Paragraph 7 Notional chargeable amount for new hereditament

This paragraph applies for determining the notional chargeable amount for a new hereditament for a relevant year falling after the year in which the creation day falls.

Where this paragraph applies, the relevant notional chargeable amount is found by applying the formula—

For the purposes of this paragraph—

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

• “D1” is the small business non-domestic rating multiplier for the relevant year after the year in which the creation day falls;

• “D2” is the small business non-domestic rating multiplier for the relevant year in which the creation day falls;

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

• “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 sub-paragraph (3), “P”, if not a whole number, is to be calculated to three decimal places only.