(1) Section 1 of the Principal Act is amended in subsection (1) by substituting the following for paragraph (I) of the definition of "residential property"
"(I) in the year ending on 31 December immediately prior to the date of that instrument of conveyance or lease a rating authority -
(A) has made a rate or has not made a rate in respect of any particular property falling within Schedule 3 to the Valuation Act 2001, or
(B) has not made a rate in respect of any particular property falling within Schedule 4 to the Valuation Act 2001,
then the whole or an appropriate part of that property as is referable to ordinary use other than as a dwelling at the date of that instrument of conveyance or lease or, where appropriate, when last ordinarily used, shall not be residential property, in relation to that sale or lease, or".
(2) This section has effect in relation to instruments executed on or after the passing of this Act.