Small Business Rates relief - Wales

January 2007

Business rate payers in England and Scotland have had the benefit of a system of Small Business Rates Relief for some years now.

From 1st April 2007 the Welsh assembly are introducing a similar scheme that will apply throughout Wales. Unlike the scheme in England and Scotland the Welsh rates relief will be given automatically. The bad news is that the present Rural Rate Relief scheme will no longer apply. Over 20% of Welsh businesses qualify for Rural Rate Relief.

It is estimated that nearly half of all businesses in Wales will qualify for the new scheme - in other words the available cash handouts will be spread over an increased number of businesses! The essentials of the new scheme are:

Rateable value of £1999 or less, rates payable will be reduced by 50%
Rateable value between £2000 and £4999, rates payable will be reduced by 25%

Additionally there will be an extra relief for post offices in Wales:

Premises with a rateable value of up to £8,999 will be exempt from business rates (100% relief).
Premises with a rateable value between £9,000 and £11,999 will qualify for a 50% relief.