Business Rates
Business rates
Business rates are also known as national non-domestic rates (NNDR).
If you have a query about your rateable value?
Did you know that you can check your property information and submit updates to your details online. Find out more and register now at: Business rates valuation account: sign in or set up (GOV.UK) (opens in a new tab). Queries about the description or rateable value of your property should be directed to the Valuation Office Agency (VOA) (opens in a new tab).
Who has to pay business rates?
- Where a property is occupied, the business rates are usually payable by the person, partnership or company occupying it
- Where the property is empty, rates are payable by the person entitled to occupation
If the occupier and the landlord have an arrangement whereby the landlord receives rent inclusive of business rates, the occupier is usually still responsible for payment of business rates. If you are the occupier and pass the rates bill on to the landlord for payment, you remain liable for payment if the landlord does not make payment on your behalf.
Even where a business premises is empty or unoccupied, business rates have to be paid often referred to as empty property rates.
How business rates are calculated
The formula for calculating your bill is set by Government.
Business rate = rateable value of the property x multiplier for financial year
The rateable value - an assessment of the annual rental value of a property on a set date (currently 1 April 2021). This assessment is made by the Valuation Office Agency not the local council.
Find and check your business rates valuation (Valuation Office Agency) (opens in a new tab)
The multiplier is set by the Welsh Government each year as follows:-
- 2025/26 – 56.8p
- 2024/25 - 56.2p
- 2023/24 - 53.5p
- 2022/23 - 53.5p
- 2021/22 - 53.5p
- 2020/21 - 53.5p
- 2019/20 - 52.6p
Example calculation
A business premises with a rateable value of £15,000 will have a rates bill of £8,520 for the full financial year 1 April 2025 to 31 March 2026:
- £15,000 x £0.568 = £8,520
There are a number of relief schemes available which may reduce the amount of business rates that you have to pay.
From 1 April 2026, there are three multipliers in Wales. The 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
Retail multiplier
A lower retail multiplier for small to medium sized shops is intended to help re-balance the non-domestic rates system in their favour. This recognises the unique challenges faced by ‘bricks and mortar’ retail shops, not least through their exposure to competition from online retailers.
The retail multiplier applies to properties with rateable values below £51,000 and one of the following descriptions in a local rating list:
- kiosk and premises;
- pharmacy and premises;
- post office and premises;
- shop and premises; or
- shop, post office and premises.
These descriptions have been selected because they are applied to target property types which are wholly or mainly used for the sale of goods to visiting members of the public. The retail multiplier does not apply to large shops, department stores, hypermarkets and superstores. It also does not apply to properties which are wholly or mainly used for the sale of services (e.g. banks, betting shops and salons) or food and drink for consumption on the premises (e.g. cafes, pubs and restaurants).
Standard multiplier
The standard multiplier applies to all properties which are not subject to either the retail multiplier or the higher multiplier:
- properties with a rateable value below £51,000 which are not subject to the retail multiplier;
- all properties with a rateable value between £51,000 and £100,000; and
- properties with a rateable value above £100,000 which are not subject to the higher multiplier.
Higher multiplier
The higher multiplier applies to properties shown in a local or central rating list with a rateable value above £100,000. There are some exceptions for specific property types which are occupied by public sector bodies or other institutions which are largely sustained by public funding models.
Properties with the following description in a local rating list are subject to the standard multiplier, rather than the higher multiplier, even if they have a rateable value above £100,000:
- ambulance station and premises;
- auxiliary defence establishment and premises;
- cemetery and premises;
- college and premises;
- crematorium and premises;
- fire station and premises;
- health centre and premises;
- hospital and premises;
- law court and premises;
- leisure centre and premises;
- library and premises;
- museum and premises;
- police station and premises;
- prison and premises;
- school and premises;
- sports centre and premises;
- surgery and premises;
- swimming pool and premises; and
- university and premises.
As multipliers are applied based on the description of a property, it is not possible for more generic property types, such as offices, to be excluded where they are occupied by public services.
More information regarding these new multipliers can be found on: Non-Domestic Rates – Multipliers | Business Wales (opens in a new tab)
If you believe the wrong multiplier has been applied to your property
The Valuation Office Agency are responsible for determining the rateable value and description of a property, which are used to assign the correct multiplier. Details of the description and rateable value of a property can be found at: find a business rates valuation (opens in a new tab)
Queries about the description or rateable value of your property should be directed to the Valuation Office Agency (opens in a new tab).
