About this guidance
This guidance provides local authorities with additional information to assist with the administration of non-domestic rates (NDR) reliefs. It applies to Wales only and does not replace any existing NDR legislation or any guidance on specific reliefs.
Enquiries about this guidance and the related legislation should be sent to the Welsh Government at the following email address: LocalTaxationPolicy@gov.wales
Our Business Wales webpages provide information on the range of available reliefs.
Introduction
There is no statutory requirement for local authorities to require ratepayers to submit written applications for relief. It is, however, good practice for local authorities to award relief on the basis of transparent and accountable decision-making processes.
This guidance sets out the statutory requirements and good practice in relation to:
- information provided to ratepayers;
- accepting and acknowledging applications;
- notification of decisions;
- reviews and withdrawal of relief; and
- subsidy control.
Information provided to ratepayers
There are no legislative requirements in relation to publicising relief schemes. However, to comply with good practice, local authorities should provide information on relevant webpages about the relief schemes available, eligibility criteria, any general policies the local authority has and also details on inspections, appeals and how to report changes of circumstances.
Applicants should be able to complete the application process online either by completing an online form, or by downloading an application from the website. Local authorities should also send paper copies of the application form on request or/and offer assistance when needed to applicants filling out the online form.
Local authorities should ask for appropriate supporting information and evidence which is relevant to their application. This could, for example, include evidence of charitable status, audited accounts, written constitutions, membership details, as appropriate.
Organisations sometimes fail to inform local authorities of a change in circumstance, particularly if they believe it might result in a higher rates bill. Local authorities should emphasise that it is the duty of recipients to inform the local authority of any change in circumstances.
Accepting and acknowledging applications
Local authorities should acknowledge all applications for rates relief in accordance with their normal targets for responding to correspondence from ratepayers. Acknowledgements should advise ratepayers of the likely time for any decision to be made, and of the possibility that the local authority may need to ask questions or make further enquiries.
Local authorities will already have their own established procedures for making decisions on applications for rates relief. Many will delegate decision-making powers to individual officers or committees with agreed terms of reference.
It is important that local authorities have readily understood guidelines for deciding whether to grant relief and for determining the amount of any relief given. In each instance, a local authority should be able to demonstrate that it has considered a case on its merits.
Notification of decisions
Local authorities should notify all applicants for rates relief of their decision in writing. Where relief is granted, the letter should set out:
- the amount of relief granted and the date from which it has been granted;
- if relief has been granted for a specified period, the date on which it will end;
- the new chargeable amount;
- details of any planned review dates and the notice that will be given in advance of a change to the level of relief granted; and
- a requirement that the applicant should notify the local authority of any change in circumstances that may affect entitlement to relief.
Local authorities should provide an explanation of their decision in every case where relief is either refused or restricted to a smaller amount than applied for.
Adopting the above course of action can be particularly important. Firstly, so that the applicant is aware of the reasons for the decision and secondly, so that an organisation can, if it wishes, take steps to conform with the criteria which the local authority has adopted for granting relief. It is a public law principle that a local authority should provide reasons for a decision and, if this is not done, there is increased risk of a decision being subject to review.
The ratepayer should also be notified at the same time of any right of appeal against the decision of the local authority.
Reviews and withdrawal of relief
It is good practice for local authorities to request updated information on an annual basis from ratepayers about the current use of the property and whether there has been any change of circumstances. When local authorities suspect a change has occurred but have not been informed by the ratepayer, contact should be made to request information. This is important to ensure the ratepayer is still eligible for relief.
Some local authorities may require applicants to apply for relief on an annual or biannual basis. Others may send a letter addressed to the ratepayer before the start of the new financial year, asking for confirmation about the current use of the property.
If a local authority does not receive a response to any request for information about the current use of the property, it may choose to undertake a visible inspection of the property. If it appears the property is no longer used for purposes for which it was originally awarded relief, a local authority may issue a formal letter setting out its intention to withdraw relief.
Subsidy control
As of 4 January 2023, the new UK subsidy control regime commenced with the coming into force of the Subsidy Control Act 2022. Further guidance can be found on the GOV.UK webpages.
For further advice, the Subsidy Control Unit at the Welsh Government can be contacted at:
Subsidy Control Unit
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
E-mail: SubsidyControlUnit@gov.wales