GUIDE
A guide to business rates in Wales
We’ll help you understand rates reform and relief in a changing system.
Despite being one of the biggest costs, business rates in Wales are relatively straightforward, with a single multiplier and a focused set of reliefs designed to support specific sectors.
This can make it easier to understand how your bill is worked out and where savings may be available.
Following the 2023 revaluation and recent policy updates, taking the time to understand how the system operates will help you manage your liability with more confidence.
Key business rates changes
These are the main changes shaping business rates in Wales for 2026/27 and beyond.
- The 2026 valuation list came into force from 1st April 2026, based on property values as of 1st April 2024
- A new three-tier multiplier system was also introduced, replacing the previous single multiplier structure
How business rates work
Rateable value
Your property’s rateable value (RV) reflects the rent it could achieve on the open market at a fixed valuation date. It’s set by the Valuation Office Agency (VOA).
Multiplier
The Welsh Government sets the multiplier each year, which determines how much tax is paid per £1 of rateable value.
Calculating your bill
Your business rates bill is worked out using the following calculation:
Rateable Value × Multiplier = Annual Rates Liability
Any reliefs, exemptions or transitional arrangements are then taken into account.
Business rates multipliers
Between 2023/24, 2024/25 and 2025/26, the business rates multiplier for all properties changed from 0.535, to 0.562 to 0.568.
In Wales, there was historically no separate supplement for larger properties, meaning a single multiplier applied across all rateable values. From April 2026, this changed with the introduction of a three-tier multiplier system, with different rates depending on property type and rateable value.
The full multiplier structure is:
| Rate year | Retail mulltiplier RV <£51,000 | Standard mulltiplier RV <£100,000 | Higher mulltiplier RV £100,000 and over |
| 2026/27 | 0.350p | 0.502p | 0.515p |
| 2027/28^ | 0.361p | 0.517p | 0.530p |
| 2028/29^ | 0.371p | 0.533p | 0.546p |
*Estimate increased based on projected CPI in the previous September (OBR prediction 3%).
The new retail multiplier replaces Retail, Hospitality and Leisure relief.
Changes in rateable values and multipliers can lead to significant shifts in your bill. Transitional arrangements are designed to manage how these changes are introduced over time.
Transitional arrangements and revaluations
The 2023 revaluation updated rateable values across Wales. This will continue for the 2026 Rating List, with the same percentage increases and qualifying criteria.
To help manage increases following the revaluation:
- A Transitional Relief Scheme still applies where your bills increase by more than £300
- The increase will be phased in over the 2026/27 (33%) and 2027/28 (66%) years, with full payment due from 2028/29
To be eligible for the transitional scheme, the following must apply:
- The property must have been shown on a local list or central list on 31st March 2026, and been occupied on that date.
- You must not be in receipt of relief for partially occupied properties (under section 44A of the Local Government Finance Act 1988)
- Not be a property with zero rating of unoccupied properties (under section 45A of the 1988 Act)
- Be occupied by the same occupier of the property as of 31 March 2026
Transitional Relief applies to the ratepayer rather than the property, so it is only calculated after assessing Small Business Rates Relief. If the ratepayer changes, the entitlement ends. As a result, Wales calculates Transitional Relief every day, unlike England and Scotland, where it is set as an annual percentage.
Reliefs and exemptions
There are a range of reliefs available which may reduce the amount you pay, depending on your property, sector and circumstances.
A permanent scheme for small businesses came into effect in April 2018, and was extended into the 2023 and 2026 Revaluations. If your property has a lower rateable value, you may qualify for:
- 100% relief for properties with a rateable value up to £6,000
- Tapered relief between £6,001 and £12,000 from zero to 100%
Relief is generally limited to two properties per business within each local authority, and those properties meet only the RV conditions.
Childcare
From the 1st April 2019, the Small Business Rates Scheme for Childcare Providers was extended to provide 100% relief to all registered providers. The higher level became permanent in April 2025.
Post offices
- Post offices with a rateable value up to £9,000 receive 100% relief
- 50% relief for rateable value between £9,001 and £12,000
Eligible charities, community amateur sports clubs (CASCs), and some non‑profit organisations can get relief when their property is used for charitable purposes. Registered charities and CASCs automatically receive 80% relief, and local authorities may grant up to 100% relief for non‑profit bodies.
The Non-Domestic Rating (Public Toilets) Act grants 100% business rates relief for separately assessed public toilets in England and Wales, including those operated by local authorities. This applies retrospectively from 1st April 2020.
When a property becomes vacant, it may receive a temporary exemption. After this period, full rates are usually payable.
Since 1st April 2011, the threshold properties become liable to pay rates dropped from £18,000 to £2,600. The remaining reliefs are the same as those in England, and are listed below.
Empty property exemptions
| Commercial | 3 months exemption* |
| Industrial | 6 months exemption* |
| Listed building | Exempt |
| Vacant land | Exempt |
| Ratepayer is a charity | Exempt** |
| Ratepayer is an amateur sports club | Exempt** |
| RV £2,600< | Exempt |
| Ratepayer in administration or receivership | Exempt |
* A property can qualify for the exemption if it is newly assessed or becomes vacant if it has had at least 26 weeks of ‘rateable occupation’.
** Exemption applies where the local authority believe that a Charity will occupy the property next.
Partly occupied properties
Local authorities can make a reduction to a ratepayer’s liability when part of a property is unoccupied for a short time only.
