The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which apply in relation to Wales, revoke and replace the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005 (“the 2005 Regulations”) and the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) (Amendment) Regulations 2006 (“the 2006 Regulations”) which amended them, subject to a transition provision for both local and central non-domestic rating lists compiled before 1 April 2023.

These Regulations are concerned with the alteration of local and central non-domestic rating lists, which are compiled under the Local Government Finance Act 1988 (“the Act”). They cover the alteration of non-domestic rating lists by valuation officers, proposals for such alterations from other persons and appeals to the Valuation Tribunal for Wales where there is disagreement about a proposal between the valuation officer and another person.

There are 6 Parts to these Regulations.

Part 1 contains definitions of terms used in the Regulations.

Part 2 sets out provisions which apply to the alteration of local lists.

Those provisions specify who may make a proposal to alter a local list, and on what grounds. Provision is also made prescribing what information must be included in a proposal, the process for checking information about a hereditament included in a proposal before that proposal may be submitted, and when, and how, a proposal may be submitted to a valuation officer. Proposals relating to a material change of circumstances are also subject to additional requirements which limit the number of proposals that may be submitted and the timing of their submission.

Valuation officers are required to acknowledge receipt of a proposal within 28 days of receiving it. However, they must refuse a proposal which does not include all the information required by these Regulations, though provision is made enabling a proposer to submit a further proposal.

The Regulations set out the procedure a valuation officer must follow on receipt of a complete proposal and specify what actions a valuation officer must take where a proposal is determined as being well-founded. Where a valuation officer determines that a proposal is not well-founded, or fails to make a determination, the Regulations set out the grounds on which a proposer may submit an appeal to the Valuation Tribunal for Wales. Provisions also prescribe the timeframe for submitting an appeal and the procedure to be followed.

Provision is also made enabling a proposer to send a notice to a valuation officer withdrawing a proposal, but in certain circumstances the written agreement of others may be required for the notice to be effective.

The Regulations further set out the circumstances in which agreement may be reached with a valuation officer to alter a local list after a proposal has been made, and the effect of that agreement. However, where a valuation officer determines that a proposal is not well-founded, that it has not been withdrawn, and that it has not been possible to agree an alteration to a local list, then the valuation officer must serve a decision notice on the persons specified by, and containing the information prescribed by, these Regulations as soon as reasonably practicable after the decision has been made.

Where a person knowingly, recklessly, or carelessly provides a valuation officer with information in a proposal, or in connection with a proposal that is false in a material particular, the valuation officer may impose a financial penalty on that person of £200. The Regulations prescribe the process to be followed in the imposition of that penalty, which if unpaid can be recovered as a civil debt. A person may, by notice, appeal to the Valuation Tribunal for Wales regarding the imposition of a financial penalty, in the manner required by, and in accordance with the timeframe prescribed by the Regulations.

Alterations made to a local list in accordance with these Regulations only apply to a local list compiled on or after 1 April 2023 and a local list must show the day from which the alteration is to take effect. Specific provision is made as to how this is to be applied in respect of advertising rights. Further, a valuation officer is required to provide notification of the alteration and its effect to the persons specified in the Regulations within the prescribed timeframe.

Part 3 makes provision about alterations of the Central Lists, applying Part 2, with modifications, to hereditaments shown on the central non-domestic rating lists.

Part 4 sets out the procedure for appeals against completion notices and the imposition of penalty notices.

Part 5 makes provisions for appeals in general and sets out the arrangements for appeals, including the exceptions to jurisdiction, withdrawal of an appeal and procedure for disposal by written representation and where parties have come to agreement.

These Regulations also provide for pre-hearing review. In respect of hearings, these Regulations make provisions for notices, representation, disqualification, conduct, appeal management powers and evidence.

An appeal may be decided by a majority and remitted where it fails to be disposed of by two members of a valuation tribunal. The decision may be reserved or given orally at the end of the hearing. Orders may be made requiring, among other things, a valuation officer to alter a list or remit a penalty.

Decisions may be reviewed on an application made within 28 days of the decision upon the basis that the decision was wrongly made, or that a party did not appear and can show reasonable cause why they did not do so or that the appeal is affected by a decision or appeal from the High Court or Upper Tribunal in relation to the hereditament which is the subject of the valuation tribunal’s decision. An application may also be made under certain circumstances where new evidence has become available since the conclusion of the proceedings. The Regulations place a duty on the tribunal clerk to make arrangements to record each decision, order, certificate and revocation and set out how records should be kept and for how long, to whom they should be sent, and for their production in court.

Provision is made for an appeal of a decision to the Upper Tribunal which may confirm, vary, set aside, revoke or remit the decision and may make any order the tribunal could have made. In certain circumstances the dispute may be referred to arbitration which may make an award which includes any order which could have been made by a valuation tribunal in relation to the dispute.

Part 6 makes miscellaneous and consequential provision which includes the giving or service of notices, the retention of records by valuation officers, and prescribes information to be supplied by relevant authorities for the purposes of paragraph 6(1A) of Schedule 9 to the Act.

Consequential amendments largely substitute these Regulations in definitions which specify the 2005 Regulations.

Provision is made for the revocation of the 2005 and 2006 Regulations with a transitional provision applying the 2005 Regulations to any alteration of a list compiled before 1 April 2023 or any provision made by regulations under section 58 of the Act (which makes special provision for 1995 onwards).

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from Local Government Finance Reform, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.