The Rating system within England and Wales has seen considerable changes since publication of The Glossary of Property Terms, largely as a result of the implementation of the Local Government Finance Act 1988 and the introduction of a number of rating regulations during 1989 and 1990. There is also the impending abolition of the community charge. Proposals for a new Council Tax in 1993 or 1994 are still in their infancy, making it premature to include any more than a passing reference to them.
The definitions below include several new rating terms as well as further taxation terms not included in the Glossary.
For convenience, abbreviations have been used when referring to the relevant legislation and regulations, as follows:
- GRA General Rate Act 1967
- LGA Local Government Act 1985
- FGFA Local Government Finance Act 1988
- NDRR The Non-Domestic Rating (Unoccupied Property) Regulations 1989 (SI 1989/2261)
- NDRAA The Non-Domestic Rating (Alteration of Lists and Appeals) Regulations 1990 (SI 1990/582)
- NDRAA(A) The Non-Domestic Rating (Alteration of Lists and Appeals)2 (Amendment)(No 2) Regulations 1990 (SI 1990/1822)
- CAA Capital Allowances Act 1990
aggrieved person
Formerly, under section 69 of the GRA, a person who in prescribed circumstances could make a proposal for the alteration of the valuation list. Now replaced by “interested person”. [NDRAA, reg 2(1); NDRAA (A), reg 3(1)]
antecedent day
The date by reference to which Valuation Officers value property to be included in a rating list. For the purposes of the non-domestic rating lists which came into force on April 1 1990, this was April 1 1988. [LGFA, Schedule 6, para 2(3)(b) and the Rating Lists (Valuation Date) Order 1988]
central list
See CENTRAL NON-DOMESTIC RATING LIST (in main Glossary).
chargeable financial year
The financial year beginning on April 1 1990 or any subsequent year. [LGFA, section 145 (1) and (3)] Cf TRANSITIONAL YEARS.
connected person
1. For income and corporation tax purposes, a person connected with a company by virtue of his satisfying one or more of the criteria set out in section 228 of the Taxes Act. These include, inter alia, having “control” of the company or possessing (directly or indirectly) — or being entitled to acquire — more than 30% of the issued ordinary share capital or of the loan capital and issued share capital or of the voting power of the company.
2. For capital gains tax purposes, a person connected with another person by virtue of one of the provisions in section 63 of the Capital Gains Tax Act 1979, eg an individual is connected with his spouse, relative (ie “brother, sister, ancestor or lineal descendant”) or relative’s spouse; a trustee of a settlement is connected with the settlor; a company is connected with another company where both are effectively under the same control.
drainage body
“The National Rivers Authority, an internal drainage board or any other body having power to make or maintain works for the drainage of land.” [Land Drainage Act 1991, section 72]
interested person
A person who may, in prescribed circumstances, make a proposal for the alteration of, or object to, the assessment of a hereditament in a rating list. This means:
(a) the occupier of that hereditament;
(b) any other person (except a mortgagee in possession) having (i) a legal estate in any part of the hereditament, or (ii) an equitable interest entitling him (subject to the rights of any prior interests) to possession of the hereditament or any part of it; and
(c) any person having a qualifying connection with either the occupier or any person such as described in (b) above. [NDRAA, reg 2(1); NDRAA (A) reg 3(1)]
material day
In the case (i) of a proposal for an alteration disputing the accuracy of a previous alteration to the rating list, the day by reference to which “mentioned matters” are to be taken into account when determining the rateable value; (ii) of any other proposal for an alteration to the rating list, the day the proposal is made; or (iii) where rateable value is determined in circumstances other than the above, the day the alteration is entered in the rating list. [LGFA, Schedule 6, para 6A]
matters mentioned
See MENTIONED MATTERS.
