Commentary on Sections Part 1 – Non-Domestic Rating Section 5 – Powers to confer, vary and withdraw reliefs
12.This section amends Schedules 4ZA, 4ZB and 5A to the 1988 Act. These Schedules provide for the calculation of the chargeable amount of non-domestic rating for a chargeable day, in respect of a hereditament, and the application of both partial and full reliefs from non-domestic rating. Schedule 4ZA makes this provision in relation to occupied hereditaments on a local rating list, Schedule 4ZB makes this provision in relation to unoccupied hereditaments on a local rating list, and Schedule 5A makes this provision in relation to hereditaments on a central rating list.
13.Subsection (2) inserts Part 3A into Schedule 4ZA to the 1988 Act, subsection (3) inserts Parts 2A and 2B into Schedule 4ZB to the 1988 Act, and subsection (4) inserts Part 2A into Schedule 5A to the 1988 Act. Each of these new Parts contains equivalent powers for the Welsh Ministers to make regulations conferring, varying or withdrawing reliefs in respect of the hereditaments to which each Schedule applies. Such regulations may not be made unless a draft has been laid before, and approved by a resolution of, Senedd Cymru (draft affirmative procedure).
14.In each case, the Welsh Ministers may exercise the power to prescribe multiple partial reliefs (see new paragraphs 8A, 2A and 4A of Schedules 4ZA, 4ZB and 5A to the 1988 Act, respectively). Each partial relief may apply where conditions prescribed in the regulations are met and must be set at a level prescribed by the Welsh Ministers in regulations, using the formula “AxM/C – F”, where “F” denotes the amount of the relief.
15.Under these new powers, the Welsh Ministers may also make provision as to the calculation of the chargeable amount in cases where more than one relief prescribed in the regulations applies in relation to a hereditament. Such provision may require that the chargeable amount is calculated taking into account one or more of the applicable reliefs.
16.Similarly, the Welsh Ministers may exercise the power to prescribe multiple full reliefs and such reliefs may apply where conditions prescribed in the regulations are met (see new paragraphs 8B, 2B and 4B of Schedules 4ZA, 4ZB and 5A to the 1988 Act, respectively).
17.Both Schedules 4ZA and 5A to the 1988 Act make provision about cases where more than one of the reliefs set out in each of those Schedules applies in respect of a hereditament. This section amends these provisions so as to include full and partial reliefs conferred under the new regulation making powers and inserts a new Part 2B which makes equivalent provision into Schedule 4ZB to the 1988 Act. In each case, the section also inserts a power for the Welsh Ministers to amend this existing provision or make further provision by regulations.
18.The provisions of Schedules 4ZA and 5A to the 1988 Act clarifying which paragraph to use to calculate the chargeable amount in cases where more than one relief applies do not refer to paragraphs 3 respectively of those Schedules, which deal with improvement rate relief. This is because that relief can apply in addition to any other relief and operates in a distinct manner, as an adjustment to the rateable value of the hereditament before the multiplier and any other relief is applied. Paragraphs 3 of Schedules 4ZA and 5A may, therefore, apply in addition to any other paragraph in those Schedules, and do not disapply, nor are they disapplied by, any other paragraph.
19.Any reliefs conferred via the regulations may also be varied or withdrawn by means of amending regulations. In addition, this section inserts a new power into each of Schedules 4ZA, 4ZB and 5A to the 1988 Act for the Welsh Ministers to vary or withdraw any of the reliefs set out in those Schedules themselves (see new paragraphs 8C, 2C and 4C of Schedules 4ZA, 4ZB and 5A to the 1988 Act, respectively).