Business Rates: Transitional Relief April 2026 - March 2028

Introduction 

This transitional relief scheme will limit increases in NDR bills, as a result of the revaluation on 1 April 2026. 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 transitional relief is fully funded by the Welsh Government and defined in the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025. The Regulations prescribe rules to be used to calculate the chargeable amount for eligible properties with increased NDR liability of more than £300, as a result of the revaluation. The relief is available to ratepayers on the local list and on the central list.

The Welsh Government is providing £116m over two years to fund this transitional relief, supporting all areas of the tax-base through a consistent and straightforward scheme. 

Which properties will benefit from the relief?

Eligibility for transitional relief is not limited to any sector, size, or use of the property (hereditament) within the NDR tax base. 

In order to be eligible for transitional relief, the hereditament must:

• have been shown on a local list or the central list on 31 March 2026 (the day before the new lists compiled on 1 April 2026 have effect).
• have an increase in liability (NCA > BL) of more than £300.
• have the same ratepayer on the relevant day as was the ratepayer on 31 March 2026 (if a different person becomes the ratepayer, the relief ceases to apply).
• have been occupied (by the same ratepayer referred to above) on 31 March 2026. and
• not be subject to an apportionment for partially occupied properties under section 44A of the Local Government Finance Act 1988 (the 1988 Act).

Further details can be found at Non-Domestic Rates - Transitional Rates Relief for the 2026 Revaluation | Business Wales