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

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Regulations 3(1), 5(1)(b) and (4), 6(2), 7(4), 9(2), 10(8)(b), 11(4), 13(9)(b), 14(3)(b), 17(1)

SCHEDULEE+WSPLITS AND MERGERS

This schedule has no associated Explanatory Memorandum

Cases where this Schedule appliesE+W

1.  This Schedule applies where—

(a)on a day (“the creation day”) falling on or after 1st April 2023, a hereditament (“new hereditament”) comes into existence because—

(i)property previously rated as a single hereditament becomes liable to be rated in parts;

(ii)property previously rated in parts becomes liable to be rated as a single hereditament; or

(iii)a hereditament or any part of a hereditament becomes part of a different hereditament; and

(b)immediately before the creation day either—

(i)a hereditament from which the new hereditament was formed in whole or in part (“old hereditament”) was a defined hereditament, or if the creation day is 1st April 2023, an old hereditament was shown in a local list for 31st March 2023, with a rateable value greater than zero; or

(ii)each old hereditament from which the new hereditament was formed in whole or in part was shown in the central list for 31st March 2023; and

(c)a rateable value, which is greater than zero, is shown for the new hereditament in a list for—

(i)the creation day;

(ii)the relevant day (if different from the creation day), and

(iii)each day (if any) falling after the creation day and before the relevant day.

Commencement Information

I1Sch. para. 1 in force at 23.12.2022, see reg. 2(2)

Rules for determination of chargeable amount for new hereditament: splits on 1st April 2023E+W

2.—(1) Subject to paragraph 6 (changes in the value of new hereditament: F1... 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 all or part of a single 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—

calculation of the chargable amount for the chargable day

(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 chargeable day, 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 chargeable day, 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 amount which would have been the chargeable amount for the old hereditament for 1st April 2023 if—

(a)

the old hereditament were shown in a list for 1st April 2023;

(b)

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

(c)

the whole of the hereditament were occupied;

(d)

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

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

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

Textual Amendments

Commencement Information

I2Sch. para. 2 in force at 23.12.2022, see reg. 2(2)

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

3.—(1) Subject to paragraph 6 (changes in the value of new hereditament: F2... 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—

calculation of the chargable amount for the chargable day

(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.

Textual Amendments

Commencement Information

I3Sch. para. 3 in force at 23.12.2022, see reg. 2(2)

F3Rules for determining chargeable amount for new hereditament: splits after 1st April 2023 ...E+W

4.—(1) Subject to paragraph 6 (changes in the value of new hereditament: F4... relevant year of creation), where—

(a)this Schedule applies;

(b)the creation day falls on a day after 1st April 2023 F5...;

(c)the new hereditament comprises or incorporates all or part of a single old hereditament; and

(d)the chargeable amount for the chargeable day for the new hereditament is not zero under [F6paragraph 6 (heat networks rate relief), 7 (public lavatories rate relief) or 8 (rural rate relief) of Schedule 4ZA, or paragraph 2 of Schedule 4ZB (charitable rate relief), to] the Act,

the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls 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 formulaF7—

(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 chargeable day, [F8paragraph 2 of Schedule 4ZA to the Act (charitable rate relief)] applies in relation to the hereditament.

[F9(5) Where sub-paragraph (6) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by E.]

(6) This sub-paragraph applies where, on the chargeable day, [F10paragraph 4 of Schedule 4ZA to] the Act (small business rate relief) applies in relation to the hereditament.

F11(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Where sub-paragraph (10) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with paragraph (2) by the number prescribed in [F13regulations under paragraph 3(9) of Schedule 4ZB to] 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)[F14regulations under paragraph 1(2)(a) of Schedule 4ZB] has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

[F15B, C, D and N have the meanings given in regulation 12(12);]

E is the amount prescribed under [F16paragraph 10(6) of Schedule 4ZA to the Act] for the relevant year in which the relevant day falls;

R is the amount which would have been the chargeable amount for the old hereditament for the creation day if—

(a)

the old hereditament continued to exist and was shown in a list for that day;

(b)

the rateable value for that day were the same as for the previous day;

(c)

[F17the whole of the old hereditament were occupied and sections 47 (discretionary relief) and 49(1) (reduction or remission of liability) of, and paragraphs 2 (charitable rate relief) and 4 (small business rate relief) of Schedule 4ZA to, the Act did not apply to it for the creation day;]

(d)

[F18“M” were “B” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act;]

J is the rateable value shown in a list for the new hereditament for the creation day; F19...

