Business Rates Discounts 2022/23 in Wales

Last year, the Welsh Government announced that they will be providing a package of non-domestic rates relief for businesses that have been affected by the Covid-19 pandemic, for the duration of 2022-23.

Retail, leisure and hospitality businesses in Wales will receive 50% non-domestic rates relief between 1st April 2022 and 31st March 2023. What’s more, there will be a freeze on non-domestic rates multiplier for 2022/23, meaning there will be no increase in the amount businesses are paying.

Business Rate Relief Explained

Non-domestic rates (also known as business rates) are taxes to help pay for local services. They are calculated by taking the Rateable Value of your property and multiplying it by the current non-domestic rates ‘multiplier’.

Under the new scheme, leisure and hospitality rates are capped at £110,000 across all properties occupied by the same business. 

Welcomed Support for Businesses

The relief comes as part of the Welsh Budget, which includes a £116 million package of funding, along with existing permanent relief schemes.

After a tough few years for business due to the pandemic, the relief will ensure that businesses in Wales are sufficiently supported. What’s more, it will allow businesses to use money elsewhere in their models, to help them get back on their feet.

Who Qualifies For Tax Relief?

The relief is aimed at helping businesses across Wales. In order to qualify, the business must be wholly or mainly used for the qualifying purposes. Establishments that were closed temporarily due to the Government’s advice on Covid-19 are considered as occupied, and therefore should be liable for the relief.

Examples of those that can apply include:

  • Shops – including Garden Centres, Charity Shops and Petrol Stations
  • Pubs, Restaurants and Cafes
  • Sport and Leisure Facilities, Gyms and Sports Clubs
  • Hotels
  • Cinemas and Nightclubs
  • Performance Venues – including Museums, Art Galleries and Live Music Venues

However, it is the responsibility of local authorities to determine if a business qualifies for the relief. If you are unsure if your business qualifies, contact your local authority.

In the instance that your property has had a change in occupier, if the ratepayer was in occupation on or after the 1 April 2022, the Local Authority may use its discretion in awarding relief. Empty properties becoming occupied after 1st April 2022 will also qualify.

How to Redeem Welsh Tax Relief

Contact your local authority now to redeem the tax relief. It is important to note that all businesses will be required to make a declaration that the amount of relief they are seeking does not exceed the cap.

How We Can Help

If you need help with your business tax, contact our team who can help plan, prepare and submit your returns, and offer specialist advice.