Changes to Business Rates in Wales

The Welsh Government has announced new business rates structure for 2026–27.

For the next tax year, Wales is seeing business rates changes which are, if anything, more extensive than those affecting England. They include:

• The complete removal of the Retail, Hospitality and Leisure (RHL) relief and its replacement with a new lower rate only for retail businesses with a rateable value of less than £50,000.
• A new higher rate for most properties with a rateable value of more than £100,000 (a few types of property, mostly various types of public sector building, will avoid this new rate).

This is in addition to the revaluation and rate changes appearing next year on the usual 3-yearly cycle.

On December 3 2025, the Welsh Government announced there would be a transitional relief available to businesses whose payment would increase by more than £300 per year under the new rules. The way this works is that any rises above £300 are stepped over three years. In 2026/27 a business with an increase of more than £300 will pay 33% of that increase; in 2027/28 they will pay 66% of the increase, then in 2028/29 they must pay the full new liability.

While the transitional relief is welcome, some businesses, especially those rated at £100,000 or more and which benefitted from the RHL relief last year, will see substantial increases under the new rules. We are aware that this is a problem and are actively lobbying to mitigate it. A fuller explanation of the changes will be given in due course.

If you need any assistance or would like to find out more, please contact Mark Burton.