S is the rateable value shown in a list for the old hereditament for the day immediately before the creation day.

[F20U is—

(a)

where “M” is “B” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act, zero;

(b)

where “M” is “D” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act, the amount found by applying the formula—

]

Textual Amendments

F3Words in Sch. para. 4 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(4)(a)

Commencement Information

I4Sch. para. 4 in force at 23.12.2022, see reg. 2(2)

Rules for determining chargeable amount for new hereditament: mergers after 1st April 2023 F21 ...E+W

5.—(1) Subject to paragraph 6 (changes in the value of new hereditament: F22... relevant year of creation), where—

(a)this Schedule applies;

(b)the creation day falls on a day after 1st April 2023 F23...;

(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 [F24paragraphs 6 (heat networks rate relief), 7 (public lavatories rate relief) or 8 (rural rate relief) of Schedule 4ZA, or paragraph 2 of Schedule 4ZB (charitable rate relief), to] the Act,

the chargeable amount for a chargeable day which is a relevant day in the relevant year in which the creation day falls 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—F25

(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, [F26paragraph 2 of Schedule 4ZA to the Act (charitable rate relief)] applies in relation to the hereditament.

[F27(5) Where sub-paragraph (6) applies, the chargeable amount for a chargeable day is found by dividing the amount calculated in accordance with sub-paragraph (2) by E.]

(6) This sub-paragraph applies where, on the chargeable day, [F28paragraph 4 of Schedule 4ZA to] the Act (small business rate relief) applies in relation to the hereditament.

F29(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F30(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 [F31regulations under paragraph 3(9) of Schedule 4ZB to] 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)[F32regulations under paragraph 1(2)(a) of Schedule 4ZB] has effect in relation to the hereditament.

(11) For the purposes of this paragraph—

[F33B, C, D and N have the meanings given in regulation 12(12);]

E is the amount prescribed under [F34paragraph 10(6) of Schedule 4ZA to the Act] for the relevant year in which the relevant day falls;

R is the total of the amounts which would have been chargeable amounts for the creation day for the old hereditaments incorporated or comprised in the new hereditament if—

(a)

each of the old hereditaments was shown in a list for that day;

(b)

each rateable value for that day was the same as for the previous day;

(c)

the whole of each hereditament was occupied;

(d)

[F35sections 47 (discretionary relief) and 49(1) (reduction or remission of liability) of, and paragraphs 2 (charitable rate relief) and 4 (small business rate relief) of Schedule 4ZA to, the Act did not apply to them for the creation day;]

(e)

[F36“M” were “B” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act;]

J is the rateable value shown in a list for the new hereditament for the creation day; F37...

S is the total of the rateable values shown in a list for the day immediately before the creation day for the old hereditaments incorporated or comprised in the new hereditament.

[F38U is—

(a)

where “M” is “B” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act, zero;

(b)

where “M” is “D” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act, the amount found by applying the formula—

]

Textual Amendments

F21Words in Sch. para. 5 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(5)(a)

Commencement Information

I5Sch. para. 5 in force at 23.12.2022, see reg. 2(2)

Changes in the value of new hereditament: F39... relevant year of creationE+W

6.—(1) Sub-paragraph (2) applies in respect of a new hereditament in [F40a] relevant year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in a list for the hereditament is greater than the rateable value shown for the creation day.

(2) Where this sub-paragraph applies, paragraphs 2 to 5 have effect as regards the hereditament for the chargeable day as if the reference in those paragraphs to—

calculation of the hereditament for the chargable day

were a reference to—

calculation of the reference amount

(3) Sub-paragraph (4) applies in respect of a new hereditament in [F41a] relevant year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in a list for a hereditament is less than the rateable value shown in a list for the creation day.

