The Non-Domestic Rating Contributions (Wales) Regulations 1992

• Citation: S.I. 1992/3238
• Sections: 32

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Non-Domestic Rating Contributions (Wales) Regulations 1992 and shall come into force on 31st December 1992.

(2) The rules contained in these Regulations are to apply to the calculation of a Welsh billing authority’s non-domestic rating contribution for any financial year beginning on or after 1st April 1993.

Section 2 Interpretation

In these Regulations—

“ the Act ” means the Local Government Finance Act 1988;

“the 1989 Regulations ” means the Non-Domestic Rating Contributions (Wales) Regulations 1989 ;

“billing authority” means a Welsh billing authority;

“preceding year” means a financial year preceding the financial year for which a calculation of a non-domestic rating contribution or a recalculation of a provisional amount is being made;

“provisional amount” means, except in regulation 6(1)(a), the provisional amount arrived at under paragraph 5 of Schedule 8 to the Act as regards a billing authority for a financial year, or the amount for the time being treated as that amount in accordance with regulation 7 of these Regulations;

“relevant day” means a day in the financial year for which a calculation of a non-domestic rating contribution or a recalculation of a provisional amount is being made.

Section 3 Calculation of non-domestic rating contributions

The rules for the calculation under paragraph 5 of Schedule 8 to the Act of a billing authority’s non-domestic rating contribution for a financial year are the rules contained in Schedule 1 to these Regulations.

Section 4 Assumptions relating to provisional amounts

A calculation under paragraph 5(2) or (3) of Schedule 8 to the Act of a billing authority’s non-domestic rating contribution shall be made on the basis of the information before the person making the calculation at the time he makes it, read subject to the assumptions prescribed in Schedule 2 to these Regulations.

Section 5 Information which may be disregarded in the calculation of notified amounts

A calculation under paragraph 5(6) of Schedule 8 to the Act of a billing authority’s non-domestic rating contribution for a financial year may be made without taking into account any information as regards which the following conditions are satisfied—

(a) it is not reasonably practicable for the person making the calculation to take it into account; and

(b) it was received by the billing authority after 31st January in that year. Recalculation of provisional amounts

Section 6 Information which may be disregarded in the calculation of notified amounts

(1) Regulation 7 applies as regards a billing authority for a financial year ( “the year”) in which—

(a) a provisional amount has been arrived at, under paragraph 5 of Schedule 8 to the Act, as regards the billing authority for the year; and

(b) the prescribed conditions are fulfilled.

(2) The prescribed conditions are—

(a) that the billing authority has on a day in the year calculated an amount, under paragraph (3) below, which is less than the provisional amount for the billing authority for the year;

(b) that the difference between the amount calculated under paragraph (3) below and the provisional amount for the billing authority is greater than the amount calculated under paragraph (4) below;

(c) that the billing authority has notified the Secretary of State of the amount calculated under paragraph (3) below, and the day on which that amount was calculated; and

(d) that the Secretary of State believes that the amount calculated by the billing authority under paragraph (3) below is likely to have been calculated in accordance with that paragraph and informs the billing authority of his belief.

(3) The amount calculated under this paragraph is the total of the amounts calculated on the relevant day in accordance with Parts I and II of Schedule 3 to these Regulations.

(4) The amount calculated under this paragraph is the amount, expressed in pounds, of the adult population figure for the area of the billing authority multiplied—

(a) if the amount calculated in accordance with paragraph (3) above is calculated before 1st October in the financial year, by a factor of 7.5, and

(b) if the amount calculated in accordance with paragraph (3) above is calculated on or after 1st October in the financial year, by a factor of 15.

(5) In paragraph (4) above, the adult population figure for the area of a billing authority is the figure prescribed in relation to that area in Schedule 4 to these Regulations.

Section 7 Information which may be disregarded in the calculation of notified amounts

(1) Where this regulation applies, for the purposes of paragraph 5 of Schedule 8 to the Act the provisional amount for the billing authority for a financial year is to be treated on or after the adjustment day as being that amount recalculated as regards the billing authority for the year under paragraph (2) below.

(2) The amount recalculated under this paragraph is the total of the amounts calculated in accordance with Parts I and II of Schedule 3 to these Regulations, taking as the day on which the calculations in accordance with that Schedule are made the day on which the calculation was made under regulation 6(3) by virtue of which this regulation applies.

(3) For the purposes of this regulation and regulations 8 and 9, “the adjustment day” shall be the day on which the Secretary of State informed the billing authority under regulation 6(2)(d) of his belief relating to the calculation by virtue of which this regulation applies.

