The Non-Domestic Rating (Reliefs, Thresholds and Amendment) (England) Order 2017

Article 1 provides that articles 2 and 3 of this Order has effect for the purposes of determining eligibility for, and calculating the amount of, small business rate relief in respect of days falling on or after 1st April 2017. The Non-Domestic Rating (Small Business Rate Relief) (England) Order 2012 (S.I. 2012/148) (as amended) is revoked by article 6 of this Order but will continue to have effect in relation to chargeable days falling prior to 1st April 2017.

Article 2 of this Order, together with section 43(4B) of the Local Government Finance Act 1988 (“the 1988 Act”), provides that the condition to be satisfied to obtain small business rate relief is that the hereditament must have a rateable value which is not more than £50,999.

Article 3 prescribes the amount of E under section 44(9)(a) of the 1988 Act, which determines the amount of relief to be given to a particular hereditament under the formula in section 43(4A)(a) of the 1988 Act.

Small business rate relief has two elements. Firstly, all hereditaments which satisfy the condition in article 2 will have their rates liability under section 43 of the 1988 Act calculated using the lower small business domestic rate multiplier (determined under Schedule 7 to the 1988 Act, as amended by the Local Government Act 2003) instead of the standard non-domestic rate multiplier. Secondly, a hereditament which satisfies the condition in article 2, is the sole property occupied by the ratepayer concerned (subject to the provision on hereditaments to be disregarded for these purposes in article 3(6)), and which has a maximum rateable value of £15,000 will, in addition, benefit from a percentage reduction in its rates liability for up to 100%.

Article 4 amends regulation 4(g) of the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 to raise the level of the threshold below which a ratepayer shall not be liable to pay rates in respect of an unoccupied property from a rateable value of £2,600 to a rateable value of £2,900.

Article 5 amends article 2 of the Non-Domestic Rating (Stud Farms) (England) Order 2009 to increase the amount of the rateable value deduction for stud farms from £4,200 to £4,700.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.