Statutory Instruments

2016 No. 1265

Rating And Valuation, England

The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016

Made

21st December 2016

Coming into force in accordance with regulation 2

The Secretary of State, in exercise of the powers conferred by sections 57A, 140(4) and 143(1) and (2) of the Local Government Finance Act 1988( 1 ), makes the following Regulations, a draft of which was laid before and approved by a resolution of each House of Parliament in accordance with section 143(4) of that Act.

PART 1 Preliminary

Citation and application

1. —(1) These Regulations may be cited as the Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016.

(2) These Regulations apply in relation to England only.

Commencement

2. —(1) Regulation 22 (revocations) comes into force on 1st April 2017.

(2) The remaining provisions come into force on the day after the day on which they are made.

Interpretation

3. —(1) In these Regulations—

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

“the Appeals Procedure Regulations” means the Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009( 2 );

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

“appropriate valuation officer”—

(a)

in relation to a hereditament in respect of which regulations under section 53(1) of the Act (contents of central lists) are in force, means the central valuation officer;

(b)

in relation to any other hereditament, means the valuation officer maintaining a local list in which the hereditament is, or would be, shown;

“central list” means the list compiled and maintained in accordance with section 52 of the Act;

“creation day” has the meaning given by paragraph 1 of Schedule 2;

“defined hereditament” has the meaning given by regulation 5;

“designated person” means a person designated under section 53(1) of the Act;

“list” means a local list or the central list;

“local list” means a list compiled and maintained in accordance with section 41 of the Act;

“material change of circumstances”, in relation to a hereditament, means a change in any of the matters mentioned in paragraph 2(7) of Schedule 6 to the Act;

“relevant day” has the meaning given by regulation 4(2);

“relevant factor” means—

(a)

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

(b)

the extent to which a hereditament is exempt from non-domestic rating;

“relevant period” has the meaning given by regulation 4(1); and

“relevant year” has the meaning given by regulation 4(3).

(2) A reference in these Regulations to the rateable value shown in the central list for a defined hereditament for a relevant day is taken to be a reference to—

(a) if only one hereditament is shown in the central list for that day in relation to a designated person, the rateable value shown for that hereditament for that day;

(b) if more than one hereditament is shown in the central list for that day in relation to a designated person, the rateable value certified by the appropriate valuation officer under regulation 19 in relation to that hereditament.

Relevant period, relevant day and relevant year

4. —(1) The relevant period in relation to which, in accordance with section 57A of the Act, these Regulations apply, is the period beginning on 1st April 2017 and ending on 31st March 2022.

(2) A relevant day is a day falling within the relevant period.

(3) A relevant year is a financial year falling within the relevant period.

Defined hereditaments

5. —(1) Subject to paragraph (3), as regards a relevant day, a hereditament is a defined hereditament if any of the following conditions are fulfilled—

(a) the conditions in paragraph (2);

(b) the conditions in paragraph 2 of Schedule 1;

(2) For the purposes of paragraph (1)(a), the conditions are that the hereditament is shown in a list for—

(a) 31st March 2017, with a rateable value greater than zero;

(b) the relevant day, with a rateable value greater than zero; and

(c) each day (if any) falling after 31st March 2017 and before the relevant day, with a rateable value greater than zero.

(3) A reference in this regulation to the rateable value shown in the central list for a hereditament for 31st March 2017 is taken to be a reference to—

(a) the rateable value shown for the hereditament for that date in the central list; or

(b) the value certified by the appropriate valuation officer to be the rateable value which would have been shown in the central list for the hereditament for that date if that had been the only hereditament of the designated person shown in the central list for that date.

(4) Where a hereditament or a class of hereditament shown in the central list in relation to a designated person( 3 ) is a defined hereditament on 1st April 2017 (“the original hereditament”), notwithstanding that on or after 31st March 2017—

(a) part of the original hereditament becomes a hereditament shown in a local list; or

(b) the person ceases to occupy or, if it is unoccupied, own part of the original hereditament,

the conditions in paragraph (2) or paragraphs 1(a), (b)(ii) and (c) of Schedule 2 are taken to be fulfilled as respects the whole of the original hereditament for so long as the person continues to be the designated person in relation to the original hereditament.

Special authorities

6. —(1) This regulation applies in relation to a defined hereditament which is shown in a local list for the area of a special authority( 4 ) for a relevant year for which the non-domestic rating multiplier( 5 ) set by the special authority is different from the non-domestic rating multiplier for the year.

(2) Where this regulation applies and D _SA exceeds D then, subject to paragraphs (3), (5), (7), (9) and (11), to the result of the calculation of the chargeable amount for the chargeable day for the hereditament in accordance with regulation 12 and Schedule 2, there is added the amount calculated by applying the formula—

(3) Where paragraph (4) applies, paragraph (2) has effect as regards the hereditament for the day as if the reference in that paragraph to the formula—

were a reference to—

(4) This paragraph applies where, on the chargeable day, section 43(6) of the Act (charities and registered community amateur sports clubs) applies in relation to the hereditament.

(5) Where paragraph (6) applies, paragraph (2) has effect as regards the hereditament for the chargeable day as if the reference in that paragraph to the formula—

were a reference to—

(6) This paragraph applies where, on the chargeable day, section 43(4B) of the Act (small business rate relief)( 6 ) applies in relation to the hereditament.

