Wales will smooth sharp business rates increases from the 2026 revaluation, phasing in any rise above £300 over two years. Ministers say the transitional scheme is fully funded and Wales‑only, offering breathing space for high streets and suppliers across North Wales and the Cheshire–Merseyside corridor.

Set out in the Non‑Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025, the taper applies from 1 April 2026 through to 31 March 2029. In 2026‑27, 67% of the increase is stripped out; in 2027‑28, 34% is removed; by 2028‑29 the full bill is due. The calculation is daily and reflects 2028’s leap year.

To qualify, a property must have been on the local or central rating list on 31 March 2026 and on the day in question, with the same ratepayer in occupation on 31 March 2026. The taper does not apply where a Section 44A partial‑occupation apportionment is in place. Local authorities will apply the relief automatically; the Welsh Government will adjust central list bills.

Officials compare two figures: a base liability (what was due on 31 March 2026, annualised) and the notional chargeable amount (what would be due on 1 April 2026 without the taper). Only when the latter exceeds the former by more than £300 does transitional relief cut in. If a later appeal reduces liability, the notional amount is reset from that date. If the calculation would turn negative, the bill is zero.

This sits alongside wider changes due in April. Ministers have announced a standard multiplier of 0.502, a new 0.350 retail multiplier for small and medium shops, and a 0.515 higher rate for the largest properties. An extra £116m over two years will fund the taper, with the Welsh Government calling it the first general multiplier cut since 2010.

In plain terms: if a Wrexham fabricator faced a £3,000 hike after revaluation, they would pay £1,000 of that extra in 2026‑27 and £2,000 in 2027‑28, before the full increase lands in 2028‑29. For Deeside Industrial Park operators and suppliers along the A55 and M56, spreading the shock helps keep cashflow steady when orders are lumpy.

There are caveats. New occupiers after 1 April 2026 won’t qualify. Properties that were empty on 31 March 2026 are outside the scheme; if a property becomes empty later, the usual empty‑rates holiday comes first and transitional relief resumes afterwards if the same ratepayer remains liable.

Wales has moved to a three‑yearly revaluation cycle, with 2026 values built from 1 April 2024 rental evidence. The Valuation Office Agency is due to publish the draft 2026 list before the end of 2025, and ministers plan to lay separate regulations early in the new year to set the differential multipliers.

“This support package will help businesses manage the transition,” said Finance Secretary Mark Drakeford, confirming both the £116m scheme and the shift to differential multipliers.

The 2025 regulation also replaces the 2022 transition rules used for the last revaluation, which tapered increases by 67% in the first year and 34% in the second before ending. The 2022 instrument is revoked as part of the new package.

For Northern operators with depots or shops in Conwy, Gwynedd, Flintshire or Wrexham, the takeaway is simple: this is Wales‑specific. Estates straddling Wales and England should budget the Welsh taper alongside whatever England finalises for April 2026 so there are no surprises.

The regulations come into force on 31 December 2025 ahead of the new bills from 1 April 2026, with expedited Senedd scrutiny noted by the Parliament’s committee earlier this month.