The Non-Domestic Rating (Small Business Rate Relief) (England) (Amendment) (No.2) Order 2009

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Non-Domestic Rating (Small Business Rate Relief) (England) Order 2004 (“the 2004 Order”).

Article 3 of that Order prescribes conditions to be satisfied to obtain small business rate relief under Part 3 of the Local Government Finance Act 1988 (“the 1988 Act”).

The first condition, for which provision is made in article 3(2) of the 2004 Order, is that the ratepayer occupies only one hereditament in England. However, this must be read subject to paragraph (6) of article 3 which provides that the ratepayer’s occupation of any other hereditament in England shall be disregarded where (amongst other things) the rateable value of that hereditament is not more than the amount prescribed. Article 3(d) of this Order increases the amount prescribed to £2,599 with effect from 1st April 2010.

The second condition, for which provision is made in article 3(3) of the 2004 Order, is that the rateable value of the hereditament in respect of which the application is made does not exceed the amount prescribed. Paragraphs (a) and (b) of article 3 of this Order substitute new amounts so that, with effect from 1st April 2010, the amount is £25,499 for hereditaments situated in Greater London and £17,999 for hereditaments situated outside Greater London.

The third condition, for which provision is made in article 3(4) of the 2004 Order, is that the ratepayer serves on the billing authority concerned an application in respect of the valuation period, or so much of the valuation period that remains, by the date prescribed. A valuation period is the period of five years for which a non-domestic rating list is in force. Paragraph (c) of article 3 of this Order amends paragraph (4) of article 3 of the 2004 Order, and paragraph (e) inserts new paragraphs (8), (9) and (10). The effect of these amendments is that where a ratepayer has made an application in respect of one valuation period and the conditions for relief which apply on the first day of a new valuation period are satisfied, the existing application in respect of the earlier valuation period will count as an application in respect of the new valuation period. The provision made in paragraphs (9) and (10) means that this will continue to be the case in relation to subsequent valuation periods as long as the conditions which apply on the first day of the subsequent valuation period concerned are satisfied.

Article 6 of the 2004 Order prescribes the amount of E, which determines the amount of relief to be given to a particular hereditament under the formula in section 43(4A) of the 1988 Act. The amount of E varies depending on the rateable value of the hereditament. Article 4 of this Order amends article 6 of the 2004 Order by substituting new figures to be used, with effect from 1st April 2010, when calculating the amount of E.

Article 5 of this Order substitutes a new Schedule to the 2004 Order, which prescribes the form of application for relief. The substituted form of application takes account of the amendments made by articles 3 and 4 of this Order.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department for Communities and Local Government’s Business Rates and Valuation Division (telephone [phone]) and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).