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Paragraph 4 Rules for determination of chargeable amount for new hereditament: splits after 1st April 2026

Original text. Later amendments are not shown.

(1)

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

(a)

this Schedule applies;

(b)

the creation day falls on a day after 1st April 2026;

(c)

the new hereditament comprises or incorporates all or part of a single old hereditament;

(d)

the chargeable amount for the old hereditament for the day before the creation day was calculated under regulation 12 or this Schedule; and

(e)

the chargeable amount for the chargeable day for the new hereditament is not zero under paragraph 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) and (7), the chargeable amount for the chargeable day is calculated by applying the formula—

R × J S
(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, paragraph 2 of Schedule 4ZA or of Schedule 5A to the Act (charitable rate relief) applies in relation to the hereditament.

(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, paragraph 4 of Schedule 4ZA to 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 paragraph (2) by the number prescribed in regulations under paragraph 3(9) of Schedule 4ZB to the Act (reduction in chargeable amount for unoccupied hereditaments).

(8)

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)

regulations under paragraph 1(2)(a) of Schedule 4ZB have effect in relation to the hereditament.

(9)

For the purposes of this paragraph—

  • “E” is the amount prescribed under paragraph 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—

    1. (a)

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

    2. (b)

      the value of A for that day were the same as for the previous day;

    3. (c)

      the 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;

  • “J” is the value of A for the new hereditament for the creation day; and

  • “S” is the value of A for the old hereditament for the day immediately before the creation day.