Commentary on Sections Part 1 – Non-Domestic Rating Section 6 – Unoccupied hereditaments: charitable rate relief
20.This section amends paragraph 2 of Schedule 4ZB to the 1988 Act, which prescribes cases where the chargeable amount for a chargeable day is zero (full relief) for unoccupied hereditaments. Paragraph 2(2)(a) of Schedule 4ZB to the 1988 Act is limited to England. It prescribes the case where the ratepayer is a charitable organisation and it appears that the next use of the hereditament will be wholly or mainly for charitable purposes.
21.Subsection (3) inserts new paragraph 2(3) to (8) into Schedule 4ZB to the 1988 Act, which restate, with amendments, the cases prescribed in paragraph 2(2) in relation to Wales. Paragraph 2(3) of Schedule 4ZB to the 1988 Act prescribes the case where the ratepayer is a charitable organisation and includes additional conditions for relief. The billing authority must be satisfied that the hereditament is unoccupied for a reason related to the charitable purposes of the charity and the next use of the hereditament will be wholly or mainly for charitable purposes.
22.Paragraph 2(3)(c) of Schedule 4ZB to the 1988 Act requires a charity to provide the billing authority with a copy of its most recent accounts and annual report, if one is required to be prepared under section 162(1) or 168(3) of the Charities Act 2011. Paragraph 2(4), (5) and (7) of Schedule 4ZB to the 1988 Act provide the definition for a charity’s accounts, reflecting the differing requirements imposed on charitable companies, exempt charities and any other charity, as set out in the relevant legislation.
23.Paragraph 2(2)(b) of Schedule 4ZB to the 1988 Act is limited to England. It prescribes the case for full relief where the ratepayer was a community amateur sports club (“CASC”) and it appears that the next use of the hereditament will be wholly or mainly for the purposes of the club (or two or more CASCs which include that club). Paragraph 2(8) of Schedule 4ZB to the 1988 Act restates this provision in relation to Wales, but amended to require that the billing authority be satisfied with respect to the next use of the hereditament. No additional conditions are inserted in respect of this case.