Local Government Finance Act 1988 (c. 41)

SCHEDULES

[F1 SCHEDULE 4ZB E+W Unoccupied hereditaments: chargeable amount

Textual Amendments

F1 Sch. 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 2 E+W Full relief

Charitable rate relief E+W

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

(2) This paragraph applies [F2 in relation to England] 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.

[F3 (2A) But sub-paragraph (2) does not apply if it appears that when next in use the hereditament will be wholly or mainly used for the purposes of carrying on a private school.

(2B) A “private school” means the same as in paragraph 2 of Schedule 4ZA.]

[F4 (3) This paragraph applies in relation to Wales where—

(a) on the day concerned, the ratepayer is a charity or trustees for a charity,

(b) the billing authority is satisfied that—

(i) the hereditament is unoccupied on the day concerned for a reason related to the charitable purposes of the charity (or of that and other charities), and

(ii) when next in use the hereditament will be wholly or mainly used for the charitable purposes of the charity (or of that and other charities), and

(c) the trustees for the charity have provided the billing authority with a copy of—

(i) the charity’s most recent accounts as set out in sub-paragraph (4), and

(ii) if an annual report is required to be prepared under section 162(1) or 168(3) of the Charities Act 2011, the charity’s most recent report.

(4) The accounts of a charity referred to in sub-paragraph (3)(c)(i) are—

(a) in the case of a charitable company, its annual accounts prepared under Part 16 of the Companies Act 2006 in relation to which any of the following conditions is satisfied—

(i) they have been audited,

(ii) they have been examined by an independent examiner under section 145(1)(a) of the Charities Act 2011, or

(iii) they relate to a year in respect of which the company is exempt from audit under Part 16 of the Companies Act 2006 and neither section 144(2) nor section 145(1) of the Charities Act 2011 applies;

(b) in the case of an exempt charity, the accounts audited in pursuance of any statutory or other requirement or, if its accounts are not required to be audited, the accounts prepared in respect of the charity;

(c) in the case of all other charities, the statement of accounts prepared under section 132(1) of the Charities Act 2011 or the account and statement prepared under section 133 of that Act.

(5) The reference in sub-paragraph (3)(c)(i) to a charity’s accounts includes, in relation to a charity whose trustees have prepared group accounts under section 138(2) of the Charities Act 2011, those group accounts.

(6) The reference in sub-paragraph (3)(c) to “most recent” in relation to a charity’s accounts and report means most recently prepared, audited or examined (as the case may be) before the day concerned.

(7) In sub-paragraphs (4) and (5)—

• “charitable company” has the meaning given by section 193 of the Charities Act 2011;

• “exempt charity” has the meaning given by section 22(1) of the Charities Act 2011;

• “group accounts” has the meaning given by section 142 of the Charities Act 2011.

[F5 (7A) Sub-paragraph (3) does not apply where, on the day concerned, it appears that when next in use the hereditament will be wholly or mainly used for the purposes of carrying on business as an independent school that is not an independent school within sub-paragraph (7B).

(7B) An independent school is within this sub-paragraph if it is wholly or mainly concerned with providing full-time education to persons for whom an individual development plan is maintained.

(7C) In sub-paragraphs (7A) and (7B)—

(a) “independent school” has the meaning given by section 463 of the Education Act 1996, and

(b) “individual development plan” has the meaning given by section 10 of the Additional Learning Needs and Education Tribunal (Wales) Act 2018.]

(8) This paragraph also applies in relation to Wales where—

(a) on the day concerned, 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

(b) the billing authority is satisfied that when next in use the hereditament will be wholly or mainly used—

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

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

Textual Amendments

F2 Words in Sch. 4ZB para. 2(2) inserted (1.4.2025) by Local Government Finance (Wales) Act 2024 (asc 6), ss. 6(2), 23(3)(b) (with s. 23(4))

F3 Sch. 4ZB para. 2(2A)(2B) inserted (in respect of financial years beginning on or after 1.4.2025) by Non-Domestic Rating (Multipliers and Private Schools) Act 2025 (c. 12), ss. 5(3), 6(2)

F4 Sch. 4ZB para. 2(3)-(8) inserted (1.4.2025) by Local Government Finance (Wales) Act 2024 (asc 6), ss. 6(3), 23(3)(b) (with s. 23(4))

F5 Sch. 4ZB para. 2(7A)-(7C) inserted (1.4.2025) by The Non-Domestic Rating (Withdrawal of Charitable Relief for Independent Schools) (Wales) Regulations 2025 (S.I. 2025/273), regs. 1(2), 4