Statutory Instruments

2013 No. 108

Rating And Valuation, England

The Non-Domestic Rating (Renewable Energy Projects) Regulations 2013

Made

22nd January 2013

Laid before Parliament

24th January 2013

Coming into force

18th February 2013

The Secretary of State for Communities and Local Government, in exercise of the powers conferred by paragraph 40 of Schedule 7B to the Local Government Finance Act 1988(1), makes the following Regulations:

Before making these Regulations, the Secretary of State for Communities and Local Government has consulted such persons as he thinks fit in accordance with paragraph 40(8) of Schedule 7B.

These Regulations are made with the consent of the Treasury in accordance with paragraph 40(10) of Schedule 7B.

PART 1 General

Citation and commencement_I1

1.—(1) These Regulations may be cited as the Non-Domestic Rating (Renewable Energy Projects) Regulations 2013 and come into force on 18th February 2013.

(2) The designations made by these Regulations take effect on 1st April 2013.

Interpretation_I2

2. In these Regulations—

“the 1988 Act” means the Local Government Finance Act 1988 ;

“altered hereditament” has the meaning given by paragraph 1 of Schedule 1;

“authority” means a billing authority in England whose area includes a hereditament within a designated class;

“biomass” is to be construed in accordance with [^F1 article 3 of the Renewables Obligation Order 2015 ^F1] ;

“designated class” means a class of hereditaments designated by Part 2;

“generating plant” means—

(a)

in relation to a hereditament falling within class A to E, plant in or on the hereditament which is used or available for use for the purposes of generating electricity;

(b)

in relation to a hereditament falling within class F, plant which is used or available for use for the purposes of generating electricity;

“new hereditament” has the meaning given by paragraph 1 of Schedule 2;

“non-domestic rating income” in relation to a hereditament has the meaning given by [^F2 regulation 13(1) ^F2] ;

“notional 31st March 2013 rateable value”—

(a)

where Schedule 1 applies, has the meaning given by paragraph 3 of that Schedule; and

(b)

where Schedule 2 applies, is to be calculated in accordance with paragraph 2 of that Schedule;

“old hereditament” has the meaning given by paragraph 1(1) of Schedule 2;

“original hereditament” has the meaning given by paragraph 1 of Schedule 1;

“rateable plant and machinery” means plant and machinery specified in the Valuation for Rating (Plant and Machinery) (England) Regulations 2000 ( 2 );

[^F3 “ relevant multiplier ratio ” in relation to a hereditament has the meaning given by regulation 13(3); ^F3]

“relevant valuation officer” means the valuation officer for an authority whose area includes a hereditament within a designated class;

“relevant year” means the year for which a calculation under Schedule 7B is being made; and

“renewable power station” has the meaning given by regulation 5.

Certificates: general_I3

3.—(1) The relevant valuation officer must certify the values which fall to be certified under these Regulations as soon as reasonably practicable after the authority has requested certification.

(2) A certificate under these Regulations has effect for each day beginning with the date that the circumstances which led the authority to request certification first arose.

(3) A certificate under these Regulations must specify the date on which the certificate takes effect in accordance with paragraph (2) or (4), as the case may be.

(4) Where the relevant valuation officer forms the opinion that a certificate under these Regulations is inaccurate, the relevant valuation officer must certify the value which in that officer’s opinion should be substituted for that originally certified.

(5) A certificate under paragraph (4) has effect in place of the previous certificate.

(6) The relevant valuation officer certifying a value in pursuance of these Regulations must send a copy of the certificate to the authority concerned.

(7) A certificate under these Regulations must be retained by the relevant valuation officer who made it.

PART 2 Designation of classes of hereditaments

Designated classes of hereditaments_I4

4. The classes of hereditaments described in this Part are designated for the purposes of calculating an amount to be disregarded in accordance with Part 3.

Renewable power stations_I5

5.—(1) In these Regulations, a hereditament is a renewable power station if—

(a)the hereditament comprises land, plant or buildings used or available for use for the purpose of generating electricity (other than by means of the burning of waste, unless the waste is biomass), where such use is the sole or primary function of the hereditament; and

(b)the generating plant in or on the hereditament uses as its primary source of energy—

(i)wind;

(ii)water (including wave or tidal);

(iii)solar;

(iv)the burning of biomass;

(v)the burning of gas from biomass; or

(vi)the burning of gas from a landfill site.

(2) In determining whether the primary function of a hereditament is for the purpose of generating electricity, no account shall be taken of so much of any heat produced in or on the hereditament as is produced other than for the purpose of the generation of electricity.

Class A: new renewable power stations_I6

6.—(1) Class A consists of any hereditament in relation to which the conditions in paragraph (2) are fulfilled.

