Business Rates Relief
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. There are three main sources of business rates relief that could be available for your property.
Welsh Government has made changes to the scheme which come into effect from 1st April 2018. The revised scheme is outlined below:
- Premises with rateable value (RV) not exceeding £6,000 will continue to be entitled to 100% relief
- There is also no change for premises above £6,000 RV up to the upper RV limit of £12,000 where relief will reduce on a tapered basis, gradually reducing at a rate of approximately 1% for every £60 RV e.g. a property with RV £6,120 will attract 98% relief; a property with RV £6,600 will attract 90% relief.
The relief outlined above will apply to all types of business, not only retail. Although certain categories of ratepayer are excluded, including local authorities and charitable organisations.
- All registered childcare premises will be entitled to 100% relief from 1st April 2019.
- This higher level of relief will be in place for three years to 31 March 2022, during which time it will be evaluated by Welsh Government to assess its effect.
- Post Offices with RV not exceeding £9,000 will be entitled to 100% relief; those with a RV above £9,000 up to £12,000 will be entitled to 50% relief.
However, under new rules, a ratepayer will only be able to receive relief for up to two premises in any single local authority area (child care premises and post offices are excluded from this restriction). In such cases the ratepayer must give notice of those hereditaments to the Council.
Please note, premises occupied by ratepayers that are charities or non-profit making-organisations that are entitled to apply for mandatory or discretionary “charitable” relief, will not qualify for Small Business Relief. The business property must be wholly occupied to qualify for relief.
Charities and some specific non-profit making organisations are entitled to 80% 'Mandatory Relief' from rates on any non-domestic property which is wholly or mainly used for charitable purposes. We have the power to grant discretionary relief in respect of the remaining 20% or part thereof.
Community Amateur Sports Clubs have been able to apply for 80% mandatory Rate Relief and where appropriate, additional discretionary relief, providing they have registered their CASC status with the Inland Revenue.
We also have the power to grant discretionary (only) relief to certain other types of organisation that are not established or conducted for profit. Any “discretionary only” relief will not normally exceed 60%.
The Non-Domestic Rates regulations permit authorities to reduce the rates bill for businesses suffering hardship.
The regulations do not set out the criteria which must be met, but instead it is left to the authority's discretion.
However, it is generally recognised that the authority may grant relief where it is satisfied that:
- The ratepayer would sustain hardship if the authority did not do so; and
- It is reasonable for the authority to do so, having regard to the interests of the Council Tax Payers.
In deciding whether it is appropriate to grant relief, the authority may consider factors which are not strictly financial. In addition, the local amenities or employment prospects may be of relevance in the decision.
Every application made to the authority will be considered on its own merits taking account of all the relevant factors relating to the business and the area in general.
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