Land Drainage Act 1991

Levying of drainage rates E+W

40 Levying of drainage rates. E+W

(1) In respect of financial years beginning in or after 1993, the drainage board for an internal drainage district may make a drainage rate in respect of agricultural land and buildings.

(2) Every drainage rate made under this Chapter by the drainage board for an internal drainage district shall be assessed and levied, subject to and in accordance with this Chapter and any order under section 38 above, on the occupiers of hereditaments in the district; but for the purposes of this subsection and the following provisions of this Chapter the owner of a hereditament shall be deemed to be its occupier during any period during which it is unoccupied.

(3) Every drainage rate shall be made in respect of a financial year and, without prejudice to section 50 below or any corresponding provision of any local Act, the drainage board for an internal drainage district shall not make more than one rate in respect of the same financial year.

(4) Every drainage rate shall be made before 15th February in the financial year preceding that in respect of which it is made, but is not invalid merely because it is made on or after that date.

41 Rates charged by reference to annual value of agricultural land and buildings. E+W

(1) Subject to section 38 above and section 47 below, a rate made by the drainage board for an internal drainage district shall be assessed at a uniform amount per pound throughout the district on the annual value of the agricultural land or agricultural buildings in respect of which it is made.

(2) For the purposes of this Chapter the annual value of any chargeable property shall (subject to sections 43 and 44 below) be the amount, determined in accordance with section 42 below, which is equal to the yearly rent, in respect of a holding comprising the chargeable property, at which the holding might reasonably be expected to have been let, by a prudent and willing landlord to a prudent and willing tenant, on a tenancy from year to year commencing on 1st April 1988 and on the relevant terms. [F1 This is subject to section 41A below.]

(3) For the purposes of subsection (2) above chargeable property is let on the relevant terms if—

(a) the tenancy incorporates the terms set out in subsection (4) below; and

(b) the property is let on the terms relating to maintenance, repair and insurance of fixed equipment which are set out in the Schedule to the M1 Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973.

(4) The terms mentioned in subsection (3)(a) above are—

(a) a covenant by the tenant, in the event of the destruction by fire of harvested crops grown on the holding for consumption on it, to return to the holding the full equivalent manurial value of the crops destroyed, in so far as the return of that value is required for the fulfilment of his responsibilities to farm in accordance with the rules of good husbandry;

(b) a covenant by the tenant to insure against damage by fire all dead stock on the holding and all harvested crops grown on the holding for consumption on it;

(c) a power for the landlord to re-enter on the holding in the event of the tenant not performing his obligations under the tenancy agreement;

(d) a covenant by the tenant not to assign sub-let or part with possession of the holding or any part of it without the landlord’s consent in writing.

(5) In determining for the purposes of subsection (2) above the yearly rents at which a property might reasonably be expected to have been let, any liability for the payment of drainage rates shall be disregarded, but account shall be taken of all other relevant factors, including, in every case—

(a) the character and situation of the holding (including the locality in which it is situated);

(b) the productive capacity of the holding and its related earning capacity; and

(c) the level of rents for comparable lettings current on 1st April 1988.

(6) In determining for the purposes of subsection (5) above the level of rents current on 1st April 1988 for comparable lettings—

(a) account may be taken of any available evidence with respect to the rents which are or were payable in respect of tenancies of comparable agricultural holdings on terms (other than terms fixing the rent payable) similar to those assumed for the holding in question; but

(b) the following shall be disregarded—

(i) any element of the rents in question which is due to appreciable scarcity of comparable holdings available for letting on such terms compared with the number of persons seeking to become tenants of such holdings on such terms;

(ii) any element of those rents which is due to the fact that the tenant of, or a person tendering for, a comparable holding is in occupation of other land in the vicinity of that holding that may conveniently be occupied with that holding; and

(iii) any effect on those rents which is due to any allowances or reductions made in consideration of the charging of premiums.

(7) In this section—

• “productive capacity”, in relation to a holding, means the productive capacity of the holding determined (taking into account fixed equipment and any other available facilities on the holding) on the assumption that the holding is in the occupation of a competent tenant practising a system of farming suitable to the holding; and

• “related earning capacity”, in relation to the productive capacity of a holding, means the extent to which, in the light of that productive capacity, a competent tenant practising such a system of farming could reasonably be expected to profit from farming that holding.

Textual Amendments

F1 Words in s. 41(2) inserted (29.9.2022 for specified purposes) by Environment Act 2021 (c. 30), ss. 96(2), 147(3)(4) (with s. 144); S.I. 2022/988, reg. 2(b)

Marginal Citations

M1 S.I. 1973/1473.

