(This note is not part of the Regulations)
Paragraph 2 of Schedule 6 to the Local Government Finance Act 1988 requires the rateable value of a non-domestic hereditament to be ascertained by reference to the rent at which it is estimated the hereditament might reasonably be expected to be let from year to year.
Regulation 2 of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 makes provision for valuation by reference to the notional cost of constructing a hereditament (“the contractor’s basis”), where there is no more direct evidence of rental value, and specifies the annual percentage rate which is to be applied to the notional cost of construction.
Paragraph (1A) of Regulation 2 applies the specified rate to a hereditament shown in a non-domestic rating list compiled on 1st April 1995 and these Regulations extend that application to a hereditament shown in the non-domestic
rating list for Wales which is to be compiled on 1st April 2000.
These Regulations also add a “defence hereditament” (as defined) to the types of hereditament which are specified in paragraph (2A) (b) of Regulation 2 and amend the definitions of “educational hereditament” and “school” in consequence of the Education Act 1996.