Changes you must report about your non-domestic rates.
From the 1 April 2026 Welsh Government is introducing a new law to ensure that you inform the local authority when some circumstances change so that your bill is correct and includes any reliefs you are entitled to.
What do I need to do?
You must notify your local authority within 60 days of any of these changes:
- you became the ratepayer of the property,
- the property has become occupied and was previously unoccupied (empty), or
- the property has ceased to be occupied (has become empty).
All you need to do is email revenue.services@pembrokeshire.gov.uk.
Failure to comply with this requirement may result in a fine of £500. Providing information which is false may result in a criminal conviction and fine of £1,000.
As soon as a property becomes empty inform our Business Rates team on 01437 764551 and following the voice prompts:
1 for Welsh or 2 for English
3 for Revenues
3 for NNDR
or email revenue.services@pembrokeshire.gov.uk
Also tell us about any change in occupation or use of the premises, including any structural alterations.
Empty or partly empty property rate relief
Properties that are empty or partly empty may be eligible for exemption.
When a premises becomes empty it may be eligible for an exemption as follows:-
- 3 months for non-industrial premises
- 6 months for industrial premises
After this, most unoccupied properties will attract a 100% charge.
A change of ownership will not mean that a new 3 or 6 month rate-free period will start.
Occupation for a short period - premises which have been empty and are occupied for a period of less than 26 weeks and then become unoccupied again, do not attract another 3 or 6 month exemption. Rates will be charged at the full rate for the period during which the premises were occupied.
Empty properties exempt from paying business rates
- Unoccupied premises with rateable values less than £2,600
- Empty properties where the owner is entitled to possession only in his capacity as the personal representative of a deceased person
- Unoccupied properties where occupation is prohibited by law (except for any illegal periods of occupation)
- Properties left empty by insolvents
- Empty listed buildings
Guidance for Empty Property Rates Relief (opens in new tab)
Reduced rate for partly-occupied properties
Properties which are partly occupied may apply via us to the valuation office to have the rateable value apportioned to reflect the occupied and unoccupied areas.
The new values would not be shown in the rating list but we would have the discretion to use this information to charge rates at the lower level. The revised rates bill would reflect the full charge for occupied area and either a 100% or zero charge for the unoccupied area. Please contact on 01437 764551 and following the voice prompts:
1 for Welsh or 2 for English
3 for Revenues
3 for NNDR
or email revenue.services@pembrokeshire.gov.uk for further information.
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 (opens in a new tab)
Business rates relief available:-
Retail, Leisure and Hospitality Rates Relief 2025-26
All applications for relief should be made by 31 March 2026 at: Retail, Leisure and Hospitality Rates Relief 2025-26
Businesses will be eligible for 40% off their liability for the financial year. The amount of relief under the Welsh Government’s Retail, Leisure and Hospitality Rates Relief scheme will be capped at £110,000 per business across Wales.
View guidance on Retail, Leisure and Hospitality Rates Relief in Wales for 2025-26 (opens in a new tab)
This scheme is due to end on 31 March 2026 and any applications received after this date will not be entitled to this relief.
Food and Drink Hospitality Rates Relief 2026-27
Properties that will benefit from this relief will be occupied food and drink hospitality properties, such as pubs, restaurants, cafés, bars and live music venues across Wales. More detailed eligibility criteria and exceptions to the relief are set out below.
Relief will be granted to each eligible business as a reduction to the rates bill based on occupation between 1 April 2026 and 31 March 2027. It is intended that, for the purposes of this relief, eligible properties will mean the following (subject to the other criteria provided by Welsh Government).
Hereditaments that are being used for the sale of food and/or drink to visiting members of the public
such as:
- Pubs
- Restaurants
- Cafés
- Bars
- Live music venues
Live music venues are properties that are wholly or mainly used for the performance of live music for the purpose of entertaining an audience. An eligible property can only be used for other activities which are ancillary or incidental to the performance of live music (e.g. the sale of food or drink to audience members) or do not affect this primary use (e.g. infrequent use of the venue as a polling station or community event).
Many live music venues are classified as other property types which are eligible for this relief (e.g. pubs, restaurants and bars). A property is not a live music venue for the purpose of this relief if it is wholly or mainly used as a nightclub or a theatre.
