The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2022

Rules for determination of chargeable amount for new hereditament: mergers on 1st April 2023

3.—(1) Subject to paragraph 6 (changes in the value of new hereditament: early relevant year of creation), where—

(a) this Schedule applies;

(b) the creation day falls on 1st April 2023;

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

(d) the chargeable amount for the chargeable day for the new hereditament is not zero under section 43(4I) (public lavatories: zero rating) or section 45A (unoccupied hereditaments: zero rating) of the Act,

the chargeable amount for a chargeable day in the year beginning on 1st April 2023 must be calculated under the following provisions of this paragraph instead of under section 43, 45 or 54 of the Act.

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

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

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

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

(a) subtracting U (as defined in regulation 12) from the amount calculated in accordance with sub-paragraph (2); and

(b) dividing the result by E.

(6) This sub-paragraph applies where, on the day concerned, section 43(4B) of the Act (small business rate relief) applies in relation to the hereditament.

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

(8) This sub-paragraph applies where, on the chargeable day, section 43(6B) of the Act (general stores etc in rural settlements) applies in relation to the hereditament.

(9) Where sub-paragraph (10) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by the number prescribed in an order by the Secretary of State under section 45(4A) of the Act (reduction in chargeable amount for unoccupied hereditaments).

(10) This sub-paragraph applies where, on the chargeable day—

(a) the conditions in section 45(1) of the Act (unoccupied hereditaments: liability) are fulfilled as respects the hereditament; and

(b) an order by the Secretary of State under section 45(4A) has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

E is the amount prescribed under section 44(9)(a) of the Act (occupied hereditaments: supplementary) for the year beginning on 1st April 2023;

R is the total of the amounts which would have been the chargeable amounts for 1st April 2023 for the old hereditaments comprised or incorporated in the new hereditament if—

(a)

each of the old hereditaments were shown in a list for 1st April 2023;

(b)

the rateable value for each were the value certified by the appropriate valuation officer to be the rateable value which would have been shown in a list for that day on the assumption that the relevant factors were as they were for 31st March 2023;

(c)

the whole of each of the old hereditaments were occupied;

(d)

sections 43(4B)(a) (small business rate relief), 43(6) (charities or registered community amateur sports clubs), 43(6B) (general stores etc in rural settlements), 47 (discretionary relief) and 49(1) of the Act (reduction or remission of liability) did not apply to them for 1st April 2023;

J is the rateable value shown in a list for the new hereditament for the 1st April 2023; and

S is the total of the values certified by the appropriate valuation officer to be the rateable values which would have been shown in a list for 1st April 2023 for the old hereditaments incorporated or comprised in the new hereditament if they were shown in a list for that date on the assumption that the relevant factors were as they were for 31st March 2023.