Wales has signed off new rules to cushion the jump in non‑domestic rates when the 2026 rating list takes effect. Increases of more than £300 will be phased: 67% of the uplift is removed in 2026‑27 and 34% in 2027‑28, with full bills due in 2028‑29. The regulations take effect on 31 December 2025 and apply from 1 April 2026.

This sits alongside wider changes to the system. The Welsh Government says 2026‑27 will see the standard multiplier cut to 0.502, a new retail multiplier set at 0.350 for small and mid‑sized shops, and a higher 0.515 multiplier for the largest properties to balance the books. Ministers have also earmarked £116m over two years to fund the transitional relief.

Who qualifies? According to Business Wales, the property must appear on a local or central list on 31 March 2026, be occupied on that date, and have the same ratepayer when the new bill applies. Where a property is partially occupied and apportioned under section 44A, or the increase is £300 or less, this specific relief does not apply. The scheme covers both local‑list and central‑list ratepayers.

How the phasing works in practice: your 2025‑26 liability becomes the base liability. Your 2026‑27 bill without relief is the notional amount. The difference between the two is the “increase”. In year one you pay 33% of that increase; in year two you pay 66%; in year three you pay the full amount. Bills cannot go below zero under the rules. The 2023 scheme used the same 67/34 pattern and is now being superseded for 2026.

Case study: a Cardiff wholesaler paid £10,000 in 2025‑26. After the 2026 revaluation, the notional bill is £13,000 (a £3,000 increase). With transitional relief, 2026‑27 payable is £11,000 (33% of the increase), rising to £12,000 in 2027‑28, and £13,000 in 2028‑29. That’s roughly £917 per month in year one, £1,000 in year two, and £1,083 in year three.

Small uplift example: a Llanelli hair salon paying £3,600 sees a notional 2026‑27 bill of £3,880-an increase of £280. Because the rise is £300 or less, the salon pays £3,880 from April 2026 and does not receive this transitional relief, though other permanent reliefs may still apply.

Mind the edge cases. Relief stops if the liable ratepayer changes after 31 March 2026 or if the property was not occupied on that date. If your council has granted a section 44A apportionment for partial occupation, this transitional scheme does not apply. Central‑list occupiers, such as utilities, are in scope but administered by the Welsh Government.

Bills should be adjusted automatically. Local authorities will apply the relief to qualifying local‑list properties without an application. Central‑list bills will be recalculated by the Welsh Government. If your April bill does not reflect the phasing and you believe you qualify, raise it with the billing authority promptly.

Budgeting guidance for owners and FDs: build a three‑year rates profile now. If your uplift is material, reserve two‑thirds of the increase for 2027‑28 and the full increase for 2028‑29. Recheck your property’s description and eligibility for the new retail multiplier, and forecast using either the 0.502 standard or 0.350 retail multiplier as appropriate.

Where this leaves you: Wales is moving to a three‑yearly revaluation cycle, trimming the standard multiplier and introducing a lower retail rate while cushioning steep jumps via transitional relief. For cashflow, the key dates are 31 December 2025 for the rules taking effect and 1 April 2026 when new bills start. Expect clarity from councils as bills are issued.