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

Sub-paragraph (2) applies in respect of a new hereditament in a relevant year in which the creation day falls where for a chargeable day after the creation day the value of A for the hereditament is greater than the value of A for the creation day.

Where this sub-paragraph applies, paragraphs 2 to 5 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—

$$\frac{R\times J}{S}+\frac{\left(\left(N-J\right)\times (M+RS)\right)}{C}$$

Sub-paragraph (4) applies in respect of a new hereditament in a relevant year in which the creation day falls where for a chargeable day after the creation day the value of A for the hereditament is less than the value of A for the creation day.

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

$$\frac{R\times J}{S}$$

were a reference to—

$$\frac{R\times J\times N}{S\times J}$$

For the purposes of sub-paragraphs (2) and (4)—

• “C” is the number of days in the relevant year in which the creation day falls;

• “M” is in relation to the chargeable day;

• “N” is the value of A for the new hereditament for the chargeable day;

• “R”, “J” and “S” have the same meanings given by paragraph 2, 3, 4 or 5; and

• “RS”—

  1. (a)

     in relation to the relevant year beginning on 1st April 2026, is 0.01;

  2. (b)

     in relation to the relevant years beginning on 1st April 2027 or 2028, is zero.