The Non-Domestic Rating (Demand Notices) (Wales) Regulations 2017

Made: 8 February 2017

Laid before the National Assembly for Wales: 10 February 2017

Coming into force: 13 March 2017

The Welsh Ministers make the following Regulations in exercise of the powers conferred on the Secretary of State by sections 62, 143(1) and (2) and 146(6) of, and paragraphs 1, 2(2)(ga), (gc), (ge) and (h) and 6A of Schedule 9 to, the Local Government Finance Act 1988[^f00001], and now vested in them[^f00002].

Title, commencement and application

1

• (1) The title of these Regulations is the Non-Domestic Rating (Demand Notices) (Wales) Regulations 2017.

• (2) These Regulations come into force on 13 March 2017.

• (3) These Regulations apply in relation to demand notices which relate to financial years beginning on or after 1 April 2017 and are issued by or on behalf of Welsh billing authorities.

Interpretation

2

In these Regulations—

• “the 1988 Act” (“Deddf 1988”) means the Local Government Finance Act 1988;

• “the 1992 Act” (“Deddf 1992”) means the Local Government Finance Act 1992[^f00003];

• “billing authority” (“awdurdod bilio”) means a Welsh billing authority;

• “community council” (“cyngor cymuned”), in relation to a billing authority, means a community council which has power to issue a precept to the billing authority;

• “demand notice” (“hysbysiad galw am dalu”) means a demand notice within the meaning of Part II of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989[^f00004] which is served by a billing authority or any person authorised by a billing authority to exercise any functions relating to collection of non-domestic rates (including such a notice served pursuant to Part II of the Non-Domestic Rating (Collection and Enforcement) (Miscellaneous Provisions) Regulations 1990[^f00005] (joint owners and occupiers));

• “police and crime commissioner” (“comisiynydd heddlu a throseddu”), in relation to a billing authority, means the police and crime commissioner which has power to issue a precept to the billing authority;

• “the relevant year” (“y flwyddyn berthnasol”) means the financial year to which the demand for payment made by the demand notice relates.

Content of demand notices

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• (1) A demand notice must contain the matters prescribed in Schedule 1.

• (2) Nothing in this regulation requires a notice to be given on a single sheet of paper, but if more than one sheet is used, the sheets must be issued together, whether or not attached, so as to comprise one notice.

Invalid demand notices

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• (1) For the purpose of this regulation an “invalid notice” (“hysbysiad annilys”) means a demand notice that does not comply with regulation 3(1).

• (2) A requirement to pay amounts contained in an invalid demand notice applies as if the notice was valid if—

• (a) the failure to comply with regulation 3(1) was due to a mistake; and

• (b) the amounts required to be paid under the invalid demand notice were demanded in accordance with Part II of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.

• (3) A billing authority must, as soon as practicable after the mistake is discovered, issue to the ratepayer concerned a statement of the matters prescribed in Schedule 1 which were not contained in the invalid notice.

Demand notices: explanatory, financial and other information

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• (1) A demand notice must be accompanied by—

• (a) the explanatory information in the form of words prescribed in Schedule 2, and

• (b) the information prescribed in Part 1 of Schedule 3.

• (2) Part 2 of Schedule 3 has effect for the purposes of Part 1 of that Schedule.

• (3) Paragraph (1)(b) does not apply where a demand notice is served after the end of the relevant year.

Supply of information by police and crime commissioners

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• (1) On issuing a precept to a billing authority for a financial year a police and crime commissioner must supply the billing authority with information as to—

• (a) the estimates mentioned in paragraph 1 of Part 1 of Schedule 3, and

• (b) the matters mentioned in paragraphs 2, 3 and 4 of Part 1 of Schedule 3.

• (2) Paragraph (1) does not apply—

• (a) where the information would repeat information given as regards a precept issued for the preceding financial year, or

• (b) to a substitute precept.

• (3) Where a police and crime commissioner has issued a substitute precept to a billing authority the police and crime commissioner must supply the information specified in paragraph (1) in respect of that substitute precept where—

• (a) the billing authority notifies the police and crime commissioner that it has set, or proposes to set, an amount of council tax under section 31 of the 1992 Act[^f00006] by reference to the substitute precept, and

• (b) the information would not repeat information given as regards a precept issued for the preceding financial year.

Revocation and savings provision

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The instruments specified in column (1) of the table in Schedule 4 are revoked to the extent indicated in column (3) but continue to apply to a financial year ending on or before 31 March 2017.

Consequential provision

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In regulation 1(2) of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 in the definition of “demand notice regulations”, for “the Non-Domestic Rating (Demand Notices) (Wales) Regulations 1993[^f00007]” substitute “the Non-Domestic Rating (Demand Notices) (Wales) Regulations 2017”.

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• (1) Article 66 (contents of demand notices—Wales) of the Local Authorities (Contracting Out of Tax Billing, Collection and Enforcement Functions) Order 1996[^f00008] is amended as follows.

