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Local Government Bill
Part 5 — Non-domestic rates

    31

 

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;

5

                    (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—

                    (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;

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

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

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

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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

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—

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

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

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.

30

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

the non-domestic rating 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 multiplier as so calculated.

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

35

contain details of any estimates or adjustments that have been

made.”

     (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

40

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

under paragraph 5(6) and (7) above.”

     (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

45

 

 

Local Government Bill
Part 5 — Non-domestic rates

    32

 

inserted—

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

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—

5

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

the year under paragraph 9 above,

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

year determined in accordance with Part 1 of this Schedule,

and

10

                    (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

15

     (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

20

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,”.

25

 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

30

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

35

section 43, 45 or 54 above, and

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

           (3)           The provisions are that—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    33

 

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

with prescribed rules, and

                  (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.

5

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

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

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

10

factors as the Secretary of State thinks fit.

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

section relating to a relevant period may contain different provisions

for different relevant financial years.

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

15

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-

domestic rating list.

20

           (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

relation to the ascertainment of rateable values;

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                  (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

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

30

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

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

35

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

subsection.

40

           (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

actual aggregate amounts differ from his estimate of those amounts.

45

           (13)          For the purposes of this section—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    34

 

                  (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;

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

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

5

     (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”.

 67    Rating of meters

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

10

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

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

as—

15

                        (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.”

20

     (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

25

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.”

30

 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

35

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

40

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

control of the body.”

 

 

Local Government Bill
Part 5 — Non-domestic rates

    35

 

     (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

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

occupiers of the building or buildings mentioned in sub-

5

paragraph (2)(a) above, and

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

control of the body.”

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

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

10

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

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

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

15

 70    Removal of power to prescribe rateable values

Paragraph 3 of Schedule 6 to the 1988 Act (power of Secretary of State by order

to prescribe rateable values) ceases to have effect.

 71    Local retention of rates

     (1)    In Schedule 8 to the 1988 Act (non-domestic rating: pooling), in paragraph 4

20

(rules for calculating authorities’ non-domestic rating contributions), before

sub-paragraph (5) there is inserted—

                       “(4A)                                                The rules may include provision for such deductions as the maker of

the rules thinks fit for the purpose of enabling an authority to retain

part, or all, of so much of the total payable to it in respect of the year

25

under sections 43 and 45 above as exceeds an amount determined for

the authority by or under the rules.

                       (4B)                Sub-paragraph (4A) above shall not apply in the case of a special

authority.

                       (4C)                Sub-paragraph (2) above shall have effect subject to sub-paragraph

30

(4A) above.

                       (4D)                The consent of the Treasury is required to the inclusion in

regulations under this paragraph of provision under sub-paragraph

(4A) above relating to England.”

     (2)    In paragraph 5(6) of that Schedule (contribution to be calculated after end of

35

year and certified by Audit Commission)—

           (a)           before the word “and” at the end of paragraph (b) there is inserted—

                    “(ba)                      if it is an authority in England notify to the Secretary of State,

and if it is an authority in Wales notify to the National

Assembly for Wales, the amount of any deduction that in

40

accordance with provision under paragraph 4(4A) above is

made in calculating the amount mentioned in paragraph (a)

above,” and

 

 

Local Government Bill
Part 5 — Non-domestic rates

    36

 

           (b)           in paragraph (c), for “and the amount” there is substituted “, and the

amount or amounts notifiable under paragraphs (b) and (ba) above,”.

     (3)    In paragraph 5(6A) of that Schedule (Audit Commission to send copy of

certification to Secretary of State or National Assembly for Wales), after “the

amount” there is inserted “or amounts”.

