Explanatory note
(This note is not part of the Regulations)
The Local Government Finance Act 1988 provides for non-domestic hereditaments to be revalued every 5 years. On a revaluation new non-domestic rating lists are compiled showing the updated rateable values of all hereditaments. The last compilation date was 1st April 2017. The Non-Domestic Rating (Renewable Energy Projects) Regulations 2013 (“the 2013 Regulations”) operate on the basis that any increase in rateable value from 31st March 2013 can be attributed to a change in the hereditament or its use. The effect of the revaluation is that, from 1st April 2017, hereditaments may have seen changes in rateable value compared with 31st March 2013 without there necessarily having been a change to the hereditament.
These Regulations amend the 2013 Regulations to provide for—
changes to the classes of hereditaments in relation to which a billing authority may disregard an amount of non-domestic rating income for the purpose of certain calculations under Schedule 7B to the Local Government Act 1988 (local retention of non-domestic rates) in respect of financial years beginning on or after 1st April 2018; and
changes to the calculation of the amounts to be disregarded for the purposes of calculations under the rates retention scheme in respect of a financial year beginning on or after 1st April 2017.
These changes are being made to ensure that, when comparing rateable values with those as of 31st March 2013, any changes attributable to the revaluation are not taken into account.
Regulations 3 and 4 make amendments to the factors by reference to which classes B and C are designated, in respect of financial years beginning on or after 1st April 2018.
Regulations 5 and 6 make amendments to the calculation of the amount to be disregarded in respect of hereditaments within classes B and C in respect of financial years beginning on or after 1st April 2017.
Regulations 5, 6, 7 and 8 also make amendments to provide clarification to the formulae for calculating the amount to be disregarded in respect of hereditaments within classes B, C, D and E.
Regulation 9 provides for a modification in relation to cases where there has been a change to the rateable value of the hereditament which is not attributable to the revaluation on 1st April 2017.
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.