Small Business, Enterprise and Employment Bill (HL Bill 91)

(3) The Secretary of State must publish any guidance or revised guidance issued
under this section.

(4) In this section “reviewer” has the same meaning as in section 17.

Report on investigations under financial regulators’ complaints scheme

20 5Independent Complaints Commissioner: reporting duty

In section 87 of the Financial Services Act 2012 (investigation of complaints
against regulators), after subsection (9) insert—

“(9A) The complaints scheme must provide—

(a) for the investigator to prepare an annual report on its
10investigations under the scheme, to publish it and send a copy
of it to each regulator and to the Treasury;

(b) for each regulator to respond to any recommendations or
criticisms relating to it in the report, to publish the response and
send a copy of it to the investigator and the Treasury;

(c) 15for the Treasury to lay the annual report and any response
before Parliament.

(9B) The complaints scheme may make provision about the period to which
each annual report must relate (“the reporting period”) and the
contents of the report and must in particular provide for it to include—

(a) 20information concerning any general trends emerging from the
investigations undertaken during the reporting period;

(b) any recommendations which the investigator considers
appropriate as to the steps a regulator should take in response
to such trends;

(c) 25a review of the effectiveness during the reporting period of the
procedures (both formal and informal) of each regulator for
handling and resolving complaints which have been
investigated by the investigator during the reporting period;

(d) an assessment of the extent to which those procedures were
30accessible and fair, including where appropriate an assessment
in relation to different categories of complainant;

(e) any recommendations about how those procedures, or the way
in which they are operated, could be improved.”

Business impact target

21 35Duty on Secretary of State to publish business impact target etc

(1) Before the end of the period of 12 months beginning with the commencement
of a Parliament, the Secretary of State must publish—

(a) a target for the Government in respect of the economic impact on
business activities of qualifying regulatory provisions which come into
40force or cease to be in force during the relevant period, and

(b) an interim target applying at the end of the period of three years
beginning with the commencement of the Parliament.

(2) In this section and sections 24 to 26 the target mentioned in subsection (1)(a) is
referred to as the “business impact target”.

(3) At the same time as publishing a business impact target and an interim target,
the Secretary of State must publish—

(a) 5a determination under section 22(2), and

(b) a methodology to be used for assessing the economic impact mentioned
in subsection (1)(a).

(4) The Secretary of State must lay each thing published under subsection (1) or (3)
before Parliament.

(5) 10Subsection (6) applies when the Secretary of State is—

(a) determining a business impact target for publication under subsection
(1)(a), or

(b) making a determination under section 22(2).

(6) The Secretary of State must, in particular, have regard to—

(a) 15the effect of regulation on economic growth and competitiveness,

(b) the need to minimise any disproportionate impact of regulation on
activities carried on by smaller scale businesses or voluntary or
community bodies,

(c) the aim of delivering efficiency in regulating business activities while
20keeping the costs to businesses or voluntary or community bodies to a
minimum.

(7) In this section and sections 23 to 26—

• the “relevant day” means the day after a polling day for a parliamentary
  general election; and

• 25the “relevant period” is the period beginning with the relevant day and
  ending with the polling day for the next parliamentary general election.

(8) Subsection (7) is to be read in accordance with the Fixed-term Parliaments Act
2011.

(9) This section and sections 22 to 27 (the “target provisions”) apply only where the
30commencement of a Parliament mentioned in subsection (1) above occurs—

(a) not more than 12 months before the target provisions come into force,
or

(b) after the target provisions have come into force.

(10) Subsection (11) applies if an early parliamentary election is to take place in
35accordance with section 2 of the Fixed-term Parliaments Act 2011 before the
end of the period of 12 months beginning with the commencement of a
Parliament.

(11) Any duty imposed by the target provisions which would apply at any time
before the commencement of the next Parliament is to be disregarded.

22 40Sections 21 and 23 to 25: “qualifying regulatory provisions” etc

(1) This section applies for the purposes of sections 21 and 23 to 25.

