If you own a rating unit and you sell or transfer part of it, subsection 2 applies. This happens when the sale or transfer occurs before the new rates are set. You need to know that the local authority will divide any extra money or debt from the rating unit among the different parts of it, based on how much each part is worth for rating purposes.

The local authority can also choose to give each part of the rating unit its share of any extra money, or they can cancel any debt that is owed. They do this by looking at the total rating unit and deciding how to split the extra money or debt among the parts. This means that if you sell part of your rating unit, the local authority will work out how to divide any extra money or debt between the parts that were sold and the parts that were kept.

When the local authority divides the extra money or debt, they use the rateable values of each part of the rating unit to decide how much each part should get. This helps to make sure that each part of the rating unit pays its fair share of rates.