Welsh Ministers have made the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025, establishing a transitional relief scheme to moderate increases in non-domestic rates arising from the 2026 revaluation. The instrument comes into force on 31 December 2025 and applies from 1 April 2026 until 31 March 2029.
Under the scheme, higher liabilities are phased in over two financial years for eligible ratepayers: 67 per cent of the increase is remitted in 2026–27 and 34 per cent in 2027–28, with full liability payable from 2028–29.
Eligibility is defined by the status of the hereditament rather than sector. The property must be on the local or central list on 31 March 2026; the revaluation must raise the bill by more than £300; the same ratepayer must be liable on 31 March 2026 and on the relevant chargeable day; the property must have been occupied on 31 March 2026; and no section 44A apportionment for partial occupation may apply.
Bills are calculated using two reference amounts set out in the Regulations. The base liability is the annualised chargeable amount for 31 March 2026. The notional chargeable amount is the annualised bill that would apply on 1 April 2026 if transitional rules did not operate. The yearly reduction is applied to the difference between these figures.
If the statutory chargeable amount falls during the period-such as after a list alteration-the notional figure used for phasing is updated from the effective date of that change, so the calculation reflects the current entry on the list.
Administration is automatic. Local authorities will adjust bills for properties on the local list where the criteria are met, while the Welsh Government will apply adjustments for central list ratepayers. Ratepayers do not need to apply and should see the relief itemised on their 2026–27 and 2027–28 notices.
The Welsh Government has allocated £116 million over two years to fund the scheme. The relief sits alongside wider NDR reforms due from April 2026, including differential multipliers and a lower rate for eligible retail properties.
For businesses and public bodies, the practical tests are continuity of occupation and liability on 31 March 2026, absence of a section 44A apportionment, and whether the revaluation increases the annual bill by more than £300. Where these conditions are satisfied, the phased reduction applies automatically.
The 2025 Regulations supersede the previous 2022 transitional scheme introduced after the 2023 revaluation; the earlier Regulations are revoked and replaced with a new three-year window ending on 31 March 2029.
Illustration: if the annualised bill on 31 March 2026 is £10,000 and on 1 April 2026 is £13,000, the £3,000 uplift exceeds the £300 threshold. In 2026–27, £2,010 (67 per cent) is relieved and £990 is payable in addition to the base figure; in 2027–28, £1,020 (34 per cent) is relieved and £1,980 is payable; from 2028–29 the full £13,000 applies, subject to any other reliefs.