(2) The conditions mentioned in paragraph (1) are that—

(a)the hereditament is a renewable power station;

(b)the hereditament is first entered onto a local non-domestic rating list for the area of a billing authority in England on or after 1st April 2013; and

(c)neither Schedule 1 or 2 applies.

Class B: existing renewable power stations_I7

7.—(1) Class B consists of any hereditament in relation to which the conditions in paragraph (2) are fulfilled.

(2) The conditions mentioned in paragraph (1) are that—

(a)the hereditament is a renewable power station;

(b)the hereditament was first entered onto a [^F4list^F4] before 1st April 2013; and

[^F5 (c)the rateable value for the hereditament is greater than the notional baseline.^F5]

[^F6 (2A) For the purposes of this regulation, the notional baseline is—

(a)for a day falling within the period beginning with 1st April 2018 and ending with 31st March 2024, the amount calculated in accordance with the formula—

where—

X is the rateable value shown for the hereditament in the list for 31st March 2013;
Y is the rateable value shown for the hereditament in the list for 1st April 2017;
Y1 is the rateable value shown for the hereditament in the list for 31st March 2017;

(b)for a day falling within the period beginning with 1st April 2024 and ending with 31st March 2026, the amount calculated in accordance with the formula—

where—

X1 is the notional baseline for 31st March 2024;
Y2 is the rateable value shown for the hereditament in the list for 1st April 2023;
Y3 is the rateable value shown for the hereditament in the list for 31st March 2023;

(c)for a day on or after 1st April 2026, the amount calculated in accordance with the formula—

where—

J is the notional baseline for the last day on which the list immediately preceding the current list was in force;
Z is the rateable value shown for the hereditament in the list for the day on which the current list was compiled;
Z1 is the rateable value shown for the hereditament in the list for the last day on which the list immediately preceding the current list was in force.^F6]

[^F7 (3) For a hereditament to which regulation 19 (change in rateable value ^F8...) applies, this regulation has effect subject to the modification made by that provision.^F7]

[^F9 (4) In this regulation—

“ list ” means a local non-domestic rating list for the area of a billing authority in England which shows the hereditament concerned;

“ current list ” means the list in force on the day concerned. ^F9]

Class C: renewable power stations created from class B hereditaments_I8

8.—(1) Class C consists of any hereditament in relation to which the conditions in paragraph (2) are fulfilled.

(2) The conditions mentioned in paragraph (1) are that—

(a)the hereditament is a renewable power station;

(b)the hereditament is first entered onto a [^F10list^F10] on or after 1st April 2013;

[^F11 (c)the rateable value for the hereditament is greater than the notional baseline; and^F11]

(d)the hereditament is an altered hereditament or a new hereditament to which Schedule 1 or 2 applies.

[^F12 (2A) For the purposes of this regulation, the notional baseline is—

(a)for a day falling within the period beginning with 1st April 2018 and ending with 31st March 2024, the amount calculated in accordance with the formula—

where—

X is the notional 31st March 2013 rateable value in respect of the hereditament determined in accordance with Schedule 1 or 2 (as the case may be);
Y is the rateable value shown for the hereditament in the list for 1st April 2017;
Y1 is the rateable value shown for the hereditament in the list for 31st March 2017;

(b)for a day falling within the period beginning with 1st April 2024 and ending with 31st March 2026, the amount calculated in accordance with the formula—

where—

X1 is the notional baseline for 31st March 2024;
Y2 is the rateable value shown for the hereditament in the list for 1st April 2023;
Y3 is the rateable value shown for the hereditament in the list for 31st March 2023;

(c)for a day on or after 1st April 2026, the amount calculated in accordance with the formula—

where—

J is the notional baseline for the last day on which the list immediately preceding the current list was in force;
Z is the rateable value shown for the hereditament in the list for the day on which the current list was compiled;
Z1 is the rateable value shown for the hereditament in the list for the last day on which the list immediately preceding the current list was in force.^F12]

[^F13 (3) For a hereditament to which regulation 19 (change in rateable value ^F14...) applies, this regulation has effect subject to the modification made by that provision.^F13]

[^F15 (4) In this regulation, “ list ” means a local non-domestic rating list for the area of a billing authority in England which shows the hereditament concerned. ^F15]

Class D: energy from waste plants_I9

9.—(1) Class D consists of any hereditament in relation to which the condition in paragraph (2) are fulfilled.

(2) The condition mentioned in paragraph (1) is that the hereditament comprises land, plant or buildings of which the sole or primary function is either—

(a)generating electricity where the primary source of power for that purpose is the burning of waste; or

(b)burning waste, where the hereditament is also used for generating electricity and the primary source of power for that purpose is the burning of waste.

Class E: other hereditaments used for the purpose of generating electricity_I10

10.—(1) Class E consists of any hereditament not falling within class A to D in relation to which the conditions in paragraph (2) are fulfilled.

