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

Explanatory Note

(This note is not part of the Regulations)

These Regulations make further provision about valuation and other matters in connection with non-domestic rating under Part III of the Local Government Finance Act 1988, which takes effect on 1st April 1990.

Regulation 2 relates to paragraph 2 of Schedule 6 to the Act, which requires the rateable value of a non-domestic hereditament to be ascertained by reference to the rent at which it is estimated that the hereditament might reasonably be expected to let from year to year. The regulation makes provision in relation to valuation by reference to the notional cost of constructing a hereditament (“the contractor’s basis”), which is applied where there is no more direct evidence of rental value. It specifies the annual pecentage rate to be applied in relation to the notional cost of construction. The rate is 4 per cent. in the case of certain education hereditaments, hospitals and maternity homes and 6 per cent. in other cases.

Regulation 3 provides that notwithstanding the rule of law (established in the case of Kingston Union Assessment Committee v. Metropolitan Water Board) that the rental value of a public utility undertaking is to be ascertained solely by reference to its accounts, receipts and profits, in ascertaining the rental value of such a hereditament any relevant evidence is to be taken into account.

Regulation 4 is concerned with the valuation of advertising rights. It makes provision comparable to that in section 28(1)(a) and (b), (4) and (5) of the General Rate Act 1967 (c. 9).

Regulation 5 provides that in certain circumstances two or more hereditaments occupied by dock or harbour undertakers as operational land are to be treated as a single hereditament.

Regulation 6 deals with the alteration of rating lists before they come into force. Where a valuation officer notifies the charging authority or Secretary of State to whom a local or central list has been sent that he has altered the list, that authority or Secretary of State is to alter the deposited copy accordingly.

Regulation 7 amends the definitions in regulation 5 (valuation of mines and quarries) of the Non-Domestic Rating (Miscellaneous Provisions) Regulations 1989 (S.I. 1989/1060) to make it clear that a reference to a mine or quarry includes a reference to a well or bore-hole.