(2) “Qualifying regulatory provisions” means regulatory provisions which the
Secretary of State determines are to be qualifying regulatory provisions for the
purposes of section 21(1)(a).

(3) A “regulatory provision”, in relation to a business activity, means a statutory
provision which—

(a) imposes or amends requirements, restrictions or conditions, or sets or
amends standards or gives or amends guidance, in relation to the
5activity, or

(b) relates to the securing of compliance with, or the enforcement of,
requirements, restrictions, conditions, standards or guidance which
relate to the activity.

(4) But a “regulatory provision” does not include a statutory provision if or to the
10extent that—

(a) it makes or amends—

(i) provision imposing, abolishing or varying any tax, duty, levy or
other charge, or

(ii) provision in connection with provision falling within sub-
15paragraph (i);

(b) it makes or amends provision in connection with procurement;

(c) it makes or amends provision in connection with the giving of grants or
other financial assistance by or on behalf of a public authority;

(d) it makes or amends provision which is to have effect for a period of less
20than 12 months.

(5) Where a statutory provision comes into force or ceases to be in force for some
but not all purposes, references to regulatory provisions or qualifying
regulatory provisions coming into force or ceasing to be in force are to be read
as referring to those provisions in so far as they have come into force or ceased
25to be in force for those purposes.

(6) Subject to subsection (7) a “statutory provision” is—

(a) a provision of an Act,

(b) a provision of subordinate legislation made by a Minister of the Crown,
or

(c) 30any other provision which has effect by virtue of the exercise of a
function conferred on a Minister of the Crown by an Act.

(7) A “statutory provision” does not include—

(a) a provision which would be within the legislative competence of the
Scottish Parliament if it were contained in an Act of that Parliament (see
35section 29 of the Scotland Act 1998),

(b) a provision which could be included in an Act of the Northern Ireland
Assembly made without the consent of the Secretary of State (see
sections 6 to 8 of the Northern Ireland Act 1998), or

(c) a provision falling within the legislative competence of the National
40Assembly for Wales (see section 108 of the Government of Wales Act
2006).

(8) In this section—

• “Minister of the Crown” has the same meaning as in the Ministers of the
  Crown Act 1975;

• 45“public authority” has the same meaning as in the Freedom of
  Information Act 2000 (see section 3 of that Act); and

• “subordinate legislation” has the same meaning as in the Interpretation
  Act 1978.

23 Duty on Secretary of State to publish reports

(1) The Secretary of State must publish a report in respect of each reporting period
during the relevant period.

(2) The report must assess the economic impact on business activities of the
5qualifying regulatory provisions which have come into force or ceased to be in
force during the reporting period.

(3) The report must include—

(a) a list of all the qualifying regulatory provisions which have come into
force or ceased to be in force during the reporting period,

(b) 10an assessment of the economic impact on business activities of each of
the qualifying regulatory provisions falling within paragraph (a) made
by reference to the methodology published under section 21(3)(b) (but
see section 24(2)),

(c) an assessment of the aggregate economic impact on business activities
15of all of the qualifying regulatory provisions falling within paragraph
(a),

(d) if there have been preceding reporting periods during the relevant
period, an assessment of the aggregate economic impact on business
activities of all of the qualifying regulatory provisions which have come
20into force or ceased to be in force during the reporting period in
question and all of the preceding reporting periods,

(e) an assessment of the contribution of the actions taken by each
Government department to the aggregate economic impact mentioned
in paragraphs (c) and (d), and

(f) 25a list of all the regulatory provisions (as defined in section 22(3)) which
have come into force or ceased to be in force during the reporting
period which do not fall within paragraph (a).

(4) The report must describe the actions taken by Government departments to
mitigate any disproportionate economic impact on activities carried on by
30smaller scale businesses or voluntary or community bodies of regulatory
provisions (as defined in section 22(3)) which have come into force during the
reporting period.

(5) Subsection (6) applies in respect of regulatory provisions (as defined in section
22(3)) which—

(a) 35have come into force during the reporting period, and

(b) implement an EU obligation or any other international obligation of the
United Kingdom.