5

     (4)    In section 99 of the 1988 Act (regulations about English billing authorities’

collection and general funds), after subsection (3) there is inserted—

           “(3A)              The Secretary of State may by regulations make provision—

                  (a)                 for the sharing among a billing authority and major precepting

authorities, in accordance with prescribed rules, of an amount

10

equal to all or part of any deduction that, in accordance with

provision under paragraph 4(4A) of Schedule 8 below, falls to

be made in calculating the billing authority’s non-domestic

rating contribution for a financial year;

                  (b)                 for requiring a billing authority to inform, within a prescribed

15

period, any major precepting authorities of any amount that

falls to be shared under provision under paragraph (a) above

and of the effect of the rules governing its sharing;

                  (c)                 as to the manner in which any payments which fall to be made

by a billing authority by virtue of any provision under

20

paragraph (a) above must be made;

                  (d)                 as to the period within which, or time or times at which, any

such payments or instalments of such payments must be made;

and

                  (e)                 as to the recovery (by deduction or otherwise) of any excess

25

amount paid by a billing authority in purported discharge of

any liability arising by virtue of any provision under paragraph

(a) above.

           (3B)              The rules that may be prescribed under paragraph (a) of subsection (3)

above include (in particular) rules that require a billing authority, when

30

making an estimate under that paragraph, to disregard amounts that

fall to be shared under provision under subsection (3A)(a) above.”

     (5)    In section 97 of the 1988 Act (English billing authorities: principal transfers

between funds), after subsection (4) there is inserted—

           “(4A)              Where in accordance with regulations under section 99(3A) below a

35

billing authority is required to share any amount, it shall transfer from

its collection fund to its general fund so much of that amount as, in

accordance with the regulations, it calculates to be its share.”

     (6)    In section 99(1)(b) of the 1988 Act (regulations about liabilities of English

billing authority under section 97(1) or (3) to transfer sums from its collection

40

fund), for “or (3)” there is substituted “, (3) or (4A)”.

     (7)    In section 38 of the Local Government (Wales) Act 1994 (c. 19) (council funds

for principal councils in Wales), after subsection (9) there is inserted—

           “(9A)              The National Assembly for Wales may by regulations make provision

for the sharing among a new principal council and major precepting

45

authorities, in accordance with rules specified in the regulations, of an

amount equal to all or part of any deduction that, in accordance with

provision under paragraph 4(4A) of Schedule 8 to the Local

 

 

Local Government Bill
Part 5 — Non-domestic rates

    37

 

Government Finance Act 1988 (local retention of rates), falls to be made

in calculating the council’s non-domestic rating contribution for a

financial year.”

     (8)    In subsection (10) of that section (provision that may be included in regulations

under subsection (9))—

5

           (a)           for “The regulations” there is substituted “Regulations under

subsection (9) or (9A)”, and

           (b)           in each of paragraphs (d) and (e), after “the liability mentioned in

subsection (9)” there is inserted “or any liability arising under

subsection (9A)”.

10

     (9)                  In that section, after subsection (11) there is inserted—

           “(12)              In subsection (9A) “major precepting authority” has the meaning given

by section 39(1) of the Local Government Finance Act 1992.”

 72    Adjustments for hardship relief

     (1)    Schedule 8 to the 1988 Act (non-domestic rating: pooling) is amended as

15

follows.

     (2)    In paragraph 4 (non-domestic rating contributions) after sub-paragraph (6)

there is inserted—

                       “(7)                Sub-paragraph (6) above does not apply to regulations made only for

the purpose of amending the rules to increase deductions as regards

20

the operation of section 49 above for the whole or part of the financial

year.”

     (3)    In paragraph 6 (calculation of non-domestic rating contributions) after sub-

paragraph (6) there is inserted—

                       “(6A)                Regulations made for the purpose mentioned in paragraph 4(7)

25

above may include provision—

                    (a)                   for or in connection with the recalculation of the provisional

amount for the financial year concerned, including provision

for the procedure to be adopted for recalculation, and

                    (b)                   as to financial adjustments to be made, including provision

30

for the making of reduced payments under paragraph 5

above or of repayments.”

     (4)    In sub-paragraph (7) of that paragraph (which defines relevant provisions)

after paragraph (a) there is inserted—

                    “(aa)                      regulations made for the purpose mentioned in paragraph

35

4(7) above,”.

 73    Provision of information

     (1)    Schedule 9 to the 1988 Act (non-domestic rating: administration) is amended

as follows.

     (2)    In paragraph 5(2) (requested information to be supplied within period of 21

40

days) there are omitted—

           (a)           the words “if it is in his possession or control, and he shall do so”, and

           (b)           the words “and within the period of 21 days beginning with the day on

which the notice is served”.

 

 

 
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