HC Deb 26 June 1984 vol 62 cc866-7

46A.—(1) For the purposes of this Act a hereditament to which this section applies shall be treated as unoccupied if, apart from this section, it would fall to be treated as occupied by reason only of there being kept in or on the hereditament plant, machinery or equipment—

  1. (a) which was used in or on the hereditament when it was last in use; or
  2. (b) which is intended for use in or on the hereditament.

(2) This section applies to a hereditament which is not a dwelling-house, a private garage or private storage premises; and in this subsection—

  1. (a) "private garage" means a building having a floor area not exceeding 25 square metres which is used wholly or mainly for the accommodation of a motor vehicle; and
  2. (b) "private storage premises" means a hereditament which is used wholly in connection with a dwelling-house or dwelling-houses and wholly or mainly for the storage of articles of domestic use (including bicycles and similar vehicles) belonging to persons residing there.

(3) For the purposes of subsection (2) of this section a hereditament that is not in use shall nevertheless be treated as a dwelling-house, a private garage or private storage premises if it appears that, when next in use, it will be a hereditament of that description."

(2) This paragraph shall have effect for any rate period beginning on or after 1st April 1985."

Sir George Young

I beg to move, That this House doth agree with the Lords in the said amendment.

The amendment will provide for local authorities to treat as unoccupied hereditaments that are unused except for the storage of plant and machinery and equipment previously used or intended to be used in or on the hereditament. At present the presence of plant, machinery and equipment in a property would constitute occupation, if only for the purpose of storage. The occupier would, therefore, be liable to full rates.

The purpose of the amendment is to prevent owners from having to strip out unused plant and machinery in order to obtain empty property relief. It will especially help businesses that have closed down temporarily, but which expect to resume use of their premises at some future date. It will also assist those owners who would prefer to try to let their premises with the plant and machinery in place.

Premises that are treated as unoccupied as a result of the amendment will be exempt from rates for the first three months after they become unused. Thereafter, they will be liable to rates levied by the letting authority. Thus, industrial properties will receive 100 per cent. relief under the recent regulations, which have suspended local authorities' powers to levy rates on empty industrial property. Other types of non-domestic hereditament will receive a minimum of 50 per cent. relief.

May I take this opportunity to relay to the House my right hon. Friend's decision to extend from 1 April 1985 the Rating (Exemption of Unoccupied Industrial Hereditaments) Regulations 1984 to ensure that warehouses as well as industrial buildings are not liable for empty property rates. Support was expressed for that claim by both sides in another place. I am sure that it will be welcomed by the House.

The amendment complements Lords amendment No. 15, which the House has just agreed to. I hope that hon. Members will agree that it is a worthwhile reform.

Question put and agreed to. [Special Entry.]

Lords amendment: No. 23, in page 17, line 14, at end insert—