Reduction of rates in respect of certain qualifying hereditaments3

1

Subject to paragraph (2), regulation 5 and the condition in regulation 6, the amount which, apart from these Regulations, would be payable for a qualifying year on account of a rate in respect of the net annual value of a qualifying hereditament shall be reduced by—

a

50% if the net annual value of the hereditament does not exceed £2,000;

b

25% if the net annual value of the hereditament exceeds £2,000 but does not exceed £5,000;

c

20% if the net annual value of the hereditament exceeds £5,000 but does not exceed £10,000.

2

Subject to paragraph (3), paragraph (1) shall not apply where—

a

a person occupying a qualifying hereditament occupies; or

b

a person occupying a qualifying hereditament and persons connected with that person occupy (whether jointly or severally),

more than three hereditaments which are, or would fall to be, shown in the NAV list.

3

Where each hereditament within a group of hereditaments is contiguous with another hereditament in the group and the hereditaments in the group—

a

have a combined net annual value not exceeding £10,000; and

b

are occupied by the same person,

the group of hereditaments shall be treated as a single hereditament for the purposes of determining, for the purposes of paragraph (2), the number of hereditaments which are occupied by a person or by a person and persons connected with that person.

4

For the purposes of paragraph (2)—

a

a person who is a partner in a partnership is connected with any partner in the partnership;

b

a person (“A”) and a company are connected if A has control of the company; and

c

a company and another company are connected if the same person has control of both companies.

5

Without prejudice to paragraph (4), a person (“B”) is connected with another person (“C”) for the purposes of paragraph (2) if—

a

B occupies a hereditament on behalf of C; or

b

B and C occupy different hereditaments on behalf of a third person.

6

In this regulation—

• “company” includes any body corporate or an unincorporated association but does not include a partnership; and

• “control” is to be read in accordance with sections 450 and 451 of the Corporation Tax Act 20103.