Local Government Finance Act 1988

Section 45

[F1SCHEDULE 4ZBE+WUnoccupied hereditaments: chargeable amount

Textual Amendments

F1Sch. 4ZB inserted (1.4.2024 with effect in relation to financial years beginning on or after that date) by Non-Domestic Rating Act 2023 (c. 53), ss. 2(4), 19(2)(a)

PART 1E+WChargeable amount before any reliefs

1(1)Subject to the following provisions of this Schedule, the chargeable amount for a chargeable day is to be calculated—E+W

(a)in relation to England, in accordance with the formula—

A multiplied by M over C

(b)in relation to Wales, in accordance with the formula—

A multiplied by B over C

(2)But—

(a)the Secretary of State may by regulations provide that sub-paragraph (1)(a) has effect as if the following formula were substituted—

A multiplied by M over C multiplied by N

(b)the Welsh Ministers may by regulations provide that sub-paragraph (1)(b) has effect as if the following formula were substituted—

A multiplied by B over C multiplied by N

PART 2E+WFull relief

Charitable rate reliefE+W

2(1)Where this paragraph applies, the chargeable amount for a chargeable day is zero.

(2)This paragraph applies where, on the day concerned—

(a)the ratepayer is a charity or trustees for a charity and it appears that when next in use the hereditament will be wholly or mainly used for charitable purposes (whether of that charity or of that and other charities), or

(b)the ratepayer is a registered club for the purposes of Chapter 9 of Part 13 of the Corporation Tax Act 2010 (community amateur sports clubs) and it appears that when next in use—

(i)the hereditament will be wholly or mainly used for the purposes of that club and that club will be such a registered club, or

(ii)the hereditament will be wholly or mainly used for the purposes of two or more clubs including that club, and each of those clubs will be such a registered club.

[F2PART 2AE+WPOWERS TO CONFER, VARY AND WITHDRAW RELIEFS: WALES

Textual Amendments

Power to confer partial reliefs: WalesE+W

2A(1)Where this paragraph applies in relation to a hereditament, the chargeable amount for a chargeable day is to be calculated in accordance with the formula—

(2)This paragraph applies in relation to a hereditament where—

(a)the hereditament is situated in Wales, and

(b)on the day concerned, in relation to the hereditament—

(i)conditions prescribed by the Welsh Ministers in regulations are satisfied, and

(ii)F is an amount that is greater than 0 but less than the sum of—

(3)Regulations under sub-paragraph (2)(b)(i) may—

(a)prescribe more than one condition or set of conditions that may be satisfied such that this paragraph applies;

(b)make provision about the application of more than one condition or set of conditions in relation to a hereditament.

Power to confer additional full reliefsE+W

2B(1)Where this paragraph applies in relation to a hereditament, the chargeable amount for a chargeable day is zero.

(2)This paragraph applies where the hereditament is situated in Wales and where, on the day concerned, conditions prescribed by the Welsh Ministers in regulations are satisfied.

(3)Regulations under sub-paragraph (2) may prescribe more than one condition or set of conditions that may be satisfied such that this paragraph applies.

Power to vary or withdraw reliefsE+W

2CThe Welsh Ministers may by regulations amend or repeal any provision in Part 2 of this Schedule for the purpose of varying or withdrawing, in relation to a hereditament in Wales, a relief set out in that Part.

PART 2BE+WCASES WHERE MORE THAN ONE RELIEF APPLIES: WALES

2D(1)In relation to a hereditament in respect of which paragraph 2 and any of paragraphs 2A or 2B apply, the chargeable amount for a chargeable day is to be calculated in accordance with paragraph 2.E+W

(2)But if paragraph 2 does not apply in relation to a hereditament in respect of which paragraphs 2A and 2B apply, the chargeable amount for a chargeable day is to be calculated in accordance with paragraph 2B.

2EE+WThe Welsh Ministers may by regulations amend paragraph 2D for the purpose of providing for the calculation of the chargeable amount in relation to any hereditament in Wales in respect of which more than one paragraph in Parts 2 and 2A of this Schedule apply.]

PART 3E+WInterpretation

3(1)This paragraph applies for the purposes of this Schedule.E+W

(2)“A” is the rateable value shown for the day under section 42(4) as regards the hereditament.

(3)“B” is—

(a)in a case where the billing authority is a special authority, the authority’s non-domestic rating multiplier for the financial year;

(b)in any other case, the non-domestic rating multiplier for the financial year.

(4)“C” is the number of days in the financial year.

(5)“D” is—

(a)in a case where the billing authority is a special authority, the authority’s small business non-domestic rating multiplier for the financial year;

(b)in any other case, the small business non-domestic rating multiplier for the financial year.

[F3(5A)“F” is an amount prescribed, or calculated in accordance with provision prescribed, by the Welsh Ministers in regulations.

(5B)Regulations under sub-paragraph (5A) may prescribe different amounts, or make different provision for calculating an amount, in relation to different conditions or sets of conditions prescribed by the Welsh Ministers in regulations under paragraph 2A(2)(b)(i).]

(6)“M” is—

(a)whichever of B or D is prescribed for the purposes of the provision in question by the Treasury in regulations, or

(b)for the purposes of a provision where there is no such prescription, B.

(7)Regulations under sub-paragraph (6) may prescribe different multipliers for a given provision by reference to (among other things)—

(a)the value of A (on the first day of a chargeable financial year or for a chargeable day) in relation to hereditaments;

(b)the location of hereditaments;

(c)the local non-domestic rating list in which hereditaments are shown;

(d)the use of hereditaments;

(e)the physical characteristics of hereditaments;

(f)ratepayers in respect of hereditaments falling within prescribed descriptions.

(8)Sub-paragraph (7) does not restrict what may otherwise be done under section 143(1).

(9)“N” is a number (greater than one but not greater than two) prescribed by the appropriate national authority in regulations.]

Textual Amendments

F3Sch. 4ZB para. 3(5A)(5B) inserted (16.11.2024) by Local Government Finance (Wales) Act 2024 (asc 6), ss. 5(3)(b), 23(2)(b)

F44E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments