New Development Relief
The Welsh Government has introduced a Discretionary Rate Relief Scheme to incentivise new and speculative development.
The scheme gives a property relief from Empty Property Rates. The scheme operates from 1st October 2013.
The policy gives new build empty property rates relief of 100% to apply to unoccupied non domestic properties for the first 18 months following building completion.
Property must be unoccupied and wholly or mainly comprised of qualifying new structures. (Wholly or mainly means more than half).
The policy intends to capture new and substantially structurally altered properties, not refurbished properties.
The scheme becomes very complex when splits and mergers of properties are involved and refers to the New Developments Relief Scheme Guidance Note.
On change of ownership the relief runs with the property rather than the owner.
The scheme cannot apply to Welsh/UK Government; Public Authority; the Crown or run in parallel with any other scheme for an organisation which receives any other support grant Enterprise Zones Business Rates Scheme (EZBRS). The scheme is strictly subject to the ratepayer’s State Aid de-minimis limits.
Individual businesses will need to complete an application form which will be dealt with on its own merits following the scheme guidance set out by the Welsh Government.
It is for the individual or organisation to decide if they wish to apply for this rate relief scheme and take the necessary legal or professional advice to inform their decision.
Enquiries can be made to: NNDR Section, Civic Offices, Holton Road, Barry CF63 4RU.
Further information can be found at www.wales.gov.uk
You may also contact the Welsh Government: