Changes to the small business rates relief scheme and multiplier in Wales

Welsh farm and sheep pics_30613

A new small business rates relief (SBRR) scheme will be introduced on 1 April.

Previously, businesses in Wales have been able to claim SBRR on multiple properties. The Welsh Government has now placed limitations on this under the new scheme. Businesses will only be able to claim SBRR on a maximum of two properties per local authority.

Where a business occupies more than two rateable properties with rateable values less than £12,000, the relief will be applied against the two properties with the highest notional values.

This differs from England where businesses with more than one property are only eligible for SBRR if their additional property or properties all have rateable values of under £2,900 and the total rateable value of all those properties added together does not exceed £19,999.

There are slightly different rules for businesses providing childcare and post offices.

Also set to change from 1 April is the way the multiplier is referenced. The multiplier is the number of pence per pound of rateable value that is payable by the ratepayer. Currently it is linked to the Retail Price Index (RPI) and is 49.9p. From 1 April it will be linked to the lower Consumer Price Index and will be 51.4p for 2018/19.