Welsh guidance on Transitional Rates Relief for 2023 Revaluation released

The Welsh Government has released guidance for Transitional Rates Relief for the 2023 business rates’ Revaluation.

The guidance provides ratepayers and local authorities with information about the transitional relief available, following the Non-Domestic Rates (NDR) revaluation on 1 April 2023. It applies only to Wales and doesn’t replace any existing NDR legislation or guidance on other reliefs (e.g. small business rates relief). A range of other mandatory and discretionary NDR reliefs are also available to specific types of property or occupiers. Further information about NDR reliefs can be found at Business Wales webpages.

This transitional relief scheme was announced as part of the Welsh Government Draft Budget for 2023-24. It will limit increases in NDR bills, as a result of the revaluation on 1 April 2023. An eligible ratepayer will pay 33% of their additional liability in the first year (2023-24) and 66% in the second year (2024-25), before reaching their full liability in the third year (2025-26).

The transitional relief is fully funded by the Welsh Government and defined in the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022. The Regulations prescribe rules to calculate the chargeable amount for 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 £113m over two years to fund this transitional relief, supporting all areas of the tax-base through a consistent and straightforward scheme.

Billing queries about the relief should be directed to the relevant local authority but it always best to take expert advice to ensure the best possible outcome for claiming reliefs your business is entitled to.You can read more here:

The Transitional Relief Scheme

Calculation of Relief and Liability

Frequently Asked Questions