Business Rates

What are Business Rates?

Business Rates are a contribution to the cost of local services (such as Education, Social Services, Highways Maintenance, Street Lighting) provided by local authorities.

The Business Rates collected by each Welsh local authority are paid to the National Assembly for Wales who give the income back to local authorities based on the population of each authority.

Business Rates are paid by most non-domestic properties. The main exceptions are farm buildings and land, churches, and public parks.

Where a property has both a domestic and non-domestic part (for example, a shop with living accommodation), it is known as a 'composite' property. In these cases, Business Rates are paid for the non-domestic part and Council Tax for the domestic part.

Business Rates are property based and are calculated by multiplying the property's rateable value by the rating multiplier (a rate in the pound). Rateable values are determined by the Valuation Officer (see Rateable values for more information), while the rating multiplier is set by the National Assembly for Wales. The rating multiplier is the same across the whole of Wales, although it is different from the rating multiplier in England which is set by the DTLR (Department for Transport, Local Government and the Regions).

The National Assembly for Wales sets the rating multiplier every year and it cannot by law rise by more than the increase in the Retail Prices Index (except in the year of a rating revaluation which takes place every five years).

Business rates bills may be reduced in certain circumstances, see Reductions to rates bills.

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Last Updated: 14.01.2016 at 10:16

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