(6) The report must include—

(a) a description of any provision made in the provisions in question which
40goes beyond the minimum provision necessary for implementing the
obligation, and

(b) the reasons for that provision.

(7) Each of the following is a reporting period—

(a) the period beginning with the relevant day and ending at the end of the
45period of 12 months beginning with the commencement of the
Parliament,

(b) the next successive period of 12 months,

(c) the next successive period of 12 months,

(d) the next successive period of 12 months, and

(e) the period which begins at the end of the period mentioned in
paragraph (d) and ends at the end of the relevant period.

(8) But subsection (9) applies if an early parliamentary general election is to take
5place in accordance with section 2 of the Fixed-term Parliaments Act 2011
during a reporting period mentioned in any of subsection (7)(b) to (d) (the
“election reporting period”).

(9) Subsection (7) has effect as if—

(a) any provision relating to the election reporting period and any
10subsequent reporting periods mentioned in paragraph (c) or (d) were
omitted, and

(b) paragraph (e) referred to the period which begins at the beginning of
the election reporting period and ends at the end of the relevant period.

(10) A report must be published—

(a) 15no later than one month after the end of the reporting period, if the
report is in respect of a reporting period mentioned in any of subsection
(7)(a) to (d);

(b) before the dissolution of Parliament, if the report is in respect of a
reporting period mentioned in subsection (7)(e).

(11) 20Where a report is in respect of a reporting period mentioned in subsection
(7)(e), the references to qualifying regulatory provisions or regulatory
provisions which have come into force or ceased to be in force during the
reporting period include qualifying regulatory provisions or regulatory
provisions which are expected to come into force or to cease to be in force
25during that reporting period.

(12) The Secretary of State must lay any report before Parliament.

24 Additional matters to be included in reports

(1) This section makes provision supplementary to section 23.

(2) An assessment in respect of a qualifying regulatory provision may be included
30in a report by virtue of section 23(3)(b) only if the assessment is verified by the
body appointed under section 25.

(3) Subsection (4) applies if an assessment in respect of a qualifying regulatory
provision is not included in a report in respect of a reporting period mentioned
in any of section 23(7)(a) to (d) because of subsection (2) above.

(4) 35The report in respect of the immediately following reporting period must
include an assessment of the economic impact on business activities of that
qualifying regulatory provision.

(5) Subsection (6) applies to any report in respect of the reporting period
mentioned in section 23(7)(c).

(6) 40The report must include an assessment of the extent to which the interim target
has been met.

(7) Subsection (8) applies to any report in respect of the reporting period
mentioned in section 23(7)(e).

(8) The report must include an assessment of the extent to which the business
impact target has been met.

25 Appointment of body to verify assessments and lists in reports

(1) The Secretary of State must appoint an independent body to verify—

(a) 5the assessment to be included in a report by virtue of section 23(3)(b),
and

(b) that all of the regulatory provisions in a list included in a report by
virtue of section 23(3)(f) are regulatory provisions (as defined in section
22(3)) which—

(i) 10have come into force or ceased to be in force during the
reporting period in respect of which the report is made, and

(ii) do not fall within section 23(3)(a).

(2) The body appointed under this section must publish a statement recording any
verification made by virtue of subsection (1)(b).

(3) 15The appointment of the body must be made before the date on which a
business impact target is published in relation to the relevant period.

(4) The appointment of the body must be for the duration of the relevant period.

(5) “Independent body” means a body which, in the opinion of the Secretary of
State, is independent of the Secretary of State.

(6) 20The body appointed under this section must have expertise in assessing the
likely economic impact of regulation on business activities (including activities
carried on by smaller scale businesses or voluntary or community bodies).

(7) Subsection (1)(b) is to be read in accordance with section 23(11).