mentioned matters (matters mentioned)
Six factors which are to be taken into account in determining the rateable value of a non-domestic hereditament at the date of compilation of, or making an alteration to, the rating list. These are:
“(a) matters affecting the physical state or physical enjoyment of the hereditament,
(b) the mode or category of occupation of the hereditament,
(c) the quantity of minerals or other substances in or extracted from the hereditament,
(cc) the quantity of refuse or waste material which is brought on to and permanently deposited on the hereditament,
(d) matters affecting the physical state of the locality in which the hereditament is situated or which, though not affecting the physical state of the locality, are nonetheless physically manifest there, and
(e) the use or occupation of other premises situated in the locality of the hereditament.” [LGFA, Schedule 6, para 7, as amended by LGHA]
mineral asset
Any mineral deposits or land which includes mineral deposits, or any interest in or right over such deposits or land. [CAA, section 121(1)]
mineral deposits
Any natural deposits capable of being lifted or extracted from the earth; for this purpose geothermal energy, whether in the form of hot water in aquifers, hot dry rocks or otherwise, will be treated as a natural deposit. [CAA, section 161(2)]
mineral exploration and access
Searching for, or discovering and testing, the source of mineral deposits and/or gaining access to them. [CAA, section 121(1)]
non-domestic hereditament
A hereditament which either:
(a) consists entirely of a property which is used for non-domestic purposes or
(b) is a composite hereditament. [LGFA, section 64(8)]
non-domestic rating multiplier (uniform business rate)
The figure, set by the Secretary of State for each chargeable financial year, by which the rateable value of a non-domestic hereditament is multiplied to produce its nominal liability for rates for that year, subject to any transitional relief which may be available. [LGFA, Schedule 7]
qualifying connection
For rating purposes, a situation in which (a) there are two companies and (i) one company is a subsidiary of the other, or (ii) both are subsidiaries of the same company, or (b) a relationship exists between a company and another person, and that person has a controlling interest in the company. [NDRAA, reg 2(2); NDRAA(A), reg 3(1)]
qualifying industrial hereditament
For purposes of exemption from the rating of unoccupied property: “. . . any hereditament other than a retail hereditament in relation to which all buildings comprised in the hereditament are — (i) constructed or adapted for use in the course of a trade or business; and (ii) constructed or adapted for use for one or more of the following purposes, or one or more such purposes and one or more purposes ancillary thereto:
(a) the manufacture, repair or adaptation of goods or materials, or the subjection of goods or materials to any process;
(b) storage (including the storage or handling of goods in the course of their distribution);
(c) the working or processing of minerals;
(d) the generation of electricity.” [NDRR, reg 2(5)(b)] See RETAIL HEREDITAMENT.
rating cumulo
See CUMULO VALUE (in main Glossary).
registration
For value added tax purposes, where the turnover of a business reaches or is expected to reach a prescribed level, the requirement formally to register with HM Customs and Excise. Thereafter, output tax must be charged on supplies of goods and services and, subject to certain conditions, input tax incurred may be recovered.
retail hereditament
For the purposes of the rating of unoccupied property: “. . . any hereditament where any building or part of a building comprised in the hereditament is constructed or adapted for the purpose of the retail provision of — (i) goods, or (ii) services, other than storage for distribution services, on or from the hereditament.” [NDRR, reg 2(5)(b)] See QUALIFYING INDUSTRIAL HEREDITAMENT.
self-contained part
” … a part of a building used, or suitable for use, as a separate dwelling.” [LGFA, section 4(8)]
source of mineral deposits
Mines, oil wells and sources of geothermal energy. [CAA, section 121(1)]
trade of mineral extraction
A trade which consists of or includes the working of a source of mineral deposits. [CAA, section 121(1)]
transitional relief
A scheme devised to lessen the effect of the introduction of the uniform business rate, the effect of which is to limit the increase or decrease in the occupier’s liability for rates payable each year as compared with the previous year for a period of five years commencing on April 1 1990.
transitional years
For the purposes of phasing of increases/decreases in non-domestic rates, the financial years beginning in 1990, 1991, 1992, 1993 and 1994. [LGFA, section 145(2), as amended by LGHA, section 139 and Schedule 5] Cf CHARGEABLE FINANCIAL YEAR.
uniform business rate
Colloquial term for non-domestic rating multiplier.
unit of assessment
Any basic measure used for rating valuation purposes, eg £x per m2 See UNIT OF COMPARISON (in main Glossary).
waste disposal authority
An authority set up by order of the Secretary of State whereby local authorities in Greater London or any metropolitan county may be required jointly to carry out some or all of their statutory duties relating to public health, pollution, refuse disposal, litter and, in particular, hazardous waste. [LGA, section 10 and LGFA, section 144(3)]
