Explanatory note

Section 45 of the Local Government Finance Act 1988 (“the 1988 Act”) provides that owners of empty non-domestic properties are liable to pay non-domestic rates if certain conditions apply.

These Regulations re-enact the Non-Domestic Rating (Unoccupied Property) Regulations 1989 (“the 1989 Regulations”) with amendments. In addition to drafting amendments the only change of substance is the inclusion of a new exception for companies in administration (regulation 4(l)).

One of the conditions stipulated by section 45 of the 1988 Act is that the property must fall within a class prescribed by regulations made, in relation to Wales, by the Welsh Ministers.

Regulation 3 prescribes that class as consisting of all buildings or parts of buildings except those listed in regulation 4. Those exceptions include all properties which have been continuously empty for three months or less.

Regulations 5 and 6 contain similar provisions to those in the 1989 Regulations dealing with when a property will be considered to have been continuously empty for three or six months or less and the application of the Regulations to properties which have never been occupied.

The 1989 Regulations were revoked in their application to England by S.I. 2008/386 and these Regulations revoke the 1989 Regulations in their application to Wales.

A regulatory impact assessment has been prepared in connection with these Regulations. A copy can be obtained at http://www.assemblywales.org/bus-home/bus-guide-docs-pub/bus-business-documents/bus-business-documents-doc-laid.htm.