• (2) In paragraph (1)—

• (a) for the definition of “the 1993 Regulations” substitute—

• “the 2017 Regulations” means the Non-Domestic Rating (Demand Notices) (Wales) Regulations 2017

; and

• (b) for the definition of “rate demand notice” substitute—

• “demand notice” has the same meaning as in the 2017 Regulations

• (3) In paragraph (3), for “1993” substitute “2017”.

• (4) In paragraph (3)(b), omit “Part I or, as the case may be, Part II of”.

• (5) In paragraph (3)(c), for “Part I” substitute “Part 1”.

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• (1) Regulation 9 of the Non-Domestic Rating (Deferred Payments) (Wales) Regulations 2012[^f00009] is amended as follows.

• (2) In both the heading and the body of the regulation, for “1993” substitute “2017”.

• (3) For “the Collection Regulations” substitute “the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989”.

SCHEDULE 1 — Matters to be contained in demand notices

1

The address and a description of each hereditament to which the demand notice relates (“relevant hereditament”).

2

The rateable value shown for each relevant hereditament in the authority’s local non-domestic rating list.

3

The non-domestic rating multiplier calculated for the relevant year in accordance with paragraph A15 or, as the case may be, paragraph A14 of Part A2 of Schedule 7 to the 1988 Act.

4

Where regulations under paragraphs 1(2)(b) and 3(9) of Schedule 4ZB to the 1988 Act are or will be in force on any day in the relevant year, a statement of the days, if any, on which, for the purposes of calculating the payments required to be made under the demand notice, it was understood or assumed that the conditions mentioned in section 45(1) of the 1988 Act[^f00012] were or would be fulfilled in relation to any relevant hereditament, and a statement that as regards those days the chargeable amount is reduced by the proportion provided for in the regulations as compared with the amount it would be if paragraph 1(1)(b) of Schedule 4ZB to the 1988 Act[^f00013] applied to the calculation of the chargeable amount for those days.

5

Where paragraph 2 of Schedule 4ZB to the 1988 Act[^f00014] applies to any relevant hereditament on any day in the relevant year, a statement as regards those days the chargeable amount is zero under that section and a statement of the amount which would have been demanded if paragraph 1(1) of Schedule 4ZB to the 1988 Act applied to the calculation of the chargeable amount for those days.

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A statement of the days, if any, on which, for the purposes of calculating the payments required to be made under the demand notice, it was understood or assumed that—

• (a) the chargeable amount would fall to be calculated under paragraph 2(1) or 4(1) of Schedule 4ZA to the 1988 Act[^f00015];

• (b) the chargeable amount would fall to be calculated by reference to paragraph 10(2) of Schedule 4ZA to the 1988 Act as substituted by section 44A(7) or (9) of that Act[^f00016]; or

• (c) rules under section 47(1)(a) or 58(3) of the 1988 Act[^f00017] would apply;

together with a statement of the manner in which the chargeable amount for those days was calculated and of the amount by which the aggregate amount demanded under the demand notice is reduced as compared with the amount which would have been demanded if paragraph 1 of Schedule 4ZA, without modification, and (so far as is relevant) paragraph 10(2) of Schedule 4ZA without substitution, applied to the calculation of the chargeable amount for those days.

SCHEDULE 2

1

The form of words set out below is prescribed for the purposes of regulation 5—

EXPLANATORY NOTES

The information given below explains some of the terms which may be used on a non-domestic rate demand and in the supporting information. Further information about liability to non-domestic rates may be obtained from billing authorities.

Non-domestic rates

The non-domestic rates collected by billing authorities are paid into a central pool and redistributed to county and county borough councils and police and crime commissioners. Your council and police and crime commissioner use their shares of redistributed rate income, together with income from their council tax payers, revenue support grant provided by the Welsh Ministers and certain other sums, to pay for the services they provide. Further information about the non-domestic rates system, including what reliefs are available may be obtained viahttps://businesswales.gov.wales/

Rateable value

The rateable value of non-domestic property is fixed in most cases by an independent valuation officer of the Valuation Office Agency which is an Executive Agency of His Majesty’s Revenue and Customs (HMRC). They compile and maintain a full list of the rateable values of all non-domestic properties in Wales, available on their website at www.gov.uk/government/organisations/valuation-office-agency. All non-domestic property is normally revalued every 3 years. From 1 April 2026 the rateable value of a property represents its annual open market rental value as at 1 April 2024.

In the year a revaluation takes effect, the multiplier is rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money.

Revaluation

All rateable values are reassessed at a general revaluation to ensure rates paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market. The current rating list came into effect on 1 April 2026 and is based on values as at 1 April 2024.

Alteration of rateable value

The rateable value may alter if the valuation officer believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) may also in certain circumstances propose a change in value.... Further information about how to propose a change in a rateable value is available from valuation offices.

