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Rating (Empty Properties) Bill


Rating (Empty Properties) Bill

1

 

A

Bill

To

Make provision for and in connection with the liability of owners of

unoccupied hereditaments to a non-domestic rate. 

Most Gracious Sovereign,

We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United

Kingdom in Parliament assembled, towards making an addition to the public

revenue, have freely and voluntarily resolved to give and grant unto Your Majesty

the increases in non-domestic rating receipts resulting from the provisions hereinafter

made; and do therefore most humbly beseech Your Majesty that it may be enacted,

and be it enacted, by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

1       

Unoccupied hereditaments: chargeable amount

(1)   

In section 45 of the Local Government Finance Act 1988 (c. 41) (unoccupied

hereditaments: liability), for subsection (4) (determination of chargeable amount)

substitute—

“(4)   

Subject to subsection (4A) and to section 45A below, the chargeable amount

5

for a chargeable day shall be calculated in accordance with the formula—equation

   

where A, B and C have the meanings given by section 46.

(4A)   

An order may provide that subsection (4) shall have effect as if the following

formula were substituted—equation

   

where N is such number (greater than one but not greater than two) as may be

10

prescribed.

 
Bill 10254/2
 
 

Rating (Empty Properties) Bill

2

 

(4B)   

An order under subsection (4A) may be made—

(a)   

in relation to England, by the Secretary of State;

(b)   

in relation to Wales, by the Welsh Ministers.”.

(2)   

After that section insert—

“45A    

Unoccupied hereditaments: zero-rating

5

(1)   

Where section 45 applies in relation to a hereditament, the chargeable

amount for a chargeable day is zero in the following cases.

(2)   

The first case is where—

(a)   

the ratepayer is a charity or trustees for a charity, and

(b)   

it appears that when next in use the hereditament will be wholly

10

or mainly used for charitable purposes (whether of that charity

or of that and other charities).

(3)   

The second case is where—

(a)   

the ratepayer is a registered club for the purposes of Schedule

18 to the Finance Act 2002 (community amateur sports clubs),

15

and

(b)   

it appears that when the hereditament is next in use—

(i)   

it will be wholly or mainly used for the purposes of that

club and that club will be such a registered club, or

(ii)   

it will be wholly or mainly used for the purposes of two

20

or more clubs including that club, and each of those

clubs will be such a registered club.”.

(3)   

In section 143 of that Act (orders and regulations), after subsection (3A)

insert—

“(3B)   

The power to make an order under section 45(4A) shall be exercisable

25

by statutory instrument, and no such order shall be made—

(a)   

in the case of an order relating to England, unless a draft of the

order has been laid before and approved by resolution of each

House of Parliament;

(b)   

in the case of an order relating to Wales, unless a draft of the

30

order has been laid before and approved by resolution of the

National Assembly for Wales.”.

2       

Consequential provisions

(1)   

Schedule 1 provides for consequential amendments.

(2)   

The enactments specified in Schedule 2 are repealed.

35

3       

Short title, commencement and extent

(1)   

The short title of this Act is the Rating (Empty Properties) Act 2007.

(2)   

The provisions of this Act come into force on the day this Act is passed.

(3)   

The provisions of this Act have effect in relation to the year 2008-09 and

subsequent financial years.

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Rating (Empty Properties) Bill

3

 

(4)   

Any provision of this Act relating to the making of regulations or orders has

effect as from the passing of this Act as regards the making of provision in

relation to any such year.

(5)   

If the power to make regulations by virtue of paragraph 4 of Schedule 1

(change of state of property to be disregarded) is exercised before 1st April

5

2008, it may be exercised so that the regulations—

(a)   

apply to acts or omissions taking place at any time after the regulations

come into force, and

(b)   

also have effect in relation to the year 2007-08.

(6)   

This Act extends to England and Wales.

10

 
 

4

Rating (Empty Properties) Bill
Schedule 1 — Consequential amendments

 

Schedules

Schedule 1

Section 2(1)

 

Consequential amendments

Partly unoccupied hereditaments

1     (1)  

Section 44A of the Local Government Finance Act 1988 (c. 41) (partly

5

occupied hereditaments) is amended as follows.

      (2)  

In subsection (6) (cases in which unoccupied part not subject to charge), for

paragraph (b) substitute—

“(b)   

the hereditament to which the apportionment relates—

(i)   

does not fall within a class prescribed under section

10

45(1)(d), or

(ii)   

would (if unoccupied) be zero-rated under section

45A.”.

      (3)  

In subsection (8) (cases in which unoccupied part subject to lower rate of

charge), for paragraph (b) substitute—

15

“(b)   

the hereditament to which the apportionment relates—

(i)   

falls within a class prescribed under section 45(1)(d),

and

(ii)   

would (if unoccupied) not be zero-rated under

section 45A, and

20

(c)   

an order under section 45(4A) is in force and has effect in

relation to the hereditament.”.

      (4)  

In subsection (9) (determination of amount of charge in cases within

subsection (8)), in the subsection (2) substituted in section 43 of that Act, for

paragraph (b) substitute—

25

“(b)   

such part of that rateable value as is assigned by the relevant

apportionment to the unoccupied part of the hereditament,

divided by the number prescribed by the order under section

45(4A) as it has effect in relation to the hereditament.”.