26 Amending the business impact target etc

(1) 25Before the end of the relevant period the Secretary of State may amend one or
more of—

(a) the business impact target;

(b) the interim target;

(c) the determination under section 22(2);

(d) 30the methodology to be used for assessing the economic impact
mentioned in section 21(1)(a).

(2) Section 21(6) applies when amending the thing mentioned in subsection (1)(a)
or (c).

(3) If the Secretary of State amends any of the things mentioned in subsection (1)
35the Secretary of State must—

(a) publish the thing as amended,

(b) amend any report already published so that it takes account of any
amendments, and

(c) lay the thing as amended and any amended report before Parliament.

(4) 40The requirements in sections 23(2) and (3), 24 and 25(2) apply in relation to an
amended report.

27 Sections 21 to 25 etc: interpretation

(1) This section applies for the purposes of sections 21 to 25 and this section.

(2) “Business activities” means any activities carried on—

(a) by a business for the purposes of the business, or

(b) 5by a voluntary or community body for the purposes of the body.

(3) References to a business or a voluntary or community body do not include a
business or a voluntary or community body which—

(a) is controlled by a public authority, or

(b) is acting on behalf of a public authority in carrying out the activities.

(4) 10The Secretary of State must publish a statement as to how it is to be determined
whether a business or a voluntary or community body is controlled by a public
authority.

(5) Each of the following is a “voluntary or community body”—

(a) a trade union;

(b) 15an unincorporated body—

(i) whose members include at least 21 individuals, and

(ii) which does not distribute any surplus it makes to its members;

(c) a charity;

(d) a company limited by guarantee which does not distribute any surplus
20it makes to its members;

(e) a registered society within the meaning given by section 1 of the Co-
operative and Community Benefit Societies Act 2014;

(f) a society registered or deemed to be registered under the Industrial and
Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));

(g) 25a community interest company;

(h) a charitable incorporated organisation within the meaning of Part 11 of
the Charities Act 2011 or within the meaning of the Charities Act
(Northern Ireland) 2008 (c. 12 (N.I.));

(i) a Scottish charitable incorporated organisation within the meaning of
30Chapter 7 of Part 1 of the Charities and Trustee Investment (Scotland)
Act 2005 (asp 10)2005 (asp 10).

(6) In this section—

• “public authority” has the same meaning as in the Freedom of
  Information Act 2000 (see section 3 of that Act); and

• 35“trade union” has the meaning given by section 1 of the Trade Union and
  Labour Relations (Consolidation) Act 1992 or Article 3 of the Industrial
  Relations (Northern Ireland) Order 1992 (S.I. 1992/807 (N.I. 5)S.I. 1992/807 (N.I. 5)).

Secondary legislation: duty to review

28 Duty to review regulatory provisions in secondary legislation

(1) 40This section applies where—

(a) an Act confers a power or duty on a Minister of the Crown to make
secondary legislation, and

(b) the Minister exercises the power or duty so as to—

(i) make regulatory provision in relation to any qualifying activity
(see sections 29 and 32), or

(ii) amend regulatory provision made in relation to any qualifying
activity.

(2) 5The Minister must—

(a) make provision for review in the secondary legislation in which the
regulatory provision is made (see section 30), or

(b) publish a statement that it is not appropriate in the circumstances to
make provision for review in that legislation (see section 31).

(3) 10This section does not apply if or to the extent that the power or duty is to be
exercised so as to—

(a) make or amend—

(i) provision imposing, abolishing or varying any tax, duty, levy or
other charge, or

(ii) 15provision in connection with provision falling within sub-
paragraph (i);

(b) make or amend provision in connection with procurement;

(c) make or amend provision in connection with the giving of grants or
other financial assistance by or on behalf of a public authority;

(d) 20make or amend provision which is to cease to have effect before the end
of the period of 5 years beginning with the commencement date; or

(e) make or amend provision which is subject to review by virtue of
existing provision in the secondary legislation.

(4) In this section and section 29 “public authority” has the same meaning as in the
25Freedom of Information Act 2000 (see section 3 of that Act).

29 Section 28(1)(b): interpretation

(1) This section applies for the purposes of section 28(1)(b).

