Explanatory note

By virtue of paragraph 19 of Schedule 5 to the Local Government Finance Act 1988, a hereditament is exempt from non–domestic rates to the extent that it is situated in an enterprise zone.

Where an area ceases to form part of an enterprise zone, the hereditaments within it fall to be entered in a non–domestic rating list. The rateable value of such hereditaments is assesed by reference to the rent which a hypothetical tenant would pay for the hereditament as at a prescribed date.

By virtue of these Regulations the existence of enterprise zones is to be disregarded for the purpose of making an assessment in relation to so much of a hereditament as is situated within a former enterprise zone.

Regulation 3 revokes the Valuation for Rating (Former Enterprise Zones) Regulations 1991 and the Valuation for Rating (Former Enterprise Zones) (Amend– ment) Regulations 1992.