If your property is commercially available for short term self-catering lets, it will be rated and valued for business rates instead of council tax. From 1st April 2010, self-catering property was classified as ‘non-domestic’ and liable for ‘non-domestic rates’ if:
- The property will be available for short periods totally 140 days or more in the following 12 months.
- The ratepayer’s interest in the property enables them to let it for this time.
- In the 12 months prior to assessment, it has been available for letting commercially as self-catering accommodation for short periods totally at least 140 days.
- The time it has been commercially let amounted to at least 70 days during that period.
From 1st April 2016 , this criteria will continue to apply, but businesses consisting of several self-catering properties at the same location (or within very close proximity) have the option to average the number of letting days of the properties to meet the 70-day requirement where they are let by the same or connected businesses.
From 1st April 2023 the following changes to second homes, long-term empty dwellings, and self-catering accommodation will apply:
- The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties was increased to 300%. Councils will decide this based on local circumstances and can apply different premiums to second homes and long-term empty dwellings.
- The criteria for self-catering accommodation being liable for business rates, not council tax will change. The threshold to be considered commercial will change from being available to let for 140 days and achieving 70 days’ letting in any 12-month period, to being available 252 days with 182 days’ letting.
From 1 April 2026, if 182 days has not been achieved in the past 12 months, an average of the days for which a property has been commercially let over the past two of three years may be used. This helps occupiers which comfortably exceed 182 days’ letting in most years, but may occasionally fall short by a narrow margin, such as a temporary drop in demand or late cancellations.
Also from 1 April 2026, an allowance of up to 14 days per year for donations of short breaks to registered charities, free of charge, may be counted towards the letting amount. Operators are under no obligation to do this.
Billing authorities can also grant hardship relief to businesses if they believe that it’s in the interest of the local community.
| Relief | Level of support | Key details |
| Small business rates relief | Up to 100% | Full relief for properties up to £6,000 RV, tapering to £12,000 |
| Retail, hospitality and leisure relief | 40% | Capped at £110,000 per business across Wales |
| Charitable relief | 80% | Mandatory relief for eligible charities, with potential discretionary top-up |
| Childcare relief | 100% | Available to registered childcare providers from April 2025 |
| Rural rate relief | Up to 100% | Available in designated rural areas for eligible businesses |
| Empty property relief | Temporary exemption | Applies for a lmiited period when a property becomes vacant |
Retail, hospitality and leisure relief
For 2026/27, additional support was introduced for eligible hospitality businesses including pubs, restaurants, cafés and live music venues. Relief of up to 15% may be available, capped at £110,000 per business. This replaces 40% relief for the 2025/2026 year.
Childcare providers
From April 2025, a scheme to provide registered childcare providers with 100% relief was made permanent.
Enterprise zones
The Enterprise Zones Business Rates Scheme provides time‑limited business rates support to SMEs located in Enterprise Zones, specifically those showing growth – either new businesses or those expanding their full‑time workforce.
Freeports and investment zones
Part of a set of tax incentives, business rates relief and retention is available for Freeports and Investment Zones. Visit the government website to learn more.
Hydropower projects
Hydropower schemes with a rateable value of up to £50,000 can apply for support covering the period from 2017 to 2023, and the relief can be applied retrospectively.
Heat networks
From 1 April 2024, the government introduced heat networks relief to support the growth of this sector over the coming decade.
Heat networks supply heat from a central source to consumers through a network of pipes. 100% relief is available for non-domestic properties used wholly or mainly as a heat network that provides thermal energy from low‑carbon sources.
Appeals and compliance
Check, challenge, appeal (CCA)
Wales adopted the Check, Challenge, Appeal system in April 2023. This means you can:
- Check and change your property details
- Check and challenge the rateable value (RV) of your property
- Appeal the outcome
- Appoint an agent to deal with your business rates
Reporting changes in circumstances
From April 2026, you’re required to report certain changes in circumstances to your local authority. This helps ensure that property records remain accurate and up to date. Further guidance is available.
Upcoming changes and reforms
Business rates policy in Wales continues to evolve, with a focus on:
- maintaining targeted support for key sectors
- providing stability through capped multiplier increases
- exploring longer-term reforms to the system
When you may need specialist advice
Business rates can involve more technical considerations, particularly for specialist properties or more complex situations.
This can include areas such as decapitalisation rates, completion notices, central rating list assessments, subsidy control and other more detailed valuation or compliance matters.
If your situation goes beyond the standard framework, our experts can help you navigate the detail and identify opportunities to manage your liability more effectively.
Frequently asked questions
From 2026/27, business rates in Wales are calculated by applying one of three multipliers to a property’s rateable value:
- A 35.0p retail multiplier for qualifying retail properties below £51,000 RV
- A 50.2p standard multiplier for most other properties
- A 51.5p higher multiplier for properties with a rateable value above £100,000
For example, a retail property with a rateable value of £40,000 would have a gross rates liability of £14,000 (£40,000 × 0.35), before any reliefs are applied.
Depending on your property and how it’s used, you may be able to reduce your bill through:
- Small business rates relief
- Retail, hospitality and leisure relief
- Charitable relief
You can also review your rateable value and, if needed, challenge it through the Check, Challenge, Appeal process.
In most cases, yes. There’s usually an initial exemption period when a property first becomes vacant, after which full rates are payable.
If your property has a lower rateable value, you may qualify for significant support, including up to 100% relief. Relief is tapered above the lower thresholds, depending on your circumstances.
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