(2) The conditions mentioned in paragraph (1) are that—

(a)the hereditament includes separately identifiable rateable plant and machinery used or available for use for the purpose of generating electricity;

(b)the generating plant in relation to that rateable plant and machinery uses as its primary source of energy—

(i)wind;

(ii)water (including wave or tidal);

(iii)solar;

(iv)the burning of biomass;

(v)the burning of gas from biomass; or

(vi)the burning of gas from a landfill site; and

(c)the generating plant in relation to that rateable plant and machinery started to use one of the sources of energy listed in sub-paragraph (b) for the purpose of generating electricity on or after 1st April 2013.

Class F: cables and sub-stations associated with offshore generating plants_I11

11.—(1) Class F consists of any hereditament in relation to which the conditions in paragraph (2) are fulfilled.

(2) The conditions mentioned in paragraph (1) are that—

(a)the hereditament is first entered onto a local non-domestic rating list for the area of a billing authority in England on or after 1st April 2013;

(b)that hereditament is used wholly or mainly for the purposes of the transformation or transmission of electrical power;

(c)the generating plant for the hereditament is situated in offshore waters; and

(d)that generating plant for the hereditament uses as its primary source of energy—

(i)wind; or

(ii)water (including wave or tidal).

(3) In this regulation, “offshore waters” means—

(a)waters in or adjacent to the United Kingdom which are between the mean low water mark and the seaward limits of the territorial sea; and

(b)waters within an area designated under section 1(7) of the Continental Shelf Act 1964(3).

PART 3 Rules for the calculation of an amount to be disregarded

Amount to be disregarded for the purpose of certain calculations_I12

12. The amount calculated in accordance with this Part in relation to an authority for a relevant year in respect of a hereditament falling within a designated class is to be disregarded for the purposes of the calculations under the following provisions of Schedule 7B to the 1988 Act as those provisions apply to the authority for the year—

(a)paragraph 6 (payments in respect of the central share);

(b)regulations under paragraph 7 (administrative arrangements for payments in respect of the central share);

(c)regulations under paragraph 9 (payments by billing authorities to major precepting authorities);

(d)regulations under paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);

(e)paragraph 13 (calculations following local government finance report);

(f)paragraph 16 (calculations following amending report);

(g)paragraph 23 (calculations of levy payments);

(h)paragraph 26 (calculations of safety net payments);

(i)regulations under paragraph 28 (calculations of payments on account);

(j)paragraph 30 (calculations relating to distribution of remaining balance).

Non-domestic rating income [^F16and relevant multiplier ratios^F16] _I13

13.—(1) An authority’s non-domestic rating income in respect of a hereditament within a designated class for a day is the amount calculated in accordance with the formula—

where—

A is the total of the amounts credited to the authority’s collection fund income and expenditure account on a day in accordance with proper practices(4) in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of that hereditament;
B is the total of the amounts charged to the authority’s collection fund income and expenditure account on a day in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of that hereditament;
C is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made to the authority on a day in respect of that hereditament;
D is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made by the authority on a day in respect of that hereditament;

(2) In this paragraph, references to an authority’s collection fund income and expenditure account is a reference to a revenue account to which, in accordance with proper practices, are credited or charged amounts in respect of the authority’s income or expenditure relating to sums paid or to be paid into or payments met or to be met from the authority’s collection fund.

[^F17 (3) The relevant multiplier ratio in respect of a hereditament within a designated class for a day is the amount calculated in accordance with the formula—

where—

“ E ” is the multiplier which applies to that hereditament for a day in accordance with paragraph 10(9) of Schedule 4ZA, or paragraph 3(6) of Schedule 4ZB (as the case may be) to the 1988 Act; and

“ F ” is—

(a)

the small business non-domestic rating multiplier for the year, if E is the—

(i)

small business non-domestic rating multiplier; or

(ii)

small business RHL multiplier;

(b)

the non-domestic rating multiplier for the year, if E is the—

(i)

non-domestic rating multiplier;

(ii)

standard RHL multiplier; or

(iii)

high-value multiplier.

(4) In paragraph (3)—

“ high-value multiplier ” means the multiplier with that description calculated in accordance with regulations under paragraph A6A(1)(a) of Schedule 7 to the 1988 Act;

“ non-domestic rating multiplier ” means the non-domestic rating multiplier for the year calculated in accordance with Chapter 2 of Part A1 of Schedule 7 to the 1988 Act;

“ small business non-domestic rating multiplier ” means the small business non-domestic rating multiplier for the year calculated in accordance with Chapter 3 of Part A1 of Schedule 7 to the 1988 Act;

“ small business RHL multiplier ” means the multiplier with that description calculated in accordance with regulations under paragraph A6A(1)(b) of Schedule 7 to the 1988 Act;

