Business Rates: Improvement Relief

The Welsh Government recognises that many businesses see the NDR system as a disincentive to investing in property improvements, as any resulting increase in a property's rateable value may lead to a higher bill. Improvement relief has been introduced to help address this potential barrier to growth and investment in the tax-base, from 1 April 2024.

The relief is intended to support ratepayers investing in improvements to their non-domestic properties which will support their business, by providing relief from the effect of a resulting rateable value increase on their NDR liability for a period of 12 months. The relief is applied by calculating the chargeable amount of NDR for the relevant property as if the rateable value in the list for the day concerned is that rateable value minus the increase in rateable value attributable to the eligible improvement works. This will ensure that businesses and other ratepayers are able to start realising the benefits of improvements they make, before their NDR bill increases. 

Improvement relief is applicable to both the local and central rating lists. Eligibility for the relief is subject to two conditions being met. Firstly, the improvements must meet the definition of qualifying works. Secondly, the property must have remained in occupation by the same ratepayer in the period since the qualifying works began. These conditions are defined in the Non-Domestic Rating (Improvement Relief) (Wales) Regulations 2023 and explained in more detail in this guidance.

The relief is in place from 1 April 2024 and will be available up to and including 31 March 2029.