Part II
SCHEDULE 2SPLITS AND MERGERS
Hereditament split or merged: new hereditament
1. In this Schedule, a new hereditament is a hereditament which comes into existence by virtue of —
(a)property previously rated as a single hereditament becoming liable to be rated in parts, or
(b)property previously rated in parts becoming liable to be rated as a single hereditament, or
(c)a hereditament or any part of a hereditament becoming part of a different hereditament,
and an “old hereditament” in relation to a new hereditament is any hereditament from which it was formed in whole or in part.
Case where this Schedule applies
2. This Schedule applies where —
(a)on a day (“the creation day”) on or after 1 April 1995 a new hereditament comes into existence;
(b)immediately before the creation day, an old hereditament in relation to the new hereditament was a defined hereditament or, in the case where the creation day is 1 April 1995, an old hereditament was shown in the list for 31 March 1995; and
(c)a rateable value is shown for the new hereditament in the list for —
(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 determining chargeable amount for new hereditament
3.—(1) Subject to paragraph 7, the rules set out in this paragraph shall be used to calculate the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls, in place of the provisions of sections 43(4) to (6), 44 and 45(4) to (6) of the Act, where —
(a)this Schedule applies,
(b)the creation day falls on 1 April 1995, and
(c)the new hereditament comprises or incorporates all or part of a single old hereditament.
(2) Subject to sub-paragraphs (4) and (6) below, the chargeable amount for the chargeable day shall be calculated by applying the formula—
(3) For the purposes of this paragraph—
R is the amount which would have been the chargeable amount for the old hereditament for 1 April 1995 if —
(a)the old hereditament were shown in the list for 1 April 1995;
(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 the list for that day on the assumption that the relevant factors were as they were for 31 March 1995; and
(c)the old hereditament were occupied and sections 43(6) (charities), 44A (partly occupied hereditaments), 47(1) (discretionary relief) and 49(1) (reduction or remission of liability) of the Act and regulations 10(5) (charities), 12(5) (charities in special authority areas) and 17 (partly occupied hereditament) did not apply to it for 1 April 1995;
J is the rateable value shown in the list for the new hereditament for the creation day; and
S is the value certified by the appropriate valuation officer to be the rateable value which would have been shown in the list for the old hereditament for 1 April 1995 if that hereditament were shown in the list for that date on the assumption mentioned in paragraph (b) in the definition of R.
(4) Where sub-paragraph (5) applies, the chargeable amount for the chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.
(5) This sub-paragraph applies where, on the chargeable day, the ratepayer is a charity or trustees for a charity and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
(6) Where sub-paragraph (7) applies, the chargeable amount for a chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 2, or, in a case where section 45(6) of the Act (unoccupied hereditaments of charities) applies, by dividing it by 10.
(7) This sub-paragraph applies where, on the chargeable day, the conditions in section 45(1) of the Act (unoccupied property) are fulfilled as respects the hereditament.
4.—(1) Subject to paragraph 7, the rules set out in this paragraph shall be used to calculate the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls, in place of the provisions of sections 43(4) to (6), 44 and 45(4) to (6) of the Act where —
(a)this Schedule applies,
(b)the creation day falls on 1 April 1995, and
(c)the new hereditament comprises or incorporates more than one, or parts of more than one, old hereditament.
(2) Subject to sub-paragraphs (4) and (6) below, the chargeable amount for the chargeable day shall be calculated by applying the formula—
(3) For the purposes of this paragraph—
R is the total of the amounts which would have been the chargeable amounts for 1 April 1995 for the old hereditaments comprised or incorporated in the new hereditament if —
(a)each of the old hereditaments were shown in the list for 1 April 1995;
(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 the list for that day on the assumption that the relevant factors were as they were for 31 March 1995; and
(c)each old hereditament were occupied and sections 43(6) (charities), 44A (partly occupied hereditaments), 47(1) (discretionary relief) and 49(1) (reduction or remission of liability) of the Act and regulations 10(5) (charities), 12(5) (charities in special authority areas) and 17 (partly occupied hereditament) did not apply to it for 1 April 1995;
J is the rateable value shown in the list for the new hereditament for the creation day; 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 the list for 1 April 1995 for the old hereditaments incorporated or comprised in the new hereditament if they were shown in the list for that date on the assumption mentioned in paragraph (b) of the definition of R.
(4) Where sub-paragraph (5) applies, the chargeable amount for the chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.
(5) This sub-paragraph applies where, on the chargeable day, the ratepayer is a charity or trustees for a charity and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
(6) Where sub-paragraph (7) applies, the chargeable amount for a chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 2, or, in a case where section 45(6) of the Act (unoccupied hereditaments of charities) applies, by dividing it by 10.
(7) This sub-paragraph applies where, on the chargeable day, the conditions in section 45(1) of the Act (unoccupied property) are fulfilled as respects the hereditament.
5.—(1) Subject to paragraph 7, the rules set out in this paragraph shall be used to calculate the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls, in place of the provisions of sections 43(4) to (6), 44 and 45(4) to (6) of the Act, where —
(a)this Schedule applies,
(b)the creation day falls on a day after 1 April 1995, and
(c)the new hereditament comprises or incorporates all or part of a single old hereditament.
(2) Subject to sub-paragraphs (4) and (6) below, the chargeable amount for the chargeable day shall be calculated by applying the formula—
(3) For the purposes of this paragraph—
R is the amount which would have been the chargeable amount for the old hereditament for the creation day for the new hereditament if —
(a)the old hereditament continued to exist and were to be shown in the list for that day;
(b)the rateable value for that day were the same as for the previous day; and
(c)the old hereditament were occupied and sections 43(6) (charities), 44A (partly occupied hereditaments), 47(1) (discretionary relief) and 49(1) (reduction or remission of liability) of the Act and regulations 10(5) (charities), 12(5) (charities in special authority areas) and 17 (partly occupied hereditament) did not apply to it for the creation day;
J is the rateable value shown in the list for the new hereditament for the creation day; and
S is the rateable value shown in the list for the old hereditament for the day immediately before the creation day.