“ standard RHL multiplier ” means the multiplier with that description calculated in accordance with regulations under paragraph A6A(1)(b) of Schedule 7 to the 1988 Act. ^F17]

[^F18Calculation of the amount to be disregarded: classes A and F

14. For the purposes of regulation 12, the amount to be disregarded in relation to an authority for a relevant year in respect of a hereditament within class A or F is—

(a)for a relevant year ending on or before 31st March 2026, the total non-domestic rating income in respect of the hereditament for each day of the year;

(b)for a relevant year beginning on or after 1st April 2026, the sum of the amounts calculated for each day of the year by multiplying—

(i)the non-domestic rating income in respect of the hereditament for the day, and

(ii)the relevant multiplier ratio in respect of the hereditament for the day.^F18]

Calculation of the amount to be disregarded: class B_I14

15.[^F19—(1)^F19] For the purposes of regulation 12, the amount to be disregarded in relation to an authority for a relevant year in respect of a hereditament within class B is the total of the amounts calculated for each day of the year in accordance with the formula— ^F20]

[^F20 where—

E is the non-domestic rating income in respect of that hereditament;
^F21 F is the amounts credited to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which the rateable value shown for the hereditament in a ... list was the same or less than [^F22—
(a)
for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2023, the rateable value shown for 31st March 2013;

(b)
for a day on or after 1st April 2023, the notional baseline^F22] ;
^F21 G is the amounts charged to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which the rateable value shown for the hereditament in a ... list was the same or less than [^F22—
(a)
for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2023, the rateable value shown for 31st March 2013;

(b)
for a day on or after 1st April 2023, the notional baseline^F22] ;
^F21 H is the rateable value shown for the hereditament in a ... list for the day; and
[^F23 J is the notional baseline;^F23]
[^F24 “ K ” is—
(a)
for a relevant year ending on or before 31st March 2026, 1;

(b)
for a relevant year beginning on or after 1st April 2026, the relevant multiplier ratio in respect of the hereditament for the day.^F24]

[^F25 (1A) For the purposes of this regulation, the notional baseline is—

(a)for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2017, the rateable value shown for the hereditament in the list for 31st March 2013;

(b)for a day on or after 1st April 2017, the amount calculated in accordance with the formula—

where–

X is the notional baseline for the last day on which the list immediately preceding the current list was in force;
Y is the rateable value shown for the hereditament in the list for the day on which the current list was compiled;
Y1 is the rateable value shown for the hereditament in the list for the last day on which the list immediately preceding the current list was in force.^F25]

[^F26 (2) For a hereditament to which regulation 19 (change in rateable value ^F27...) applies, this regulation has effect subject to the modification made by that provision.^F26]

[^F28 (3) In this regulation, “ list ” means a local non-domestic rating list for the area of a billing authority in England which shows the hereditament concerned. ^F28]

Calculation of the amount to be disregarded: class C_I15

16.[^F29—(1)^F29] For the purposes of regulation 12, the amount to be disregarded in relation to an authority for a relevant year in respect of a hereditament within class C is the total of the amounts calculated for each day of the year in accordance with the formula— ^F30]

[^F30 where—

E is the non-domestic rating income in respect of that hereditament;
^F31 K is the amounts credited to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which the rateable value shown for the hereditament in a ... list was the same or less than [^F32—
(a)
for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2023, the notional 31st March 2013 rateable value determined in accordance with Schedule 1 or 2 (as the case may be);

(b)
for a day on or after 1st April 2023, the notional baseline^F32] ;
^F31 L is the amounts charged to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which the rateable value shown for the hereditament in a ... list was the same or less than the [^F32—
(a)
for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2023, the notional 31st March 2013 rateable value determined in accordance with Schedule 1 or 2 (as the case may be);

(b)
for a day on or after 1st April 2023, the notional baseline;^F32]
^F31 H is the rateable value shown for the hereditament in a ... list for the day; and
[^F33 M is the notional baseline.^F33]
[^F34 “ N ” is—
(a)
for a relevant year ending on or before 31st March 2026, 1;

(b)
for a relevant year beginning on or after 1st April 2026, the relevant multiplier ratio in respect of the hereditament for the day.^F34]

[^F35 (1A) For the purposes of this regulation, the notional baseline is—

(a)for a day falling within the period beginning with 1st April 2013 and ending with 31st March 2017, the notional 31st March 2013 rateable value in respect of the hereditament determined in accordance with Schedule 1 or 2 (as the case may be);

(b)for a day on or after 1st April 2017, the amount calculated in accordance with the formula—

where—

X is the notional baseline for the last day on which the list immediately preceding the current list was in force;
Y is the rateable value shown for the hereditament in the list for the day on which the current list was compiled;
Y1 is the rateable value shown for the hereditament in the list for the last day on which the list immediately preceding the current list was in force.^F35]

