Prospective

Prospective

Citation, extent and commencement_I1

1.—(1) These Regulations may be cited as the Non-Domestic Rating (Small Business Rate Relief and Demand Notices) (England) (Amendment) Regulations 2026.

(2) These Regulations extend to England and Wales.

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

Amendment of the Non-Domestic Rating (Small Business Rate Relief) (England) Regulations 2023_I2

2. In regulation 2 of the Non-Domestic Rating (Small Business Rate Relief) (England) Regulations 2023(2), for paragraph (3) substitute—

“(3) The conditions are that—

(a)the ratepayer’s occupation of hereditament B started on a date after that ratepayer started to occupy hereditament A, and

(b)on the chargeable day concerned—

(i)the ratepayer has occupied hereditament B for a period not exceeding—

(aa)12 months, where the occupation began before 27th November 2025; or

(bb)36 months, where the occupation began on or after 27th November 2025, and

(ii)the chargeable amount as regards hereditament B is not calculated in accordance with paragraph 4(1)(a) of Schedule 4ZA to the Act.”.

Amendment of the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003_I3

3. In paragraph 3 of Schedule 2 to the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003(3), for “Part 1”, substitute “Part A1”(4).

Prospective

EXPLANATORY NOTE

(This note is not part of the Regulations)

Schedule 4ZA to the Local Government Finance Act 1988 (“the 1988 Act”) provides that small business rate relief is available to ratepayers when conditions prescribed by the Secretary of State in regulations are satisfied.

The Non-Domestic Rating (Small Business Rate Relief) (England) Regulations 2023 (S.I. 2023/1250) (“the 2023 Regulations”) provide that a condition for availability of small business rate relief is that the ratepayer must occupy only one hereditament in England but this condition is subject to the provision on hereditaments to be disregarded for these purposes if a ratepayer occupies a second property of any rateable value within a 12 month period.

Regulation 2 amends the 2023 Regulations for the purpose of applying relief for chargeable days on or after 1st April 2026 to increase the time period for which a ratepayer may occupy a second property of any rateable value and maintain small business rates relief on their main property from 12 months to 36 months where occupation begins on or after 27th November 2025.

Regulation 3 makes an amendment to the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003 consequential on amendments made to Schedule 7 to the 1988 Act by section 15 of the Non-Domestic Rating Act 2023 (c.53).

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.