Welsh Ministers have introduced the Non‑Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 to control bill increases from the 2026 revaluation. The instrument comes into force on 31 December 2025 and applies from 1 April 2026, phasing in increases above £300 over two financial years before full liability resumes in 2028–29.
The scheme applies to hereditaments on both the local list and the central list in Wales that were on a list on 31 March 2026. It is designed as a broad‑based measure rather than a sector scheme and is fully funded by the Welsh Government.
Two amounts drive the calculation. The base liability (BL) is the annualised liability using the chargeable amount for 31 March 2026 under section 43 (local list, occupied) or section 54 (central list) of the Local Government Finance Act 1988. The notional chargeable amount (NCA) is the annualised liability using the chargeable amount for 1 April 2026 under sections 43, 45 or 54, as appropriate. A hereditament unoccupied on 31 March 2026 has no BL and is not eligible.
Eligibility mirrors the statute’s prescribed case: the NCA must exceed BL by more than £300; the ratepayer on the relevant day must be the same person who was liable on 31 March 2026; the hereditament had to be occupied by that person on 31 March 2026; and no apportionment for partial occupation under section 44A applies. If any of these conditions fail, transitional relief does not apply.
Where eligible, increases are phased on a daily basis. In 2026–27, 67% of the increase (NCA − BL) is deducted when calculating the daily chargeable amount; in 2027–28, 34% is deducted, with 366 days used for that year because it spans the 2028 leap day. Negative results are floored at zero. From 1 April 2028, no transitional reduction is applied.
The NCA is generally fixed from 1 April 2026 and is not recalculated for inflation or multiplier changes in 2027–28. However, if the statutory chargeable amount for the hereditament decreases during the period-for example following a successful VOA proposal-the NCA is recalculated from the effective date of that change, and relief is re‑worked accordingly.
Administration is automatic. Billing authorities will adjust local‑list bills where the criteria are met and identify the relief in NDR1/NDR3 returns, while the Welsh Government will apply the reduction for central‑list entries. Where an authority cannot implement the relief immediately from 1 April 2026, it should notify eligible ratepayers and re‑issue bills once recalculated.
This relief sits alongside wider changes planned for 1 April 2026. The Government has signalled a lower retail multiplier and a marginally higher multiplier for the largest properties, with a standard multiplier reduction to 0.502; the values are to be set by separate regulations, subject to Senedd approval.
For finance teams, the practical checks are clear: confirm the occupier and liable ratepayer remain the same on and after 31 March 2026; review any section 44A partial‑occupation requests because they disqualify transitional relief; and budget for the step‑up to full liability by 2028–29. Welsh Government guidance includes worked examples to test figures before bills issue.
The structure mirrors the 2023 cycle in Wales, which also offset 67% of the increase in year one and 34% in year two before returning to full liability. That precedent offers a familiar profile for cash‑flow planning as the 2026 lists take effect.