Commentary on Sections Part 1 – Non-Domestic Rating Section 10 – Calculation of non-domestic rating multipliers
28.Part 1 of Schedule 7 to the 1988 Act provides for the calculation of non-domestic rating multipliers in relation to Wales. This section inserts a new Part A2, which restates the provisions previously contained in Part 1 together with new provision for the Welsh Ministers to set differential multipliers by regulations. Section 11 makes supplementary provision.
29.New Part A2 (Non-domestic rating multipliers: Wales) of Schedule 7 to the 1988 Act comprises paragraphs A13 to A20. This Part sets out general formulae for the calculation of the non-domestic rating multiplier in revaluation and other years (see paragraphs A14 and A15). In both cases, the non-domestic rating multiplier remains index-linked to the consumer prices index, but the Welsh Ministers retain the power to link the multiplier to a different index or otherwise change the calculation of the multiplier by regulations (see paragraph A18).
30.Where regulations made under new paragraph A16 (Calculation of differential multipliers) apply in respect of a hereditament, a differential multiplier determined by the Welsh Ministers in regulations applies in respect of that hereditament. Such multipliers must be a proportion of the multiplier for the year generally (as calculated under paragraph A14 or A15, as the case may be), but may be more than 100% of that multiplier. Regulations made under paragraph A16 may specify different differential multipliers in relation to different descriptions of hereditaments on the local lists or different amounts of rateable valuable shown against the names of designated persons on the central list. Such regulations may not be made unless a draft has been laid before, and approved by a resolution of, Senedd Cymru (draft affirmative procedure).
31.Paragraph A17 preserves the effect of improvement rate relief in the case of those hereditaments to which both this relief and a differential multiplier applies. This paragraph also sets out the principle that, where more than one differential multiplier applies in respect of a hereditament, it is the multiplier with the lowest value (of those that apply) that is to be used for calculating the chargeable amount for the hereditament.
32.Paragraphs A18 to A20 restate the existing requirements imposed on Welsh Ministers concerning the making and giving notice of calculations of the non-domestic rating multiplier for a chargeable financial year (these requirements are also applied to any differential multipliers prescribed under paragraph A16).