We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
Summarising changes to business rates in Wales
The final Welsh Government Budget for 2026/27 was approved on 27 January 2026.
The Budget outlines additional funding of £65m to support the business rates transitional relief scheme. This is linked to reforms taking effect from 1 April 2026 following revaluation.
Transitional rates relief
From 1 April 2026, following the revaluation, the Welsh government is providing all ratepayers whose liability is increasing by more than £300, as a consequence of revaluation, with transitional relief. Any increase in non-domestic rates liability as a result of revaluation will be phased in over two years.
A ratepayer will pay 33% of their additional liability in the first year (2026/27) and 66% in the second year (2027/28), before reaching their full liability in the third year (2028/29). The Welsh government is providing £116m over two years to fund this relief, supporting all areas of the tax-base through a consistent and straightforward transitional scheme.
Read the guidance for transitional rates relief
How your business rates are calculated
Your business rates are calculated by taking the rateable value (RV) of your property and multiplying it by the relevant non-domestic rates ‘multiplier’ (or ‘poundage’). Any business rates reliefs you are eligible for will then be applied to determine your bill.
From 1 April 2026, there are three multipliers which may apply to a property in Wales. The provisional multipliers announced for 2026/27 are as follows:
- a retail multiplier of 0.350, applicable to small to medium sized retail shops with a rateable value below £51,000
- a standard multiplier of 0.502, applicable to most other properties
- a higher multiplier of 0.515, applicable to properties with a rateable value above £100,000.
Read the guidance on the application of these multipliers
Ensuring your business rates are correct
From 1 April 2026, to ensure your business rates are calculated correctly, you must notify your local authority of the date on which any of the following changes occurred, within 60 days:
- you became the ratepayer of the property
- the property has become occupied and was previously unoccupied (empty)
- the property has ceased to be occupied (has become empty).
Failure to comply with this duty may result in a fine of £500. Providing information which is false may result in a fine on summary conviction to a fine of up to level three on the standard scale (currently £1,000).
Read the guidance on the duty to report changes of circumstances to local authorities
Valuation
The Valuation Office Agency (VOA) values properties and assigns the RV. If you think your RV is incorrect and you want to appeal, contact the VOA. If you and the VOA cannot reach agreement, you may appeal to the Valuation Tribunal for Wales.