About FSB
The Federation of Small Businesses (FSB) Wales is the leading advocate for businesses across Wales, representing many thousands of members. We passionately work towards an improved social, political and economic landscape that supports thriving businesses and entrepreneurial success. Backed by a robust grassroots network, a dedicated Wales Member Advisory Council (MAC), and a team of Walesbased staff engaging directly with Welsh institutions, media, stakeholders and policymakers, FSB Wales ensures that the concerns and aspirations of its members are prominently voiced at the heart of decisionmaking processes.
What are non-domestic rates?
Non-domestic rates, commonly known as business rates, are a tax levied on properties. Most nondomestic properties need to pay business rates, in a similar way to households paying council tax. The revenue raised is used as part of the funding for local services and is collected by local authorities across Wales. Business rates are calculated by multiplying the rateable value of your non-domestic property (which is roughly based on your premises’ notional annual rent) by the poundage rate (or multiplier) set by Welsh Government.
The Valuation Office Agency (VOA) values properties and assigns the rateable value. This is carried out every 3 years to reflect changes in the property market and if you think the rateable value of your property is incorrect and want to appeal, contact the VOA.
If you and the VOA cannot reach agreement, you may appeal to the Valuation Tribunal for Wales.
You should notify the VOA of any changes which may affect the size or rateable value of your property, such as an extension or demolition. This will ensure your business rates bill is corrected quickly if necessary.
Welsh Government currently provides £250 million each year in permanent business rates relief, with around two thirds of all properties in Wales either paying no rates or receive some form of relief.
You can use the Valuation Office Agency’s calculator to estimate your business rates bill here.
Non-domestic rates relief (NDR)
On the October 7TH 2025, Welsh Government announced in their draft budget that they would be changing the way business rates are calculated for many businesses by introducing differential multipliers for NDR.
From April 1ST 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
• a higher multiplier of 0.515, applicable to properties with a rateable value above £100,000
Small Business Rates Relief in Wales (SBRR)
In Wales, Small Business Rates Relief (SBRR) is available for up to two properties per ratepayer in each local authority. Welsh Government provides non-domestic rates relief to eligible small businesses.
• those with a rateable value of up to £6,000 will receive 100% relief;
• those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero; and
• subject to a maximum of two properties per business in each local authority.
Types of Business Rates Relief
Food and Drink Hospitality Rates Relief 2026-27
In 2026-27, the Welsh Government will provide additional targeted non-domestic rates support for pubs, restaurants, cafes, bars and live music venues. Businesses will be eligible for 15% off their liability for the financial year. The amount of relief will be capped at £110,000 per business across Wales.
This relief is not automatically applied and must be applied for by the business through your local authority. Contact information for each local authority can be found on the Business Wales website here. Transitional Rates Relief
From 1 April 2026, following the revaluation, the Welsh Government is providing all ratepayers whose liability is increasing by more than £300, because of revaluation, with transitional relief. Any increase in non-domestic rates liability as a result of revaluation will be phased in over two years.
A 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 Welsh Government is providing £116m over two years to fund this relief, supporting all areas of the tax-base through a consistent and straightforward transitional scheme.
Self-Catering Properties
From 1 April 2023 in Wales, a self- catering property is classified as non-domestic and liable for business rates, if the Valuation office Agency is satisfied that:
• it will be available for letting commercially as self-catering accommodation for short periods totalling 252 days or more in the following 12-month period
• the ratepayer’s interest in the property enables them to let it for such periods
• in the 12 months prior to assessment, it has been available for letting commercially as self-catering accommodation for short periods totalling 252 days or more
• the short periods it has actually been commercially let for amounted to at least 182 days during that period
Guidance on business rates for self-catering properties in Wales is available on the Business Wales webpage.
What to do if you think you’ve been valued incorrectly?
Anyone who pays business rates – and thinks their current valuation is wrong – is being encouraged to sign up for a business rates valuation account.
If you do not have an account already, or have not used yours for some time, it can take 15 working days to register and claim your property.
You have until 31 March to request changes to your current valuation by:
• checking the details the Valuation Office Agency (VOA) holds about your property
• telling the VOA if anything is wrong.
If you believe that your value is incorrect, you may have grounds to appeal. The Valuation Office has guidance on getting professional advice here.
You can employ a professional property agent to act on your behalf when making an appeal but be careful. The sector is largely unregulated, and standards vary significantly. The Royal Institution of Chartered Surveyors (RICS) has issued a code of practice for rating professionals. FSB members should consider using this as the basis for a contract with any professional adviser.
Further help
Local Authorities in Wales can grant discretionary relief to businesses in their local area, though often only in exceptional circumstances. Councils may also allow firms to defer payment in special circumstances.
Contact information for each local authority can be found on the Business Wales website here.
www.fsb.org.uk/wales