(2) “Qualifying activity” means any activity carried on—

(a) by a business for the purposes of the business, or

(b) 30by a voluntary or community body for the purposes of the body.

(3) For the purposes of subsection (2) the references to a business or a voluntary or
community body do not include a business or a voluntary or community body
which—

(a) is controlled by a public authority, or

(b) 35is acting on behalf of a public authority in carrying out the activity.

(4) The Secretary of State must publish a statement as to how it is to be determined
whether a business or a voluntary or community body is controlled by a public
authority.

(5) “Voluntary or community body” has the meaning given in section 27.

30 40Section 28(2)(a): “provision for review”

(1) This section applies for the purposes of section 28(2)(a).

(2) “Provision for review”, in relation to any regulatory provision, is provision
requiring the Minister to—

(a) carry out a review of the regulatory provision, and

(b) publish a report setting out the conclusions of the review.

(3) A review of any regulatory provision which implements an EU obligation or
any other international obligation of the United Kingdom must have regard to
5how the obligation is implemented in the other Member States or countries
which are subject to the obligation.

(4) A report must, in particular—

(a) set out the objectives intended to be achieved by the regulatory
provision,

(b) 10assess the extent to which those objectives are achieved,

(c) assess whether those objectives remain appropriate, and

(d) if those objectives remain appropriate, assess the extent to which they
could be achieved in another way which involves less onerous
regulatory provision.

(5) 15The first report must be published before the end of the period of 5 years
beginning with the commencement date.

(6) Subsequent reports must be published at intervals not exceeding 5 years.

31 Section 28(2)(b): appropriateness of making provision for review

(1) This section applies for the purposes of section 28(2)(b).

(2) 20The circumstances in which the Minister may determine that it is not
appropriate to make provision for review include those in which—

(a) a review would be disproportionate taking into account the economic
impact of the regulatory provision on the qualifying activity, and

(b) a review would be undesirable for particular policy reasons (such as
25there being an exceptionally high need for certainty in the longer term).

(3) The Secretary of State may publish guidance about the factors to be taken into
account in determining whether it is appropriate to make provision for review.

(4) The Minister must have regard to any guidance.

32 Sections 28 to 31 etc: supplementary

(1) 30This section applies for the purposes of sections 28 to 31 and this section.

(2) “Commencement date” means the date on which the secondary legislation
making or amending the regulatory provision comes into force for any
purpose.

(3) “Minister of the Crown” has the same meaning as in the Ministers of the Crown
35Act 1975.

(4) “Regulatory provision”, in relation to any qualifying activity, means—

(a) provision imposing requirements, restrictions or conditions, or setting
standards, in relation to the activity, or

(b) provision which relates to the securing of compliance with, or the
40enforcement of, requirements, restrictions, conditions or standards
which relate to the activity.

(5) But where any of section 30(2), (3), (4)(a) or 31(2) applies by virtue of section
28(1)(b)(ii), the references to regulatory provision are to the regulatory
provision as amended by the secondary legislation made by the Minister.

(6) “Secondary legislation” means orders, regulations or rules made under any
5Act.

(7) The validity of any secondary legislation is not to be affected by any question
as to whether a Minister of the Crown complied with section 28(2).

Definitions of small and micro business

33 Definitions of small and micro business

(1) 10This section applies where any subordinate legislation made by a Minister of
the Crown (the “underlying provision”)—

(a) uses the term “small business” or “micro business”, and

(b) defines that term by reference to this section.

(2) In the underlying provision “small business” means an undertaking other than
15a micro business (see subsection (3)) which meets the following conditions
(“the small business size conditions”)—

(a) it has a headcount of staff of less than 50, and

(b) it has—

(i) a turnover, or

(ii) 20a balance sheet total,

of an amount less than or equal to the small business threshold.

(3) In the underlying provision “micro business” means an undertaking which
meets the following conditions (“the micro business size conditions”)—

(a) it has a headcount of staff of less than 10, and

(b) 25it has—

(i) a turnover, or

(ii) a balance sheet total,

of an amount less than or equal to the micro business threshold.

