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

Statutory Instruments

2009 No. 3175

Rating And Valuation, England

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

Made

3rd December 2009

Laid before Parliament

9th December 2009

Coming into force

1st April 2010

The Secretary of State, in exercise of the powers conferred by sections 43(4B)(a)(ii) and (iii) and (4C) and 143(1) and (2) of the Local Government Finance Act 1988(1), makes the following Order:

Application, citation and commencement

1.  This Order, which applies to England only, may be cited as the Non-Domestic Rating (Small Business Rate Relief) (England) (Amendment) (No.2) Order 2009 and shall come into force on 1st April 2010.

Amendments to the Non-Domestic Rating (Small Business Rate Relief) (England) Order 2004

2.  The Non-Domestic Rating (Small Business Rate Relief) (England) Order 2004(2) is amended as follows.

Conditions for relief

3.  In article 3—

(a) in paragraph (3)(a) for “£21,499” substitute “£25,499”;

(b) in paragraph (3)(b) for “£14,999” substitute “£17,999”;

(c) in paragraph (4), for “The” substitute “Subject to paragraphs (8) and (9), the”;

(d) in paragraph (6)(b) for “£2,199” substitute “£2,599”;

(e) after paragraph (7) insert the following—

“(8) Where—

(a) in respect of a valuation period (“the first valuation period”), a ratepayer has served an application under paragraph (4) on the billing authority concerned (“the existing application”);

(b) the ratepayer has not served on the billing authority concerned an application in respect of the valuation period which follows the first valuation period (“the new valuation period”); and

(c) on the first day of the new valuation period the conditions in paragraphs (2), (3) and (5) of this article are fulfilled as regards the hereditament and the ratepayer,

the existing application, in addition to its effect as regards the first valuation period, shall be treated as also having effect as an application under paragraph (4) served by the ratepayer in respect of the hereditament and the new valuation period; and the other provisions of this Order shall be construed accordingly.

(9) Where—

(a) in respect of the first valuation period, a ratepayer has served an application under paragraph (4) on the billing authority concerned (“the existing application”);

(b) paragraph (8) applies as regards the existing application;

(c) the ratepayer has not served on the billing authority concerned an application under paragraph (4) as regards the hereditament and the subsequent relevant valuation period concerned; and

(d) on the first day of the subsequent relevant valuation period concerned the conditions in paragraphs (2), (3) and (5) of this article are fulfilled as regards the hereditament and the ratepayer,

the existing application, in addition to its effect as regards the first valuation period and the new valuation period, shall be treated as also having effect as an application under paragraph (4) served by the ratepayer in respect of the hereditament and the subsequent valuation period concerned; and the other provisions of this Order shall be construed accordingly.

(10) In paragraph (9) “subsequent relevant valuation period” means a valuation period beginning at any time after the end of the new valuation period, so long as on the first day of—

(a) the valuation period concerned; and

(b) each valuation period falling between the end of the new valuation period and the beginning of the valuation period concerned (if any),

such conditions as apply on that first day by virtue of this article are fulfilled as regards the hereditament and the ratepayer.”.

Amount of E

4.  In article 6—

(a) for “£5,000”, in each place, substitute “£6,000”;

(b) for “£10,000”, in each place, substitute “£12,000”; and

(c) in paragraph (1)(b), for “10,000” substitute “12,000”.

Form of application

5.  For the Schedule substitute—

Article 4

“SCHEDULE FORM OF APPLICATION

”

Signed by authority of the Secretary of State for Communities and Local Government

Barbara Follett

Parliamentary Under Secretary of State

Department for Communities and Local Government

3rd December 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).

(1)

1988 c.41. Sections 43(4A) to (4D) were inserted by section 61 of the Local Government Act 2003 (c.26). See section 146(6) for the definition of “prescribed”.

(2)

S.I. 2004/3315 amended by S.I. 2006/2313 and 2009/354.