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Local Government Bill
Part 5 — Non-domestic rates

    28

 

     (6)    In section 47 of the 1988 Act (discretionary relief), in subsection (1) after

“subsection (3) below,”, in the second place where it occurs, there is inserted

“or the small business condition and the second condition mentioned in

subsection (3) below,”.

     (7)    After subsection (3C) of that section there is inserted—

5

           “(3D)              The small business condition is—

                  (a)                 that the hereditament is situated in Wales, and

                  (b)                 that on the chargeable day section 43(4B) above applies to the

hereditament.”

 64    Calculation of non-domestic rating multiplier

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     (1)    Schedule 7 to the 1988 Act (non-domestic rating multipliers) is amended as

follows.

     (2)    In paragraph 1 (Part 1 of Schedule 7 has effect to determine non-domestic

rating multiplier) after “multiplier” there is inserted “and, in relation to

England, the small business non-domestic rating multiplier”.

15

     (3)    For paragraph 3 (calculation of non-domestic rating multiplier for years in

which no list compiled) there is substituted—

        “3               (1)                In relation to England, the small business non-domestic rating

multiplier for a chargeable financial year shall be calculated in

accordance with this paragraph if the year is not one at the beginning

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of which new lists must be compiled.

                       (2)                 An amount shall be found in accordance with the formula—equation: over[times[char[A],char[x],char[B]],char[C]]

                       (3)                 Subject to sub-paragraph (5) below, that amount may be adjusted by

the Secretary of State to reflect the extent to which his last estimate of

the total mentioned in paragraph 5(6) or (7) below appears to him to

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differ from the actual total.

                       (4)                The amount under sub-paragraph (2) above or, if an adjustment is

made under sub-paragraph (3) above, the adjusted amount shall be

the small business non-domestic rating multiplier for the year.

                       (5)                 No adjustment may be made under sub-paragraph (3) above for a

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chargeable financial year beginning before 2006.

        3A               (1)                In relation to England, the non-domestic rating multiplier for a

chargeable financial year shall be calculated in accordance with this

paragraph if the year is not one at the beginning of which new lists

must be compiled.

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                       (2)                The non-domestic rating multiplier for the year shall be the amount

found by—

                    (a)                   increasing the small business non-domestic rating multiplier

for the year under paragraph 3 above to reflect the Secretary

of State’s estimate of the difference between—

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Local Government Bill
Part 5 — Non-domestic rates

    29

 

                           (i)                          the aggregate amount which will be payable to him

and all billing authorities by way of non-domestic

rates as regards the year, and

                           (ii)                         the aggregate amount which would be so payable if

section 43(4A) to (4D) above were omitted, and

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                    (b)                   if the Secretary of State thinks fit, adjusting the amount found

under paragraph (a) above to reflect the extent (if any) to

which his estimate of the difference mentioned in that

paragraph for an earlier financial year appears to him to

differ from the actual difference for that earlier year.

10

        3B               (1)                In relation to Wales, the non-domestic rating multiplier for a

chargeable financial year shall be calculated in accordance with this

paragraph if the year is not one at the beginning of which new lists

must be compiled.

                       (2)                 An amount shall be found in accordance with the formula—equation: over[times[char[A],char[x],char[B]],char[C]]

15

                       (3)                 Subject to sub-paragraph (5) below, that amount may be adjusted by

the National Assembly for Wales to reflect the extent to which its last

estimate of the total mentioned in paragraph 5(6) or (7) below

appears to it to differ from the actual total.

                       (4)                The amount under sub-paragraph (2) above or, if an adjustment is

20

made under sub-paragraph (3) above, the adjusted amount shall be

the non-domestic rating multiplier for the year.

                       (5)                 No adjustment may be made under sub-paragraph (3) above for a

chargeable financial year beginning before 2006.”