(7) Where paragraph (8) applies, paragraph (2) has effect as regards the hereditament for the chargeable day as if the reference in that paragraph to the formula—

were a reference to—

(8) This paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements)( 7 ) applies in relation to the hereditament.

(9) Where paragraph (10) applies, paragraph (2) has effect as regards the hereditament for the chargeable day as if the reference in that paragraph to the formula—

were a reference to—

(10) This paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied hereditaments: liability) are fulfilled as respects the hereditament;

(b) the hereditament is not zero-rated under section 45A of the Act (unoccupied hereditaments: zero-rating)( 8 ); and

(11) Where paragraph (12) applies, paragraph (2) has effect in relation to the hereditament for the day as if the amount calculated by applying the formula in that paragraph were zero.

(12) This paragraph applies where, on the chargeable day, the chargeable amount for the hereditament would be zero under section 45A of the Act (unoccupied hereditaments: zero-rating).

(13) Where this regulation applies and D _SA is less than D, then where the chargeable amount for the chargeable day for the hereditament is calculated in accordance with these Regulations, the chargeable amount is multiplied by the formula—

(14) For the purposes of this regulation—

D is the small business non-domestic rating multiplier for the relevant year in which the chargeable day falls;

D _SA is the small business non-domestic rating multiplier of the special authority for the relevant year in which the chargeable day falls;

C is the number of days in the relevant year;

E is the amount prescribed under section 44(9)(a) of the Act for the relevant year in which the relevant day falls;

N is the rateable value shown for the hereditament in a local list for the relevant day; and

Z is the number prescribed in an order by the Secretary of State under section 45(4A) of the Act.

PART 2 Chargeable amounts

Notional chargeable amount

7. —(1) Subject to paragraphs (3) to (5), the notional chargeable amount for a defined hereditament for a relevant year is the amount found by applying the formula—

(2) For the purposes of this regulation—

A is the rateable value shown in a list for the hereditament for 1st April 2017; and

D is the small business non-domestic rating multiplier for the relevant year.

(3) Where regulation 14 (change in rateable value on 1st April 2017) applies, references in this regulation to rateable value have effect subject to the modifications made in paragraph (2) of that regulation.

(4) For a hereditament to which Schedule 1 (altered hereditaments) applies, paragraph 4 of that Schedule has effect for finding the notional chargeable amount.

(5) For a hereditament to which Schedule 2 (splits and mergers) applies, paragraph 7 of that Schedule has effect for finding the notional chargeable amount.

Base liability for 2017 - 18 for a defined hereditament

8. —(1) Subject to paragraph (2), the base liability for a defined hereditament for the relevant year beginning on 1st April 2017 is found by applying the formula—

where—

Y is—

(a)

for a hereditament shown in a local list for 31st March 2017, the rateable value shown for the hereditament for that date in that list, and

(b)

for a hereditament shown in the central list for 31st March 2017, the rateable value shown for the hereditament for that date in the central list or the value certified by the appropriate valuation officer to be the rateable value which would have been shown in the central list for the hereditament for that date if that had been the only hereditament of the designated person shown in the central list for that date; and

Z is the small business non-domestic rating multiplier for the financial year beginning on 1st April 2016.

(b)

Z is the small business non-domestic rating multiplier for the financial year beginning on 1st April 2016.

(2) For a defined hereditament to which Schedule 1 (altered hereditaments) applies, paragraph 3 of that Schedule has effect for finding the base liability.

Base liability for years subsequent to 2017 -18

9. —(1) Subject to paragraph (2), the base liability for a defined hereditament for a relevant year beginning after the first relevant year (“the year concerned”) is found by applying the formula—

where—

BL is the base liability for the hereditament for the relevant year immediately preceding the year concerned, and
AF is the appropriate fraction, as found in accordance with regulation 10, for the relevant year immediately preceding the year concerned.

(2) For a defined hereditament to which Schedule 2 (splits and mergers) applies, paragraphs 8 and 9 of that Schedule have effect for finding the base liability.

Appropriate fraction

10. —(1) Subject to paragraph (10), the appropriate fraction for a defined hereditament for a relevant year is found by applying the formula—

(2) For the purposes of this regulation, where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year, and the hereditament is shown in a list and the rateable value shown in that list for that hereditament for 1st April 2017 is more than £100,000, then—

(a) for the relevant year beginning on 1st April 2017, X is 142;

(b) for the relevant year beginning on 1st April 2018, X is 132;

(d) for the relevant year beginning on 1st April 2020, X is 116; and

(e) for the relevant year beginning on 1st April 2021, X is 106.

(3) Paragraph (4) applies where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year, and—

(a) the hereditament is shown in a local list in Greater London and the rateable value shown in that list for that hereditament for 1st April 2017 is more than £28,000 and less than or equal to £100,000; or

(b) the hereditament is shown in the central list or in a local list outside Greater London and the rateable value shown in that list for that hereditament for 1st April 2017 is more than £20,000 and less than or equal to £100,000.

(4) For the purposes of this regulation, for a hereditament mentioned in paragraph (3)—

(a) for the relevant year beginning on 1st April 2017, X is 112.5;

(b) for the relevant year beginning on 1st April 2018, X is 117.5;

(d) for the relevant years beginning on 1st April 2020 and 1st April 2021, X is 125.

(5) Paragraph (6) applies where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year, and—

(a) the hereditament is shown in a local list in Greater London and the rateable value shown in that list for that hereditament for 1st April 2017 is less than or equal to £28,000; or

(b) the hereditament is shown in the central list or in a local list outside Greater London and the rateable value shown in that list for that hereditament for 1st April 2017 is less than or equal to £20,000.

(6) For the purposes of this regulation, for a hereditament mentioned in paragraph (5)—

(a) for the relevant year beginning on 1st April 2017, X is 105;

(b) for the relevant year beginning on 1st April 2018, X is 107.5;

(d) for the relevant years beginning on 1st April 2020 and 1st April 2021, X is 115.

(7) For the purposes of this regulation where the notional chargeable amount for the hereditament for the relevant year does not exceed the base liability for the hereditament for the year, and the hereditament is shown in a list and the rateable value shown in that list for the hereditament for 1st April 2017 is more than £100,000, then—

(a) for the relevant year beginning on 1st April 2017, X is 95.9;

(b) for the relevant year beginning on 1st April 2018, X is 95.4;

(d) for the relevant year beginning on 1st April 2020, X is 94.2; and

(e) for the relevant year beginning on 1st April 2021, X is 95.2.

(8) Paragraph (9) applies where the notional chargeable amount for the hereditament for the relevant year does not exceed the base liability for the hereditament for the year, and—

(a) the hereditament is shown in a local list in Greater London and the rateable value shown in that list for the hereditament for 1st April 2017 is more than £28,000 and less than or equal to £100,000; or

(b) the hereditament is shown in the central list or in a local list outside Greater London and the rateable value shown in that list for the hereditament for 1st April 2017 is more than £20,000 and less than or equal to £100,000.

(9) For the purposes of this regulation, for a hereditament mentioned in paragraph (8)—

(a) for the relevant year beginning on 1st April 2017, X is 90;

(b) for the relevant year beginning on 1st April 2018, X is 85;

(d) for the relevant years beginning on 1st April 2020 and 1st April 2021, X is 75.

(10) Paragraph (11) applies where the notional chargeable amount for the hereditament does not exceed the base liability for the year, and—

(a) the hereditament is shown in a local list in Greater London and the rateable value shown in that list for the hereditament for 1st April 2017 is less than or equal to £28,000; or

(b) the hereditament is shown in the central list or in a local list outside Greater London and the rateable value shown in that list for the hereditament for 1st April 2017 is less than or equal to £20,000.

(11) For the purposes of this regulation, for a hereditament mentioned in paragraph (10)—

(a) for the relevant year beginning on 1st April 2017, X is 80;

(b) for the relevant year beginning on 1st April 2018, X is 70;

(d) for the relevant years beginning on 1st April 2020 and 1st April 2021, X is 45.

(12) For the purposes of this regulation—

(a) for the relevant year beginning on 1st April 2017, Q is 1.02;

(b) for subsequent relevant years in the relevant period, Q is the amount found by applying the formula—

where—

D(1) is the small business non-domestic rating multiplier for the relevant year, and
D(2) is the small business non-domestic rating multiplier for the financial year which precedes the relevant year;

(c)

Q, if not a whole number, is calculated to three decimal places only—

(i)

adding one thousandth where (apart from this sub-paragraph) there would be more than five ten-thousandths; and

(ii)

ignoring ten-thousandths where (apart from this sub-paragraph) there would be five, or less than five, ten-thousandths.

(13) For a defined hereditament to which one or more of the following provisions apply—

(a) regulation 14 (change in rateable value on 1st April 2017),

(b) paragraph 6 of Schedule 1 (altered hereditament: change in rateable value),

this regulation has effect subject to the modifications made by that provision.

Application of regulation 12

11. —(1) Subject to paragraphs (3) to (6), regulation 12 applies to a defined hereditament for a relevant day (“the day concerned”) if—

(a) as regards the hereditament the day concerned is a chargeable day for which a chargeable amount would, but for these Regulations, fall to be determined under section 43, 45 or 54 of the Act; and

(b) NCA is—

(i) subject to the modification in paragraph 5 of Schedule 1 (altered hereditaments), greater than BL and greater than (BL x AF); or

(ii) less than BL and less than (BL x AF).

(2) For the purposes of paragraph (1)—

(a) NCA is the notional chargeable amount for the hereditament for the relevant year within which the day concerned falls, but where paragraph 4 of Schedule 1 (altered hereditament: notional chargeable amount) applies, that paragraph has effect for the purpose of determining NCA as regards the altered hereditament,

(b) BL is the base liability for the hereditament for the relevant year within which the day concerned falls,

(3) Regulation 12 does not apply where, on the day concerned, the chargeable amount for the defined hereditament is zero under section 45A of the Act (unoccupied hereditaments: zero-rating).

(4) Regulation 12 does not apply where Schedule 2 (splits and mergers) applies to a defined hereditament in the year in which the creation day falls.

