Summary
These Regulations establish the calculation methodology for non-domestic rating (business rates) chargeable amounts in England for the relevant period 1 April 2023 to 31 March 2026. They define 'defined hereditaments,' establish formulas for computing chargeable rates including notional chargeable amounts and base liabilities, provide for various rate reliefs (charitable, small business, heat networks, public lavatories, rural), address splits/mergers of properties, and include certification procedures for valuation officers. The Regulations apply to properties shown in both local and central lists under the Local Government Finance Act 1988.
Reason
This Regulation perpetuates England's Byzantine business rates system — a tax on capital investment that distorts property markets, suppresses enterprise, and drives business to lower-tax jurisdictions. The regulation is exceptionally complex with dozens of conditional formulas, modifiers, and exceptions that impose enormous compliance costs on businesses and valuation officers. Rather than simplifying the inherited EU-era rating framework post-Brexit as opportunity allowed, these Regulations entrench complexity with multiple tiers of rateable value thresholds (£20,000, £28,000, £100,000), differential multipliers based on geography (Greater London vs. elsewhere), and sector-specific relief mechanisms that allocate rating burdens based on political determination rather than market principles. Business rates fundamentally tax productive capacity, creating disincentives for investment and expansion. A free-trading nation that gave the world Adam Smith would not saddles its enterprises with this labyrinthine rating apparatus.