Local Government Finance Act 1988

4 Section 3: interpretation.E+W

(1)This section applies for the purposes of section 3 above.

(2)“Interest” means a legal estate.

(3)A relevant leasehold interest is an interest under a lease or underlease which was granted for a term of 6 months or more and conferred the right to exclusive possession throughout the term.

(4)[F1Subject to subsections (5) and (5B) below,] a building or self-contained part of a building is domestic property if it is used wholly for the purposes of living accommodation.

[F2(5)A building or self-contained part of a building is not domestic property if it is wholly or mainly used in the course of a business for the provision of short-stay accommodation, that is to say accommodation—

(a)which is provided for short periods to individuals whose sole or main residence is elsewhere, and

(b)which is not self-contained self-catering accommodation provided commercially.

[F3(5A)Subsection (5) above does not apply if—

(a)it is intended that within the year beginning with the end of the day in relation to which the question is being considered, short-stay accommodation will be not be provided within the building or part for more than six persons simultaneously; and

(b)the person intending to provide such accommodation will have his sole or main residence within the building or part throughout any period when such accommodation is to be provided.]

(5B)A building or self-contained part of a building is not domestic property if—

(a)the relevant person intends that, in the year beginning with the end of the day in relation to which the question is being considered, the whole of the building or self-contained part will be available for letting commercially, as self-catering accommodation, for [F4short] periods totalling 140 days or more; and

(b)on that day his interest in the building or part is such as to enable him so to let it for such periods.

(5C)For the purposes of subsection (5B) above the relevant person is—

(a)where the property in question is a building and is not subject as a whole to a relevant leasehold interest, the person having the freehold interest in the whole of the building; and

(b)in any other case, any person having a relevant leasehold interest in the building or self-contained part which is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.]

(6)In construing subsections (4) and (5) above, anything not in use shall be treated as domestic property if it appears that when next in use it will be domestic property.

[F5(6A)In this section—

  • “business” includes—

(a)any activity carried on by a body of persons, whether corporate or unincorporate, and

(b)any activity carried on by an institution or other organisation established for charitable purposes only or any persons administering a trust established for charitable purposes only; and

“commercially” means on a commercial basis, and with a view to the realisation of profits.]

(7)The Secretary of State may by order amend, or substitute another definition for, any definition of domestic property for the time being effective for the purposes of section 3 above.

(8)A self-contained part of a building is a part of a building used, or suitable for use, as a separate dwelling.

F6(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)Where a building is situated in the areas of two or more authorities, it and each part of it shall be treated as situated in the area in which the greater or greatest part of the building is situated; F8. . ..

Textual Amendments

F1Words inserted by S.I. 1990/162, art. 2(2)

F2S. 4(5)–(5C) substituted for s. 4(5) by S.I. 1990/162, art. 2(3)

F3S. 4(5A) substituted (1. 4. 1991) by S.I. 1991/474, art. 2(1)

F4Word in s. 4(5B)(a) inserted (1. 4. 1991) by S.I. 1991/474, art. 2(2)

F8Words at the end of s. 4(11) repealed (retrospectively) by Caravans (Standard Community Charge and Rating) Act 1991 (c. 2), s. 1(1)(3)