The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2004

Rules for determination of chargeable amount for new hereditament: mergers after 1st April 2005

5.—(1) Subject to paragraph 6, where—

(a) this Schedule applies,

(b) the creation day falls on a day after 1st April 2005, and

(c) the new hereditament comprises or incorporates more than one, or parts of more than one, old hereditament,

the following provisions of 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 section 43(4) to (6A), 44 and 45(4) to (6) of the Act.

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

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

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

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

(i) subtracting U (as defined in regulation 11) from the amount calculated in accordance with sub-paragraph (2); and

(ii) dividing the result of the calculation performed under sub-paragraph (i) by E.

(6) This sub-paragraph applies where, on the day concerned, the conditions in section 43(4B) of the Act (small business rate relief) are fulfilled as respects the hereditament.

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

(8) This sub-paragraph applies where, on the chargeable day, the conditions in section 43(6B) or (6F) of the Act (general stores etc in rural settlements or former agricultural premises) are fulfilled as respects the hereditament.

(9) Where sub-paragraph (10) 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 the conditions in section 45(6) of the Act (unoccupied hereditaments of charities or registered community amateur sports clubs) are fulfilled, by 10.

(10) 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.

(11) For the purposes of this paragraph—

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

• R is the total of the amounts which would have been chargeable amounts for the creation day for the old hereditaments incorporated or comprised in the new hereditament if—

  (a)

  each of the old hereditaments was shown in the local or central list for that day;

  (b)

  each rateable value for that day was the same as for the previous day;

  (c)

  the whole of each old hereditament was occupied;

  (d)

  the conditions in sections 43(4B) (small business rate relief), 43(6) (charities or registered community amateur sports clubs), 43(6B) (rural rate relief), 43(6F) (former agricultural premises) and 47(1) (discretionary relief) of the Act are not fulfilled for it for the creation day; and

  (e)

  section 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 the local or central list for the new hereditament for the creation day; and

• S is the total of the rateable values shown in the local or central list for the day immediately before the creation day for the old hereditaments incorporated or comprised in the new hereditament.