Regulation 7 Notional chargeable amount

Subject to paragraphs (4) and (5), the notional chargeable amount for a defined hereditament—

For the purposes of this regulation—

• “A” is in relation to 1st April 2026;

• “D1” is the small business non-domestic rating multiplier for the relevant year;

• “D2” is the small business non-domestic rating multiplier for the relevant year which precedes the relevant year;

• “M” is in relation to 1st April 2026;

• “N” is the notional chargeable amount for the year preceding the relevant year;

• “P” is the amount found by applying the formula—

  $$\frac{D1}{D2+RS}$$

• “RS”—

  1. (a)

     where the relevant year to which D2 relates is the year beginning on 1st April 2026, is 0.01;

  2. (b)

     where the relevant year to which D2 relates is the year beginning on 1st April 2027, is zero.

For the purposes of paragraph (2), “P”, if not a whole number, is calculated to three decimal places only.

Where regulation 14 (change in rateable value on 1st April 2026) applies, references in this regulation to A have effect subject to the modifications made in paragraph (3) of that regulation.

For a hereditament to which the Schedule (splits and mergers) applies, paragraph 7 of that Schedule has effect for finding the notional chargeable amount.