Article 6 Special cases

After Part IV (annual recalculation of rateable values) there is inserted the following—

“PART V

CALCULATION OF RATEABLE VALUES: SPECIAL CASES

Interpretation of Part V

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In this Part—

• “combined hereditaments” means the scheme hereditaments and any other water hereditaments occupied by a scheme transferee;

• “Schedule 2 scheme” means a scheme under Schedule 2 to the Water Industry Act 1991;

• “scheme hereditaments” means water hereditaments transferred by a Schedule 2 scheme; and

• “scheme transferee” means a water undertaker which, in consequence of a Schedule 2 scheme, occupies a class of hereditaments which immediately before the day on which the scheme comes into force are occupied by another water undertaker.

Application of Part V

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This Part applies for the purpose of determining, as regards any day on which, pursuant to the Central Rating Lists Regulations 1989, combined hereditaments occupied by a scheme transferee are shown in a central rating list, the rateable value (as a whole) of those hereditaments.

Determination of rateable values

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(1)

The rateable value (as a whole) of combined hereditaments shall be an amount equal to the aggregate of the amounts which, but for the Schedule 2 scheme, and subject to paragraph (2) below, would have been determined in accordance with Part III, as the rateable value of the classes of hereditaments which constitute the combined hereditaments.

(2)

For the purposes of determining the recalculation factor applicable in a relevant year, Part IV shall apply as if, in calculating the amount assigned to Y or, in a case to which article 14(3) applies, the number assigned to Z, water supplied by or to the scheme transferee to or by another party to the Schedule 2 scheme were ignored.”^f1.