(5) Regulation 12 does not apply to a defined hereditament for the day concerned if—

(a) as respects a relevant day falling before the day concerned, the value of X for the purposes of determining the appropriate fraction fell to be determined (or if determined again following an alteration of a list in accordance with regulations made under the Act, fell after that alteration to be determined) in accordance with regulation 10(2), (4) or (6), and

(b) as respects the day concerned, the value of X for the purposes of determining the appropriate fraction falls to be determined (or if determined again following an alteration of a list in accordance with regulations made under the Act, falls after that alteration to be determined) in accordance with regulation 10(7), (9) or (11).

(6) Regulation 12 does not apply to a defined hereditament for the day concerned if—

(a) as respects a relevant day falling before the day concerned, the value of X for the purposes of determining the appropriate fraction fell to be determined (or if determined again following an alteration of a list in accordance with Regulations made under the Act, fell after that alteration to be determined) in accordance with regulation 10(7), (9) or (11), and

(b) as respects the day concerned, the value of X for the purposes of determining the appropriate fraction falls to be determined (or if determined again following an alteration of a list in accordance with Regulations made under the Act, falls after that alteration to be determined) in accordance with regulation 10(2), (4) or (6).

Rules for determining chargeable amount

12. —(1) Where this regulation applies to a hereditament shown in the central list, the chargeable amount as respects the designated person for a chargeable day which is a relevant day is calculated by applying the formula—

instead of the formula in section 54(4) of the Act.

(2) Where this regulation applies to a hereditament shown in a local list, the chargeable amount for a chargeable day which is a relevant day is calculated under this regulation instead of under section 43 or 45 of the Act.

(3) Subject to paragraphs (4), (6), (8) and (10), the chargeable amount for the chargeable day is calculated by applying the formula—

(4) Where paragraph (5) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with paragraph (3) by 5.

(5) This paragraph applies where, on the day concerned, section 43(6) of the Act (charities and registered community amateur sports clubs) applies in relation to the hereditament.

(6) Where paragraph (7) applies, the chargeable amount for a chargeable day is found by—

(a) subtracting U from the amount calculated in accordance with paragraph (3); and

(b) dividing the result of the calculation performed under sub-paragraph (a) by E.

(7) This paragraph applies where, on the chargeable day, section 43(4B) of the Act (small business rate relief) applies in relation to the hereditament.

(8) Where paragraph (9) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with paragraph (3) by 2.

(9) This paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements) applies in relation to the hereditament.

(10) Where paragraph (11) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with paragraph (3) by the number prescribed in an order by the Secretary of State under section 45(4A) of the Act (reduction in chargeable amount for unoccupied properties).

(11) This paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied property: liability) are fulfilled as respects the hereditament; and

(b) an order by the Secretary of State under section 45(4A) has effect in relation to the hereditament.

(12) For the purposes of this regulation—

A is the amount certified by the appropriate valuation officer to be the portion of the rateable value shown for the chargeable day in the central list against the name of the designated person which is not attributable to hereditaments to which this regulation applies;

B is the non-domestic rating multiplier for the relevant year in which the chargeable day falls;

BL and AF have the meanings given by regulation 11(2);

C is the number of days in the relevant year;

D is the small business non-domestic rating multiplier for the relevant year in which the relevant day falls;

E is the amount prescribed under section 44(9)(a) of the Act for the relevant year in which the relevant day falls;

H is the aggregate for the chargeable day of the amounts found by applying the formula—

to each hereditament to which this regulation applies shown for the day in the central list against the name of the designated person;

N is the rateable value shown in a list for the hereditament for the day; and

U is the amount found by applying the formula—

(13) For a hereditament to which one or more of the following provisions apply—

(a) regulation 13 (change in rateable value after 1st April 2017);

(b) regulation 14 (change in rateable value on 1st April 2017);

this regulation has effect subject to the modifications made in that provision.

Change in rateable value after 1st April 2017

13. —(1) Paragraph (2) applies in respect of a defined hereditament in a case where regulation 12 applies and for a day after 1st April 2017 the rateable value shown in a local list for the hereditament for that day is greater than the rateable value shown for it for 1st April 2017.

(2) Where this paragraph applies, regulation 12 has effect as regards the hereditament for the day as if the reference in that regulation to the formula—

were a reference to—

(3) Paragraph (4) applies in respect of a defined hereditament in a case where regulation 12 applies and for a day after 1st April 2017 the rateable value shown in a local list for the hereditament for that day is less than the rateable value shown for it for 1st April 2017.

(4) Where this paragraph applies, regulation 12 has effect as regards the hereditament for the day as if the reference in that regulation to the formula—

were a reference to—

(5) For the purposes of the modifications made by paragraphs (2) and (4)—

J is the rateable value shown for the hereditament in a local list for 1st April 2017, and

N is the rateable value shown for the hereditament in a local list for the day.

(6) Paragraph (7) applies in respect of a defined hereditament in a case where regulation 12 applies and for a chargeable day after 1st April 2017 the rateable value shown in the central list for that hereditament for that day is different from the rateable value shown for 1st April 2017.

