Section 1: Determinations in respect of certain non-domestic rating lists
Section 1 of the Act makes provision as to what matters attributable to coronavirus should be taken into account when deciding whether a hereditament ought to appear in the rating list and determining rateable values on the 2017 rating list.
	Section 1(1) provides that the section applies to relevant determinations. Relevant determinations are defined in sections 1(2) and 1(3).
	Section 1(2)(a) provides that a relevant determination is a determination which is concerned with whether a hereditament ought to appear in the rating list. Whether something is a hereditament and should appear in the rating list, and therefore be liable for business rates, is the first question to be addressed by the Valuation Officer and the Courts. There is established case law on the meaning of a hereditament including that something must be capable of beneficial occupation to be considered a hereditament 1 . Hereditament is defined in section 1(8) and ensures that references to a determination in section 1(2)(a) include a determination of that first question of whether something is a hereditament.
	Section 1(2)(b) provides that a relevant determination is a determination of the rateable value of a hereditament on the 2017 rating list. Rateable values are determined in line with rules in Schedule 6 to the 1988 Act. Broadly speaking the rateable value is the annual rental value of the hereditament. Schedule 6 to the 1988 Act provides for the rateable value, during the lifetime of a rating list, to be assessed by reference to two dates:
Paragraph 2(3)(b) of Schedule 6 to the 1988 Act gives the Secretary of State the power to specify a day – known as the valuation date – by reference to which the assessment of rateable value in a rating list is to be made. For the 2017 rating lists, that day was specified as 1 April 2015. 2 Therefore, rateable values in the 2017 rating lists are made by reference to valuations as at 1 April 2015.
Paragraph 2(6A) of Schedule 6 to the 1988 Act gives the Secretary of State powers to specify rules for determining the day – known as the material day - by reference to which certain matters are to be reflected. Those matters are listed in paragraph 2(7) of Schedule 6 to the 1988 Act and include matters such as those affecting the physical state of the hereditament or mode or category of occupation of the hereditament.
	Therefore, rateable values in the 2017 rating lists are made by reference to factors affecting valuations as at 1 April 2015 except for those matters listed in paragraph 2(7) of Schedule 6 which are reflected as at the material day. As a result, where one of the matters listed in paragraph 2(7) of Schedule 6 changes during the life of a rating list then the rateable value of existing hereditaments may need to be amended and that matter may need to be reflected in the rateable value of new hereditaments. A change in any matter not within the list in paragraph 2(7) of Schedule 6 should not lead to a change in an existing rateable value, or be reflected in the rateable value of new hereditaments, before the next rating lists are compiled.
	Section 1(3) excludes from the provisions of the section determinations as to whether a hereditament is non-domestic or domestic (and therefore liable for Council Tax) or exempt or not exempt from business rates.
	Section 1(4) provides that, subject to exceptions in section 1(5), no account is taken of any matter that is directly or indirectly attributable to coronavirus when making a relevant determination. This includes matters arising before the passing of the Act. This ensures, for example, that any checks, challenges or appeals the Valuation Officer has received seeking either for a hereditament to be deleted from the list or its rateable value to be reduced will be determined taking no account of matters attributable to coronavirus. This includes checks, challenges and (in respect of Tribunal and Courts) appeals lodged before the passing of the Act concerning matters arising before the passing of the Act. It will also include determinations the Valuation Officer makes in maintaining the current 2017 rating list in the absence of any check, challenge or appeal such as the inclusion of a new hereditament in the rating list (including such determinations with retrospective effect).
	Section 1(5) provides exceptions to the effect of section 1(4) for the following matters:
the physical state of the hereditament. This will ensure, for example, that changes to the physical structure of the hereditament or the extent of the hereditament (such as structural changes to the internal fabric of the hereditament, a new extension to the hereditament or a demolition of part of the hereditament) continue to the be reflected in the rating list when they arise even if they are attributable to coronavirus. It will also ensure that changes to the mode or category of occupation of the hereditament (for example from a restaurant to a shop) may still be reflected in the rating list where this has been affected by the change in the physical state of the hereditament, and
the quantity of minerals or other substances in or extracted from the hereditament (typically this provision applies to mines and quarries) and the quantity of refuse or waste permanently deposited on the hereditament (applying to landfill sites). Mines, quarries and landfill sites are valued for business rates based, in part, on the amount of minerals extracted each year or, for landfill, the amount of waste deposited. 3 A special rule in paragraphs 2(7)(c) and (cc) of Schedule 6 to the 1988 Act allows for the rateable value of these hereditaments to vary year to year between revaluations based on changes in the rates of mineral extraction (or for landfill deposits). Section 1(5)(b) and (c) will preserve that special rule in respect of changes in the minerals extracted or landfill deposits attributable to coronavirus.
	Section 1(6) provides a non-exhaustive list of matters included in section 1(4). The section will ensure, for example, that restrictions on the use of a property imposed by the Government’s Non-Pharmaceutical Interventions (such as rules on social distancing) will not be taken into account for a relevant determination. For example, in so far as a hereditament has been forced to close because of the Non-Pharmaceutical Interventions then no account will be taken of this in determining whether the hereditament ought to be shown in the rating list or determining its rateable value. It will also ensure, for example, that where occupiers have decided that in order to comply with health and safety legislation, they have had to implement social distancing in their buildings, then this will not be taken into account for relevant determinations.
	Section 1(7) provides that determinations falling within section 1(4) include those which are based upon matters taken at a day which falls before the Act is passed (as well as a day on or after it is passed). This ensures that section 1(4) applies to determinations which have a material day before the Act is passed.
	Section 1(8) provides for definitions.
	Section 1(9) revokes The Valuation for Rating (Coronavirus) (England) Regulations 2021 (S.I. 2021/398) which require, with effect from 25 March 2021, that interventions to control coronavirus should be assumed to have not occurred for the purposes of determining rateable values. These regulations are superseded by section 1.