Business Rate Supplements Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Business Rate Supplements Bill

Business Rate Supplements Bill
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(a)
which falls within the financial year and the chargeable period of the
BRS, and
(b)
on which the rateable value condition is met in relation to the
hereditament.
(6)
The chargeable period of a BRS—
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(a)
is the period for which the BRS is imposed, and
(b)
must not begin before the day on which the BRS is imposed.
(7)
The length of the chargeable period of a BRS must not exceed—
(a)
the length of the period specified as the chargeable period in the final
prospectus, or
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(b)
if the length of the chargeable period is varied in accordance with
section 10, the length of the period as varied.
(8)
A reference to a BRS imposed for a financial year is to a BRS the chargeable
period of which is or includes the whole or part of the financial year in
question.
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(9)
Subsection (3)(b) does not apply if, by virtue of section 10, section 45 ratepayers
become subject to the BRS.
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Rateable value condition
(1)
The rateable value condition is (unless subsection (2) applies) met in relation to
a hereditament on any day on which the rateable value of the hereditament
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exceeds the amount prescribed by regulations.
(2)
This subsection applies if—
(a)
part only of a hereditament is occupied, and
(b)
section 45 ratepayers are not subject to the BRS.
(3)
If subsection (2) applies, the rateable value condition is met in relation to the
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hereditament on any day on which the rateable value of the occupied part
exceeds the amount prescribed under subsection (1).
(4)
For the purposes of a case where subsection (2) applies, the levying authority
may require the valuation officer for the authority (or, where it is not a billing
authority, for the billing authority in whose area the hereditament is
30
situated)—
(a)
to apportion the rateable value of the hereditament between the
occupied and unoccupied parts, and
(b)
to certify the apportionment to the levying authority.
(5)
The levying authority may, for those purposes, rely on an apportionment
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under section 44A of the 1988 Act if satisfied that the apportionment will be
accurate for those purposes.
(6)
Regulations may make provision—
(a)
for the proposal of alterations to a certificate under subsection (4);
(b)
for an appeal in relation to a certficate under that subsection to a
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valuation tribunal for the purposes of section 55 of the 1988 Act.
(7)
Regulations under subsection (6)—

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(a)
may include such provision for the purposes of this Act as may be
included in regulations under subsections (3) to (7) of that section for
the purposes of that Act;
(b)
may amend, or apply (with or without modifications), any provision of
regulations made under any of those subsections.
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(8)
Accordingly, provision by virtue of subsection (6) as to the period for which or
day from which an alteration to a certificate is to have effect may have
retrospective effect; and provision by virtue of that subsection may require the
retrospective effect to be indicated on the certificate as altered.
(9)
The rateable value of a hereditament on a day is the rateable value of that
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hereditament shown for that day in the local non-domestic rating list
maintained for the billing authority in whose area the hereditament is situated.
(10)
In section 1 of the Non-Domestic Rating (Information) Act 1996 (c. 13)
(disclosure of information), in subsection (2), in paragraph (a) of the definition
of “statutory functions”, after “1988” insert “or the function under section 12(4)
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of the Business Rate Supplements Act 2009”.
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Chargeable amount
(1)
This section applies for determining the chargeable amount for a chargeable
day in relation to a hereditament.
(2)
The amount is (subject to subsections (3) to (8)) calculated by using the
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formula—
(3)
If section 43(4B) of the 1988 Act (small businesses) applies, the amount is
calculated by using the formula—
(4)
If section 43(6) of the 1988 Act (charities and community amateur sports clubs)
applies, the amount is calculated by using the formula—
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(5)
If section 43(6B) of the 1988 Act (rural shops etc.) applies, the amount is
calculated by using the formula—
(6)
If section 45(4A) of the 1988 Act (empty properties) applies, the amount is
calculated by using the formula—
(7)
If section 47 or 49 of the 1988 Act (discretionary or hardship relief) applies, the
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amount is found by—
(a)
working out the percentage by which the amount that would be due
under that Act but for that section is reduced as a result of that section,
and
(b)
reducing what the chargeable amount would be but for this subsection
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by that percentage.
(8)
But in the case of a remittance under section 49 of that Act, the amount is zero.
(9)
A reference to a case where section 43(4B), (6) or (6B) or 45(4A) applies includes
a reference to a case where it would apply but for section 57A(3) of the 1988 Act
(transitional relief).
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(10)
This section is subject to sections 15 and 16.
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Chargeable amount: supplementary
(1)
This section applies for the purposes of section 13.
(2)
“A” is—
(a)
the rateable value of the hereditament on the chargeable day, or
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(b)
if section 12(2) applies, the rateable value of the occupied part of the
hereditament on that day.
(3)
“B” is the multiplier for the BRS for the financial year (expressed to no more
than three decimal places).
(4)
“C” is the number of days in the financial year.
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(5)
“E” has the meaning that it has for the purposes section 43 of the 1988 Act; and
“N” has the meaning that it has for the purposes of section 45 of that Act.
(6)
If a levying authority imposes only one BRS for a financial year, the multiplier
for that BRS for that year must not exceed 0.02.
(7)
If a levying authority imposes more than one BRS for a financial year, the total
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of the multipliers for those BRSs for that year must not exceed 0.02.

