Mr. Alan WilliamsTo ask the Chancellor of the Exchequer which grace-and-favour accommodation at the occupied and at the unoccupied royal palaces were liable to pay rates under the rates system of local government taxation; and on what basis it was assessed.
§ Sir John Cope[holding answer 25 April 1994]: Under the rates system for domestic property in England and Wales which came to an end in March 1990 all grace and favour accommodation at the royal palaces which was occupied was liable to pay domestic rates. When accommodation, including grace and favour accommodation, was unoccupied no rates were payable. In Scotland the same position applied prior to the introduction of the community charge in April 1989. The basis of assessment was the same as for other domestic property, namely its annual rental value subject to deduction for assumed liability for repair.