The Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025

Welsh Statutory Instruments

2025 No. 1163 (W. 190)

Rating And Valuation, Wales

The Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025

Made

5 November 2025

Coming into force

1 April 2026

The Welsh Ministers make the following Regulations in exercise of the powers conferred on them by paragraph A16(1) and (5) of Schedule 7 to the Local Government Finance Act 1988(1).

In accordance with section 143A(5)(m) of that Act, a draft of this instrument has been laid before and approved by resolution of Senedd Cymru(2).

Title and coming into force

1.—(1) The title of these Regulations is the Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025.

(2) These Regulations come into force on 1 April 2026.

Interpretation

2.  In these Regulations—

“the Act” (“y Ddeddf”) means the Local Government Finance Act 1988;

“central list” (“rhestr ganolog”) means a list compiled and maintained under section 52ZA of the Act(3);

“chargeable day” (“diwrnod y codir swm ynglŷn ag ef”), has the following meanings—

(a)

in relation to occupied hereditaments shown in a local list, has the meaning given in section 43(3) of the Act;

(b)

in relation to unoccupied hereditaments shown in a local list, has the meaning given in section 45(3) of the Act;

(c)

in relation to hereditaments shown in a central list, has the meaning given in section 54(3) of the Act;

“hereditament” (“hereditament”) has the meaning given in section 64 of the Act(4);

“local list” (“rhestr leol”) means a list compiled and maintained under section 41ZA of the Act(5);

“rateable value” (“gwerth ardrethol”) means the value calculated under Schedule 6 to the Act(6).

Description of retail multiplier

3.—(1) For the purposes of paragraph A16(1)(a) of Schedule 7 to the Act, there is a retail multiplier.

(2) The retail multiplier applies to hereditaments on a local list that on the chargeable day concerned—

(a) have a rateable value of less than £51,000, and

(b) are described on that list as—

(i) “kiosk and premises”,

(ii) “pharmacy and premises”,

(iii) “post office and premises”,

(iv) “shop and premises”, or

(v) “shop, post office and premises”.

Description of higher multiplier

4.—(1) For the purposes of paragraph A16(1)(a) of Schedule 7 to the Act, there is a higher multiplier.

(2) The higher multiplier applies to hereditaments on a local list that on the chargeable day concerned—

(a) have a rateable value of more than £100,000, and

(b) are not described on that list as—

(i) “ambulance station and premises”,

(ii) “auxiliary defence establishment and premises”,

(iii) “cemetery and premises”,

(iv) “college and premises”,

(v) “crematorium and premises”,

(vi) “fire station and premises”,

(vii) “health centre and premises”,

(viii) “hospital and premises”,

(ix) “law court and premises”,

(x) “leisure centre and premises”,

(xi) “library and premises”,

(xii) “museum and premises”,

(xiii) “police station and premises”,

(xiv) “prison and premises”,

(xv) “school and premises”,

(xvi) “sports centre and premises”,

(xvii) “surgery and premises”,

(xviii) “swimming pool and premises”, or

(xix) “university and premises”.

5.—(1) For the purposes of paragraph A16(1)(b) of Schedule 7 to the Act, there is a higher multiplier.

(2) The higher multiplier applies to hereditaments on the central list that have a rateable value of more than £100,000.

Mark Drakeford

Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers

5 November 2025

EXPLANATORY NOTE

(This note is not part of the Regulations)

Paragraph A16(1) of Schedule 7 to the Local Government Finance Act 1988 (“the 1988 Act”) provides that the non-domestic rating multiplier for a chargeable year for a description of hereditaments on a local non-domestic rating list, or for an amount of a rateable value shown against the name of a designated person in the central non-domestic rating list, may be specified in regulations made by the Welsh Ministers.

These Regulations specify the hereditaments on a local non-domestic rating list by reference to their description and range of rateable values, to which a retail multiplier and a higher multiplier will apply. They also specify the range of rateable values shown against the name of a designated person on the central non-domestic rating list to which a higher multiplier will apply. The values of those differential multipliers will be prescribed by the Welsh Ministers in separate regulations made under paragraph A16(3) of Schedule 7 to the 1988 Act.

Hereditaments on a local non-domestic rating list to which a retail multiplier and a higher multiplier apply are specified by application of paragraph A16(1)(a), (4)(a) and (4)(c) of Schedule 7 to the 1988 Act. The range of rateable values to which a higher multiplier applies as shown against the name of a designated person on the central non-domestic rating list are specified by application of paragraph A16(1)(b) and (5) of Schedule 7 to the 1988 Act.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Non-Domestic Rates Policy and Reform Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.

(1)

1988 c. 41. Paragraph A16 of Schedule 7 was inserted by section 10 of the Local Government Finance (Wales) Act 2024 (asc 6).

(2)

Section 143A(5)(m) was inserted by section 14 of the Local Government Finance (Wales) Act 2024.

(3)

Section 52ZA was inserted by section 3(3) of the Local Government Finance (Wales) Act 2024.

(4)

Section 64 was amended by section 66 of the Local Government Act 2003 (c. 26), paragraph 13 of the Schedule to the Local Government Finance (Wales) Act 2024 and paragraph 2 of Schedule 10 to the Local Government Finance Act 1992 (c. 14); there are other amending instruments but none is relevant to these Regulations.

(5)

Section 41ZA was inserted by section 2(3) of the Local Government Finance (Wales) Act 2024.

(6)

Schedule 6 was amended by paragraph 38 of Schedule 5 to the Local Government and Housing Act 1989 (c. 42), section 1(2) and (3) of the Rating (Valuation) Act 1999 (c. 6), section 14(1)(c)(i) of the Non-Domestic Rating Act 2023 (c. 53) and paragraph 1(22) of the Schedule to the Local Government Finance (Wales) Act 2024; there are other amending instruments but none is relevant to these Regulations.