[^F36 (2) For a hereditament to which regulation 19 (change in rateable value ^F37...) applies, this regulation has effect subject to the modification made by that provision.^F36]

[^F38 (3) In this regulation, “ list ” means a local non-domestic rating list for the area of a billing authority in England which shows the hereditament concerned. ^F38]

Calculation of the amount to be disregarded: class D_I16

17.—(1) For the purposes of regulation 12, the amount to be disregarded in relation to an authority for a relevant year in respect of a hereditament within class D is the total of the amounts calculated for each day of the year in accordance with the formula— ^F39]

[^F39 where—

E is the non-domestic rating income in respect of that hereditament;
N is the amounts credited to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which no certificate under paragraph (2) has effect;
P is the amounts charged to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which no certificate under paragraph (2) has effect
Q is the proportion of rateable value shown for the hereditament in a local non-domestic rating list that is certified by the relevant valuation officer in accordance with paragraph (2); and
H is the rateable value shown for the hereditament in a local non-domestic rating list for the day.
[^F40 “ R ” is—
(a)
for a relevant year ending on or before 31st March 2026, 1;

(b)
for a relevant year beginning on or after 1st April 2026, the relevant multiplier ratio in respect of the hereditament for the day.^F40]

(2) The relevant valuation officer must, on request by the authority, certify the proportion of rateable value shown for the hereditament in a local non-domestic rating list which appears to that officer to be attributable to any part of the hereditament which—

(a)is used or is intended to be used wholly or mainly in connection with the generation of electricity; and

(b)has been in such use or intended for such use since on or after 1st April 2013.

Calculation of the amount to be disregarded: class E_I17

18.—(1) For the purposes of regulation 12, the amount to be disregarded in relation to an authority for a relevant year in respect of a hereditament within class E is the total of the amounts calculated for each day of the year in accordance with the formula— ^F41]

[^F41 where—

E is the non-domestic rating income in respect of that hereditament;
N is the amounts credited to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which no certificate under paragraph (2) has effect;
P is the amounts charged to the authority’s collection fund income and expenditure account on the day in accordance with proper practices in respect of non-domestic rates payable in respect of that hereditament under sections 43 and 45 of the 1988 Act in respect of a day on which no certificate under paragraph (2) has effect;
Q is the proportion of rateable value shown for the hereditament in a local non-domestic rating list that is certified by the relevant valuation officer in accordance with paragraph (2); and
H is the rateable value shown for the hereditament in a local non-domestic rating list for the day.
[^F42 “ R ” is—
(a)
for a relevant year ending on or before 31st March 2026, 1;

(b)
for a relevant year beginning on or after 1st April 2026, the relevant multiplier ratio in respect of the hereditament for the day.^F42]

(2) The relevant valuation officer must, on request by the authority, certify the proportion of rateable value shown for the hereditament in a local non-domestic rating list which appears to that officer to be the separately identifiable impact on the rateable value attributable to—

(a)the rateable plant and machinery that meets the conditions in regulation 10(2); and

(b)any associated land and buildings.

[^F43Change in rateable value ^F44...

19.—(1) This regulation applies where—

(a)any circumstances regarding a relevant factor taken into account in determining the rateable value shown in a local list for a hereditament falling within a designated class for [^F45 the day on which the list is compiled^F45] , differ from the circumstances regarding that factor existing on [^F46 the day before the day on which that list is compiled^F46] , and

(b)consequently the rateable value shown for [^F45 the day on which the list is compiled^F45] is different from that which would have been shown if the circumstances regarding that factor existing on [^F46 the day before the day on which that list is compiled^F46] had continued to exist on [^F45 the day on which the list is compiled^F45] .

(2) Where this regulation applies, the relevant valuation officer must, on request by the authority, certify the rateable value which would have been shown for [^F47 the day on which the list is compiled^F47] if that value had fallen to be determined as regards the relevant factor by reference to the circumstances existing on [^F48 the day before the day on which that list is compiled^F48] .

(3) Where this regulation applies, the references in regulations 7 (class B: existing renewable power stations, 8 (class C: renewable power stations created from class B hereditaments), 15 (calculation of the amount to be disregarded: class B) and 16 (calculation of the amount to be disregarded: class C) to a rateable value shown for [^F49 a day on which a list is compiled^F49] are to be treated as references to the value certified by the relevant valuation officer in accordance with paragraph (2).

