# Local Government Finance Act 1988, Paragraph 3


(1) This paragraph applies for the purposes of this Schedule.
(2) “A” is the rateable value shown for the day under section 42(4) as regards the hereditament.
(3) “B” is—
(a) in a case where the billing authority is a special authority, the authority’s non-domestic rating multiplier for the financial year;
(b) in any other case, the non-domestic rating multiplier in relation to England for the financial year.
(4) “C” is the number of days in the financial year.
(5) “D” is—
(a) in a case where the billing authority is a special authority, the authority’s small business non-domestic rating multiplier for the financial year;
(b) in any other case, the small business non-domestic rating multiplier for the financial year.
(5A) “F” is an amount prescribed, or calculated in accordance with provision prescribed, by the Welsh Ministers in regulations.
(5B) Regulations under sub-paragraph (5A) may prescribe different amounts, or make different provision for calculating an amount, in relation to different conditions or sets of conditions prescribed by the Welsh Ministers in regulations under paragraph 2A(2)(b)(i).
(6) “M” is—
(a) in relation to England—
(i) the multiplier prescribed for the purposes of the provision in question by the Treasury in regulations, or
(ii) for the purposes of a provision where there is no such prescription, B;
(b) in relation to Wales, the non-domestic rating multiplier calculated under Schedule 7 as regards the hereditament for the financial year.
(6A) Regulations under sub-paragraph (6) may prescribe—
(a) B or D,
(b) in relation to a hereditament for a chargeable day for which the value of A is £500,000 or more, a higher multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(a) or 9B(1)(a)(i) of Schedule 7, or
(c) in relation to a qualifying retail, hospitality or leisure hereditament, a lower multiplier for the financial year calculated in accordance with regulations under paragraph A6A(1)(b) or 9B(1)(a)(ii) of that Schedule.
(6B) In sub-paragraph (6A), “qualifying retail, hospitality or leisure hereditament” has such meaning as may be prescribed by the Treasury in regulations.
(7) Regulations under sub-paragraph (6) may prescribe different multipliers for a given provision by reference to (among other things)—
(a) the value of A (on the first day of a chargeable financial year or for a chargeable day) in relation to hereditaments;
(b) the location of hereditaments;
(c) the local non-domestic rating list in which hereditaments are shown;
(d) the use of hereditaments;
(e) the physical characteristics of hereditaments;
(ea) the description of hereditaments in the local non-domestic rating list in which they are shown;
(f) ratepayers in respect of hereditaments falling within prescribed descriptions.
(8) Sub-paragraph (7) does not restrict what may otherwise be done under section 143(1).
(9) “N” is a number (greater than one but not greater than two) prescribed by the appropriate national authority in regulations.

---
Source: https://www.legislation.gov.uk/ukpga/1988/41/schedule/4ZB/paragraph/3 (the official version)
Page: https://openlegislation.uk/local-government-finance-act-1988/schedule-4ZB/paragraph-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.