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(8)
Subject to subsections (6) and (7), the multiplier for a BRS for a financial year
must not exceed—
(a)
the amount specified as the multiplier in the final prospectus, or
(b)
if the specified amount is varied in accordance with section 10, the
amount as varied.
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(9)
If section 45 ratepayers are subject to the BRS, subsection (10) applies in a case
where—
(a)
part only of a hereditament is occupied, and
(b)
an order under section 45(4A) of the 1988 Act is in force (and would
apply to the hereditament if none of it were occupied).
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(10)
Section 13 has effect as if for subsection (2) of this section there were
substituted—
“(2)
“A” is the sum of—
(a)
the rateable value of the occupied part of the hereditament on
the chargeable day, and
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(b)
the rateable value of the unoccupied part on that day, divided
by the number prescribed as “N” by the order.”
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BRS relief
(1)
A levying authority that imposes a BRS may apply such reliefs in relation to the
BRS as it thinks appropriate.
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(2)
If a levying authority applies a relief in relation to a BRS, the chargeable
amount for a chargeable day in relation to a hereditament is determined in
accordance with the rules set by the authority for the application of the relief.
(3)
A levying authority may not apply a relief in relation to a BRS unless the rules
for the application of the relief—
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(a)
are set out in the final prospectus for the BRS or have effect by virtue of
section 10,
(b)
operate by reference to the rateable value of a hereditament in respect
of which the liability arises,
(c)
apply consistently to hereditaments in the levying authority’s area
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regardless of the purpose for which they may be used or the basis on
which they are owned or occupied, and
(d)
apply uniformly throughout the levying authority’s area.
(4)
Regulations may amend subsection (3) so as to add, vary or omit a condition to
be met in relation to the rules for the application of a relief under this section.
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Interaction with BID levy
(1)
A levying authority must set rules for the purposes of cases where a person is,
by reference to a hereditament, liable for BID levy for the whole or part of a
financial year in respect of which the person is, in relation to that hereditament,
subject to a BRS imposed by the authority.
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(2)
The chargeable amount in relation to the hereditament for a chargeable day for
which the person is also liable for BID levy by reference to the hereditament is
the amount found by offsetting A against B to the extent specified in the rules.
(3)
For the purposes of subsection (2)—

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“A” is the amount of the person’s liability for BID levy for the day, and
“B” is the amount that the person would (apart from this section) be liable
to pay in respect of the BRS for that day.
(4)
Rules set for the purposes of cases within subsection (1) must—
(a)
accord with such rules as are set out for those purposes in the final
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prospectus for the BRS or as have effect for those purposes by virtue of
section 10,
(b)
apply consistently in relation to BID levies, and
(c)
apply uniformly throughout the levying authority’s area.
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Regulations to deal with joint ownership, joint occupation or death
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(1)
Regulations may make provision for cases where a hereditament is owned or
occupied by more than one person at a particular time.
(2)
Regulations under subsection (1)—
(a)
may include such provision for the purposes of this Act as may be
included in regulations under section 50 of the 1988 Act (cases of joint
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ownership or occupation) for the purposes of that Act;
(b)
may amend, or apply (with or without modifications), a provision of
regulations made under that section.
(3)
Regulations may make provision for cases where a person who has died was
(or is alleged to have been) subject to a BRS.
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(4)
Regulations under subsection (3)—
(a)
may include such provision for the purposes of this Act as may be
included in regulations under section 63 of the 1988 Act (cases of death)
for the purposes of that Act;
(b)
may amend, or apply (with or without modifications), any provision of
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regulations made under that section.
Administration of business rate supplements
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Notice to billing authorities before start of financial year
(1)
A levying authority which is not a billing authority must, for each financial
year for which it intends to impose a BRS, give a written notice relating to the
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BRS to each billing authority which is a lower-tier authority in relation to it.
(2)
The notice must—
(a)
if the BRS is to be imposed for part only of the year, specify the part of
the year for which it is to be imposed,
(b)
specify the multiplier for the BRS for the year,
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(c)
state whether persons who, as regards hereditaments in the billing
authority’s area, are section 45 ratepayers are to be subject to the BRS,
(d)
specify whether a relief under section 15 is to be applied in relation to
the BRS (and, if so, set out the rules for its application), and
(e)
set out the rules for cases within section 16(1).
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(3)
The notice must be given before 1 March in the financial year preceding that
for which the levying authority intends to impose the BRS.