[F2 41A Alternative method of calculating annual value of agricultural land and buildings E+W

(1) The appropriate national authority may by regulations make provision for the annual value of each chargeable property in an internal drainage district to be determined for the purposes of this Chapter by the drainage board for that district in accordance with the regulations.

Any determination made under the regulations is subject to sections 43 and 44 below.

(2) In this section “the appropriate national authority” means—

(a) in the case of any English internal drainage district, the Secretary of State;

(b) in the case of any Welsh internal drainage district, the Welsh Ministers.

(3) Regulations under subsection (1) may, in particular, make provision—

(a) about the date by which a drainage board are to determine the annual value of each chargeable property in their internal drainage district;

(b) about methods to be applied, or factors to be taken into account, in determining the annual value of a chargeable property;

(c) for the annual value of a chargeable property to be determined on the basis of estimates, assumptions or averages;

(d) for the annual value of a chargeable property to be determined by reference to such time or times as may be specified in the regulations;

(e) for the annual value of a chargeable property to be determined by reference to the value shown for the time being in a list or register prepared for the purposes of another enactment;

(f) for the annual value of a chargeable property to be determined by reference to the amount payable under a hypothetical transaction involving the property;

(g) for determining the annual value of a chargeable property which is only partly within the internal drainage district in question;

(h) for the making of adjustments to what would otherwise be determined to be the annual value of a chargeable property;

(i) for the determination of the annual value of a chargeable property to be made on behalf of a drainage board by a person, or a person of a description, specified in the regulations;

(j) about the appointment by the drainage board of such a person.

(4) Provision made by virtue of subsection (3)(f) may, in particular, include provision as to—

(a) the assumptions to be made about—

(i) the date of the transaction;

(ii) the nature of the transaction;

(iii) the characteristics of the parties to the transaction;

(iv) the characteristics of the property;

(v) the terms of the transaction;

(b) any matters relating to the chargeable property which are to be taken into account or disregarded;

(c) any matters relating to comparable transactions which are to be taken into account or disregarded.

(5) Regulations under subsection (1) may make provision which—

(a) applies to a drainage board which have determined the annual values of the chargeable properties in their internal drainage district for the purposes of this Chapter under the regulations (regardless of whether any of those determinations has been replaced under section 43 below or altered on appeal under section 46 below), and

(b) requires the drainage board to make further determinations of those values for those purposes in accordance with the regulations at such times or at the end of such periods as may be specified in the regulations.

(6) Provision made by virtue of subsection (5) may, in particular—

(a) make provision in relation to such a further determination which is the same as or similar to that made in relation to an initial determination, or

(b) apply provision in the regulations relating to an initial determination to a further determination, with or without modifications.

(7) Regulations made by the Secretary of State under subsection (1) may apply in relation to—

(a) English drainage boards specified in the regulations;

(b) English drainage boards of a description specified in the regulations;

(c) all English drainage boards.

(8) Regulations made by the Welsh Ministers under subsection (1) may apply in relation to—

(a) Welsh drainage boards specified in the regulations;

(b) Welsh drainage boards of a description specified in the regulations;

(c) all Welsh drainage boards.

(9) Provision made by virtue of subsection (7) or (8) may, in particular, include provision for an internal drainage board—

(a) to elect that the regulations are to apply to them, and

(b) to make such an election in accordance with the procedure specified in the regulations.

(10) Regulations under subsection (1) may—

(a) make different provision for different cases, including different provision in relation to different circumstances or different descriptions of drainage board or of land;

(b) make such incidental, supplementary, consequential, transitional, transitory or saving provision as the appropriate national authority considers appropriate.

(11) Provision made by virtue of subsection (10)(b) may include provision which amends or repeals any provision of this Act.

(12) Before making regulations under subsection (1) the appropriate national authority must consult such persons (if any) as the authority considers appropriate having regard to the extent to which the regulations are, in the view of the authority, likely to affect the valuation of any chargeable properties.

(13) Regulations may not be made under subsection (1) by the Secretary of State unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.

(14) Regulations may not be made under subsection (1) by the Welsh Ministers unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, Senedd Cymru.]

Textual Amendments

F2 S. 41A inserted (29.9.2022 for specified purposes) by Environment Act 2021 (c. 30), ss. 96(3), 147(3)(4) (with s. 144); S.I. 2022/988, reg. 2(b)