The Welsh Government announced last week (11th August) that the next non-domestic rating revaluation in Wales will take effect in April 2023 and will be based on property values as at 1 April 2021. Rebecca Evans, the Minister for Finance and Trefnydd said that postponing the revaluation to 2023 will mean that the rateable values on which rate bills are based will better reflect the impact of COVID-19.
The change will also mean that the next revaluation in Wales takes effect at the same time as that in England, ensuring businesses and other ratepayers in Wales are not placed at a disadvantage compared with those elsewhere.
Andrew West, Business Rates Director at Cooke & Arkwright commented:
“This was widely anticipated and is to be welcomed. It is important that rateable values reflect the adverse impact of the Coronavirus pandemic to property values.
“However, I do have reservations on the deferral of the reduction in liabilities for retail which would have been effective from April 2021, and also whether the full impact of the pandemic will be apparent by the first quarter of next year. Most business rate assessments are based on rental evidence and there may be a paucity upon which to base the new assessments.”
The Welsh Government is currently exploring reforms to the local taxation system and potential alternatives for raising revenue from non-domestic property in the longer term.