(7) Where this paragraph applies, regulation 12 has effect as regards the defined hereditament for the chargeable day as if the reference to the formula—

were a reference to—

(8) For the purposes of this paragraph and paragraph (7)—

H is the aggregate for a chargeable day of the amounts found by applying the formula—

to each hereditament to which regulation 12 applies but to which paragraph (7) does not apply shown in the central list for that day in relation to the designated person;

I is the aggregate for the chargeable day of the amounts found by applying the formula—

to each hereditament to which paragraph (7) applies shown in the central list for that day in relation to the designated person and for which the rateable value shown for that day is greater than the rateable value shown for 1st April 2017;

J is the rateable value shown in the central list for the hereditament for 1st April 2017;

K is the aggregate for the chargeable day of the chargeable amounts found by applying the formula—

to each hereditament to which paragraph (7) applies shown in the central list for that day in relation to the designated person and for which the rateable value shown for that day is less than the rateable value shown for 1st April 2017; and

N is the rateable value shown in the central list for the hereditament for the chargeable day.

(9) For a hereditament to which one or more of the following provisions apply—

(a) regulation 14 (change in rateable value on 1st April 2017);

(b) paragraph 6 of Schedule 1 (altered hereditament: change in rateable value);

this regulation has effect subject to the modifications made by that provision.

Change in rateable value on 1st April 2017

14. —(1) This regulation applies where any circumstances regarding a relevant factor taken into account in determining the rateable value shown in a local list for a defined hereditament for 1st April 2017 differ from the circumstances regarding that factor existing on 31st March 2017, so that the rateable value shown for 1st April 2017 is different from that which would have been shown if the circumstances regarding that factor existing on 31st March 2017 continued to exist on 1st April 2017.

(2) Where this regulation applies, the references in regulation 7 (notional chargeable amount) and 10 (appropriate fraction) to a rateable value shown for 1st April 2017 are treated as references to the value certified by the appropriate valuation officer as the rateable value which would have been shown for that day if that value had fallen to be determined as regards that factor by reference to the circumstances existing on 31st March 2017.

(3) Where this regulation and regulation 12 apply, regulation 13 (change in rateable value after 1st April 2017) has effect as if—

(a) the references in paragraphs (1), (3) and (5) of regulation 13 to a rateable value shown for 1st April 2017 were references to the value certified by the appropriate valuation officer as the rateable value which would have been shown for that day if that value had fallen to be determined as regards the factor mentioned in paragraph (1) by reference to the circumstances existing on 31st March 2017, and

(b) the references in paragraphs (1) and (3) of regulation 13 to the rateable value for a day after 1st April 2017 were treated as including a reference to the rateable value actually shown for 1st April 2017.

Partly occupied hereditaments

15. —(1) As regards a relevant day and a defined hereditament in relation to which an apportionment under section 44A of the Act (partly occupied hereditaments) is applicable, any chargeable amount for that day as respects the hereditament found in accordance with regulation 12 or Schedule 2 (as modified by any provision of these Regulations) is taken to be multiplied by A and divided by P.

(2) In paragraph (1)—

A is the amount found under section 44(2) of the Act, as substituted by section 44A(7) or (9) for the relevant day as respects the hereditament, and

P is the rateable value shown for the hereditament under section 42(4) of the Act (contents of local lists) for the relevant day.

PART 3 Miscellaneous

Certificates for changes in rateable value: 1st April 2017

16. —(1) This regulation applies where the appropriate valuation officer is of the view (whether following a request from the ratepayer in relation to the hereditament in question or not) that the rateable value shown in a list for a hereditament for 1st April 2017 is inaccurate on any grounds other than solely on the grounds of a material change of circumstances which occurred on that day.

(2) Where this regulation applies the appropriate valuation officer must—

(a) certify that this regulation applies; and

(b) certify the rateable value that should have been shown in a list for the hereditament for 1st April 2017.`

(3) Where the appropriate valuation officer has certified a rateable value in accordance with paragraph (2), these Regulations have effect, as regards the days referred to in paragraph (4), (5)(a) or (5)(b), as if the certified rateable value was the value shown in a list for 1st April 2017.

(4) Where the appropriate valuation officer alters the list for the purpose of correcting the inaccuracy mentioned in paragraph (1) or for that purpose combined with other purposes, the days are the day on which the alteration has effect and any subsequent relevant day.

(5) Where the appropriate valuation officer has not altered the list for the purpose of correcting the inaccuracy mentioned in paragraph (1)—

(a) if a request by the ratepayer has been made before a certificate under paragraph (2) is issued, the days are the day on which the certificate is requested and any subsequent relevant day;

(b) if a request by the ratepayer has not been made before a certificate under paragraph (2) is issued, the days are the day on which the certificate under paragraph (2) is issued and any subsequent relevant day.

Certificates for change in rateable value: 31st March 2017

17. —(1) This regulation applies where the appropriate valuation officer is of the view (whether following a request from the ratepayer in relation to the hereditament in question or not) that the rateable value shown in a list for a hereditament for 31st March 2017 is inaccurate.

(2) If this regulation applies, the appropriate valuation officer must—

(a) certify that this regulation applies; and

(b) certify the rateable value that should have been shown in a list for the hereditament for 31st March 2017.

(3) These Regulations have effect, as regards the days referred to in paragraph (4), (5)(a) or (5)(b), as if the rateable value certified under paragraph (2) was the rateable value shown in a list for the hereditament for 31st March 2017.

(4) If the rateable value certified under paragraph (2) is lower that the rateable value shown in a list for the hereditament for 31st March 2017, the days are 1st April 2017 and any subsequent relevant day.

