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
