Rating (Empty Properties) Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

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:—
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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—

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

Bill 102 54/2

Rating (Empty Properties) Bill
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(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
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(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
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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),
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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
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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
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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.”.
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Consequential provisions
(1)
Schedule 1 provides for consequential amendments.
(2)
The enactments specified in Schedule 2 are repealed.
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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
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(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
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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.
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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
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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—
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“(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
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(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—
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“(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—
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“(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.
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Rating (Empty Properties) Bill
Schedule 1 — Consequential amendments
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      (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.”.
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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
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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
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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.
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(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
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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
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(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—
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(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
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exercisable by statutory instrument, and no such regulations shall be
made unless—

Rating (Empty Properties) Bill
Schedule 1 — Consequential amendments
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(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
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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.
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Application of provisions to trustees of the National Heritage Memorial Fund
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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
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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
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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—
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(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
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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).

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(c. 26)