(4) The Secretary of State may by regulations (referred to as “the small and micro
30business regulations”) make further provision about the meanings of “small
business” and “micro business”.

(5) This section and the small and micro business regulations are to be read subject
to any modifications made by the underlying provision in any particular case.

(6) In this section—

• 35“balance sheet total”, “headcount of staff”, “micro business threshold”,
  “small business threshold” and “turnover” have such meanings as may
  be prescribed by the small and micro business regulations;

• “Minister of the Crown” has the same meaning as in the Ministers of the
  Crown Act 1975;

• 40“subordinate legislation” has the same meaning as in the Interpretation
  Act 1978 (see section 21 of that Act);

• “undertaking” means—

  (a)

  a person carrying on one or more businesses;

  Small Business, Enterprise and Employment BillPage 30

  (b)

  a voluntary or community body within the meaning given by
  section 27;

  (c)

  a body which is formed or recognised under the law of a
  country or territory outside the United Kingdom and which is
  5equivalent in nature to a body falling within the definition of
  voluntary or community body.

(7) The small and micro business regulations are subject to negative resolution
procedure.

34 Small and micro business regulations: further provision

(1) 10The small and micro business regulations may make provision—

(a) about the calculation of the headcount of staff, turnover and balance
sheet total of an undertaking, including provision about the period
(“assessment period”) in respect of which they are to be calculated;

(b) for the headcount of staff, turnover and balance sheet total, or a
15proportion of such, of any undertaking which satisfies such conditions
as may be prescribed in relation to another undertaking (the “principal
undertaking”) to be treated as part of the principal undertaking’s
headcount of staff, turnover and balance sheet total.

(2) Conditions which may be prescribed under subsection (1)(b) include, in
20particular, conditions relating to—

(a) the extent of ownership (whether direct or indirect) of one undertaking
by one or more other undertakings;

(b) the degree of control exercised (whether directly or indirectly) by one
or more undertakings over another.

(3) 25The small and micro business regulations may make provision about—

(a) the assessment period or periods in respect of which an undertaking
must meet the small business size conditions or the micro business size
conditions in order to be a small business or (as the case may be) micro
business;

(b) 30the circumstances in which an undertaking which has been established
for less than a complete assessment period is to be regarded as meeting
the small business size conditions or the micro business size conditions.

(4) Provision made by virtue of subsection (3) may, in particular, provide that—

(a) an undertaking is a small business or a micro business if it meets the
35relevant size conditions in respect of each of its two most recent
assessment periods;

(b) where there has been only one complete assessment period since an
undertaking was established, the undertaking is a small business or a
micro business if it meets the relevant size conditions in respect of that
40period;

(c) an undertaking which is a small business or a micro business does not
cease to be such unless it fails to meet the relevant size conditions in
respect of two consecutive assessment periods.

(5) The small and micro business regulations may make provision for one
45undertaking (“undertaking A”) which satisfies such conditions as may be
prescribed in relation to another undertaking (“undertaking B”), to be treated
as being undertaking B (whether or not undertaking B is still in existence) for
such purposes as may be prescribed.

(6) Conditions which may be prescribed under subsection (5) include, in
particular, conditions relating to—

(a) the transfer of a business from undertaking B to undertaking A;

(b) the carrying on by undertaking A of a business on undertaking B
5ceasing to carry on the activities, or most of the activities, of which the
business consists in consequence of arrangements involving both
undertakings;

(c) the existence of some other connection between undertaking A and
undertaking B.

(7) 10The purposes which may be prescribed under subsection (5) include, in
particular—

(a) determining the date on which undertaking A was established (and so
the number of assessment periods there have been since it was
established);

(b) 15determining which periods are assessment periods in respect of
undertaking A;

(c) calculating the headcount of staff, turnover and balance sheet total of
undertaking A.