(5) If the rateable value certified under paragraph (2) is greater than the rateable value shown in a list for the hereditament for 31st March 2017 and—

(a) a certificate under regulation 16 has been issued, the days are the days referred to in paragraph (4), (5)(a) or (5)(b) of that regulation;

(b) no certificate under regulation 16 has been issued, the days are the day on which the certificate under paragraph (2) of this regulation is issued and any subsequent day.

Certification: splits and mergers before 1st April 2017

18. —(1) This regulation applies where—

(a) on a day before 1st April 2017 a hereditament (“new hereditament”) comes into existence by virtue of—

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

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

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

(b) the new hereditament is first shown in a list on 1st April 2017.

(2) If this regulation applies the appropriate valuation officer must—

(a) certify that this regulation applies; and

(b) certify the rateable value that should have been shown in a list for the new hereditament for 31st March 2017.

(3) These Regulations have effect, in relation to 1st April 2017 and any subsequent relevant day, as if—

(a) the new hereditament came into existence on 31st March 2017;

(b) the new hereditament was shown in a list for that day; and

Certificates: central list

19. —(1) If more than one defined hereditament is shown in the central list for a relevant day in relation to a designated person, the appropriate valuation officer must certify the rateable value which would have been the rateable value shown in the central list for the hereditament for that day if that had been the only hereditament shown in the central list for that day in relation to the designated person.

(2) A certification under paragraph (1) in respect of a defined hereditament for a relevant day is taken to apply to each day in the period beginning on that day and ending on the day immediately preceding any further certification under this regulation in respect of that hereditament.

Certificates: general

20. —(1) The appropriate valuation officer (“the AVO”) must certify the rateable values which fall to be certified by the AVO under these Regulations as soon as practicable after the circumstances calling for the certification come to the AVO’s attention (whether by virtue of an application by the billing authority, the Secretary of State, the ratepayer or otherwise).

(2) Where, whether by reason of a decision of the Valuation Tribunal for England or otherwise, the AVO forms the opinion that a certificate under these Regulations (other than such a certificate which has been confirmed on appeal) is inaccurate, the AVO must certify the rateable value which in the AVO’s opinion should be substituted for the rateable value originally certified.

(3) A certificate under paragraph (2) has effect in place of the previous certificate, and any appeal against the previous certificate under regulation 21 is taken to be withdrawn.

(4) The AVO must send a copy of the certificate to—

(a) the billing authority or, so far as it relates to a liability under section 54 of the Act, the Secretary of State; and

(b) the ratepayer.

(5) The copy of a certificate sent to a ratepayer under paragraph (4) may be sent to—

(a) the ratepayer’s last known address; or

(b) the address of the hereditament.

(6) The copy of a certificate sent to a ratepayer under paragraph (4) must be accompanied by—

(a) a statement of the effect of regulation 21, and

(b) for a value certified under paragraph (2), a statement of the effect of paragraph (3).

(7) A certificate issued under these Regulations—

(a) must be retained by the AVO who issued it; and

(b) may be inspected by any person at any reasonable time.

Appeals against certificates

21. —(1) Where an interested person in relation to a hereditament in respect of which a value is certified by an appropriate valuation officer under these Regulations is dissatisfied with the value so certified, the interested person may appeal against the certificate in accordance with this regulation.

(2) An appeal under paragraph (1) is made by serving a notice on the appropriate valuation officer stating the appellant’s reasons for being dissatisfied.

(3) Unless—

(a) the notice is withdrawn, or

(b) the appropriate valuation officer and the appellant agree in writing as to the value which should be certified,

the disagreement must be referred by that officer to the Valuation Tribunal for England as an appeal against that certification.

(4) Parts 2, 4 and 5 of the Appeals Procedure Regulations apply in relation to an appeal under this regulation.

(5) For the purposes of paragraph (1), “interested person” has the meaning given in the Appeals Procedure Regulations.

Revocations

22. Regulations 18 and 19 of the Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2004( 10 ) are revoked.

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

Bourne of Aberystwyth

Parliamentary Under Secretary of State

Department for Communities and Local Government

21st December 2016

Regulations 3(1), 5(1)(b), 7(4), 8(2), 10(13)(b), 11(1)(b)(i) and (2)(a), 13(9)(b)

SCHEDULE 1 ALTERED HEREDITAMENTS

Interpretation

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 list at any time in the period beginning on 1st April 2010 and ending on 31st March 2017, or

(b) a hereditament which was at any time a defined hereditament;

and the hereditament of which the altered hereditament is so comprised is, in this Schedule, referred to as the “original hereditament”.

Hereditaments to which this Schedule applies

2. This Schedule applies to an altered hereditament if—

(a) the original hereditament was deleted from a local list with effect from any day as a result of a structural alteration to that hereditament; and

(b) for a day on or after 1st April 2017 the altered hereditament is shown for the first time in a local list following the alteration.

Altered hereditament: base liability for 2017 - 18

3. —(1) The base liability for the relevant year beginning in 2017 for an altered hereditament is found by applying the formula—

where—

Y is the amount mentioned in sub-paragraph (2), and
Z is the small business non-domestic rating multiplier for the financial year beginning in 2016.

