The Non-Domestic Rating (Small Business Relief) (Wales) Order 2006

Explanatory Note

(This note is not part of the Order)

This Order comes into force on 1 April 2007 and applies to Wales. It provides for a small business rate relief scheme for Wales following the coming into force of section 63 of the Local Government Act 2003. That section makes amendments to sections 42A, 43 and 47 of the Local Government Finance Act 1988 (“the 1988 Act”) (such that the rural rate relief scheme for Wales lapses but is saved by this Order in relation to financial years ending on or before 31 March 2007).

Article 2 defines hereditaments which are excepted from the small business rate relief scheme.

Article 3 of this Order prescribes a maximum rateable value of £12,000 for hereditaments which might be eligible for relief.

Articles 4 and 5 prescribe conditions of eligibility.

Article 6 prescribes the amount of E in the formula contained in section 43(4A)(b) of the 1988 Act. That formula provides the mechanism for calculating the amount of rates payable in respect of particular hereditaments.

Articles 4 and 6 have the effect of granting (a) 50% mandatory rate relief to hereditaments which have a rateable value of £2,000 or less, which are not excepted hereditaments as defined in Article 2 and are wholly occupied; and of granting (b) 25% mandatory rate relief to hereditaments which have a rateable value of more than £2,000 but not more than £5,000, which are not excepted hereditaments as defined in Article 2 and are wholly occupied.

Articles 5 and 6 have the effect of granting 100% mandatory relief to post offices which have a rateable value of £9,000 or less, and of granting 50% mandatory relief to post offices which have a rateable value of more than £9,000 but not more than £12,000.