(8) The small and micro business regulations may provide that an undertaking of
20such description as may be prescribed is not a small business or a micro
business even if it falls within the relevant definition.

(9) In this section—

• “micro business size conditions”, “small business size conditions” and
  “undertaking” have the same meanings as in section 33;

• 25“prescribed” means prescribed in the small and micro business
  regulations.

Home businesses

35 Exclusion of home businesses from Part 2 of the Landlord and Tenant Act
1954

(1) 30Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business,
professional and other tenants) is amended as follows.

(2) In section 23(4) (tenancies to which Part 2 applies) at the beginning insert
“Subject to subsection (5),”.

(3) After section 23(4) insert—

“(5) 35Where the tenant’s breach of a prohibition (however expressed) of use
for business purposes which subsists under the terms of the tenancy
and extends to the whole of that property consists solely of carrying on
a home business, this Part of this Act does not apply to the tenancy,
even if the immediate landlord or the immediate landlord’s
40predecessor in title has consented to the breach or the immediate
landlord has acquiesced in the breach.

(6) In subsection (5) “home business” has the same meaning as in section
43ZA.”

(4) After section 43 (tenancies excluded from Part 2), insert—

“43ZA Further exclusion of home business tenancies from Part 2

(1) This Part of this Act does not apply to a home business tenancy.

(2) A home business tenancy is a tenancy under which—

(a) 5a dwelling-house is let as a separate dwelling,

(b) the tenant or, where there are joint tenants, each of them, is an
individual, and

(c) the terms of the tenancy—

(i) require the tenant or, where there are joint tenants, at
10least one of them, to occupy the dwelling-house as a
home (whether or not as that individual’s only or
principal home),

(ii) permit a home business to be carried on in the dwelling-
house, or permit the immediate landlord to give consent
15for a home business to be carried on in the dwelling-
house, and

(iii) do not permit a business other than a home business to
be carried on in the dwelling-house.

(3) The terms of a tenancy permit the carrying on of a home business if they
20permit the carrying on of a particular home business, a particular
description of home business or any home business.

(4) A “home business” is a business of a kind which might reasonably be
carried on at home.

(5) A business is not to be treated as a home business if it involves the
25supply of alcohol for consumption on licensed premises which form all
or part of the dwelling-house.

(6) The appropriate national authority may by regulations prescribe cases
in which businesses are, or are not, to be treated as home businesses.

(7) Regulations under this section—

(a) 30may include transitional or saving provision,

(b) may make different provision for different purposes,

(c) are to be made by statutory instrument,

(d) may not be made unless—

(i) in the case of regulations made by the Secretary of State,
35a draft of the statutory instrument containing the
regulations has been laid before Parliament and
approved by a resolution of each House of Parliament,

(ii) in the case of regulations made by the Welsh Ministers,
a draft of the statutory instrument containing the
40regulations has been laid before, and approved by a
resolution of, the National Assembly for Wales.

(8) For the purposes of this section, a dwelling-house which is let for mixed
residential and business use is capable of being let as a dwelling.

(9) If, under a tenancy, a dwelling-house is let together with other land,
45then, for the purposes of this section—

(a) if the main purpose of the letting is the provision of a home for
the tenant, the other land is to be treated as part of the dwelling-
house, and

(b) if the main purpose of the letting is not as mentioned in
5paragraph (a), the tenancy is to be treated as not being one
under which a dwelling-house is let as a separate dwelling.

(10) In this section—

• “the appropriate national authority” means—

  (a)

  in relation to England, the Secretary of State, and

  (b)

  10in relation to Wales, the Welsh Ministers;

• “dwelling-house” may be a house or part of a house;

• “let” includes sub-let;

• “licensed premises” has the same meaning as in the Licensing Act
  2003 (see section 193 of that Act);

• 15“supply of alcohol” has the same meaning as in the Licensing Act
  2003 (see section 14 of that Act).”