(4) In this regulation “relevant factor” means—

(a)any matter mentioned in paragraph 2(7) of Schedule 6 to the 1988 Act, or

(b)the extent to which a hereditament is exempt from non-domestic rating.^F43]

We consent to the making of these Regulations

Desmond Swayne

David Evennett

Two of the Lords Commissioners of Her Majesty’s Treasury

16th January 2013

Signed by authority of the Secretary of State for Communities and Local Government

Brandon Lewis

Parliamentary Under Secretary of State

Department for Communities and Local Government

22nd January 2013

Regulations 6, 8 and 16

SCHEDULE 1 Altered hereditaments _I18_,_I19_,_I20

1.—(1) In this Schedule—

“altered hereditament” means a hereditament comprising, wholly or mainly, any property which was the whole or part of—

(a)

a hereditament shown in a local non-domestic rating list at any time; and

(b)

a hereditament which was at any time previously capable of falling within class B; and

“original hereditament” means the hereditament of which the altered hereditament is so comprised.

(2) For the purposes of paragraph 1(1)(b) a hereditament is to be treated as capable of falling within class B whether or not the condition in regulation 7(2)(c) is met.

2. This Schedule applies to an altered hereditament if—

(a) the original hereditament was deleted from a local non-domestic rating list with effect from any day as a result of a structural alteration to that hereditament or the removal of rateable plant or machinery; and

(b) for a day on or after 1st April 2013 the altered hereditament is shown for the first time in a local non-domestic rating list following the alteration.

3. Where this Schedule applies, the notional 31st March 2013 rateable value for the altered hereditament—

(a) where the original hereditament was shown on a local non-domestic rating list on 31st March 2013, is the rateable value shown for the original hereditament for 31st March 2013;

(b) where the original hereditament was itself an altered hereditament or a new hereditament, is the notional 31st March 2013 rateable value for that original hereditament; or

(c) where neither sub-paragraph (a) or (b) apply, is the rateable value shown in a local non-domestic rating list for the original hereditament for the last day that hereditament appeared in the list.

Regulations 6, 8 and 16

SCHEDULE 2 Splits, mergers and reorganisations _I21_,_I22

1.—(1) This Schedule applies where—

(a) on a day (“the creation day”) falling on or after 1st April 2013, a hereditament (“new hereditament”) comes into existence because—

(i) property previously rated as a single hereditament becomes liable to be rated in parts;

(ii) property previously rated in parts becomes liable to be rated as a single hereditament; or

(iii) a hereditament or any part of a hereditament becomes part of a different hereditament; and

(b) immediately before the creation day a hereditament from which the new hereditament was formed in whole or in part (“old hereditament”) was capable of falling within class B.

(2) For the purposes of paragraph 1(1)(b), a hereditament is to be treated as capable of falling within class B whether or not the condition in regulation 7(2)(c) is met.

2. Where this Schedule applies, the notional 31st March 2013 rateable value is the amount calculated in accordance with the formula—

where—

R is the total rateable value shown in a local non-domestic rating list for 31st March 2013 of any old hereditament which was capable of falling within class B on the day immediately preceding the creation day;
S is the total notional 31st March 2013 rateable value of any old hereditament which was capable of falling within class C on the day immediately preceding the creation day;
T is the total rateable value shown in a local non-domestic rating list for the day immediately preceding the creation day of any old hereditament which was—
(a)
capable of falling within class D or E; or

(b)
not capable of falling within a designated class;
on the day immediately preceding the creation day;
U is the amount certified by a relevant valuation officer under these Regulations in respect of any old hereditament for the day immediately preceding the creation day;
V is the rateable value shown in a local non-domestic rating list for the creation day of the new hereditament which falls within class C;
W is the total rateable value shown for the creation day of all new hereditaments created from the old hereditament.

(1)

1988 c.41. Schedule 7B was inserted into the Local Government Finance Act 1988 by Section 1 of, and Schedule 1 to, the Local Government Finance Act 2012 (c.17).

(2)

S.I. 2000/540.

(3)

1964 c.29. Section 1(7) was amended by section 37 of, and paragraph 1 of Schedule 3 to, the Oil and Gas (Enterprise) Act 1982 (c.23); section 103 of the Energy Act 2011 (c.16).

(4)

The meaning of proper practices is given in section 21 of the Local Government Act 2003 (c.26), which applies to these Regulations by virtue of subsection (4)(e) of that section.

in force	Provision is in force
in force*	In force only for specified purposes (for detail about the purposes see/hover footnote)
not in force	Not in force in England (may be in force in other geographies, see footnotes)
italics	Defined term
_dfn	Defined term (alternative style)
gry bckgrd	the in-force status of the provision is complex, check the footnotes

