If your business occupies commercial premises in Wales, you pay business rates (non-domestic rates) to your local authority. Wales has its own rates system, set by the Welsh Government, with a single multiplier and relief schemes that differ from England, Scotland, and Northern Ireland.
This guide covers how rates are calculated in Wales, which reliefs you can claim, and how to apply. If you operate in both Wales and England, pay close attention to the differences in thresholds and eligibility.
Relief schemes in Wales
Wales offers several relief schemes that can significantly reduce your rates bill. The main schemes are Small Business Rates Relief (permanent), Food and Drink Hospitality Rates Relief for 2026/27, and the Welsh Improvement Relief scheme (available from April 2024).
Small Business Rates Relief
This is a permanent scheme with no annual renewal required. It is the primary relief for small businesses in Wales, though the thresholds are lower than in England and Scotland.
Food and Drink Hospitality Rates Relief
For 2026/27, eligible pubs, restaurants, cafes, bars and live music venues may receive a 15% discount on their rates liability, capped at £110,000 per business across Wales.
Improvement Relief
From April 2024, Wales introduced Improvement Relief, which delays any increase in your rateable value resulting from property improvements for 12 months. The Welsh scheme operates independently of England's equivalent.
Wales vs England: key relief differences
If you operate in both countries, or are choosing where to locate, these differences matter:
| Multiplier (2026/27) | Three multipliers: retail 35.0p (RV below £51k) / standard 50.2p / higher 51.5p (RV above £100k) | New six-tier multiplier system (varies by property type and RV band) |
| Small business: full relief | 100% for RV up to £6,000 | 100% for RV up to £12,000 |
| Small business: tapered relief | Tapered £6,001 to £12,000 | Tapered £12,001 to £15,000 |
| RLH relief (2025-26) | 40% discount, capped at £110,000 | 40% discount, capped at £110,000 |
| Improvement Relief | 12-month delay on RV increase (from April 2024) | Also available from April 2024 (separate regulations) |
| Childcare relief | 100% SBRR for registered childcare (permanent) | No equivalent enhanced childcare relief |
| Valuation body | Valuation Office Agency (VOA) | Valuation Office Agency (VOA) |
| Revaluation cycle | Every 3 years (next: April 2026) | Every 3 years (next: April 2026) |
How to claim relief
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Check your property's rateable value on the VOA website at gov.uk/find-business-rates
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Contact your local authority's business rates team to apply for Small Business Rates Relief (if your RV is £12,000 or below)
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If you operate in retail, leisure, or hospitality, apply separately for RLH relief through your local authority
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If you have carried out property improvements, ask your local authority about Improvement Relief and confirm whether the VOA has certified the change in rateable value
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If you believe your rateable value is incorrect, use the Check, Challenge, Appeal process through the VOA
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If your circumstances change (e.g. you take on additional properties), notify your local authority promptly as this may affect your eligibility
What next
If you are improving your business premises, read Claim Improvement Relief for business premises in Wales for the full eligibility and application process.
For a broader view of all the ways Wales differs from England for business, see Doing business in Wales: key differences from England.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.ukOfficial guidance
Non-domestic rates - GOV.WALES (opens in a new tab)
Welsh Government overview of business rates
www.gov.wales
Non-Domestic Rates - Small Business Rates Relief (Business Wales) (opens in a new tab)
Apply for small business rates relief in Wales
businesswales.gov.wales
Food and Drink Hospitality Rates Relief 2026-27 (Business Wales) (opens in a new tab)
Apply for the 15% food and drink hospitality rates relief for 2026-27
Improvement Relief (Business Wales) (opens in a new tab)
Apply for Improvement Relief on property works
businesswales.gov.wales
Check your rateable value (VOA) (opens in a new tab)
Look up your property's rateable value
HMRC
RLH Rates Relief 2026-27 (Business Wales) (opens in a new tab)
businesswales.gov.wales