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The Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989

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Valuation on the contractor’s basis

2.—(1) This regulation applies in relation to a hereditament the rateable value of which is being ascertained by reference to the notional cost of constructing or providing it or any part of it.

(2) In applying paragraph 2(1) to (7) of Schedule 6 to the Act(1) in circumstances where this regulation applies, the appropriate rate shall be assumed–

(a)in the case of an educational hereditament or hospital to be 4 per cent., and

(b)in any other case, to be 6 per cent.

(3) In this regulation–

“the appropriate rate” means the percentage rate applicable in relation to the notional cost of constructing or providing the hereditament or any part of it for the purpose of estimating the rent at which it might reasonably be expected to let from year to year;

“educational hereditament” means a hereditament which–

(a)

is constructed or adapted for use for the purposes of–

(i)

a school;

(ii)

a university;

and which is wholly or mainly so used; or

(b)

is constructed or adapted for the provision of further education within the meaning of section 41 of the Education Act 1944(2) (“the 1944 Act”) or higher education within the meaning of section 120(1) of the Education Reform Act 1988(3) (“the 1988 Act”) or both, and is wholly or mainly used for the purposes of an institution which is–

(i)

maintained by a local education authority; or

(ii)

designated by or under regulations under section 218 of the 1988 Act as substantially dependent for its maintenance on assistance from local education authorities or on grants from the Secretary of State; or

(iii)

treated by virtue of section 132(6) of the 1988 Act as within the Polytechnics and Colleges Funding Council funding sector; or

(iv)

provided or maintained for that purpose by a body not established for profit;

“hospital” means a hereditament constructed or adapted wholly or mainly either–

(a)

for the reception and treatment of persons suffering from any illness, injury or infirmity; or

(b)

as a maternity home;

and used for such a purpose;

“school” has the meaning given by section 114(1) of the 1944 Act;

“university” has the meaning given by section 235(1) of the 1988 Act;

and any reference to a hereditament provided or used for any purpose includes a reference to a hereditament which is not in use but which when last in use was provided or used for such a purpose.

(1)

Paragraph 2(1) to (7) of Schedule 6 is amended by paragraph 38(3) to (7) of Schedule 5 to the Local Government and Housing Act 1989.

(2)

1944 c. 31. Section 41 was substituted by section 120(2) of the Education Reform Act 1988.

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