3.—(1) In the case of canal hereditaments, paragraphs 2 to 2B of Schedule 6 to the Act (1)shall not apply, and the rateable value of those hereditaments shall be as specified in, or determined under the rules in, this article.
(2) For the year beginning on 1st April 1990, the rateable value of English canal hereditaments shall be £295,000, and the rateable value of Welsh canal hereditaments shall be £16,000.
(3) For any subsequent year (“the relevant year”), the rateable value of each of those classes of hereditament shall be the amount produced by calculation in accordance with the formula—
RV + 168 (y − Y) + 115 (n − N)
where—
RV is the rateable value for that class of hereditaments specified in paragraph (2);
y is the length of relevant commercial waterway on 31st March immediately preceding the relevant year;
Y is the length of relevant commercial waterway on 31st March 1990;
n is the length of relevant cruising waterway on 31st March immediately preceding the relevant year; and
N is the length of relevant cruising waterway on 31st March 1990,
and “relevant commercial waterway” and “relevant cruising waterway” in relation to English canal hereditaments means such waterway situated in England, and in relation to Welsh canal hereditaments means such waterway situated in Wales.
(4) Where (apart from this paragraph) the rateable value determined for any financial year under paragraph (1) would include a fraction of a pound—
(a)the fraction shall be made up to a pound if it would exceed 50p, and
(b)the fraction shall be ignored if it would be 50p or less.
Paragraph 2 is amended by, and paragraphs 2A and 2B inserted by, paragraph 38(3) to (11) of Schedule 5 to the Local Government and Housing Act 1989.