Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, a summary of responses is published to the consultation on detailed policy proposals for two measures to address avoidance of non-domestic rates. I also confirm that we will move forward with the regulations required to give effect to the proposals.
Firstly, we proposed to define a range of artificial avoidance arrangements, giving effect to the general anti-avoidance framework we have created. This will enable billing authorities to apply that framework and counteract the avoidance of liability achieved where the defined arrangements are made.
Secondly, we proposed to establish a duty for ratepayers to report certain changes of circumstances to billing authorities. This will help to ensure crucial information is not intentionally withheld from billing authorities and ratepayers are charged the correct amount.
These are the final two legislative interventions within the package of measures to tackle avoidance announced in 2018. Since then, the Welsh Government has made considerable progress with the delivery of these measures, demonstrating our commitment to ensuring that non-domestic rates are collected as effectively and fairly as possible.
The consultation received 25 responses from a range of stakeholders. Most of the individual proposals set out in the consultation were supported by a majority of respondents. Local authorities supported all of the proposals, whereas rating agents were generally opposed to most of them. A mixture of responses to individual proposals were received from professional or representative bodies, businesses and individuals.
The summary of responses to the consultation includes a Welsh Government response, which describes a small number of changes which will be made to the proposals to ensure they achieve the policy intent. I will bring forward the regulations required to give effect to these proposals in due course and, subject to approval by the Senedd, they will come into force on 1 April 2026.
The summary of responses to the consultation is available at: https://www.gov.wales/measures-address-avoidance-non-domestic-rates