The Non-Domestic Rating (Transitional Period) Regulations 1990

Splits and mergers: further provision

9.—(1) In a case where two or more hereditaments shown in an old list for 31st March 1990 (“the old hereditaments”) comprise a single hereditament on 1st April 1990 by reason only of regulation 6(2) of the Non-Domestic Rating (Miscellaneous Provisions) Regulations 1989, regulation 8 does not apply with respect to that merger; but–

(a) the base liability for each day in the financial year beginning in 1990 for the single hereditament is (subject to regulation 8 in the event of any subsequent split or merger) to be treated as the sum of the base liabilities for each of the old hereditaments determined under paragraph 4(1) of Schedule 7A (as may be modified in any case pursuant to regulation 2), and

(b) the base liability for each day in a later financial year shall be calculated from the base liability found for the single hereditament under sub-paragraph (a) in accordance with paragraph 4(5) of that Schedule (subject to regulation 8 as aforementioned);

provided that where on 31st March 1990 there is an old hereditament all of which is (disregarding any part which is exempt) domestic property, its base liability determined under paragraph 4(1) of Schedule 7A is to be treated for the purposes of sub-paragraph (a) as 0.

(2) In a case where a split or merger occurs on 1st April 1990 and is shown in a local non-domestic rating list for that day and (in the case of a merger) paragraph (1) does not apply–

(a) references to 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 Schedule 7A, in article 2(3) and (4) of the 1989 Order and in regulation 7(1), (3) and (5) (“the appropriate amounts”) shall be treated as references to amounts found for each new hereditament so shown arising from the split or merger by–

(i) taking values, as certified by the appropriate valuation officer, equal to the appropriate amounts which would have existed for the hereditament or hereditaments which split or for the hereditaments all or part of which comprise the merged hereditament if the circumstances existing on 31st March 1990 continued to exist on 1st April 1990; and

(ii) calculating the appropriate amounts for the new hereditaments in accord-ance with regulation 8(2), (4) or (5) (as the case may be) from the values certified under paragraph (i);

(b) the base liability for a new hereditament shall be determined in accordance with regulation 8; and

(c) references in regulation 7(1) and (3) to the rateable value for a day after 1st April 1990 shall be treated as regards a new hereditament as including a reference to its rateable value actually shown for 1st April 1990.

(3) For the purposes of regulation 8(4) and (5) as applied by paragraph (2)(a)(ii) or (b) above, every hereditament (“old hereditament”) all or part of which is comprised in a new hereditament is to be treated (in relation to the new hereditament) as a qualifying hereditament if the conditions in paragraph (4)(a) and (so far as applicable) (4)(b) below are satisfied with respect to it.

(4) The conditions are–

(a) that on 31st March 1990 all or part of the old hereditament is neither domestic property nor exempt; and

(b) where the old hereditament would have been a hereditament falling within paragraph 2(8) of Schedule 7A if the split or merger were not to have taken place on 1st April 1990, that the condition mentioned in paragraph 2(5) of that Schedule would have been fulfilled on that assumption as regards that day in relation to the old hereditament were the person who, immediately after the split or merger in fact took place, was the occupier of all or part of the new hereditament, or (if none of the new hereditament was occupied) the owner of that hereditament, to have been the qualifying person in relation to the old hereditament on that day.

(5) In determining under paragraph (4)(b) whether a hereditament is one which would fall within paragraph 2(8) of Schedule 7A were the split or merger not to have taken place, the rateable value which would have been shown for it for 1st April 1990 in a local non-domestic rating list shall be treated as such value as is certified for it by the appropriate valuation officer pursuant to paragraph (2)(a)(i) above.

(6) Insofar as, for the purposes of regulation 8(5) as applied by paragraph (2)(a)(ii) or (b) above, regulation 8(7) has effect in relation to a hereditament treated as a qualifying hereditament under paragraph (3), references in regulation 8(8) to its rateable value shown for the appropriate day are references to such value as is certified for it by the appropriate valuation officer pursuant to paragraph (2)(a)(i) above (and references to a proportion of that value are to be construed accordingly).