Overview

This bill addresses two key areas: Firstly, it clarifies that factors directly or indirectly related to the coronavirus pandemic should not be considered when determining non-domestic property tax assessments. Secondly, it extends the grounds for disqualifying company directors to include those from companies dissolved without insolvency.

Description

Non-Domestic Rating

The bill states that in calculating non-domestic rates (business rates), no account should be taken of matters related to the coronavirus pandemic. This means that business closures, reduced trade, or other pandemic-related issues cannot be used to reduce the rateable value of a property. Exceptions exist for the property's physical state, mineral content, and refuse disposal. The bill retroactively applies this to determinations made before its passing.

Directors' Disqualification

The bill amends existing legislation in Great Britain and Northern Ireland to allow for the disqualification of directors from companies that have been dissolved without becoming insolvent, if their conduct was deemed unfit. This extends existing powers to cover situations where a company is wound up but not declared bankrupt. Specific amendments are made to the Company Directors Disqualification Act 1986 (Great Britain) and the Company Directors Disqualification (Northern Ireland) Order 2002 to achieve this. The changes apply retrospectively.

Government Spending

The bill is not expected to significantly impact government spending. It clarifies existing legislation regarding business rates and strengthens the ability to disqualify unfit directors, potentially leading to savings in the long run by reducing corporate mismanagement. No specific figures are provided in the bill text.

Groups Affected

• Businesses: May be affected by the clarification on business rates assessments. The ruling that coronavirus-related factors are excluded could lead to higher tax bills for some.
• Company Directors: The changes to director disqualification could affect directors of companies that dissolved without insolvency. Those deemed unfit could face disqualification, impacting their future career prospects.
• Local Authorities: Responsible for collecting non-domestic rates and could have to handle appeals potentially generated by the new rules.
• Insolvency Practitioners: The changes could affect their role in dealing with the dissolution of companies.

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