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(4)
Where more than one BRS is to be imposed by the levying authority for the
year, the notice—
(a)
may relate to some or all of the BRSs in question, but
(b)
if it does so, must set out the information required under subsection (2)
separately for each BRS to which the notice relates.
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Notice to billing authorities during financial year
(1)
This section applies if a levying authority which is not a billing authority—
(a)
intends to impose a BRS for a financial year, but
(b)
has not, for that year, given a notice under section 18 in relation to the
BRS.
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(2)
This section also applies if a levying authority—
(a)
varies a BRS in accordance with section 10, and
(b)
thinks that, as a result of the variation, new calculations are required to
find the chargeable amounts that some or all of those subject to the BRS
are liable to pay.
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(3)
The levying authority must give a written notice relating to the BRS to each
billing authority which is a lower-tier authority in relation to it.
(4)
A notice given for the purposes of a case within subsection (1) must comply
with section 18(2).
(5)
A notice given for the purposes of a case within subsection (2) must specify—
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(a)
the variation, and
(b)
the day specified for the purposes of subsection (3)(c) of section 10 in
the document published for the purposes of subsection (2)(d) of that
section.
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Calculations for financial year
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(1)
A billing authority which is a levying authority must calculate the chargeable
amount which each person who is to be subject to a BRS imposed by it for a
financial year is to be liable to pay in respect of that year.
(2)
Subsection (3) applies if a billing authority which is a lower-tier authority in
relation to a levying authority receives a notice from the levying authority
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under section 18 or 19.
(3)
The billing authority must calculate the chargeable amount that each person
who is to be subject to the BRS to which the notice relates is to be liable to pay
in respect of the financial year.
(4)
If a billing authority receives a notice given for the purposes of a case within
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subsection (2) of section 19, the duty imposed on the authority by subsection
(3) of this section applies only in so far as new calculations are required to be
made as a result of the variation specified in the notice.
(5)
A calculation under this section must be made in accordance with section 11(4).
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Collection and enforcement
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(1)
Regulations may make provision in relation to the collection and recovery of
sums due under this Act.

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(2)
Regulations under this section—
(a)
may include such provision for the purposes of this Act as may be
included in regulations under paragraphs 1 to 4A of Schedule 9 to the
1988 Act (collection and recovery of non-domestic-rates) for the
purposes of that Act;
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(b)
may amend, or apply (with or without modifications), any provision of
regulations made under any of those paragraphs;
(c)
may confer on a billing authority for the purposes of this Act a power
corresponding to that conferred on a billing authority by section 62A of
the 1988 Act (taking control of goods) for the purposes of that Act.
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(3)
After the imposition of a BRS has come to an end, a billing authority may seek
to collect or recover sums in respect of the BRS in so far as the sums became
payable to it before the imposition of the BRS came to an end.
(4)
Regulations under this section may provide that, if the project to which a BRS
relates is abandoned (or, where a BRS relates to only certain aspects of a project,
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those aspects are abandoned), the imposition of the BRS is to be treated for the
purposes of subsection (3) as having come to an end—
(a)
at the time of the abandonment, or
(b)
at such other time as may be prescribed.
(5)
In section 11 of the State Immunity Act 1978 (c. 33) (no immunity from
20
proceedings relating to liability to value added tax, rates, etc.), the reference to
liability for rates includes a reference to liability for BRSs.
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Administrative expenses
(1)
Regulations under section 21 may authorise a billing authority to use a
prescribed proportion of such sums as it collects or recovers in respect of a BRS
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to meet expenses it incurs in the collection or recovery (“administrative
expenses”).
(2)
Provision by virtue of subsection (1) may, in particular, amend section 90 of the
1988 Act (payments to and from collection funds).
(3)
If the chargeable period of a BRS begins, or a variation of a BRS takes effect,
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later than the first day of a financial year, the levying authority may not, in
respect of that financial year, act in reliance on provision made by virtue of
subsection (1).
(4)
In so far as a billing authority which is not a levying authority incurs
administrative expenses in response to a notice given by the levying authority
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under section 19, those expenses must be met by the levying authority.
(5)
But the levying authority may not meet those expenses by—
(a)
using sums that it receives in respect of the BRS, or
(b)
directing the billing authority to retain from sums it is required to
transfer to the levying authority in respect of the BRS a sum equivalent
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to the amount that the levying authority is required to pay.
(6)
The amount that a levying authority is required to pay under subsection (4)
must not exceed such amount as may be prescribed by regulations under
section 21 (or as is to be determined in accordance with such formula as may
be prescribed by regulations under that section).
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