# The Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (Amendment) (England) Regulations 2016

S.I. 2016/777 · made 19 July 2016

Regulation 2 of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (S.I. 1989/2303) makes provision in relation to valuation of non-domestic property by reference to the notional cost of constructing or providing a hereditament (“the contractor’s basis”) which is applied where there is no more direct evidence of rental value. Regulation 2 of S.I.1989/2303 specifies the annual percentage rate to be applied in relation to the notional cost of construction.

Made under: Local Government Finance Act 1988 (Section 143, Schedule 6 paragraph 2)

PDFs: Printed copy https://openlegislation.uk/non-domestic-rating-miscellaneous-provisions-no-2-regulations-1989-amendment-england-regulations-2016/pdf/uksi_20160777_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/non-domestic-rating-miscellaneous-provisions-no-2-regulations-1989-amendment-england-regulations-2016/pdf/uksiem_20160777_en.pdf

## Introductory text

Rating And Valuation, England
Made 19th July 2016
Laid before Parliament 21st July 2016
Coming into force 1st September 2016
The Secretary of State, in exercise of the powers conferred by section 143(1) and (2) of, and paragraph 2(8) of Schedule 6 to, the Local Government Finance Act 1988, makes the following Regulations.

## 1 Citation and commencement

(1) These Regulations may be cited as the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (Amendment) (England) Regulations 2016.
(2) These Regulations come into force on 1st September 2016.

## 2 Application

These Regulations apply in relation to England only.

## 3 Valuation on the contractor’s basis

(1) Regulation 2 of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 is amended as follows.
(2) In paragraph (1C), for “on or after 1st April 2005” substitute “on 1st April 2005 or 1st April 2010”.
(3) After paragraph (1E) insert—
“(1F) Paragraph (2F) of this regulation applies in relation to a hereditament shown in a non-domestic rating list compiled for a billing authority in England on or after 1st April 2017 the rateable value of which is being ascertained using the contractor’s basis of valuation.”.
(4) After paragraph (2E) insert—
“(2F) In applying paragraph 2(1) to (7) of Schedule 6 to the Act in circumstances where paragraph (1F) of this regulation applies, the appropriate rate is assumed to be—
(a) in the case of a defence hereditament, an educational hereditament or a healthcare hereditament, 2.6%; and
(b) in any other case, 4.4%.”.

## Signature

Signed by authority of the Secretary of State for Communities and Local Government
Marcus Jones
Parliamentary Under Secretary of State
Department for Communities and Local Government
19th July 2016

## Explanatory note

(This note is not part of the Regulations)
Regulation 2 of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 (S.I. 1989/2303) makes provision in relation to valuation of non-domestic property by reference to the notional cost of constructing or providing a hereditament (“the contractor’s basis”) which is applied where there is no more direct evidence of rental value. Regulation 2 of S.I. 1989/2303 specifies the annual percentage rate to be applied in relation to the notional cost of construction.
These Regulations amend that regulation in relation to England in respect of hereditaments shown in a rating list compiled for a billing authority in England on or after 1st April 2017. They provide for the annual percentage to be 2.6% in the case of certain defence, educational and healthcare hereditaments and 4.4% in other cases.
An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.

---
Source: https://www.legislation.gov.uk/uksi/2016/777 (the official version)
Page: https://openlegislation.uk/non-domestic-rating-miscellaneous-provisions-no-2-regulations-1989-amendment-england-regulations-2016
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.