# The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2026, Note: Explanatory note


(This note is not part of the Regulations)
The Local Government Finance Act 1988 (“the Act”) provides for non-domestic hereditaments to be revalued every three years. On a revaluation new non-domestic rating lists are compiled. The next compilation date is 1st April 2026.
On each previous revaluation a transitional relief scheme has been used to protect ratepayers from large increases in their rates bills following a revaluation. These Regulations, which apply to England only, set out the rules for the transitional relief scheme which will apply to the 2026 non-domestic rating revaluation.
The effect of the transitional relief scheme is to assist ratepayers whose bills (in these Regulations, the “notional chargeable amount”) would have increased above a certain amount by phasing in these increases gradually over up to three years. In these Regulations the increase for those ratepayers are phased in over the financial years beginning on 1st April 2026, 2027 and 2028 (“the relevant years”).
Part 2 of these Regulations makes provision for the determination of the substituted chargeable amount (which is the amount by reference to which a ratepayer’s liability is established) where the hereditament is shown in a local list or the central list (see sections 42 or 52 of the Act) and where the conditions in Part 2 are met.
Regulations 4 to 10 explain the terms used in determining whether the rules in Part 2 apply in place of the rules in section 43 (occupied hereditaments: liability), 45 (unoccupied hereditaments: liability) or 54 (central rating: liability) of the Act.
Regulation 11 specifies the cases where the rules contained in regulation 12 apply for determining the chargeable amount in relation to relevant years.
The test which determines when the rules contained in regulation 12 apply is where NCA (notional chargeable amount, as determined under regulation 7) for a hereditament is greater than BL (base liability, as determined under regulation 8 or 9) and also greater than BL multiplied by AF (appropriate fraction, as determined under regulation 10). This is the situation where, but for these Regulations, the ratepayer’s chargeable amount would have increased above a certain amount at the beginning of the relevant financial year.
Where this test is satisfied then the chargeable amount for the hereditament for each day will be—
( B L × A F ) C
where C is the number of days in the year.
The AF is different for different classes of hereditament based on rateable values. Regulation 12 further provides that once the chargeable amount is calculated the mandatory reliefs (such as charitable relief and small business rate relief) are deducted.
Regulation 13 modifies the rules in relation to cases where, after 1st April 2026, there has been a change to the rateable value of the hereditament.
Regulation 14 modifies regulations 7, 10 and 13 in cases where there has been a change to the rateable value of the hereditament on 1st April 2026.
Regulation 15 modifies the rules in relation to cases where the hereditament is partly-occupied in an early relevant year.
Regulation 16 provides for a supplement to be applied to the chargeable amounts calculated for the financial year beginning on 1st April 2026 for those hereditaments which are “defined hereditaments” under regulation 5 but in respect of which transitional relief does not apply.
Regulations 17 to 22 make provision requiring the valuation officer to certify rateable values for the purposes of the application of the rules in these Regulations. Regulation 23 provides for the procedure to be followed in the case of appeals against such certificates.
Regulation 24 revokes regulations 16 to 21 (certificates) of the Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016 (S.I. 2016/1265), which provide for the issuing of certificates and appeals against certification in relation to the 2017 rating lists. This is subject to a saving provision for regulation 20(7), which requires the valuation officer to retain a certificate and permit inspection, where a certificate is subject to an ongoing appeal.
The Schedule makes provision for cases where a hereditament splits, or is merged with one or more other hereditaments, whether the split or merger occurs on or after 1st April 2026.
An impact assessment has not been produced for this instrument because it modifies an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.

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Source: https://www.legislation.gov.uk/ukdsi/2026/9780348277562/note (the official version)
Page: https://openlegislation.uk/draft-non-domestic-rating-chargeable-amounts-england-regulations-2026/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.