Regulation 10 Appropriate fraction

(1)

Subject to paragraph (8), the appropriate fraction for a defined hereditament for a relevant year is found by applying the formula—

\frac{X \times Q}{100}

(2)

For the purposes of this regulation, where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year and the value of A for 1st April 2026 is more than £100,000, then—

(a)

for the relevant year beginning on 1st April 2026, X is 130;

(b)

for the relevant year beginning on 1st April 2027, X is 125; and

(c)

for the relevant year beginning on 1st April 2028, X is 125.

(3)

Paragraph (4) applies where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year, and—

(a)

the hereditament is shown in a local list in Greater London and the value of A for 1st April 2026 is more than £28,000 and less than or equal to £100,000; or

(b)

the hereditament is shown in the central list or in a local list outside Greater London and the value of A for that hereditament for 1st April 2026 is more than £20,000 and less than or equal to £100,000.

(4)

For the purposes of this regulation, for a hereditament mentioned in paragraph (3)—

(a)

for the relevant year beginning on 1st April 2026, X is 115;

(b)

for the relevant year beginning on 1st April 2027, X is 125; and

(c)

for the relevant year beginning on 1st April 2028, X is 140.

(5)

Paragraph (6) applies where the notional chargeable amount for the hereditament for the relevant year exceeds the base liability for the hereditament for the year, and—

(a)

the hereditament is shown in a local list in Greater London and the value of A for that hereditament for 1st April 2026 is less than or equal to £28,000; or

(b)

the hereditament is shown in the central list or in a local list outside Greater London and the value of A for that hereditament for 1st April 2026 is less than or equal to £20,000.

(6)

For the purposes of this regulation, for a hereditament mentioned in paragraph (5)—

(a)

for the relevant year beginning on 1st April 2026, X is 105;

(b)

for the relevant year beginning on 1st April 2027, X is 110; and

(c)

for the relevant year beginning on 1st April 2028, X is 125.

(7)

For the purposes of this regulation—

(a)

for the relevant year beginning on 1st April 2026, Q is 1;

(b)

for subsequent relevant years in the relevant period, Q is the amount found by applying the formula—

\frac{D (1)}{D (2)}

where—

“D(1)” is the small business non-domestic rating multiplier for the relevant year, and
“D(2)” is the small business non-domestic rating multiplier for the financial year which precedes the relevant year;

(c)

Q, if not a whole number, is calculated to three decimal places only.

(8)

For a defined hereditament to which one or more of the following provisions apply—

(a)

regulation 14 (change in rateable value on 1st April 2026),

(b)

paragraph 10 of the Schedule (rateable value: hereditament split or merged after 1st April 2026),

this regulation has effect subject to the modifications made by that provision.