Welsh Ministers have made the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 under sections 58 and 143A of the Local Government Finance Act 1988. The instrument comes into force on 31 December 2025 and applies to chargeable days from 1 April 2026 to 31 March 2029. Its purpose is to limit how quickly non-domestic rates bills can rise following the 2026 revaluation.
The Regulations apply to “defined hereditaments” appearing on either a local list (section 41ZA) or the central list (section 52ZA). To qualify on any relevant day within the period, the hereditament must be shown on the list on 31 March 2026, on that relevant day, and on every intervening day. If a hereditament is removed from a list, the transitional rules cease from the effective date of removal; calculations already made for earlier days are unaffected.
Two comparison figures underpin the scheme. The base liability (BL) is the chargeable amount for 31 March 2026, annualised by multiplying the daily amount by 365. The notional chargeable amount (NCA) is the bill that would apply on 1 April 2026 under the Act without these Regulations, also annualised. Where a later change reduces the chargeable amount after 1 April 2026, the NCA is recalculated from the date that change takes effect, and the annualiser becomes the number of days in that financial year (366 in 2028).
Eligibility is tightly defined. The increase must exceed £300 when comparing NCA with BL. The same person must be the liable ratepayer on 31 March 2026 and on the relevant day, and the hereditament must have been occupied by that person on 31 March 2026. Any case involving an apportionment for part-occupation under section 44A, or where such an apportionment affects the chargeable amount, is excluded.
Relief is phased over two years. In 2026–27, the chargeable amount is reduced by 67 per cent of the increase between BL and NCA. In 2027–28, the reduction is 34 per cent of the same increase. In 2028–29 there is no reduction and liability equals the amount calculated under the primary charging provisions. The calculation is performed for each chargeable day, and if the reduction would produce a negative figure, the chargeable amount is set to zero.
The framework covers local list properties assessed when occupied under section 43 and, where relevant, when unoccupied under section 45, as well as properties on the central list under section 54. While occupation on 31 March 2026 is required for entry to the scheme, liability on later relevant days can arise under section 43, 45 or 54, provided the liable person is unchanged from 31 March 2026.
Illustrative example: if the annualised BL on 31 March 2026 is £50,000 and the NCA for 1 April 2026 is £60,000, the increase is £10,000, which exceeds the £300 threshold. In 2026–27, the bill is reduced by 67 per cent of £10,000 (£6,700), apportioned across the year. In 2027–28, the reduction is 34 per cent of £10,000 (£3,400), apportioned across 366 days. From 1 April 2028 the reduction ends.
For billing authorities and ratepayers, the operational focus is on record-keeping and triggers. Verify continuous listing from 31 March 2026 to the relevant day, confirm the same liable person throughout, and retain evidence of occupation on 31 March 2026. Monitor any determinations under section 44A, as these disqualify a case, and adjust the NCA from the effective date of any later reduction in liability.
Estate changes affect entitlement. If a hereditament is split, merged or removed from the list, transitional protection ends from the effective date of the change, without altering earlier days already calculated. A change of occupier or transfer of liability breaks the same-ratepayer condition and stops relief from that point.
The instrument revokes the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022. The Welsh Government states that a Regulatory Impact Assessment has been prepared and is available from the Non-Domestic Rates Policy and Reform Division, Cathays Park, Cardiff.