The Non-Domestic Rating (Transitional Period) Regulations 1990

Splits and mergers: adjustment of relevant amounts

8.—(1) This regulation has effect subject to regulation 9.

(2) Where a hereditament (“old hereditament”) splits, and the entries in a local non-domestic rating list made with respect to the split do not show for the day on which they first have effect (in paragraph (3) referred to as “the relevant day”) any part into which it splits as being incorporated with effect from the same day within a merged hereditament, each relevant amount for a hereditament arising from the split (“new hereditament”) shall be treated on and after that day as equal to the relevant amount in question for the old hereditament, multiplied by the factor

.

(3) In paragraph (2)–

• N is the rateable value shown in a local non-domestic rating list for the new hereditament for the relevant day;

• S is the sum of the rateable values so shown for all of the new hereditaments arising from the split.

(4) Where a merged hereditament (“new hereditament”) arises and the entry in a local non-domestic rating list made with respect to it does not show that any part of it is composed of a part of a hereditament which split with effect from the same day as that on which the entry with respect to the merger first has effect, each relevant amount for the new hereditament shall be treated on and after that day as equal to the sum of the relevant amounts in question for all of the qualifying hereditaments of which the new hereditament is composed.

(5) Where an entry in a local non-domestic rating list made with respect to a split shows for the day on which that entry first has effect one or more of the parts into which a hereditament splits as becoming incorporated with effect from the same day within a merged hereditament (whether in consequence of a boundary adjustment or otherwise), each relevant amount for a hereditament arising from the split or merger (“new hereditament”) shall be treated on and after that day as equal to the sum of the relevant amounts in question for all of the qualifying hereditaments, or parts of qualifying hereditaments, of which the new hereditament is composed.

(6) A hereditament (“the hereditament in question”) is a qualifying hereditament in relation to a new hereditament for the purposes of paragraphs (4) and (5) if–

(a) it was a defined hereditament as regards the day (“the appropriate day”) before that on which the split or merger concerned took place; and

(b) where it was a hereditament falling within paragraph 2(8) of Schedule 7A, it would have been a defined hereditament as regards the appropriate day were the person who, immediately after the split or merger took place, was the occupier of all or part of the new hereditament concerned, or (if none of the new hereditament was occupied) the owner of that hereditament, to have been the qualifying person for the purposes of paragraph 2(5) of that Schedule in relation to the hereditament in question on the appropriate day.

(7) Where only part of a qualifying hereditament in relation to a new hereditament is comprised in the new hereditament, for the purposes of paragraph (5) each relevant amount for the part is to be treated as equal to the relevant amount in question for the qualifying hereditament, multiplied by the factor

for the part.

(8) In paragraph (7)–

• K is the value, as certified by the appropriate valuation officer, which is equal to such proportion of the rateable value of the qualifying hereditament shown in a local non-domestic rating list for the appropriate day as is reasonably attributable to the part; and

• L is the rateable value of the qualifying hereditament shown in a local non-domestic rating list for the appropriate day.

(9) The relevant amounts referred to in this regulation are the base liability for the purposes of Schedule 7A, the rateable value shown for 1st April 1990 mentioned in paragraphs 2(4), 3(2), 5(3) and (4), 7(4)(d) and 8(4)(d) of that Schedule and in article 2(3) or (4) of the 1989 Order, and the rateable value shown for 1st April 1990 (or, as the case may be, certified under regulation 7(6)) mentioned in or having effect for the purposes of regulation 7(1), (3) and (5).

(10) The adjustment of base liability under paragraphs (2), (4) and (5) is without prejudice to the continuing application to it of the appropriate fraction in accordance with paragraph 4(5) of Schedule 7A.

(11) The product arrived at by multiplying a rateable value (or an amount certified under regulation 7(6)) by a factor pursuant to paragraph (2) or (7) shall be rounded to a multiple of a pound in accordance with paragraph 2(2) of Schedule 6 to the 1988 Act.