Local Government Act 2003

61 Small business relief

(1) Section 43 of the 1988 Act (occupied hereditaments: liability) is amended as follows.

(2) In subsection (4) (which, subject to subsections (5) and (6A), shows how the chargeable amount for a chargeable day is to be calculated) after “subsections” there is inserted “(4A),”.

(3) After subsection (4) there is inserted—

“(4A) Where subsection (4B) below applies, the chargeable amount for a chargeable day shall be calculated—

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

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

(4B) This subsection applies—

(a) in relation to England, where—

(i) the rateable value of the hereditament shown in the local non-domestic rating list for the first day of the chargeable financial year is not more than any amount prescribed by the Secretary of State by order,

(ii) on the day concerned any conditions prescribed by the Secretary of State by order are satisfied, and

(iii) the ratepayer has made an application for the purposes of this subsection to the billing authority concerned by such date as may be prescribed by the Secretary of State by order,

(b) in relation to Wales, where—

(i) the rateable value of the hereditament shown in the local non-domestic rating list for the first day of the chargeable financial year is not more than any amount prescribed by the National Assembly for Wales by order, and

(ii) on the day concerned any conditions prescribed by the National Assembly for Wales by order are satisfied.

(4C) An application under subsection (4B)(a)(iii) above shall be made in such form, and contain such information, as may be prescribed by the Secretary of State by order.

(4D) If the ratepayer—

(a) makes a statement in an application under subsection (4B)(a)(iii) above which he knows to be false in a material particular, or

(b) recklessly makes a statement in such an application which is false in a material particular,

he shall be liable on summary conviction to imprisonment for a term not exceeding 3 months or to a fine not exceeding level 3 on the standard scale or to both.”

(4) For subsection (8A) there is substituted—

“(8A) In relation to any hereditament in respect of which both subsections (4A) and (6A) above (but not subsection (5) above) have effect on the day concerned, the chargeable amount—

(a) in relation to England, shall be calculated in accordance with subsection (6A) above,

(b) in relation to Wales, shall be calculated in accordance with whichever of subsections (4A) and (6A) above produces the smaller amount.

(8B) In relation to any hereditament in respect of which—

(a) subsections (4A), (5) and (6A) above each have effect on the day concerned,

(b) subsections (4A) and (5) above both have effect on that day, or

(c) subsections (5) and (6A) above both have effect on that day,

the chargeable amount shall be calculated in accordance with subsection (5) above.”

(5) In section 44 of the 1988 Act (occupied hereditaments: supplementary) after subsection (6) there is inserted—

“(7) Subject to subsection (8) below, D is the small business non-domestic rating multiplier for the financial year.

(8) Where the billing authority is a special authority, D is the authority’s small business non-domestic rating multiplier for the financial year.

(9) E is such amount as may be prescribed—

(a) in relation to England, by the Secretary of State by order,

(b) in relation to Wales, by the National Assembly for Wales by order.”

(6) In section 47 of the 1988 Act (discretionary relief), in subsection (1) after “subsection (3) below,”, in the second place where it occurs, there is inserted “or the small business condition and the second condition mentioned in subsection (3) below,”.

(7) After subsection (3C) of that section there is inserted—

“(3D) The small business condition is—

(a) that the hereditament is situated in Wales, and

(b) that on the chargeable day section 43(4B) above applies to the hereditament.”