Defined Term	Section/Article	ID
altered hereditament	para SCHEDULE 1	def_8a84af7565
altered hereditament	reg. 2. of PART 1	def_1a579e5dcf
authority	reg. 2. of PART 1	def_ad71f4e625
biomass	reg. 2. of PART 1	def_aebdb36c85
current list	reg. 7. of PART 2	def_7b7818e0c0
designated class	reg. 2. of PART 1	def_ec4cdd5867
generating plant	reg. 2. of PART 1	def_2dc746e70d
high-value multiplier	reg. 13. of PART 3	def_b01d254462
list	reg. 15. of PART 3	def_662ffd2b64
list	reg. 16. of PART 3	def_ad3df1260d
list	reg. 7. of PART 2	def_a043faf896
list	reg. 8. of PART 2	def_7592c82b9a
new hereditament	para SCHEDULE 2	def_53715139d3
new hereditament	reg. 2. of PART 1	def_a102af2907
non-domestic rating income	reg. 2. of PART 1	def_3a098136eb
non-domestic rating multiplier	reg. 13. of PART 3	def_cc642c3249
notional 31st March 2013 rateable value	reg. 2. of PART 1	def_ea6bb7827a
offshore waters	reg. 11. of PART 2	def_a336e35c66
old hereditament	para SCHEDULE 2	def_62ed8e7ae2
old hereditament	reg. 2. of PART 1	def_eeb2c53081
original hereditament	para SCHEDULE 1	def_d399766284
original hereditament	reg. 2. of PART 1	def_1dbfb53451
rateable plant and machinery	reg. 2. of PART 1	def_03d191dc95
relevant factor	reg. 19. of PART 3	def_929ae1e55b
relevant multiplier ratio	reg. 2. of PART 1	def_3a9179be1a
relevant valuation officer	reg. 2. of PART 1	def_2f0c16e672
relevant year	reg. 2. of PART 1	def_4a6419cb2e
renewable power station	reg. 2. of PART 1	def_14ebfe922f
small business non-domestic rating multiplier	reg. 13. of PART 3	def_3b4f366e5e
small business RHL multiplier	reg. 13. of PART 3	def_f0919f914a
standard RHL multiplier	reg. 13. of PART 3	def_02aa86d27b
the 1988 Act	reg. 2. of PART 1	def_06b8f97b63
the creation day	para SCHEDULE 2	def_fa05640998

footnote	commentary	insert/omit
F1	Words in reg. 2 substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 4	substituted
F2	Words in reg. 2 substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 3(a)	substituted
F3	Words in reg. 2 inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 3(b)	inserted
F4	Word in reg. 7(2)(b) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 5(2)(a)	substituted
F5	Reg. 7(2)(c) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 5(2)(b)	substituted
F6	Reg. 7(2A) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 5(3)	inserted
F7	Reg. 7(3) inserted (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 3(b)	inserted
F8	Words in reg. 7(3) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 5(4)	omitted
F9	Reg. 7(4) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 5(5)	inserted
F10	Word in reg. 8(2)(b) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 6(2)(a)	substituted
F11	Reg. 8(2)(c) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 6(2)(b)	substituted
F12	Reg. 8(2A) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 6(3)	inserted
F13	Reg. 8(3) inserted (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 4(b)	inserted
F14	Words in reg. 8(3) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 6(4)	omitted
F15	Reg. 8(4) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 6(5)	inserted
F16	Words in reg. 13 heading inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 4(a)	inserted
F17	Reg. 13(3)(4) inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 4(b)	inserted
F18	Reg. 14 substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 5	substituted
F19	Reg. 15 renumbered as reg. 15(1) (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 5(1)	renumbered
F20	Reg. 15(1) formula substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 6(a)	substituted
F21	Words in reg. 15(1) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(2)(a)	omitted
F22	Words in reg. 15(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(2)(b)	substituted
F23	Words in reg. 15(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(2)(c)	substituted
F24	Words in reg. 15(1) inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 6(b)	inserted
F25	Reg. 15(1A) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(3)	inserted
F26	Reg. 15(2) inserted (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 5(2)	inserted
F27	Words in reg. 15(2) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(4)	omitted
F28	Reg. 15(3) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 7(5)	inserted
F29	Reg. 16 renumbered as reg. 16(1) (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 6(1)	renumbered
F30	Reg. 16(1) formula substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 7(a)	substituted
F31	Words in reg. 16(1) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(2)(a)	omitted
F32	Words in reg. 16(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(2)(b)	substituted
F33	Words in reg. 16(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(2)(c)	substituted
F34	Words in reg. 16(1) inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 7(b)	inserted
F35	Reg. 16(1A) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(3)	inserted
F36	Reg. 16(2) inserted (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 6(2)	inserted
F37	Words in reg. 16(2) omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(4)	omitted
F38	Reg. 16(3) inserted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 8(5)	inserted
F39	Reg. 17(1) formula substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 8(a)	substituted
F40	Words in reg. 17(1) inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 8(b)	inserted
F41	Reg. 18(1) formula substituted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 9(a)	substituted
F42	Words in reg. 18(1) inserted (1.4.2026) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2026 (S.I. 2026/240), regs. 1(2), 9(b)	inserted
F43	Reg. 19 inserted (14.12.2017) by The Non-Domestic Rating (Renewable Energy Projects) (Amendment) Regulations 2017 (S.I. 2017/1132), regs. 1, 9	inserted
F44	Words in reg. 19 heading omitted (1.4.2024) by virtue of The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(2)	omitted
F45	Words in reg. 19(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(3)(a)	substituted
F46	Words in reg. 19(1) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(3)(b)	substituted
F47	Words in reg. 19(2) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(3)(a)	substituted
F48	Words in reg. 19(2) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(3)(b)	substituted
F49	Words in reg. 19(3) substituted (1.4.2024) by The Non-Domestic Rating (Rates Retention and Renewable Energy Projects) (Amendment) Regulations 2024 (S.I. 2024/184), regs. 1(2), 9(4)	substituted
I1	Reg. 1 in force at 18.2.2013, see reg. 1(1)
I2	Reg. 2 in force at 18.2.2013, see reg. 1(1)
I3	Reg. 3 in force at 18.2.2013, see reg. 1(1)
I4	Reg. 4 in force at 18.2.2013, see reg. 1(1)
I5	Reg. 5 in force at 18.2.2013, see reg. 1(1)
I6	Reg. 6 in force at 18.2.2013, see reg. 1(1)
I7	Reg. 7 in force at 18.2.2013, see reg. 1(1)
I8	Reg. 8 in force at 18.2.2013, see reg. 1(1)
I9	Reg. 9 in force at 18.2.2013, see reg. 1(1)
I10	Reg. 10 in force at 18.2.2013, see reg. 1(1)
I11	Reg. 11 in force at 18.2.2013, see reg. 1(1)
I12	Reg. 12 in force at 18.2.2013, see reg. 1(1)
I13	Reg. 13 in force at 18.2.2013, see reg. 1(1)
I14	Reg. 15 in force at 18.2.2013, see reg. 1(1)
I15	Reg. 16 in force at 18.2.2013, see reg. 1(1)
I16	Reg. 17 in force at 18.2.2013, see reg. 1(1)
I17	Reg. 18 in force at 18.2.2013, see reg. 1(1)
I18	Sch. 1 para. 1 in force at 18.2.2013, see reg. 1(1)
I19	Sch. 1 para. 2 in force at 18.2.2013, see reg. 1(1)
I20	Sch. 1 para. 3 in force at 18.2.2013, see reg. 1(1)
I21	Sch. 2 para. 1 in force at 18.2.2013, see reg. 1(1)
I22	Sch. 2 para. 2 in force at 18.2.2013, see reg. 1(1)

