Tackling Business Rates Avoidance in Wales – Have Your Say

The Welsh Government has launched a new consultation titled “Consultation on the Measures to Address Avoidance of Non-Domestic Rates.” The focus? Cracking down on business rates avoidance, which is estimated to cost Wales between £10 million and £20 million annually—up to 2% of total business rates income. While the strategies used to avoid business rates aren’t illegal, they do exploit the system for financial gain. The Government is now looking to strengthen its response by gathering views on a series of proposals aimed at tightening the rules and closing loopholes. This builds on earlier reforms introduced after a 2018 consultation, including:

• Extending the occupation period for claiming empty property relief from 6 to 26 weeks.
• Granting local authorities powers to inspect properties and request information.
• Toughening the criteria for charitable relief on empty properties.
• Establishing a general anti-avoidance framework.
• Creating duties for property owners to share relevant information with billing authorities.

The current consultation focuses on the last two areas. Key proposals include:

• Defining artificial avoidance arrangements under the anti-avoidance framework.
• Introducing a duty for ratepayers to report relevant changes in circumstances.

These changes are set to come into effect from 1 April 2026, and the Welsh Government is inviting feedback now to help shape the final regulations. If you have a stake in non-domestic properties, now is the time to have your say. Responses are required by 30 June 2025. If you wish to respond you can do so online here: Respond online | GOV.WALES Read more: Consultation on the measures to address avoidance of non-domestic rates [HTML] | GOV.WALES Dunlop Heywood offer nationwide expertise in legal business rates mitigation to find out more email aaron.mcleod@dunlopheywood.com.