
2022 No. 1350 (W. 272)
Rating And Valuation, Wales
The Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022
Made 14 December 2022
Coming into force 31 December 2022

The Welsh Ministers make the following Regulations in exercise of the power conferred on the Secretary of State by sections 58(1), (2), (3), (4), (5), (6), (7) and (10) and 143(1) of the Local Government Finance Act 1988 and now vested in them.
A draft of these Regulations was laid before, and approved by a resolution of Senedd Cymru, in accordance with section 143(4) of that Act.

In accordance with section 58(9) of that Act, the Welsh Ministers have had regard to the object of securing (so far as practicable) that the aggregate amount payable to the Welsh Ministers and all billing authorities by way of non-domestic rates as regards the financial years falling within the relevant period does not exceed that which the Welsh Ministers consider would be likely to be payable apart from these Regulations.
PART 1 Preliminary: general
Title, commencement and application
1 

(1) The title of these Regulations is the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022.
(2) These Regulations come into force on 31 December 2022 and apply in relation to Wales.
(3) These Regulations apply in relation to the period beginning on 1 April 2023 and ending on 31 March 2028 (“the relevant period”).
Interpretation
2 
In these Regulations—
 “the Act” (“
y Ddeddf”) means the Local Government Finance Act 1988;
 “base liability” (“BL”) (“
rhwymedigaeth sylfaenol”, “BL”) is the amount calculated in accordance with regulation 4;
 “central list” (
“rhestr ganolog”) means a list  maintained in accordance with section 52ZA(10)  of the Act;
 “chargeable day” (“
diwrnod y codir swm ynglŷn ag ef”), in relation to occupied hereditaments shown in a local list, has the meaning given in section 43(3) of the Act, in relation to unoccupied hereditaments shown in a local list, has the meaning given in section 45(3) of the Act, and in relation to hereditaments shown in a central list, has the meaning given in section 54(3) of the Act;
 “defined hereditament” (“
hereditament diffiniedig”) has the meaning given in regulation 3;
 “local list” (“
rhestr leol”) means a list  maintained in accordance with section 41ZA(10)  of the Act;
 “notional chargeable amount” (“NCA”) (“
swm tybiannol a godir”, “NCA”) is the amount calculated in accordance with regulations 6 and 7;
 “relevant day” (“
diwrnod perthnasol”) is a chargeable day falling within the relevant period;
 “relevant period” (“
cyfnod perthnasol”) has the meaning given in regulation 1(3).
Defined hereditament
3 
A hereditament is a defined hereditament in respect of a relevant day if it is shown in a local list or in a central list on—
(a) 31 March 2023,
(b) the relevant day, and
(c) each day, if any, falling after 31 March 2023 and before the relevant day.
PART 2 Preliminary: calculations
Base liability
4 

(1) Where, on 31 March 2023, section 43(4B)(b) of the Act applies to a defined hereditament, the base liability (“BL”) for that defined hereditament is calculated by applying the formula—A×0.535E
(2) In all other cases, the BL for a defined hereditament is calculated by applying the formula—A×0.535
(3) For the purposes of this regulation—
 A is the rateable value shown for the defined hereditament in a local list or in a central list on 31 March 2023, and
 E is the amount of E which applies to the defined hereditament on 31 March 2023 in accordance with the Non-Domestic Rating (Small Business Relief) (Wales) Order 2017.
Notional chargeable amount
5 
The notional chargeable amount (“NCA”) for a defined hereditament is calculated in accordance with regulations 6 and 7.
6 

(1) Where, on 1 April 2023, section 43(4B)(b) of the Act applies to a defined hereditament, the NCA for that defined hereditament is calculated by applying the formula—A×BE
(2) In all other cases, the NCA for a defined hereditament is calculated by applying the formula—A×B
(3) For the purposes of this regulation—
 A is the rateable value shown for the defined hereditament in a local list or in a central list on 1 April 2023,
 B is the non-domestic rating multiplier for the financial year beginning on 1 April 2023 calculated in accordance with paragraph 4B of Schedule 7 to the Act, and
 E is the amount of E which applies to the defined hereditament on 1 April 2023 in accordance with the Non-Domestic Rating (Small Business Relief) (Wales) Order 2017.
7 

(1) This regulation applies to a defined hereditament where for a day after 1 April 2023 the rateable value shown in a local list or in a central list for the defined hereditament is different to that shown for it in a local list or in a central list on 1 April 2023.
(2) From the day on which the change in rateable value has effect, regulation 6 has effect as regards the defined hereditament with the following amendments—
(a) in paragraph (1), for “1 April 2023”, substitute “the day on which the change in rateable value has effect”, and
(b) in paragraph (3), for the definition of ‘A’. substitute “A is the rateable value shown for the defined hereditament in a local list or in a central list on the day on which the change in rateable value has effect , but where paragraph 3 of Schedule 4ZA or paragraph 3 of Schedule 5A (improvement relief) to the Act applies in respect of a hereditament (as the case may be), A is that rateable value minus G.”.
(3) In paragraph (2)(b) above, G is the amount prescribed, or calculated in accordance with provision prescribed, by the Welsh Ministers under paragraph 10(7) of Schedule 4ZA or paragraph 6(6) of Schedule 5A to the Act (as the case may be).
PART 3 Cases to which the prescribed rules apply
8 
For the purpose of section 58(2) of the Act, the cases are those that fall within the descriptions prescribed in regulation 9, and do not fall within the descriptions prescribed in regulation 10.
Prescribed descriptions
9 
A defined hereditament where—
(a) the NCA is greater than the sum calculated by applying the formula—BL+100, and
(b) on the relevant day, the occupier of the hereditament is the same person as the occupier on 31 March 2023.
Exceptions
10 
A defined hereditament where on the relevant day—
(a) the chargeable amount would otherwise be zero under  paragraph 2 of Schedule 4ZB to  the Act, or
(b) an apportionment under section 44A(1) of the Act applies to the hereditament and has effect in relation to the chargeable amount.
PART 4 Prescribed rules
Rules for finding the chargeable amount
11 
For the purpose of  section 58(3) of the Act, the chargeable amount for a defined hereditament to which regulation 8 applies (cases that fall within the prescribed description) is to be found in accordance with the rules prescribed in regulations 12 to 16.
12 
The chargeable amount for a relevant day is the amount calculated in accordance with section 43, 45 or 54 of the Act as appropriate, less the amount calculated under whichever of regulations 14 to 16 applies.
13 
If the result of reducing the chargeable amount in accordance with the rules in regulations 14 to 16 is to produce a negative figure, the chargeable amount is zero.
Financial year commencing on 1 April 2023
14 
In the financial year commencing on 1 April 2023, the chargeable amount is reduced by an amount calculated by applying the formula—NCA-BL×0.67366
Financial year commencing on 1 April 2024
15 
In the financial year commencing on 1 April 2024, the chargeable amount is reduced by an amount calculated by applying the formula—NCA-BL×0.34365
Financial years commencing on 1 April 2025, 1 April 2026 and 1 April 2027
16 
In the financial years commencing on 1 April 2025, 1 April 2026 and 1 April 2027 the chargeable amount is reduced by zero.
PART 5 Revocation
17 
The Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2016 are revoked.
Rebecca Evans
Minister for Finance and Local Government, one of the Welsh Ministers
14 December 2022