Paragraph 6 Changes in the value of new hereditament: year of creation

(1)

Sub-paragraph (2) applies in respect of a new hereditament in a year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in the local or central list for the hereditament is greater than that shown for the creation day.

(2)

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

\frac{R \times J}{S}

were a reference to—
$\frac{R \times J}{S} + \frac{((N - J) \times B)}{C.}$

(3)

Sub-paragraph (4) applies in respect of a new hereditament in a year in which the creation day falls where for a chargeable day after the creation day the rateable value shown in the local or central list for a hereditament is less than that shown in the local or central list for the creation day.

(4)

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

\frac{R \times J}{S}

were a reference to—
$\frac{R \times J \times N}{S \times J.}$

(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 for the new hereditament for the chargeable day in the local or central list; and
R, J and S have the meanings given by paragraph 2, 3, 4 or 5, as the case may be.