What is the policy of the Welsh Government and the HMRC, as it operates in Wales, on the charging of business rates on community-owned and community-run recreational facilities such as playing fields and related spectator areas?
All non-domestic properties in Wales, unless they are exempt, fall within the Welsh Government’s system of non‑domestic rates. This includes community-owned and community-run recreational facilities. All revenue collected from non-domestic rates is centrally pooled and redistributed to local authorities, contributing more than £1 billion to fund vital local government and police services in Wales.
The Welsh Government provides a range of mandatory rates relief schemes for which such facilities may be eligible, depending on their status. Registered community amateur sports clubs may apply for charitable relief. Mandatory charitable relief covers 80% of the rates liability for eligible properties. Local authorities may choose to top up this relief to 100%. The Welsh Government also contributes to the funding of any discretionary top-up.
Local authorities also have more general powers to provide discretionary rates relief. The Welsh Government provided an additional £2.4 million in the Revenue Support Grant for 2019-20 to support local authorities in providing discretionary relief.
Non-domestic rates policy is devolved to Wales. While HMRC is responsible for the registration of community amateur sports clubs (which may also be eligible for reliefs on non-devolved taxes), it is not responsible for non-domestic rates policy in Wales.