(4) Where sub-paragraph (5) applies, the chargeable amount for the chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.
(5) This sub-paragraph applies where, on the chargeable day, the ratepayer is a charity or trustees for a charity and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
(6) Where sub-paragraph (7) applies, the chargeable amount for a chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 2, or, in a case where section 45(6) of the Act (unoccupied hereditaments of charities) applies, by dividing it by 10.
(7) This sub-paragraph applies where, on the chargeable day, the conditions in section 45(1) of the Act (unoccupied property) are fulfilled as respects the hereditament.
6.—(1) Subject to paragraph 7, the rules set out in this paragraph shall be used to calculate the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls, in place of the provisions of sections 43(4) to (6), 44 and 45(4) to (6) of the Act, where —
(a)this Schedule applies;
(b)the creation day falls on a day after 1 April 1995; and
(c)the new hereditament comprises or incorporates more than one, or parts of more than one, old hereditament.
(2) Subject to sub-paragraphs (4) and (6) below, the chargeable amount for the chargeable day shall be calculated by applying the formula—
(3) For the purposes of this paragraph—
R is the total of the amounts which would have been the chargeable amounts for the creation day for the old hereditaments incorporated or comprised in the new hereditament if —
(a)each of the old hereditaments were shown in the list for that day;
(b)each rateable value for that day were the same as for the previous day; and
(c)each old hereditament were occupied and sections 43(6) (charities), 44A (partly occupied hereditaments), 47(1) (discretionary relief) and 49(1) (reduction or remission of liability) of the Act and regulations 10(5) (charities), 12(5) (charities in special authority areas) and 17 (partly occupied hereditament) did not apply to it for the creation day;
J is the rateable value shown in the list for the new hereditament for the creation day;
S is the total of the rateable values shown in the list for the day immediately before the creation day for the old hereditaments incorporated or comprised in the new hereditament.
(4) Where sub-paragraph (5) applies, the chargeable amount for the chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 5.
(5) This sub-paragraph applies where, on the chargeable day, the ratepayer is a charity or trustees for a charity and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities).
(6) Where sub-paragraph (7) applies, the chargeable amount for a chargeable day shall be found by dividing the amount calculated in accordance with sub-paragraph (2) by 2, or, in a case where section 45(6) of the Act (unoccupied hereditaments of charities) applies, by dividing it by 10.
(7) This sub-paragraph applies where, on the chargeable day, the conditions in section 45(1) of the Act (unoccupied property) are fulfilled as respects the hereditament.
Change in value of new hereditament: year of creation
7.—(1) Sub-paragraph (2) applies in respect of a new hereditament in a year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in the list for the hereditament is greater than that shown for it for the creation day.
(2) Where this sub-paragraph applies, paragraphs 3 to 6 shall have effect as regards the hereditament for the chargeable day as if the reference in those paragraphs to
were a reference to—
(3) Sub-paragraph (4) applies in respect of a new hereditament in a year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in the list for a hereditament is less than that shown for it for the creation day.
(4) Where this sub-paragraph applies, paragraphs 3 to 6 shall have effect as regards the hereditament for the chargeable day as if the reference in those paragraphs to
were a reference to—
(5) For the purposes of the provisions substituted by sub-paragraphs (2) and (4) —
(a)B is the non-domestic rating multiplier for the relevant year in which the creation day falls, or, where the hereditament is situated in the area of a special authority, the non-domestic rating multiplier of the special authority;
(b)C is the number of days in the relevant year in which the creation day falls;
(c)N is the rateable value shown for the new hereditament for the chargeable day in the list; and
(d)R, J and S have the meanings given in paragraphs 3, 4, 5 or 6, as the case may be.
Notional chargeable amount for new hereditament
8.—(1) This paragraph applies for determining the notional chargeable amount for a new hereditament for a relevant year falling after the year in which the creation day falls.
(2) Where this paragraph applies, the relevant notional chargeable amount for a hereditament shall be found by applying the formula
J × B
.
(3) For the purposes of this paragraph —
(a)J is the rateable value shown in the list for the new hereditament for the creation day, and
(b)B is the non-domestic rating multiplier for the relevant year.
Base liability for year after year in which creation day falls
9.—(1) This paragraph applies for determining the base liability for a hereditament to which this Schedule applies for any relevant year which falls immediately after the year in which the creation day falls.
(2) Where this paragraph applies, the base liability for the hereditament shall be found by applying the formula
T × C
.
(3) T is the chargeable amount for the hereditament for the creation day (calculated in accordance with the preceding provisions of this Schedule).
(4) C is the number of days in the relevant year in which the creation day falls.
Base liability for subsequent years for new hereditament
10.—(1) This paragraph applies for determining the base liability for a hereditament to which this Schedule applies for any relevant year falling after the relevant year referred to in paragraph 9(1).
(2) Where this paragraph applies, the base liability for the hereditament shall be found by applying the formula—
(3) For the purposes of this paragraph, BL and AF have the meaning given to each in regulation 7.
Rateable value: hereditament split or merged after 1 April 1995
11. Where this Schedule applies, regulation 8 (appropriate fraction), regulation 11 (change in rateable value after 1 April 1995), regulation 12 (special authorities: special cases) and regulation 13 (special authorities: change in rateable value after 1 April 1995) (whether or not modified by regulation 14) apply as if for references to 1 April 1995 there were substituted references to the creation day.