     (4)    For paragraph 4 (calculation of non-domestic rating multiplier for year in

25

which list must be compiled) there is substituted—

        “4                In relation to England, the small business non-domestic rating

multiplier for a chargeable financial year shall be calculated in

accordance with the following formula if the year is one at the

beginning of which new lists must be compiled—equation: over[times[char[A],char[x],char[B],char[x],char[D]],times[char[C],char[x],char[E]]]

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        4A               (1)                In relation to England, the non-domestic rating multiplier for a

chargeable financial year shall be calculated in accordance with this

paragraph if the year is one at the beginning of which new lists must

be compiled.

                       (2)                The non-domestic rating multiplier for the year shall be the amount

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found by—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    30

 

                    (a)                   increasing the small business non-domestic rating multiplier

for the year under paragraph 4 above to reflect the Secretary

of State’s estimate of the difference between—

                           (i)                          the aggregate amount which will be payable to him

and all billing authorities by way of non-domestic

5

rates as regards the year, and

                           (ii)                         the aggregate amount which would be so payable if

section 43(4A) to (4D) above were omitted, and

                    (b)                   if the Secretary of State thinks fit, adjusting the amount found

under paragraph (a) above to reflect the extent (if any) to

10

which his estimate of the difference mentioned in that

paragraph for an earlier financial year appears to him to

differ from the actual difference for that earlier year.”

        4B                In relation to Wales, the non-domestic rating multiplier for a

chargeable financial year shall be calculated in accordance with the

15

following formula if the year is one at the beginning of which new

lists must be compiled —equation: over[times[char[A],char[x],char[B],char[x],char[D]],times[char[C],char[x],char[E],

char[pprime]]]

     (5)    In paragraph 5(1) for “3 and 4” there is substituted “3 to 4B”.

     (6)    For sub-paragraph (2) of that paragraph (which defines A) there is

substituted—

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                       “(2)                In relation to England, A is the small business non-domestic rating

multiplier for the financial year preceding the year concerned (or, if

there is no such multiplier for that year, A is the non-domestic rating

multiplier for that year).

                       (2A)                In relation to Wales, A is the non-domestic rating multiplier for the

25

financial year preceding the year concerned.”

     (7)    For sub-paragraphs (6) and (7) of that paragraph (which define D and E) there

is substituted—

                       “(6)                 D is the number of whole pounds in the Secretary of State’s or, as the

case may be, the National Assembly for Wales’ estimate of the total

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of the appropriate rateable values of all appropriate hereditaments,

where—

                    (a)                   appropriate rateable values are those which will be shown in

lists for the last day of the financial year preceding the year

concerned once all alterations to those lists have been made;

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                    (b)                   appropriate hereditaments are those which will be shown in

lists for that day once all alterations to those lists have been

made.

                       (7)                E is the number of whole pounds in the Secretary of State’s or, as the

case may be, the National Assembly for Wales’ estimate of the total

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of the appropriate rateable values of all appropriate hereditaments,

where—

 

 

Local Government Bill
Part 5 — Non-domestic rates

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                    (a)                   appropriate rateable values are those which will be shown in

lists for the first day of the financial year concerned once all

alterations to those lists have been made;

                    (b)                   appropriate hereditaments are those which will be shown in

lists for that first day once all alterations to those lists have

5

been made.

                       (7A)                The reference in sub-paragraph (7)(a) above to rateable values which

will be shown in lists for the first day of the financial year concerned

once all alterations to those lists have been made includes a reference

to rateable values which will be shown in lists for a later day as a

10

result of any alterations of the lists because of the inaccuracy of the

lists for that first day.”

     (8)    For paragraph 6(1) there is substituted—

                       “(1)                In relation to England, the Secretary of State shall calculate the small

business non-domestic rating multiplier and the non-domestic rating

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multiplier for a chargeable financial year and, as soon as is

reasonably practicable after doing so, shall serve on each billing

authority a notice stating the multipliers as so calculated.

                       (1A)                In relation to Wales, the National Assembly for Wales shall calculate

the non-domestic rating multiplier for a chargeable financial year

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and, as soon as is reasonably practicable after doing so, shall serve on

each billing authority a notice stating the multiplier as so calculated.

