11.Section 1(1) increases the unoccupied rate. The unoccupied rate is currently 50% of the basic occupied business rate (as provided for under section 43(4) of the 1988 Act). Section 1(1) replaces the formula in respect of unoccupied properties in section 45(4) of the 1988 Act so that the rates payable on unoccupied properties are the same as those payable on occupied properties.
12.Subsection (1) also inserts into section 45 of the 1988 Act new subsection (4A), which provides a power to reduce liability for unoccupied rates from 100% of the basic liability for occupiers by any amount down to 50% of that basic liability. The power to make such an order in relation to England is exercisable by the Secretary of State and in relation to Wales by the Welsh Ministers (see new subsection (4B)).
13.Subsection (2) inserts new section 45A into the 1988 Act, which sets out classes of properties which will be zero rated if unoccupied. New section 45A(2) and (3) specifies that the classes of property which will be zero rated are unoccupied property owned by charities or trustees for charities that appears likely next to be used wholly or mainly for charitable purposes and unoccupied property owned by registered CASCs that appears likely next to be used wholly or mainly for the purposes of the club.
14.Subsection (3) amends section 143 of the 1988 Act to provide that orders under new section 45(4A) changing the unoccupied property rate are subject to the affirmative resolution procedure.