form
Small business rate relief
The Non-Domestic Rating (Small Business Relief) (Wales) Order 2015 makes provision for rates relief for small businesses. Full details including the eligibility criteria, the exceptions, the procedural requirements and the relevant rates reliefs are available from the billing authority.
Non Domestic Rates - Retail, Leisure and Hospitality Relief – 2024/2025
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. 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.
Non-Domestic Rates – 2023 Revaluation
The Valuation Office Agency regularly updates the rateable values of all businesses and other non-domestic properties as part of a revaluation exercise. Rateable values are used to calculate your business rates bill.
The latest valuation came into effect on 1st April 2023. Rateable values are the amount of rent a property could have been let for on a set valuation date. For the 2023 valuation, that date was 1 April 2021.
The Valuation office Agency have now completed the revaluation exercise and your draft rateable value has been published online.
You are strongly advised to review your draft assessment and should you feel it is incorrect contact the Valuation Office Agency directly.
You can view your current and future assessment online at https://www.gov.uk/find-business-rates.
If you are having difficulty accessing your draft rateable value on-line you can speak to the Valuation Office Agency by calling 03000 505505
Non-Domestic Rates Multiplier 2024/25
The Welsh Government has set the multiplier in respect of 2024/2025 at a rate of 56.2p
Transitional Relief
The Welsh Government will provide all ratepayers whose liability is increasing by more than £300, as a consequence of revaluation, with transitional relief.
Any increase in non-domestic rates liability as a result of revaluation will be phased in over two years. A ratepayer will pay 33% of their additional liability in the first year (2023-24) and 66% in the second year (2024-25), before reaching their full liability in the third year (2025-26).
Transitional Relief will automatically be awarded and applied to your Non-Domestic Rates bill if your business is eligible for the scheme.
Extension to the Retail, Leisure, and Hospitality Relief
Eligible retail, leisure and hospitality businesses in Wales will receive extended support for 2024/25. Ratepayers who meet the qualifying criteria will receive 40% non-domestic rates relief for the duration of 2024-25 financial year from 1st April 2024, subject to a cap on relief across Wales at £110,000 per business.
Frequently Asked Questions (Wales)
Revaluation
What is revaluation?
Revaluation is a review of the rateable values of all non-domestic properties in England and Wales carried out by the Valuation Office Agency (VOA). This normally happens every 3 years.
How do you value a property?
The VOA values a property by its rateable value. The VOA values a property by its rateable value. Rateable values are the amount of rent a property could have been let for on a set valuation date. For the 2023 valuation, that date was 1 April 2021.
How is my rateable value calculated?
The rateable value is based on how much rent a property could be let for, on a set date (1 April 2021 for revaluation 2023).
In order to calculate the rateable value, the VOA analyses the rental property market to ensure that rateable values reflect the property market accurately.
What is the valuation date for revaluation 2023?
The AVD for revaluation 2023 is 1 April 2021.
Who decides on the valuation date?
The Government decide on the valuation date. They chose 1 April 2021 so that valuations would reflect the impact of COVID-19 on the property market.
How is my business rates bill calculated?
We calculate business rates bills using a rateable value. Rateable values are based on how much rent a customer’s property could be let for, on a set date (1 April 2021 for revaluation 2023).
When will I receive my business rates bill?
Customers are now able to see the future rateable value for their property and get an estimate of what their business rates bill may be.
They can do this through the VOA’s Find a Business Rates Valuation Service on GOV.UK.
Who do I contact if my rateable value is too high?
Before 1 April 2023, Welsh customers should use the Find a Business Rates Valuation Service on GOV.UK to tell the VOA they think their rateable value is too high.
From 1 April 2023, customers will need to use a business rates valuation account to tell the VOA they think their rateable value is too high.
They must continue to make payments of their business rates as normal. If they do overpay, they can request a refund from their local council.
Who do I contact if my property has changed?
Before 1 April 2023, Welsh customers should use the Find a Business Rates Valuation Service on GOV.UK to tell the VOA about changes to their property details such as floor area sizes and parking.
After 1 April 2023, to tell the VOA about changes to their property details, customers need a Business Rates Valuation Account.
The VOA may accept their changes and update the current and future valuations.
Why do similar properties have different rateable values?
When calculating a rateable value, the VOA considers how much a property could be let for, on a set date. The rateable value of properties can vary for a number of reasons like size or location.
What business rates relief are available?
There are several types of business rates relief for customers. They can find further information on GOV.UK. They may need to contact their local council to check their eligibility for business rates relief.
Business rates reliefs are handled differently if their property is in Wales.
What if I want to use an agent?
If a customer wants to authorise an agent to act on their behalf, they can appoint one using an authority to act form on GOV.UK.