# The Non-Domestic Rating (Miscellaneous Provisions) (Amendment) (Wales) Regulations 2015, Note: Explanatory note


(This note is not part of the Regulations)
Paragraph 2(1) of Schedule 6 to the Local Government Finance Act 1988 (“the 1988 Act”) provides that the rateable value of a non-domestic hereditament is taken to be an amount equal to the rent at which it is estimated the hereditament might reasonably be expected to be let from year to year (subject to specified assumptions). In those cases where there is no available information on the general rental market and profit and loss cannot be used as an indication of rental value, the rateable value of a non-domestic hereditament is instead ascertained by decapitalising the estimated total capital value of the hereditament (this is known as “the contractor’s basis of valuation”). The decapitalisation rates are prescribed by regulations made by the Welsh Ministers under paragraph 2(8) of Schedule 6 to the 1988 Act. These rates are prescribed in regulation 2 of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (as amended) (“the 1989 Regulations”).
The Welsh Ministers in making these Regulations amend, with effect from 31 October 2015, the decapitalisation rates prescribed by regulation 2 of the 1989 Regulations for non-domestic rating lists compiled on or after 1 April 2017.
A Regulatory Impact Assessment has been prepared in connection with these Regulations. A copy can be obtained athttp://www.assembly.wales/en/bus-home/Pages/Plenary.aspx?category=Laid%20Document

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Source: https://www.legislation.gov.uk/wsi/2015/1759/note (the official version)
Page: https://openlegislation.uk/non-domestic-rating-miscellaneous-provisions-amendment-wales-regulations-2015/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.