(5) Subsections (1) to (4) do not apply to—

(a) a tenancy which is entered into before the day on which this section
comes into force;

(b) 20a tenancy which is entered into on or after the day on which this section
comes into force, pursuant to a contract made before that day;

(c) a tenancy which arises by operation of any enactment or other law
when a tenancy mentioned in paragraph (a) or (b) comes to an end.

36 Section 35: supplementary and consequential provision

(1) 25In section 41 of the Landlord and Tenant Act 1954 (trusts), after subsection (2)
insert—

“(3) Where a tenancy is held on trust, section 43ZA(2) has effect as if—

(a) paragraph (b) were omitted, and

(b) the condition in paragraph (c)(i) were a condition that the terms
30of the tenancy require at least one individual who is a trustee or
a beneficiary under the trust to occupy the dwelling-house as a
home (whether or not as that individual’s only or principal
home).”

(2) A dwelling-house which is let under a home business tenancy is to be regarded
35as being “let as a separate dwelling” for the purposes of—

(a) section 1 of the Rent Act 1977 (protected tenancies),

(b) section 79 of the Housing Act 1985 (secure tenancies),

(c) section 1 of the Housing Act 1988 (assured tenancies), and

(d) any other England and Wales enactment relating to protected, secure or
40assured tenancies.

(3)
Subsections (1) and (2) do not apply to the tenancies mentioned in section 35(3)(5).

(4) Subsections (2) and (3) do not limit the circumstances in which a dwelling-
house which is let under a home business tenancy is to be regarded as “let as a
separate dwelling”.

(5) 45In this section—

Small Business, Enterprise and Employment BillPage 34

• “enactment” includes provision made—

  (a)

  under an Act, or

  (b)

  by or under a Measure or Act of the National Assembly for
  Wales,

• 5“England and Wales enactment” means any enactment so far as it forms
  part of the law of England and Wales,

• “home business tenancy” has the same meaning as in section 43ZA of the
  Landlord and Tenant Act 1954.

CMA recommendations

37 10CMA to publish recommendations on proposals for Westminster legislation

(1) Section 7 of the Enterprise Act 2002 (provision by CMA of information and
advice to Ministers etc) is amended as follows.

(2) After subsection (1) insert—

“(1A) The CMA may, in particular, carry out the function under subsection
15(1)(a) by making a proposal in the form of a recommendation to a
Minister of the Crown about the potential effect of a proposal for
Westminster legislation on competition within any market or markets
in the United Kingdom for goods or services.

(1B) The CMA must publish such a recommendation in such manner as the
20CMA considers appropriate for bringing the subject matter of the
recommendation to the attention of those likely to be affected by it.”

(3) After subsection (2) insert—

“(3) In this section—

• “market in the United Kingdom” includes—

  (a)

  25so far as it operates in the United Kingdom or a part of
  the United Kingdom, any market which operates there
  and in another country or territory or in a part of another
  country or territory; and

  (b)

  any market which operates only in a part of the United
  30Kingdom;

  and the reference to a market for goods or services includes a
  reference to a market for goods and services; and

• “Westminster legislation” means—

  (a)

  an Act of Parliament, or

  (b)

  35subordinate legislation (within the meaning given by
  section 21 of the Interpretation Act 1978).”

Liability of bodies concerned with accounting standards

38 Exemption from liability for bodies concerned with accounting standards etc

(1) After section 18 of the Companies (Audit, Investigations and Community

Enterprise) Act 2004 insert—

“18A Power to confer exemption from liability

(1) The Secretary of State may by order or regulations provide for the
exemption from liability in subsections (3) and (4) to apply to specified
5bodies or persons (referred to in this section as “exempt persons”).

(2) The order or regulations may provide for the exemption to apply
subject to specified conditions or for a specified period.

(3) Neither the exempt person, nor any person who is (or is acting as) a
member, officer or member of staff of the exempt person, is to be liable
10in damages for anything done, or omitted to be done, for the purposes
of or in connection with—

(a) the carrying on of those section 16(2) activities of the exempt
person that are specified in relation to that person, or

(b) the purported carrying on of any such activities.