Non-domestic rating multiplier

This is the rate in the pound by which the rateable value is multiplied to give the annual rate bill for a property. There are three multipliers applicable in Wales: the standard multiplier, the retail multiplier and the higher multiplier. The multipliers are set annually by the Welsh Ministers ....

Proposals and appeals

Information about the circumstances in which a change in rateable value may be proposed and how such a proposal may be made is available from the local valuation office shown above. Further information about the appeal arrangements may be obtained from name of billing authority or from the Valuation Office Agency.

Unoccupied property rating

Owners of unoccupied non-domestic properties may be liable to empty property rates which are charged at 100% of the normal liability. Liability begins after the property has been empty for 3 months or, in the case of certain industrial properties, after the property has been empty for 6 months. Certain types of property are exempt from empty property rates.

Charitable and discretionary relief

Charities and community amateur sports clubs are entitled to 80% relief from rates on any non-domestic property where—

• (a) in the case of charities, the property is wholly or mainly used for charitable purposes; or

• (b) in the case of a club, the club is registered with HM Revenue & Customs.

For more information regarding clubs you should contact HM Revenue & Customs address, (website is http://www.hmrc.gov.uk).

Small business rate relief

The Non-Domestic Rating (Small Business Relief) (Wales) Order 2017 makes provision for rates relief for small businesses. Full details including the eligibility criteria, the exceptions, the procedural requirements and the relevant rates reliefs are available from the billing authority.

Transitional rate relief

The Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 make provision for transitional relief for ... businesses adversely impacted by the revaluation of non-domestic hereditaments taking effect from 1 April 2026. Full details including the eligibility criteria, the exceptions, the procedural requirements and the relevant rates reliefs are available from the billing authority.

State aid

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2Italics in paragraph 1 above indicate words to be inserted.

SCHEDULE 3 — Financial and other information

PART 1 — Information for supply with demand notices

1

The estimates of the billing authority and of the police and crime commissioner of the—

• (a) aggregate of its gross expenditure for the relevant year for all services administered by it;

• (b) allowance appropriate for contingencies and the contributions to or from financial reserves for the relevant year;

• (c) amount of its financial reserves at the end of the relevant year;

• (d) amount of its capital expenditure to be incurred in the relevant year;

• (e) sums payable to it for the relevant year by way of—

• (i) revenue support grant (or, if the amount of such grant falls to be adjusted following the approval by resolution of the National Assembly for Wales of an amending report under section 84L of the 1988 Act[^f00021], the amount which would be so payable but for that report);

• (ii) additional grant;

• (iii) redistributed non-domestic rates; and

• (iv) police grant under section 46 of the Police Act 1996[^f00022];

• (f) aggregate of its gross expenditure for the preceding year for all services administered by it; and

• (g) amount of its financial reserves at the end of the preceding year.

2

The amount calculated as its budget requirement for the relevant year—

• (a) by the billing authority under section 32(4) of the 1992 Act; and

• (b) by the police and crime commissioner under section 43(4) of the 1992 Act.

3

The amount calculated for the relevant year by the billing authority and the police and crime commissioner as the amount of the difference (whether positive or negative) between—

• (a) the amount of its budget requirement for that year; and

• (b) the amount calculated by it for that year as the amount for item P in section 33(1) or, as the case may be, section 44(1) of the 1992 Act[^f00023].

4

The standard spending assessment for the billing authority and the police and crime commissioner for the relevant year.

5

The amount of the precept anticipated by the billing authority for the relevant year, if any, pursuant to regulations under section 41(3) of the 1992 Act[^f00024].

6

Where a body has issued a levy or special levy to the billing authority that was taken into account for the relevant year by the authority in making its estimate under section 32(2)(a) of the 1992 Act[^f00025]—

• (a) the amount of the levy or special levy; and

• (b) information as to whether any of it was treated as special expenses of the authority.

7

The amount of any levy or special levy issued to a billing authority that was taken into account for the preceding year by the authority in making its estimate under section 32(2)(a) of the 1992 Act.

8

The amount of the precept, if any, issued by each community council for—

• (a) the relevant year; and

• (b) the preceding year.

PART 2 — Interpretation etc.

9

For the purposes of paragraph 1(a) and (f) of Part 1, the gross expenditure in respect of a service for a year is the sum of all items charged to a revenue account for the year attributable to the service, but does not include allowances for contingencies or contributions to financial reserves.

10

The estimates for the relevant year and for the preceding year, to be supplied pursuant to paragraph 1(a), (b), (c), (f) and (g) of Part 1 are—

• (a) as regards the billing authority, estimates made for the purposes of the calculations required by section 32 of the 1992 Act; and

• (b) as regards police and crime commissioners, estimates made for the purposes of the calculations required by section 43 of the 1992 Act.

11

For the purposes of paragraph 1(d) of Part 1, capital expenditure is expenditure of the billing authority which—

• (a) falls to be capitalised in accordance with proper practices; or

• (b) is treated as being capital expenditure by virtue of regulations or directions made by the Welsh Ministers under section 16(2) of the Local Government Act 2003.

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