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Local Government Bill


Local Government Bill
Part 5 — Non-domestic rates

    32

 

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,”.

5

 64    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

10

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

15

section 43, 45 or 54 above, and

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

           (3)           The provisions are that—

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

with prescribed rules, and

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                  (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.

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

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

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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

factors as the Secretary of State thinks fit.

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

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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

section may contain different provision in relation to locally listed

hereditaments whose rateable value exceeds, and those whose rateable

35

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.

           (8)           Without prejudice to section 143(1) and (2) below, regulations under

this section may include provision—

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                  (a)                 imposing duties and conferring powers on valuation officers

(whether as regards determinations, certificates or otherwise) in

relation to the ascertainment of rateable values;

                  (b)                 as to appeals relating to things done or not done by such

officers.

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Local Government Bill
Part 5 — Non-domestic rates

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           (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

prejudice to the power to amend or revoke.

           (10)          In making regulations under this section the Secretary of State shall

5

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

the aggregate amount which would be so payable apart from the

regulations.

10

           (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.

           (12)          Once the actual aggregate amounts for a particular financial year are

ascertained, the Secretary of State may amend regulations under this

15

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.

           (13)          For the purposes of this section—

                  (a)                 a relevant period is a period of five years beginning on 1 April

20

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.”

     (2)    In section 58 of the 1988 Act (special provision for 1995 onwards) in subsection

25

(1) (power to make regulations in relation to any relevant period) after

“section” there is inserted “which apply in relation to Wales”.

 65    Rating of meters

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

inserted—

30

           “(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—

                        (i)                        the Secretary of State in relation to England, or

35

                        (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.”

     (2)    In subsection (4)(e) of that section (which contains a reference to any right

40

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

Assembly in relation to Wales, may by regulations make provision as

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Local Government Bill
Part 5 — Non-domestic rates

    34

 

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.”

 66    Exemptions for agricultural buildings

5

     (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

with agricultural operations on the land) there is substituted—

10

                    “(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

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

15

control of the body.”

     (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

20

occupiers of the building or buildings mentioned in sub-

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—

25

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

section 416(2) to (6) of the Income and Corporation Taxes Act 1988.”

 67    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—

30

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

 68    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.

 69    Local retention of rates

35

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

(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

40

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

 

 

Local Government Bill
Part 5 — Non-domestic rates

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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

5

(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

10

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

15

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

made in calculating the amount mentioned in paragraph (a)

above,” and

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

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

20

     (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”.

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

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

25

           “(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

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

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

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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

period, any major precepting authorities of any amount that

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

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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

paragraph (a) above must be made;

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

40

such payments or instalments of such payments must be made;

and

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

amount paid by a billing authority in purported discharge of

any liability arising by virtue of any provision under paragraph

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(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

 

 

Local Government Bill
Part 5 — Non-domestic rates

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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

5

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

10

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

15

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

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

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

20

financial year.”

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

under subsection (9))—

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

subsection (9) or (9A)”, and

25

           (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)”.

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

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

30

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

 70    Adjustments for hardship relief

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

follows.

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

35

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

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

year.”

40

     (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)

above may include provision—

 

 

Local Government Bill
Part 5 — Non-domestic rates

    37

 

                    (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

for the making of reduced payments under paragraph 5

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

4(7) above,”.

10

 71    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

days) there are omitted—

15

           (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”.

     (3)    Paragraph 5(3) (offence of failing to supply information) is omitted.

     (4)    After paragraph 5 there is inserted—

20

        “5A               (1)                If a person on whom a notice is served under paragraph 5 above fails

to comply with paragraph 5(2) within the period of 56 days

beginning with the day on which the notice is served, he shall be

liable to a penalty of £100.

                       (2)                Where a person becomes liable to a penalty under sub-paragraph (1)

25

above, the valuation officer shall serve on him a notice (a “penalty

notice”) stating—

                    (a)                   that he has failed to comply with paragraph 5(2) above within

the period mentioned in sub-paragraph (1) above,

                    (b)                   that he is liable to a penalty of £100,

30

                    (c)                   the effect of sub-paragraphs (3) and (4) below, and

                    (d)                   that he has a right of appeal under paragraph 5C below.

                       (3)                If the person on whom a penalty notice is served fails to comply with

paragraph 5(2) within the period of 21 days beginning with the day

on which the notice is served, he shall be liable—

35

                    (a)                   to a further penalty of £100, and

                    (b)                   subject to sub-paragraph (4) below, to a further penalty of £20

for each day in respect of which the failure continues after the

end of that period.

                       (4)                The amount to which a person shall be liable under this paragraph in

40

respect of a failure to comply with a notice served under paragraph

5 above shall not exceed the greater of—

                    (a)                   the rateable value of the hereditament concerned for the day

on which the penalty notice is served, and

                    (b)                   £500.

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                       (5)                For the purposes of sub-paragraph (4)(a) above—

 

 

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Part 5 — Non-domestic rates

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                    (a)                   the hereditament concerned is the hereditament in respect of

which the notice under paragraph 5 above was served, and

                    (b)                   a list compiled under this Part shall be used to find the

rateable value of the hereditament for the day concerned.

        5B                A valuation officer may mitigate or remit any penalty imposed

5

under paragraph 5A above.

        5C               (1)                A person may appeal to a valuation tribunal if he is aggrieved by the

imposition on him of a penalty under paragraph 5A above.

                       (2)                An appeal under this paragraph must be made before the end of the

period of 28 days beginning with the day on which the penalty notice

10

is served.

                       (3)                An appeal under this paragraph shall not prevent liability to any

further penalty or penalties arising under paragraph 5A(3) above.

                       (4)                An appeal under this paragraph shall be treated as an appeal against

the penalty imposed under paragraph 5A(1) above and any further

15

penalty which may be imposed under paragraph 5A(3) above.

                       (5)                On an appeal under this paragraph the valuation tribunal may

mitigate or remit any penalty under paragraph 5A above if it is

satisfied on either or both of the grounds specified in sub-paragraph

(6) below.

20

                       (6)                 Those grounds are—

                    (a)                   that the appellant had a reasonable excuse for not complying

with paragraph 5(2) above, or

                    (b)                   that the information requested is not in the possession or

control of the appellant.

25

        5D               (1)                Subject to sub-paragraph (2) below, any penalty imposed under

paragraph 5A above may be recovered by the valuation officer

concerned as a civil debt due to him.

                       (2)                No claim to recover any such penalty may be made—

                    (a)                   before the end of the period mentioned in paragraph 5C(2)

30

above, or

                    (b)                   if an appeal is made under paragraph 5C above, before the

appeal is finally disposed of.

        5E                Any sums received by a valuation officer by way of penalty under

paragraph 5A above must be paid into the Consolidated Fund.

35

        5F               (1)                The Secretary of State in relation to England, and the National

Assembly of Wales in relation to Wales, may by regulations make

provision in relation to notices served under paragraphs 5 and 5A

above.

                       (2)                The provision that may be made by regulations under this paragraph

40

includes—

                    (a)                   provision enabling a valuation officer to request or obtain

information for the purpose of identifying the owner or

occupier of a hereditament;

                    (b)                   provision enabling a notice to be served on a person either by

45

name or by such description as may be prescribed.

        5G                The Secretary of State in relation to England, and the National

Assembly in relation to Wales, may by order amend paragraph 5A

 

 

 
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