      (5)  

After that subsection insert—

30

“(9A)   

In relation to a day to which neither subsection (7) nor subsection (9)

applies, an apportionment under subsection (1) does not have any

effect in relation to the chargeable amount.”.

Discretionary relief

2     (1)  

Section 47 of that Act (discretionary relief) is amended as follows.

35

 

 

Rating (Empty Properties) Bill
Schedule 1 — Consequential amendments

5

 

      (2)  

In subsection (1)(b) (exclusion of main charging provisions) for “45(4) to (6)”

substitute “45(4) to (4B)”.

      (3)  

After subsection (9) insert—

“(10)   

This section does not apply where the hereditament is zero-rated

under section 45A.”.

5

Transitional provisions in connection with revaluation

3     (1)  

In sections 57A(2)(a) and 58(2)(a) of that Act after “45” insert “, 45A”.

      (2)  

In sections 57A(3)(b) and 58(3)(b) of that Act for “45(4) to (6)” substitute

“45(4) to (4B), 45A”.

Change of state of property to be disregarded

10

4     (1)  

After section 66 of that Act—

“66A    

Unoccupied hereditaments: change of state of property to be

disregarded

(1)   

Regulations may provide that, for the purposes of this Part as it

applies in relation to an unoccupied hereditament, the state of any

15

property comprising or included in the hereditament shall be

deemed not to have changed—

(a)   

since before any event of a prescribed description, or

(b)   

by reason of any act done by or on behalf of a prescribed

person.

20

(2)   

The regulations may make provision as to the circumstances in

which, and period for which, that is deemed to be the case.

(3)   

The regulations may provide for the making of such assumptions or

apportionments as may be prescribed in determining whether, or to

what extent, the state of any property has changed in comparison

25

with an earlier point in time.

(4)   

The regulations may—

(a)   

provide that an act is to be treated as done on behalf of a

prescribed person if it is done by any person connected with

that person, and

30

(b)   

define in what circumstances persons are to be treated for

that purpose as connected.

(5)   

The regulations may provide that they have effect (with any

necessary adaptations) in relation to omissions as well as to acts.

(6)   

Regulations under this section may be made—

35

(a)   

in relation to England, by the Secretary of State;

(b)   

in relation to Wales, by the Welsh Ministers.”.

      (2)  

In section 143 of that Act (orders and regulations), after subsection (4)

insert—

“(4ZA)   

The power to make regulations under section 66A shall be

40

exercisable by statutory instrument, and no such regulations shall be

made unless—

 

 

Rating (Empty Properties) Bill
Schedule 1 — Consequential amendments

6

 

(a)   

in the case of regulations relating to England, a draft of the

regulations has been laid before and approved by resolution

of each House of Parliament;

(b)   

in the case of regulations relating to Wales, a draft of the

regulations has been laid before and approved by resolution

5

of the National Assembly for Wales.”.

Interpretation etc

5          

In section 67(7) of that Act (interpretation etc: application of provisions in

relation to particular days), for “45(6)” substitute “45A(2) and (3)”.

Disapplication of time limit for making certain regulations

10

6          

Paragraph 4(6) of Schedule 8 to that Act (which provides that regulations

specifying the basis of calculation of authorities’ non-domestic rating

contributions must come into force no later than 31st December preceding

the financial year to which they relate) does not apply to regulations relating

to the year 2008-09.

15

Application of provisions to trustees of the National Heritage Memorial Fund

7          

In paragraph 2 of Schedule 1 to the National Heritage Act 1980 (c. 17), for

“45(6)” substitute “45A”.

Power to make further consequential amendments

8     (1)  

Provision may be made by order amending, repealing or revoking any

20

enactment to which this paragraph applies to such extent as appears

necessary or expedient in consequence of the provisions of this Act.

      (2)  

This paragraph applies to—

(a)   

any enactment passed or made before the passing of this Act, and

(b)   

any enactment passed or made before the end of the session in which

25

this Act is passed.

      (3)  

In this paragraph “enactment” includes an enactment contained in

subordinate legislation within the meaning of the Interpretation Act 1978

(c. 30).

      (4)  

Orders under this paragraph must be made by statutory instrument, and

30

may be made—

(a)   

in relation to England, by the Secretary of State;

(b)   

in relation to Wales, by the Welsh Ministers.

      (5)  

An order under this paragraph amending or repealing a provision of an Act

of Parliament must not be made—

35

(a)   

in the case of an order relating to England, unless a draft of the order

has been laid before and approved by resolution of each House of

Parliament;

(b)   

in the case of an order relating to Wales, unless a draft of the order

has been laid before and approved by resolution of the National

40

Assembly for Wales.

      (6)  

Any other order under this paragraph—

 

 

Rating (Empty Properties) Bill
Schedule 2 — Repeals

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(a)   

in the case of an order relating to England, is subject to annulment in

pursuance of a resolution of either House of Parliament;

(b)   

in the case of an order relating to Wales, is subject to annulment in

pursuance of a resolution of the National Assembly for Wales.

Schedule 2

5

Section 2(2)

 

Repeals

 

Short title and chapter

Extent of repeal

 
 

Local Government Finance Act

Section 45(5) and (6)

 
 

1988 (c. 41)

Section 48(2) and (2A)

 
 

Local Government Act 2003

Section 64(2) and (4).

 

10

 

(c. 26)

  
 

 

 
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