                       (1B)                The notice must show how any calculation has been made and

contain details of any estimates or adjustments that have been

made.”

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     (9)    For paragraph 6(3) there is substituted—

                       “(3)                Where the financial year is one at the beginning of which new lists

must be compiled, the notice must specify the date determined

under paragraph 5(10) above for the purpose of making estimates

under paragraph 5(6) and (7) above.”

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     (10)   In paragraph 6(4) and (5) for “sub-paragraph (1) above” there is substituted

“this paragraph”.

     (11)   After paragraph 9 (special authority’s non-domestic rating multiplier) there is

inserted—

        “9A               (1)                A special authority’s small business non-domestic rating multiplier

35

for a chargeable financial year shall be set by it in accordance with

the formula—equation: over[times[char[A],char[x],char[B]],char[C]]

                       (2)                 In sub-paragraph (1) above—

                    (a)                   A is the special authority’s non-domestic rating multiplier for

the year under paragraph 9 above,

40

                    (b)                   B is the small business non-domestic rating multiplier for the

year determined in accordance with Part 1 of this Schedule,

and

 

 

Local Government Bill
Part 5 — Non-domestic rates

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                    (c)                   C is the non-domestic rating multiplier for the year, so far as

relating to England, determined in accordance with that Part.

                       (3)                The multiplier must be expressed as a figure in which a part of a

whole (if any) is expressed to three decimal points only.”

 65    Rural settlement lists etc

5

     (1)    In section 42A of the 1988 Act (rural settlement list) in subsection (1) (duty of

each billing authority to compile and maintain rural settlement list) after

“billing authority” there is inserted “in England”.

     (2)    In section 43 of the 1988 Act (occupied hereditament: liability) in subsection

(6B) (conditions for relief under subsection (6A)) before paragraph (a) there is

10

inserted—

                  “(aa)                    the hereditament is situated in England,”.

     (3)    In section 47 of the 1988 Act (discretionary relief) in subsection (3A) (the rural

settlement condition) before paragraph (a) there is inserted—

                  “(aa)                    that the hereditament is situated in England,”.

15

 66    Transitional relief

     (1)    After section 57 of the 1988 Act (special provision for 1990-1995) there is

inserted—

       “57A            Transitional provision for 2005 onwards: England

           (1)           In relation to any relevant period the Secretary of State must make

20

regulations under this section which apply in relation to England.

           (2)           The regulations may contain such provisions as are mentioned in

subsection (3) below in relation to any case where—

                  (a)                 as regards a hereditament or hereditaments the chargeable

amount for a chargeable day falls to be determined under

25

section 43, 45 or 54 above, and

                  (b)                 the day falls within a prescribed relevant financial year.

           (3)           The provisions are that—

                  (a)                 the chargeable amount shall be such as is found in accordance

with prescribed rules, and

30

                  (b)                 sections 43(4) to (6E) and 44 above, sections 45(4) to (6) and 46

above, or section 54(4) to (7) above (as the case may be) shall not

apply.

           (4)           A chargeable amount found in accordance with rules prescribed under

this section, and any calculation (or component of a calculation) used to

35

find that amount, may be the same as or different from what it would

be apart from the regulations.

           (5)           Rules prescribed under this section may be framed by reference to such

factors as the Secretary of State thinks fit.

           (6)           Without prejudice to section 143(1) below, regulations under this

40

section relating to a relevant period may contain different provisions

for different relevant financial years.

 

 

Local Government Bill
Part 5 — Non-domestic rates

    33

 

           (7)           Without prejudice to section 143(1) below, regulations under this

section may contain different provision in relation to locally listed

hereditaments whose rateable value exceeds, and those whose rateable

value does not exceed, a prescribed figure; and a locally listed

hereditament is a hereditament for the time being shown in a local non-

5

domestic rating list.

           (8)           Without prejudice to section 143(1) and (2) below, regulations under

this section may include provision—

                  (a)                 imposing duties and conferring powers on valuation officers

(whether as regards determinations, certificates or otherwise) in

10

relation to the ascertainment of rateable values;

                  (b)                 as to appeals relating to things done or not done by such

officers.