2013 No. 108

The Non-Domestic Rating (Renewable Energy Projects) Regulations 2013

PART 1 General

Citation and commencementI1

InterpretationI2

Certificates: generalI3

PART 2 Designation of classes of hereditaments

Designated classes of hereditamentsI4

Renewable power stationsI5

Class A: new renewable power stationsI6

Class B: existing renewable power stationsI7

Class C: renewable power stations created from class B hereditamentsI8

Class D: energy from waste plantsI9

Class E: other hereditaments used for the purpose of generating electricityI10

Class F: cables and sub-stations associated with offshore generating plantsI11

PART 3 Rules for the calculation of an amount to be disregarded

Amount to be disregarded for the purpose of certain calculationsI12

Non-domestic rating income [F16and relevant multiplier ratiosF16] I13

[F18Calculation of the amount to be disregarded: classes A and F

Calculation of the amount to be disregarded: class BI14

Calculation of the amount to be disregarded: class CI15

Calculation of the amount to be disregarded: class DI16

Calculation of the amount to be disregarded: class EI17

[F43Change in rateable value F44...

SCHEDULE 1 Altered hereditaments I18,I19,I20

SCHEDULE 2 Splits, mergers and reorganisations I21,I22

Status of changes to instrument text

Citation and commencement_I1

Interpretation_I2

Certificates: general_I3

Designated classes of hereditaments_I4

Renewable power stations_I5

Class A: new renewable power stations_I6

Class B: existing renewable power stations_I7

Class C: renewable power stations created from class B hereditaments_I8

Class D: energy from waste plants_I9

Class E: other hereditaments used for the purpose of generating electricity_I10

Class F: cables and sub-stations associated with offshore generating plants_I11

Amount to be disregarded for the purpose of certain calculations_I12

Non-domestic rating income [^F16and relevant multiplier ratios^F16] _I13

[^F18Calculation of the amount to be disregarded: classes A and F

Calculation of the amount to be disregarded: class B_I14

Calculation of the amount to be disregarded: class C_I15

Calculation of the amount to be disregarded: class D_I16

Calculation of the amount to be disregarded: class E_I17

[^F43Change in rateable value ^F44...

SCHEDULE 1 Altered hereditaments _I18_,_I19_,_I20

SCHEDULE 2 Splits, mergers and reorganisations _I21_,_I22