The Welsh government has published a new consultation ‘Reforming non-domestic rates in Wales’. It looks at improvements to ensure that Welsh ratepayers contribute fairly to the services they receive and that the services ratepayers rely upon are properly funded.

At a glance

The Welsh government is seeking views on reforms to non-domestic rates, creating opportunities to make improvements specifically for Wales to better support ambitions for clear and stable tax devolution and the reformation of local taxes in Wales.

The consultation proposes:

  • More frequent revaluation cycles (from five-yearly to three-yearly) to ensure that rates valuations more accurately reflect up-to-date market conditions.
  • Improvements to the administration of valuation functions and rating lists including setting out in the legislation which matters should and should not be taken into account between revaluations.
  • Improving the flow of information between government and ratepayers to allow for more frequent revaluations and improve the accuracy of rating lists.
    • In line with recent Proposals for England, the Welsh government proposes a new duty to provide information to the Valuation Office Agency (VOA) through an online service, with penalties for failure to comply, to be activated during the rating list in 2023.
  • Providing the Welsh Government with more flexible legislation to amend reliefs and exemptions in future years together with a review of those reliefs and exemptions to ensure the support available is targeted in the most effective way.
  • Providing greater scope to allow for different multiplier rates to be set in future such as:
    • Lower multipliers for small businesses.
    • Sector-specific multipliers.
    • Multipliers set by geographic locations.
  • Further measures to ensure the Welsh government can continue to tackle rates avoidance, including the introduction of a General Anti-avoidance Rule (GAAR) for NDR.

The consultation does not ask for views on specific changes which may be required ahead of the implementation of the next Non-Domestic Rating (NDR) list, following the next revaluation on 1 April 2023. Any such changes will be considered separately, as more information on the impact of the revaluation becomes available. 

The consultation does not, at present, suggest changing the current system whereby NDR values are provided by the VOA for England and Wales but it does note that the Welsh government is continuing to explore the potential for a local land value tax as a replacement for NDR and possibly council tax.

The consultation closes on 14 December 2022 and responses can be sent online or to This email address is being protected from spambots. You need JavaScript enabled to view it..

Useful guides on this topic

Business Rates: What's new
The government is exploring different methods for the reform of business rates. Proposals, including three-year rating valuations and have been set out in a number of different consultations as set out below.

Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?

External link

Consultation: Reforming non-domestic rates in Wales 

 


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