This stakeholder update brings together the latest information provided by the Welsh Government on the Non-Domestic Rates (NDR) system in Wales.
Latest updates
Letting criteria for self-catering accommodation
Earlier this year, following consultation, the Welsh Government announced changes to the criteria for a property providing self-catering accommodation to be classified as non-domestic and liable for NDR, rather than domestic and liable for council tax. Draft legislation to implement the announced changes was subject to a technical consultation.
The Welsh Government has confirmed that the Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 has been made law. It will amend the minimum length of time a property is required to be actually let, increasing it from 70 days to 182 days, within any 12 month period. It will also amend the minimum length of time a property is required to be made available to let, increasing it from 140 days to 252 days. The new criteria will apply to all assessments for the NDR list, from 1 April 2023.
We have updated our guidance for operators of self-catering accommodation to reflect these changes.
Appeals reform
On 29 March, the Minister for Finance and Local Government made a statement in the Senedd, outlining the Welsh Government’s plans for NDR reform. These plans include more frequent revaluations, for which a critical enabler is improvements to the appeals process. The Welsh Government has announced a twelve-week technical consultation, which is open until 11 October 2022, setting out the detail of the proposed reforms.
Central rating list for the non-domestic rates revaluation 2023
Following consultation, the Welsh Government has announced that it will not be making changes to the central rating list for 1 April 2023. Responses to the consultation revealed a lack of consensus for change, which was proposed for administrative efficiency rather than policy purposes. Where appropriate, the inclusion of hereditaments on the central rating list may be considered in the future.
Splitting of non-domestic properties for valuation purposes
In the past, units of property next to each other, occupied by the same ratepayer and used for the same purpose, received one NDR bill. A Supreme Court ruling in 2015 changed this practice, affecting a small number of ratepayers. Following consultation, the Welsh Government has announced that legislation will be prepared to reinstate the practice before the ruling, for new NDR lists compiled from 1 April 2023 onwards.
NDR consultations
The following consultations apply to Wales only.
Central rating list for the non-domestic rates revaluation 2023 – summary of responses
A consultation on proposed changes to the central rating list ran for twelve weeks, from 21 January to 15 April 2022.
The Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022 – summary of responses
A technical consultation on the draft Non-Domestic Rating (Definition of Domestic Property) (Wales) Order 2022 ran for six weeks, from 1 March to 12 April 2022. The legislation implements the announced amendments to the criteria for a property providing self-catering accommodation to be classified as non-domestic and liable for NDR, to take effect from 1 April 2023.
Splitting of non-domestic properties for valuation purposes – summary of responses
A consultation on the splitting of non-domestic properties for valuation purposes ran for twelve weeks, from 9 March to 1 June 2022.
The Non-Domestic Rating (Persons Required to Supply Information and Service of Notices) (Wales) Regulations 2023 – open
A technical consultation on the draft Non-Domestic Rating (Persons Required to Supply Information and Service of Notices) (Wales) Regulations 2023 is open for twelve weeks, from 24 June to 16 September 2022. The legislation will implement measures to help tackle NDR fraud and avoidance, by enabling local authorities to request information from third parties to support their role in billing and collection of NDR.
The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 – open
A technical consultation on the draft Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 is open for twelve weeks, from 19 July to 11 October 2022. The legislation will implement reforms to the NDR appeals process, from 1 April 2023.
The following consultation applies to Wales and England and is being run by the UK Government.
Digitalising Business Rates: connecting business rates and tax data - open
A consultation on policy and IT design options to digitalise business rates. The consultation is open from 20 July until 30 September 2022. Question 1 is specific to Wales. The digitalisation programme aims to connect data held by billing authorities with HMRC tax data and improve the customer experience for ratepayers. The programme also includes the potential to provide central and local government with additional data to better target and administer policies to support levelling up.
Further information
We welcome feedback on this stakeholder update. Any comments or enquiries should be directed to: localtaxationpolicy@gov.wales.
The next update is planned for October 2022 (provisional).
Useful links:
Welsh Government
Business Wales
Valuation Office Agency
Valuation Tribunal for Wales
Welsh Local Government Association
Senedd Cymru