The following uses of hereditaments and other circumstances are not considered to be eligible for the relief:-
Hereditaments that are:
- Subject to the retail multiplier
- Used wholly or mainly for the provision of living accommodation as a business (e.g. hotels, guest and boarding houses, holiday homes, and caravan parks and sites)
- Used wholly of mainly for the sale of goods to visiting members of the public (e.g. shops, showrooms, retail warehouses and supermarkets)
- Used wholly or mainly for the sale or provision of services to visiting members of the public (e.g. financial or professional services, salons and launderettes)
- Used wholly or mainly for sports and leisure facilities for visiting members of the public (e.g. sports centres, visitor attractions, theatres and cinemas)
- Used wholly or mainly for the assembly of visiting members of the public (e.g. clubhouses, public halls and institutions)
Hereditaments that are not reasonably accessible to visiting members of the public
If a hereditament is not usually reasonably accessible to visiting members of the public, it will be ineligible for the relief, even if there is ancillary use of the hereditament that might be considered to fall within the descriptions listed under which properties will benefit from relief.
Hereditaments that are not occupied
Hereditaments that are not occupied are not eligible this relief.
Applications must be made by 31 March 2027 for ratepayers to be eligible for Food and Drink Hospitality Rates Relief in 2026-27. An application form will be available on our website after 1 April 2026.
Small Business Rates Relief in Wales
The 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.
Tailored support is available for registered childcare providers and post offices.
Guidance for Small Business Rates Relief (opens in a new tab)
Charitable Rates Relief
If your property is occupied by a registered charity or community amateur sports club, and used for charitable purposes, you automatically qualify for 80% mandatory rates relief.
You may qualify for relief of up to 100% at the discretion of the local authority if your property is occupied by a non-profit making body and used for eligible purposes.
Guidance for Charitable Rates Relief (opens in a new tab)
After the exemption period ends, you will be liable for the full business rates bill. You should notify your local authority when your property becomes vacant and also when it becomes re-occupied.
Guidance for Empty Property Rates Relief (opens in a new tab)
Improvement Rates Relief
From 1 April 2024, the Welsh Government is providing Improvement Relief to ratepayers investing in improvements to their non-domestic properties which will support their business. The relief will delay the effect of a resulting rateable value increase on their non-domestic rates liability for a period of 12 months. This will ensure that businesses and other ratepayers are able to start realising the benefits of improvements they make, before their non-domestic rates bill increases.
Guidance for Improvement Rates Relief (opens in a new tab)
Heat Networks Rates Relief
From 1 April 2024, the Welsh Government is providing Heat Networks Relief. The relief is intended to support the development and growth of this sector that is anticipated over the next decade, by helping to minimise the financial barriers to the establishment of networks. This, in turn, is intended to help support the transition away from the use of fossil fuels and the decarbonisation of heat. Heat networks supply thermal energy from a central source to consumers, through a network of pipes. The Welsh Government is providing full (100%) relief to non-domestic hereditaments used wholly or mainly as a heat network providing thermal energy generated from low-carbon sources. The qualifying conditions are explained in more detail in the guidance.
Guidance for Heat Networks Rates Relief (opens in a new tab)
Hardship and Discretionary Rates Relief
Hardship and discretionary relief can be granted if we believe that it is in the interests of the local community to do so.
Revaluation 2026
Every three years the Valuation Office Agency updates the rateable value of over 2 million commercial properties in England and Wales.
Rateable values are the amount of rent a property could have been let for on a set valuation date. For the 2026 revaluation, that date is 1 April 2024. A rateable value isn’t necessarily the same as the amount of rent paid for a property or the level of business rates that it might be liable for.
Rateable values are used by local authorities to calculate business rates bills.
The latest revaluation will come into effect from 1 April 2026.
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, as a consequence 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).
How to appeal against your rateable value
Appeals against rateable values should be made to the Valuation Office Agency (VOA).
When you contact the VOA you need to tell them the reasons why you think your rateable value is wrong.
They will compare your rateable value with similar properties in the area and consider any other reasons you have mentioned when they check the rateable value for you.
If you do not agree with the outcome of the discussions, you can make an appeal against the rateable value.
More information about appealing against your rateable value: How to challenge your business rates valuation - GOV.UK (opens in a new tab)
For more information
Business Rates in Wales | Business Wales (opens in a new tab)
Valuation Office Agency (opens in a new tab)
Police and Crime Commissioner precept information (opens in a new tab)
Explanatory information for supply with rate demands
Financial information for supply with rate demands
Pembrokeshire County Council Budget 2025-26 and Medium Term Financial Plan