Agricultural and Rural Aspects of Rating Flashcards

A collection of vocabulary terms and definitions covering agricultural land exemptions, building tests, case law, and specific rural rate reliefs under the Local Government Finance Act 1988.

Schedule 5 Local Government Finance Act (LGFA) 1988

The primary legislation providing the source of non-domestic rating exemption for agricultural premises, specifically agricultural land and buildings.

Agricultural Land

Defined by Sch 5 LGFA 1988 as land used as arable, meadow, or pasture ground only; plantations, woods, or saleable underwood; market gardens, nurseries, orchards, or allotments.

Poultry Farming (Land Exemption)

Land used for this purpose is exempt from rates provided it exceeds $0.10\,hectare$ in size.

De minimis rule (Agricultural Land)

A principle applied in case law such as Honiton & District Agricultural Association -v- Wonnacott (VO) (1955) and United Counties Agricultural Association -v- Knight (VO) (1973) regarding the 'pasture ground only' requirement.

Non-exempt Land Uses

Under LGFA 1988, these include land occupied with a house as a park, non-market gardens, pleasure grounds, land used mainly for sport or recreation, and racecourses.

Racecourse Use (Rating Status)

Land used for racecourses is not exempt even if it has agricultural use at other times; the presence of permanent jumps usually leads to the loss of agricultural exemption.

Agricultural Building (General Definition)

A building occupied together with agricultural land and used solely in connection with agricultural operations on that or other agricultural land (Sch 5 LGFA 1988 Para 3a).

Livestock Building (Criteria)

A building is agricultural if used for keeping or breeding livestock and is surrounded by or contiguous to $2\,hectares$ of agricultural land.

Livestock (LGFA 1988 Definition)

Any mammal or bird kept for the production of food or wool or for the purpose of farming the land.

Occupation Requirement (Building Test)

A test derived from Farmer (VO) and Hambleton DC –v- Buxted Poultry Ltd HL [1993] establishing that the land and buildings must be in the same occupation and form a single agricultural unit.

User Condition (Building Test)

A test established in Gilmore (VO) v Baker Carr and Others [1962] stating the building must be used for 'operations by way of cultivating the soil or rearing livestock'.

Processing Buildings (Exemption Case Law)

Buildings for processing farm produce may be exempt if essential to marketing; examples include Covell (VO) v Streatfeild Hood & Co Ltd (cheese-making) and Fitter (VO) v Fraser-Smith (grass drying).

Farm Shops (Rating Status)

Considered rateable because retail marketing is not defined as an agricultural operation, as established in Fletcher v Bartle (1988).

Bigwood –v- Ricketts (VO) 2017

A case where equestrian facilities were held to be domestic because they were not functionally distinct from the house and planning conditions prohibited business use.

Fish Farm Exemption

Exemption for land and buildings used solely for breeding fish or shellfish for human consumption under Para 9, Sch 5 LGFA 1988; excludes ornamental or pet food production.

Shooting Rights

In England and Wales, these are currently exempt from rates; however, Scottish sporting rights were re-introduced in 2017 under the Land Reform (Scotland) Act 2016.

Stud Farm Rateable Value Reduction

Eligible stud farms receive an RV reduction of up to $£4,700$ in England and $£2,500$ in Wales, provided buildings are occupied with $2\,hectares$ of predominantly agricultural land.

Rural Rate Relief Settlement Criteria

Applies to qualifying businesses in rural settlements with a population of $3,000$ or less.

Rural Rate Relief (General/Food Store/Post Office)

Eligible for a $50\%$ mandatory relief if the Rateable Value (RV) is less than $£8,500$; local authorities may grant up to $100\%$ discretionary relief.

Rural Rate Relief (Pubs and Petrol Stations)

Eligible for rural rate relief if the property is the sole such business in the settlement and the Rateable Value (RV) is less than $£12,500$.