Guide

Claim Improvement Relief for business premises in Wales

How to claim Improvement Relief in Wales, which delays any business rates increase resulting from property improvements for 12 months. This relief is unique to Wales and removes a key barrier to investing in business premises.

Wales

If you improve your business premises in Wales, your rateable value may increase, which means higher business rates. Improvement Relief delays that increase for 12 months after the works are completed, giving you time to benefit from the investment before paying higher rates.

This relief has been available in Wales since 1 April 2024. It was introduced under the Non-Domestic Rating (Improvement Relief) (Wales) Regulations 2023, using powers in the Non-Domestic Rating Act 2023.

Who can claim

You can claim Improvement Relief if:

  • You occupy a non-domestic property in Wales
  • You have carried out works that increase the property's rateable value
  • The Valuation Office Agency (VOA) has certified the increase in rateable value attributable to the works
  • Your local authority (billing authority) is satisfied that the occupation condition is met

What qualifies as an improvement

The works must result in a positive change to the rateable value of the property. Examples include:

  • Extensions or additional floor space
  • Significant refurbishment that increases rental value
  • Installation of new facilities (e.g. air conditioning, modern kitchens)
  • Conversion of unused space into productive commercial space

General maintenance and repair that does not increase the rateable value does not qualify. The VOA makes the determination on whether works are qualifying improvement works.

How the relief works in practice

When you complete qualifying improvement works:

  1. The VOA assesses your property and issues a certificate confirming the increase in rateable value caused by the improvements
  2. Your local authority verifies that you occupy the property
  3. For 12 months from completion, the increase in rateable value is disregarded when calculating your rates bill
  4. After 12 months, the full revised rateable value applies and your rates bill increases accordingly

How to claim

  1. Complete your improvement works on the property

  2. Notify the Valuation Office Agency (VOA) that the works have been completed — the VOA will reassess the property

  3. The VOA issues a certificate confirming the increase in rateable value attributable to the qualifying works

  4. Contact your local authority's business rates team to confirm the occupation condition is met and that Improvement Relief will be applied

  5. Your local authority applies the relief to your rates bill for 12 months from the completion date

  6. After 12 months, confirm that your rates bill reflects the revised rateable value — budget accordingly

What next

For a full overview of all business rates relief available in Wales, including Small Business Rates Relief and RLH relief, see Business rates in Wales: relief schemes and how to claim.

If you are planning property works, consider whether the development also triggers SuDS approval requirements, which apply to construction areas of 100 square metres or more in Wales.

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