Non-Domestic Rates – Duty to report changes of circumstances to local authorities

This document provides guidance on the duty for ratepayers to provide information to local authorities about certain changes of circumstances for non-domestic rates (business rates) purposes. This guidance applies to Wales only.

Queries relating to the duty should be directed to the relevant local authority. Contact details for local authorities can be found on the Business Wales webpage.

Enquiries about this guidance should be sent to: localtaxationpolicy@gov.wales 

Further information about non-domestic rates can be found on our Business Wales webpages.

Ratepayers were not previously obliged to notify local authorities of changes of circumstances which would affect their non-domestic rates liability. A minority of ratepayers knowingly withheld information, if they believed this would help them avoid or reduce their liability. The Welsh Government is committed to reducing the opportunities for avoidance within the non-domestic rates system.

We have created duty for ratepayers to report certain changes of circumstances to local authorities. The aim is to ensure changes which may affect who is liable for non-domestic rates liability and the amount they are liable for are brought to the knowledge of local authorities in a timely manner. This will improve the accuracy of non-domestic rates bills and reduce the potential for avoidance.

The duty applies from 1 April 2026 onwards, as required by the Non-Domestic Rating (Provision of Information About Changes of Circumstances) (Wales) Regulations 2026. The Regulations set out the details of the duty, penalties for not adhering with the duty, and processes for reviewing and appealing penalties. 

The duty is focussed on the identity of the ratepayer and whether the property is occupied, as this basic information is critical for local authorities to carry out their billing and collection functions. It requires a person (“P”) who is the ratepayer for a property in Wales to notify the relevant local authority of the following changes:

• There is a change in the identity of P. This means that P must notify the billing authority that they are the new ratepayer for the property.
• P becomes the occupier and the property was unoccupied immediately prior to the change. This means that P must notify the billing authority if they occupy a previously empty property (whether or not they were already the ratepayer, as the owner of the empty property).
• A person (who may be P or a previous ratepayer) ceases to be the occupier and the property is unoccupied immediately following the change. This means that P, as the owner of the empty property, must notify the billing authority that it is no longer occupied (whether or not they were already the ratepayer, as the previous occupier).  

When one or more of these changes of circumstances has occurred, the ratepayer must confirm this to the local authority, together with the date of the change. This information must be provided in writing, within 60 days of a relevant change taking place.

The process for complying with the duty is straightforward. For example, a brief email confirming the relevant details would be sufficient. Contact details for local authorities can be found on the Business Wales webpage.  

A penalty of £500 may be imposed by the local authority for failure to comply with the duty. In such a case, the local authority will serve a penalty notice, requiring payment to be made within 21 days. If the penalty is not paid, the billing authority would be able to recover it as a civil debt, but no such claim could be made before the conclusion of an appeal (if one is made) against the penalty notice.

A separate penalty on summary conviction not exceeding level 3 on the standard scale (£1,000) may apply for knowingly or recklessly providing false information.

A person may request a review of a penalty for failure to comply with the duty. This request must be made to the relevant local authority within 30 days of the date of a penalty notice.

Within 30 days of a request for a review, the local authority must notify the person that the penalty notice is either confirmed, reduced, or remitted in full (cancelled). If no such notification is provided, the penalty notice is deemed to be confirmed. Where the review concludes that the penalty amount is to be reduced or remitted in full, the local authority must serve a further penalty notice containing the revised amount and repay the person any overpaid penalty amount within 21 days. 

If a penalty is confirmed or reduced following a review, the person will be able to appeal against the penalty notice or further penalty notice, within 30 days of the date on which they are notified of the outcome of the review. Appeals must be made to the Valuation Tribunal for Wales (VTW) and include a statement of the reasons why the appellant considers the local authority should not have issued the notice. A further appeal to the Upper Tribunal may be made in respect of a decision made by the VTW within 28 days.