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Local Government Bill
Part 5 — Non-domestic rates

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 61    Interpretation of Part 4

     (1)    In this Part—

                    “BID arrangements” and “BID levy” have the meaning given by section

43;

                    “billing authority” means—

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                  (a)                 in relation to England, a district council, a unitary county

council, a London borough council, the Common Council of the

City of London or the Council of the Isles of Scilly; and

                  (b)                 in relation to Wales, a county council or county borough

council;

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                    “business improvement district” has the meaning given by section 43;

                    “enactment” includes an enactment contained in a local or private Act or

comprised in subordinate legislation (within the meaning of the

Interpretation Act 1978 (c. 30));

                    “non-domestic ratepayer”, in relation to any area, means a person subject

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to a non-domestic rate under section 43 or 45 of the Local Government

Finance Act 1988 (c. 41) (liability to non-domestic rates) because he is

the owner or occupier of a hereditament situated in that area;

                    “prescribed” means prescribed by regulations made by the Secretary of

State;

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                    “unitary county council” means a county council that is the council for a

county in which there are no district councils.

     (2)    Other expressions which are used in this Part and in Part 3 of the Local

Government Finance Act 1988 (non-domestic rates) have the same meaning in

this Part as they have in that Part.

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Part 5

Non-domestic rates

 62    Submission of proposed rating lists

     (1)    In section 41(5) of the 1988 Act (proposed local non-domestic rating list to be

sent to billing authority not later than 31 December preceding compilation

30

date) for “31 December” there is substituted “30 September”.

     (2)    In section 52(5) of that Act (proposed central non-domestic rating list to be sent

to Secretary of State not later than 31 December preceding compilation date)

for “31 December” there is substituted “30 September”.

 63    Small business relief

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     (1)    Section 43 of the 1988 Act (occupied hereditaments: liability) is amended as

follows.

     (2)    In subsection (4) (which, subject to subsections (5) and (6A), shows how the

chargeable amount for a chargeable day is to be calculated) after “subsections”

there is inserted “(4A),”.

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     (3)    After subsection (4) there is inserted—

           “(4A)              Where subsection (4B) below applies, the chargeable amount for a

chargeable day shall be calculated—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    26

 

                  (a)                  in relation to England, in accordance with the formula—equation: over[times[char[A],char[x],char[D]],times[char[C],char[x],char[E]]]

                  (b)                  in relation to Wales, in accordance with the formula—equation: over[times[char[A],char[x],char[B]],times[char[C],char[x],char[E]]]

           (4B)              This subsection applies—

                  (a)                 in relation to England, where—

                        (i)                        the rateable value of the hereditament shown in the local

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non-domestic rating list for the first day of the

chargeable financial year is not more than any amount

prescribed by the Secretary of State by order,

                        (ii)                       on the day concerned any conditions prescribed by the

Secretary of State by order are satisfied, and

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                        (iii)                      the ratepayer has made an application for the purposes

of this subsection to the billing authority concerned by

such date as may be prescribed by the Secretary of State

by order,

                  (b)                 in relation to Wales, where—

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                        (i)                        the rateable value of the hereditament shown in the local

non-domestic rating list for the first day of the

chargeable financial year is not more than any amount

prescribed by the National Assembly for Wales by

order, and

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                        (ii)                       on the day concerned any conditions prescribed by the

National Assembly for Wales by order are satisfied.

           (4C)              An application under subsection (4B)(a)(iii) above shall be made in

such form, and contain such information, as may be prescribed by the

Secretary of State by order.

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           (4D)              If the ratepayer—

                  (a)                 makes a statement in an application under subsection

(4B)(a)(iii) above which he knows to be false in a material

particular, or

                  (b)                 recklessly makes a statement in such an application which is

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false in a material particular,

                         he shall be liable on summary conviction to imprisonment for a term

not exceeding 3 months or to a fine not exceeding level 3 on the

standard scale or to both.”

     (4)    For subsection (8A) there is substituted—

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           “(8A)              In relation to any hereditament in respect of which both subsections

(4A) and (6A) above (but not subsection (5) above) have effect on the

day concerned, the chargeable amount—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    27

 

                  (a)                 in relation to England, shall be calculated in accordance with

subsection (6A) above,

                  (b)                 in relation to Wales, shall be calculated in accordance with

whichever of subsections (4A) and (6A) above produces the

smaller amount.

5

           (8B)              In relation to any hereditament in respect of which—

                  (a)                 subsections (4A), (5) and (6A) above each have effect on the day

concerned,

                  (b)                 subsections (4A) and (5) above both have effect on that day, or

                  (c)                 subsections (5) and (6A) above both have effect on that day,

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                         the chargeable amount shall be calculated in accordance with

subsection (5) above.”

     (5)    In section 44 of the 1988 Act (occupied hereditaments: supplementary) after

subsection (6) there is inserted—

           “(7)              Subject to subsection (8) below, D is the small business non-domestic

15

rating multiplier for the financial year.

           (8)              Where the billing authority is a special authority, D is the authority’s

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

           (9)              E is such amount as may be prescribed—

                  (a)                 in relation to England, by the Secretary of State by order,

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                  (b)                 in relation to Wales, by the National Assembly for Wales by

order.”

     (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

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subsection (3) below,”.

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

           “(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

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hereditament.”

 64    Calculation of non-domestic rating multiplier

     (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

35

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

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

     (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

40

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.

 

 

Local Government Bill
Part 5 — Non-domestic rates

    28

 

                       (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

differ from the actual total.

5

                       (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

chargeable financial year beginning before 2006.

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        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.

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

15

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—

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

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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

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

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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.

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

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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]]

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

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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.

 

 

Local Government Bill
Part 5 — Non-domestic rates

    29

 

                       (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 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.”

5

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

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

10

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]]]

        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.

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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 4 above to reflect the Secretary

of State’s estimate of the difference between—

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                           (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.

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        4B                In relation to Wales, the 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],

char[pprime]]]

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

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

substituted—

 

 

 
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