(2) The amount referred to in sub-paragraph (1) is the amount certified by the appropriate valuation officer as the rateable value which would have been shown in the list for the hereditament for 31st March 2017 on the assumption that—

(a) the hereditament came into existence on 31st March 2017; and

(b) the matters referred to in paragraph 2(7) of Schedule 6 to the Act as respects the hereditament were as they were assumed to be on the day on which it was shown for the first time in a local list as mentioned in paragraph 2(b) of this Schedule.

Altered hereditament: notional chargeable amount

4. The notional chargeable amount for a relevant year for an altered hereditament is found by applying the formula—

where—

A is the rateable value shown for the hereditament for the day for which it is shown for the first time in a local list following the alteration, and
D is the small business non-domestic rating multiplier for the relevant year.

Altered hereditament: application of regulation 12

5. Regulation 11 has effect in relation to an altered hereditament as if paragraph (1)(b)(i) were omitted.

Altered hereditament: change in rateable value

6. Regulations 10 (appropriate fraction) and 13 (change in rateable value after 1st April 2017) have effect in relation to an altered hereditament to which this Schedule applies as if for references to 1st April 2017 there were substituted references to the day for which the altered hereditament is shown for the first time in a local list following the alteration.

Regulations 3(1), 5(1)(c) and(4), 6(2), 7(5), 9(2), 10(13)(c),11(4), 13(9)(c), 15(1)

SCHEDULE 2 SPLITS AND MERGERS

Cases where this Schedule applies

1. This Schedule applies where—

(a) on a day (“the creation day”) falling on or after 1st April 2017, 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 either—

(i) a hereditament from which the new hereditament was formed in whole or in part (“old hereditament”) was a defined hereditament, or if the creation day is 1st April 2017, an old hereditament was shown in a local list for 31st March 2017, with a rateable value greater than zero; or

(ii) each old hereditament from which the new hereditament was formed in whole or in part was shown in the central list for 31st March 2017; and

(i) the creation day;

(ii) the relevant day (if different from the creation day), and

(iii) each day (if any) falling after the creation day and before the relevant day.

Rules for determination of chargeable amount for new hereditament: splits on 1st April 2017

2. —(1) Subject to paragraph 6 (changes in the value of new hereditament: year of creation), where—

(a) this Schedule applies;

(b) the creation day falls on 1st April 2017;

(d) the chargeable amount for the chargeable day for the new hereditament is not zero under section 45A of the Act (unoccupied hereditaments: zero-rating),

the chargeable amount for a chargeable day in the year beginning on 1st April 2017 must be calculated under the following provisions of this paragraph instead of under section 43, 45 or 54 of the Act.

(2) Subject to sub-paragraphs (3), (5), (7) and (9), the chargeable amount for the chargeable day is calculated by applying the formula—

(3) Where sub-paragraph (4) applies, the chargeable amount for the chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.

(4) This sub-paragraph applies where, on the chargeable day, section 43(6) of the Act (charities and registered community amateur sports clubs) applies in relation to the hereditament.

(5) Where sub-paragraph (6) applies, the chargeable amount for the chargeable day is found by—

(a) subtracting U (as defined in regulation 12) from the amount calculated in accordance with sub-paragraph (2); and

(b) dividing the result by E.

(6) This sub-paragraph applies where, on the chargeable day, section 43(4B) of the Act (small business rate relief) applies in relation to the hereditament.

(7) Where sub-paragraph (8) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 2.

(8) This sub-paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements) applies in relation to the hereditament.

(9) Where sub-paragraph (10) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by the number prescribed in an order by the Secretary of State under section 45(4A) (reduction in chargeable amount for unoccupied hereditaments) of the Act.

(10) This sub-paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied hereditaments: liability) are fulfilled as respects the hereditament; and

(b) an order by the Secretary of State under section 45(4A) has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

E is the amount prescribed under section 44(9)(a) of the Act (occupied hereditaments: supplementary) for the year beginning on 1st April 2017;

R is the amount which would have been the chargeable amount for the old hereditament for 1st April 2017 if—

(a)

the old hereditament were shown in a list for 1st April 2017;

(b)

its rateable value for that day were the value certified by the appropriate valuation officer to be the rateable value which would have been shown in that list for that day on the assumption that the relevant factors were as they were for 31st March 2017;

(c)

the whole of the hereditament were occupied;

(d)

sections 43(4B)(a) (small business rate relief), 43(6) (charities or registered community amateur sports clubs), 43(6B) (rural rate relief), 47 (discretionary relief) and 49(1) of the Act (reduction or remission of liability) of the Act did not apply to it for 1st April 2017;

J is the rateable value shown in a list for the new hereditament for 1st April 2017; and

S is the value certified by the appropriate valuation officer to be the rateable value which would have been shown in a list for the old hereditament for 1st April 2017 if that hereditament were shown in a list for that date on the assumption that the relevant factors were as they were for 31st March 2017.

Rules for determination of chargeable amount for new hereditament: mergers on 1st April 2017

3. —(1) Subject to paragraph 6 (changes in the value of new hereditament: year of creation), where—

(a) this Schedule applies;

(b) the creation day falls on 1st April 2017;

(d) the chargeable amount for the chargeable day for the new hereditament is not zero under section 45A of the Act (unoccupied hereditaments: zero rating),

(2) Subject to sub-paragraphs (3), (5), (7) and (9), the chargeable amount for the chargeable day is calculated by applying the formula—

(3) Where sub-paragraph (4) applies, the chargeable amount for the chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.