           (9)           Regulations under this section in their application to a particular

relevant financial year shall not be effective unless they come into force

15

before 1 January immediately preceding the year; but this is without

prejudice to the power to amend or revoke.

           (10)          In making regulations under this section the Secretary of State shall

have regard to the object of securing (so far as practicable) that the

aggregate amount payable to him and all billing authorities by way of

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non-domestic rates as regards a particular financial year is the same as

the aggregate amount which would be so payable apart from the

regulations.

           (11)          For the purposes of subsection (10) above, the Secretary of State may

rely on his estimate of the aggregate amounts mentioned in that

25

subsection.

           (12)          Once the actual aggregate amounts for a particular financial year are

ascertained, the Secretary of State may amend regulations under this

section in their application to a later financial year which falls within

the same or a later relevant period to reflect the extent to which the

30

actual aggregate amounts differ from his estimate of those amounts.

           (13)          For the purposes of this section—

                  (a)                 a relevant period is a period of five years beginning on 1 April

2005 or on any 1 April after that date on which lists must be

compiled;

35

                  (b)                 a relevant financial year, as regards regulations relating to a

relevant period, is a financial year falling within the period.”

     (2)    In section 58 of the 1988 Act (special provision for 1995 onwards) in subsection

(1) (power to make regulations in relation to any relevant period) after

“section” there is inserted “which apply in relation to Wales”.

40

 67    Rating of meters

     (1)    In section 64 of the 1988 Act (hereditaments) after subsection (2) there is

inserted—

           “(2A)              In addition, a right is a hereditament if—

                  (a)                 it is a right to use any land for the purpose of operating a meter

45

to measure a supply of gas or electricity or such other service

as—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    34

 

                        (i)                        the Secretary of State in relation to England, or

                        (ii)                       the National Assembly for Wales in relation to Wales,

                                      may by order specify, and

                  (b)                 the meter is owned by a person other than the consumer of the

service.”

5

     (2)    In subsection (4)(e) of that section (which contains a reference to any right

which is a hereditament by virtue of subsection (2)) after “subsection (2)” there

is inserted “or (2A)”.

     (3)    After subsection (11) of that section there is inserted—

           “(11A)              The Secretary of State in relation to England, and the National

10

Assembly in relation to Wales, may by regulations make provision as

to what is to be regarded as being a meter for the purposes of subsection

(2A) above.

           (11B)              In subsection (2A) above “land” includes a wall or other part of a

building.”

15

 68    Exemptions for agricultural buildings

     (1)    Schedule 5 to the 1988 Act (exemptions from non-domestic rating) is amended

as follows.

     (2)    For paragraph 3(a) (which provides that a building is an agricultural building

if it is occupied together with agricultural land and is used solely in connection

20

with agricultural operations on the land) there is substituted—

                    “(a)                      it is occupied together with agricultural land and is used

solely in connection with agricultural operations on that or

other agricultural land, or”.

     (3)    After paragraph 7(1)(b) there is inserted “, and

25

                    (c)                      the members who are occupiers of the land together have

control of the body.”

     (4)    For paragraph 7(3) there is substituted—

                       “(3)                This sub-paragraph applies if—

                    (a)                   the building in question is occupied by a body corporate any

30

of whose members are, or are together with the body, the

occupiers of the building or buildings mentioned in sub-

paragraph (2)(a) above, and

                    (b)                   the members who are occupiers of the land together have

control of the body.”

35

     (5)    After paragraph 7(8) there is inserted—

                       “(9)                In this paragraph “control” shall be construed in accordance with

section 416(2) to (6) of the Income and Corporation Taxes Act 1988.”

 69    Exemption for places of religious worship

In paragraph 11 of Schedule 5 to the 1988 Act (exemption for places of religious

40

worship) for sub-paragraph (1)(a) there is substituted—

                       “(a)                a place of public religious worship;”.

 

 

 
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