Improvement Relief (Non-Domestic Rates)

The relief is intended to support ratepayers who have invested in improvements to their non-domestic properties by providing relief from the additional business rates that become payable due to any increase in rateable value arising from those improvements. The relief can be allowed for a period of up to 12 months. 

The amount of relief allowed will be the extra business rates chargeable for the property due to the increase in rateable value attributable to eligible improvement works.

Businesses do not need to apply for this relief as explained below. It will automatically be applied to their account where appropriate.

The precise terms and conditions of the relief have been set by Welsh Government and more detailed guidance can be found on its website: Non-Domestic Rates - Improvement Relief (Business Wales) (opens new window)

Eligibility conditions

Eligibility for the relief is subject to two conditions being met:

1. The improvements must meet the definition of qualifying works AND
2. The property must have remained in occupation by the same ratepayer in the period since the qualifying works began

1. The improvements must meet the definition of qualifying works

This will be decided by the Valuation Office Agency (The VOA) which is a separate organisation to the council that is responsible for the valuation of properties for business rates purposes. If the VOA is satisfied that the improvements meet the definition of qualifying works, it will automatically issue a certificate to the council confirming how much of the increase in rateable value is attributable to the works. This means that businesses do not need to apply for this relief.

To meet the definition of qualifying works, the improvements must result in one or more of:

• an increase to the size of a building or the internal useable space within it
• improvements or upgrades to the property's physical state, such as the addition of heating, air conditioning, or raised flooring
• the addition of other rateable plant and machinery

2. The property must have remained in occupation by the same ratepayer in the period since the qualifying works began

The same ratepayer must have remained in occupation throughout the period in which the works were undertaken and during the period of relief following completion.

For what period will the relief apply?

The relief will apply for a 12-month period from the date on which qualifying works were completed.

The period of relief ends 12 months after completion of the qualifying works unless the eligible ratepayer vacates the property at an earlier date, in which case the relief ends when they vacate.