(4) Where this sub-paragraph applies, paragraphs 2 to 5 have effect as if the reference in those paragraphs to—

calculation of the hereditament for the chargable day

were a reference to—

calculation of the reference amount

(5) For the purposes of sub-paragraphs (2) and (4)—

B is the non-domestic rating multiplier for the relevant year in which the creation day falls;

C is the number of days in the relevant year in which the creation day falls;

N is the rateable value shown in a list for the new hereditament for the chargeable day; and

R, J and S have the same meanings given by paragraph 2, 3, 4 or 5.

Textual Amendments

F39Word in Sch. para. 6 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(6)(a)

Commencement Information

I6Sch. para. 6 in force at 23.12.2022, see reg. 2(2)

Notional chargeable amount for new hereditament F42...E+W

7.—(1) This paragraph applies for determining the notional chargeable amount for a new hereditament for [F43a] relevant year falling after the year in which the creation day falls.

(2) Where this paragraph applies, the relevant notional chargeable amount is found by applying the formula—

calculation of the notional chargable amount

where—

  • J is the rateable value shown in a list for the new hereditament for the creation day; and

  • D is the small business non-domestic rating multiplier for the relevant year.

Textual Amendments

F42Words in Sch. para. 7 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(7)(a)

Commencement Information

I7Sch. para. 7 in force at 23.12.2022, see reg. 2(2)

Base liability for the F44... relevant year after the year in which the creation day fallsE+W

8.—(1) This paragraph applies for determining the base liability for a new hereditament for [F45the] relevant year which falls immediately after the year in which the creation day falls.

(2) Where this paragraph applies, the base liability for the hereditament is found by applying the formula—

calculation of the base liability

(3) For the purposes of this paragraph—

T is the amount (calculated in accordance with such of the preceding provisions of this Schedule as are applicable) which is or would have been the chargeable amount for the hereditament for the creation day if—

(a)

the whole of the hereditament were occupied;

(b)

[F46sections 47 (discretionary relief) and 49(1) (reduction or remission of liability) of, and paragraphs 2 (charitable rate relief), 4 (small business rate relief), 6 (heat networks rate relief) and 8 (rural rate relief) of Schedule 4ZA to, the Act did not apply to it for the creation day;]

(c)

[F47“M” were “D” for the chargeable day pursuant to paragraph 10(9) of Schedule 4ZA or paragraph 6(8) of Schedule 5A to the Act;]

C is the number of days in the relevant year in which the creation day falls;

B is the non-domestic rating multiplier for the relevant year;

D is the small business non-domestic rating multiplier for the relevant year; and

J is the rateable value shown in a list for the new hereditament for the creation day.

Textual Amendments

F44Word in Sch. para. 8 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(8)(a)

Commencement Information

I8Sch. para. 8 in force at 23.12.2022, see reg. 2(2)

Base liability for subsequent F48... relevant years for new hereditamentE+W

9.—(1) This paragraph applies for determining the base liability for a hereditament to which this Schedule applies for any F49... relevant year falling after the relevant year referred to in paragraph 8(1).

(2) Where this paragraph applies, the base liability for the hereditament is found by applying the formula—

calculation of the base liability

(3) For the purposes of this paragraph, BL and AF have the meanings given by regulation 9.

Textual Amendments

F48Word in Sch. para. 9 heading omitted (26.10.2023) by virtue of Non-Domestic Rating Act 2023 (c. 53), s. 19(1)(c), Sch. para. 31(9)(a)

Commencement Information

I9Sch. para. 9 in force at 23.12.2022, see reg. 2(2)

Rateable value: hereditament split or merged after 1st April 2023E+W

10.—(1) This paragraph applies if the creation day falls on a day after 1st April 2023.

(2) Subject to sub-paragraph (3) and ignoring any modifications made by regulation 16 (change in rateable value on 1st April 2023)—

(a)regulation 10 (appropriate fraction); [F50and]

(b)regulation 13 (change in rateable value after 1st April 2023); F51...

F51(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

have effect in relation to a new hereditament as if for references to 1st April 2023 there were substituted references to the creation day.

(3) The modifications in sub-paragraph (2) do not apply in relation to the references to 1st April 2023 in regulation 10(2)(a), (4)(a), (6)(a) and (7)(a).

Textual Amendments

Commencement Information

I10Sch. para. 10 in force at 23.12.2022, see reg. 2(2)

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