Welsh Ministers have made the Non‑Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 to smooth bill increases from the 2026 revaluation. The instrument takes effect on 31 December 2025 and applies from 1 April 2026 to 31 March 2029, with the scheme fully funded and available on both the local and central lists.
Eligibility is tightly defined. A property must appear on a local list or the central list on 31 March 2026 and continue to be shown up to the relevant billing day. Relief applies only where the increase between the 31 March 2026 position and the notional 1 April 2026 position exceeds £300, the same person is the ratepayer on both dates, the property was occupied on 31 March 2026, and no section 44A apportionment for partial occupation applies.
Two figures underpin the calculation. The base liability is the annualised chargeable amount on 31 March 2026. The notional chargeable amount is the annualised chargeable amount on 1 April 2026; if the chargeable amount later falls, the notional figure is recalculated from the effective date of the change. Calculations operate on a daily basis across the period.
Phasing is fixed by the position on 1 April 2026. In 2026–27 bills are reduced by 67% of the increase between the notional and base liabilities; in 2027–28 the reduction is 34%; in 2028–29 there is no reduction. Where the deduction would produce a negative daily liability, it is set to zero. The second‑year calculation uses 366 days.
Administration is automatic. Local authorities will apply the deduction for hereditaments on local lists; the Welsh Government will do so for central list entries. Ratepayers should check bills and contact their authority if figures appear incorrect.
Other reliefs interact in a set order. Mandatory reliefs under the Local Government Finance Act 1988 are reflected before the transitional deduction; any discretionary reliefs awarded by an authority are applied after. Entitlement is calculated daily and will be adjusted if a qualifying property’s chargeable amount decreases during the scheme.
There are material exclusions. Eligibility ends if the liable ratepayer changes during the period. Properties unoccupied on 31 March 2026 do not qualify, although a property that becomes empty after 1 April 2026 can continue to benefit once any initial empty‑property relief period ends, provided the ratepayer is unchanged.
The scheme aligns with wider 2026 reforms. Ministers have signalled differential multipliers for 2026–27 of 0.502 (standard), 0.350 (retail) and 0.515 (higher) and have already made regulations describing where differential multipliers apply; values are to be confirmed in separate regulations.
For planning purposes, a business facing a £9,000 increase at revaluation would see £3,000 of that increase reflected in 2026–27 and £6,000 in 2027–28, with the full £9,000 payable in 2028–29. The deduction is set by the 1 April 2026 position, so inflation‑only changes in 2027–28 are not offset by this scheme.
Funding is central. The Welsh Government has allocated £116m over 2026–27 and 2027–28 to deliver the transitional relief, with authorities recording support through NDR1 and NDR3 returns; ministers also reference permanent reliefs worth around £250m annually.
Finance teams should confirm that the hereditament is on the relevant list on 31 March 2026, ensure the liable entity does not change if relief is expected, and retain evidence of occupation for that date. Queries about the underlying rateable value should be directed to the Valuation Office Agency.
Timing is critical. The regulations commence on 31 December 2025, with bills reflecting the deduction from 1 April 2026. Ministers present the measures as easing the cash‑flow impact of the 2026 list in the first two years, before full liability applies in 2028–29.