About this guidance
This document provides guidance on the operation and delivery of differential multipliers for non-domestic rates (business rates). This guidance applies to Wales only.
The guidance does not replace any existing non-domestic rates legislation. Enquiries about this guidance should be sent to: localtaxationpolicy@gov.wales.
Further information about non-domestic rates can be found on our Business Wales webpages.
Introduction
Non-domestic rates, also known as business rates, are calculated using two variables:
- the rateable value of a property, which is set by the Valuation Office Agency (VOA); and
- the relevant multiplier, which is set on an annual basis and usually increases in line with inflation unless the Welsh Government determines otherwise.
For the financial year 2025-26 the multiplier applicable to all properties in Wales is 0.568.
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; and
- a higher multiplier of 0.515, applicable to properties with a rateable value above £100,000.
After gross liability is calculated by combining the rateable value and the relevant multiplier, it may be reduced as a result of relief. Further information on the range of non-domestic rates reliefs can be found on our Business Wales webpages.
A lower retail multiplier for small to medium sized shops is intended to help re-balance the non-domestic rates system in their favour. This recognises the unique challenges faced by ‘bricks and mortar’ retail shops, not least through their exposure to competition from online retailers.
The retail multiplier applies to properties with rateable values below £51,000 and one of the following descriptions in a local rating list:
- kiosk and premises;
- pharmacy and premises;
- post office and premises;
- shop and premises; or
- shop, post office and premises.
These descriptions have been selected because they are applied to target property types which are wholly or mainly used for the sale of goods to visiting members of the public. The retail multiplier does not apply to large shops, department stores, hypermarkets and superstores. It also does not apply to properties which are wholly or mainly used for the sale of services (e.g. banks, betting shops and salons) or food and drink for consumption on the premises (e.g. cafes, pubs and restaurants).
The standard multiplier applies to all properties which are not subject to either the retail multiplier or the higher multiplier:
- properties with a rateable value below £51,000 which are not subject to the retail multiplier;
- all properties with a rateable value between £51,000 and £100,000; and
- properties with a rateable value above £100,000 which are not subject to the higher multiplier.
The higher multiplier applies to properties shown in a local or central rating list with a rateable value above £100,000. There are some exceptions for specific property types which are occupied by public sector bodies or other institutions which are largely sustained by public funding models.
Properties with the following description in a local rating list are subject to the standard multiplier, rather than the higher multiplier, even if they have a rateable value above £100,000:
- ambulance station and premises;
- auxiliary defence establishment and premises;
- cemetery and premises;
- college and premises;
- crematorium and premises;
- fire station and premises;
- health centre and premises;
- hospital and premises;
- law court and premises;
- leisure centre and premises;
- library and premises;
- museum and premises;
- police station and premises;
- prison and premises;
- school and premises;
- sports centre and premises;
- surgery and premises;
- swimming pool and premises; and
- university and premises.
As multipliers are applied based on the description of a property, it is not possible for more generic property types, such as offices, to be excluded where they are occupied by public services.
The relevant multiplier is applied to the rateable value of a property to calculate liability. Any reliefs which the ratepayer is eligible for will then be applied to determine the final bill. Guidance about the range of non-domestic rates reliefs available can be found on our Business Wales webpages.
Queries about the application of reliefs should be directed to the relevant local authority. Contact details for local authorities can be found on the Business Wales webpage.
If ratepayers have reason to believe the multiplier applied to their property is incorrect, the action they should take will depend on the reason.
The VOA are responsible for determining the rateable value and description of a property, which are used to assign the correct multiplier. Details of the description and rateable value of a property can be found through the VOA’s find a business rates valuation webpage.
Queries about the description or rateable value of your property should be directed to the VOA. Contact details can be found on the VOA website.
Local authorities are responsible for non-domestic rates billing and collection. They are responsible for ensuring that the correct multiplier has been assigned, based on the description and rateable value of your property.
Billing queries should be directed to the relevant local authority. Contact details for local authorities can be found on the Business Wales webpage.
Does it matter if my property is empty?
The relevant multiplier applies as described above, based on the rateable value and description, whether the property is occupied or empty.
The retail multiplier is treated as a subsidy. The value of individual awards is the reduction in liability (after reliefs) compared with the position if the standard multiplier applied. If, for example, a property attracts full relief, there will be no reduction in liability in practice if the retail multiplier also applies.
A subsidy scheme for the retail multiplier has been registered. Further information is available on the Welsh Government website and the UK subsidy database. It is the responsibility of the local authority to comply with all relevant subsidy control provisions, including transparency requirements. More information is available in the UK statutory subsidy control guidance from the UK Government.
For further advice, the Welsh Government’s Subsidy Control Unit can be contacted at:
Subsidy Control Unit
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
Email: SubsidyControlUnit@gov.wales