(4) This sub-paragraph applies where, on the day concerned, section 43(6) of the Act (charities and registered community amateur sports clubs) applies in relation to the hereditament.

(5) Where sub-paragraph (6) applies, the chargeable amount for the chargeable day is found by—

(a) subtracting U (as defined in regulation 12) from the amount calculated in accordance with sub-paragraph (2); and

(b) dividing the result by E.

(6) This sub-paragraph applies where, on the day concerned, section 43(4B) of the Act (small business rate relief) applies in relation to the hereditament.

(7) Where sub-paragraph (8) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 2.

(8) This sub-paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements) applies in relation to the hereditament.

(9) Where sub-paragraph (10) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by the number prescribed in an order by the Secretary of State under section 45(4A) of the Act (reduction in chargeable amount for unoccupied hereditaments).

(10) This sub-paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied hereditaments: liability) are fulfilled as respects the hereditament; and

(b) an order by the Secretary of State under section 45(4A) has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

E is the amount prescribed under section 44(9)(a) of the Act (occupied hereditaments: supplementary) for the year beginning on 1st April 2017;

R is the total of the amounts which would have been the chargeable amounts for 1st April 2017 for the old hereditaments comprised or incorporated in the new hereditament if—

(a)

each of the old hereditaments were shown in a list for 1st April 2017;

(b)

the rateable value for each were the value certified by the appropriate valuation officer to be the rateable value which would have been shown in a list for that day on the assumption that the relevant factors were as they were for 31st March 2017;

(c)

the whole of each of the old hereditaments were occupied;

(d)

sections 43(4B) (small business rate relief), 43(6) (charities or registered community amateur sports clubs), 43(6B) (general stores etc in rural settlements), 47 (discretionary relief) and 49(1) of the Act (reduction or remission of liability) did not apply to them for 1st April 2017;

J is the rateable value shown in a list for the new hereditament for the 1st April 2017; and

S is the total of the values certified by the appropriate valuation officer to be the rateable values which would have been shown in a list for 1st April 2017 for the old hereditaments incorporated or comprised in the new hereditament if they were shown in a list for that date on the assumption that the relevant factors were as they were for 31st March 2017.

Rules for determining chargeable amount for new hereditament: splits after 1st April 2017

4. —(1) Subject to paragraph 6 (changes in the value of new hereditament: year of creation), where—

(a) this Schedule applies,

(b) the creation day falls on a day after 1st April 2017,

(d) the chargeable amount for the chargeable day for the new hereditament is not zero under section 45A of the Act (unoccupied hereditaments: zero rating),

the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls must be calculated under the following provisions of this paragraph instead of under section 43, 45 or 54 of the Act.

(2) Subject to sub-paragraphs (3), (5), (7) and (9), the chargeable amount for the chargeable day is calculated by applying the formula—

(3) Where sub-paragraph (4) applies, the chargeable amount for the chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.

(4) This sub-paragraph applies where, on the chargeable day, section 43(6) of the Act (charities and registered community amateur sports clubs) applies in relation to the hereditament.

(5) Where sub-paragraph (6) applies, the chargeable amount for a chargeable day is found by—

(a) subtracting U (as defined in regulation 12) from the amount calculated in accordance with sub-paragraph (2); and

(b) dividing the result of the calculation performed under paragraph (a) by E.

(6) This sub-paragraph applies where, on the chargeable day, section 43(4B) of the Act (small business rate relief) applies in relation to the hereditament.

(7) Where sub-paragraph (8) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by 2.

(8) This sub-paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements) applies in relation to the hereditament.

(9) Where sub-paragraph (10) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with paragraph (2) by the number prescribed in an order by the Secretary of State under section 45(4A) of the Act (reduction in chargeable amount for unoccupied hereditaments).

(10) This sub-paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied hereditaments: liability) are fulfilled as respects the hereditament; and

(b) an order by the Secretary of State under section 45(4A) has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

E is the amount prescribed under section 44(9)(a) of the Act (occupied hereditaments: supplementary) for the relevant year in which the relevant day falls;

R is the amount which would have been the chargeable amount for the old hereditament for the creation day if—

(a)

the old hereditament continued to exist and was shown in a list for that day;

(b)

the rateable value for that day were the same as for the previous day;

(c)

the whole of the old hereditament were occupied and sections 43(4B) (small business rate relief), 43(6) (charities or registered community amateur sports clubs), 43(6B) (general stores etc in rural settlements), 47 (discretionary relief) and 49(1) (reduction or remission of liability) of the Act did not apply to it for the creation day;

J is the rateable value shown in a list for the new hereditament for the creation day; and

S is the rateable value shown in a list for the old hereditament for the day immediately before the creation day.

Rules for determining chargeable amount for new hereditament: mergers after 1st April 2017

5. —(1) Subject to paragraph 6 (changes in the value of new hereditament: year of creation), where—

(a) this Schedule applies;

(b) the creation day falls on a day after 1st April 2017;

(d) the chargeable amount for the chargeable day for the new hereditament is not zero under section 45A of the Act (unoccupied hereditaments: zero rating),

(2) Subject to sub-paragraphs (3), (5), (7) and (9) below, the chargeable amount for the chargeable day is calculated by applying the formula—