Non-domestic rates stakeholder update: February 2026

This stakeholder update brings together the latest information provided by the Welsh Government on the Non-Domestic Rates (NDR) system in Wales.

Latest updates

Arrangements for 2026-27

On 3 December, we announced the following NDR arrangements for 2026-27:

The standard multiplier will be reduced to 0.502, as a consequence of the 2026 revaluation.
The retail multiplier will be set at 0.350 and the higher multiplier will be set at 0.515.
Transitional relief will limit immediate increases in NDR bills, as a result of the 2026 revaluation. Increases in liability for eligible ratepayers will be phased-in over two years.

On 3 February, we announced that food and drink hospitality businesses will receive 15% NDR relief for the duration of 2026-27, subject to a cap of £110,000 per business across Wales. We have published guidance on Food and Drink Hospitality Rates Relief.

The remainder of this update summarises the range of changes which will be implemented on 1 April 2026, as part of the programme of NDR reforms we have delivered during the current Senedd term.

2026 Revaluation

At the heart of the Welsh Government’s NDR reforms is a move to three-yearly revaluations. Preparations are underway for the next revaluation, which will take place on 1 April 2026. This will be the second revaluation which has been delivered during the current Senedd term and the first on a three-yearly cycle.

A revaluation comprises the review of the rateable value of all non-domestic properties, by the Valuation Office Agency (VOA), at a particular point in time. Every property will be assigned a new rateable value, based upon its estimated annual rental value as at 1 April 2024 (the antecedent valuation date). The VOA has published a draft of the new rating list. Further information about the 2026 revaluation can be found on the VOA website. If ratepayers have questions about their valuations, they should contact the VOA.

Revaluation is carried out to maintain fairness in the NDR system, by redistributing the total amount payable between ratepayers, to reflect relative changes in the property market. It does not raise additional revenue. Some bills will increase, some will decrease and many will not change, reflecting relative changes in the non-domestic property market and the continued provision of permanent reliefs.

Transitional relief

Transitional relief will limit immediate increases in NDR bills, as a result of the 2026 revaluation. It will support all eligible ratepayers with an increased liability of more than £300, after the application of statutory reliefs. An eligible 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 Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 prescribe rules to calculate the chargeable amount for eligible ratepayers. Transitional relief will be automatically applied to bills. We have published guidance on transitional relief.

Differential multipliers

Last year, we confirmed that we will introduce differential multipliers for NDR from 1 April 2026. The Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025 specify the properties which will be subject to the retail and higher multipliers. The values of those multipliers have been set, as a proportion of the standard multiplier, by the Non-Domestic Rating (Value of Differential Multipliers) (Wales) Regulations 2026. The relevant multiplier will be automatically applied to bills. We have published guidance on the multipliers.

Anti-avoidance framework

Last year, we confirmed that we will give effect to our general anti-avoidance framework for NDR. The Non-Domestic Rating (Artificial Avoidance Arrangements) (Local Lists) (Wales) Regulations 2026 give effect to the framework, by defining a range of artificial avoidance arrangements it will be used to counteract from 1 April 2026. We have published guidance on the anti-avoidance framework.

Duty to report changes of circumstances

Last year, we confirmed that we will establish a duty for ratepayers to report certain changes of circumstances to billing authorities. The Non-Domestic Rating (Provision of Information About Changes of Circumstances) (Wales) Regulations 2026 establish the duty, which will apply from 1 April 2026. We have published guidance on the duty.

Classification of self-catering accommodation

Following consultation, we have confirmed that we will make some refinements to the application of the letting criteria used to classify self-catering holiday lets for local tax purposes. The Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2026 applies the changes to all assessments for NDR, from 1 April 2026. We have updated our guidance on NDR for self-catering properties.

NDR consultations

All consultations apply to Wales only.

Refinements to the classification of self-catering properties for local tax purposes – summary of responses

A consultation on proposed refinements to the treatment of self-catering properties for local tax purposes was open for twelve weeks, from 28 August to 20 November 2025.