Section 8 Repayments as a result of a recalculation

(1) Where regulation 7 applies as regards a billing authority for a financial year, the Secretary of State shall repay to the billing authority the amount calculated in accordance with paragraph (2) below.

(2) The amount is the difference between—

(a) the total of the amounts paid by the billing authority to the Secretary of State under paragraph 5(5) of Schedule 8 to the Act on relevant days preceding the adjustment day; and

(b) the amount calculated in accordance with the formula—

where—

A is the amount recalculated (or last recalculated) as regards the billing authority under regulation 7(2);

B is the total of the amounts directed by the Secretary of State to be paid by the billing authority on relevant days preceding the adjustment day; and

C is the provisional amount having effect as regards the billing authority immediately before the adjustment day.

(3) The amount calculated in accordance with paragraph (2) above shall be paid by the Secretary of State at such time as he decides.

Section 9 Reduced payments as a result of a recalculation

Where regulation 7 applies as regards a billing authority for a financial year, the amount of an instalment directed by the Secretary of State, under paragraph 5(5) of Schedule 8 to the Act, to be paid by the billing authority on or after the adjustment day shall be treated as being the amount calculated in accordance with the formula—

where

D is the amount the Secretary of State directed to be paid by the billing authority in the instalment,

E is the amount recalculated (or last recalculated) as regards the billing authority under regulation 7(2), and

F is the provisional amount having effect as regards the billing authority immediately before the adjustment day.

Section 10 Repayments by reference to the certified amount

(1) This regulation applies where, at the time the Secretary of State makes the calculation required by sub-paragraph (12) of paragraph 5 of Schedule 8 to the Act, a payment has been made under sub-paragraph (9) or (10) of that paragraph in relation to the amount notified under sub-paragraph (6)(b) of that paragraph ( “the notified amount”) .

(2) Where this regulation applies—

(a) if the certified amount exceeds the notified amount, the billing authority shall pay an amount equal to the difference to the Secretary of State within 14 days of the date on which the billing authority is notified by the Secretary of State of that amount; and

(b) if the certified amount is less than the notified amount, the Secretary of State shall pay an amount equal to the difference to the billing authority.

(3) In this regulation “certified amount” has the same meaning as in sub-paragraph (11) of paragraph 5 of Schedule 8 to the Act.

Section 11 Revocation

(1) Subject to paragraph (2) below, the 1989 Regulations, the Non-Domestic Rating Contributions (Wales) (Amendment) Regulations 1990 , the Non-Domestic Rating Contributions (Wales) (Amendment) Regulations 1991 , and the Non-Domestic Rating Contributions (Wales) (Amendment) Regulations 1992 are hereby revoked.

(2) The Regulations referred to in paragraph (1) above shall continue to have effect in relation to the calculation of a billing authority’s non-domestic rating contribution for a financial year beginning before 1st April 1993.

Section 1

(1) In relation to each billing authority there shall be calculated for a financial year the amount described in paragraphs 2 to 7 below.

(2) From the amount described in paragraph 2 there shall be deducted the amounts described in paragraphs 3 to 7, provided that a deduction shall be made of the amount described in paragraph 6 only if the billing authority has made proper arrangements for securing economy, efficiency and effectiveness in relation to the collection of non-domestic rates.

(3) The amount calculated under sub-paragraph (2) shall be the billing authority’s non-domestic rating contribution for the year.

Section 2 Gross amount due to the billing authority

(1) The amount calculated in accordance with the formula—

where

G is the total of the chargeable amounts payable to the billing authority under sections 43 and 45 of the Act in respect of each relevant day and any day in a preceding year which have not been taken into account in a calculation for a preceding year,

H is the total of any such amounts which have been taken into account in a calculation for a preceding year but which—

would not have been so taken into account on the basis of the information before the person making the relevant calculation; and

have not been taken into account for the purposes of this item in a calculation for a preceding year.

(2) For the purposes of sub-paragraph (1) any determination under section 47 of the Act or reduction or remission under section 49 of the Act shall be ignored .

Section 3 Deductions from gross amount

(1) The amount which is the total of

(a) 25 per cent. of the difference between the amount calculated in accordance with paragraph 2 of this Schedule and the amount which would be so calculated if, in respect of any relevant day or any day in a preceding year, any determination by the billing authority under section 47(1)(a) of the Act as regards a hereditament in relation to which section 47(2)(a) applies were taken into account;

(b) 75 per cent. of the difference between the amount calculated in accordance with paragraph 2 of this Schedule and the amount which would be so calculated if, in respect of any relevant day or any day in a preceding year, any determination by the billing authority under section 47(1)(a) of the Act as regards a hereditament other than a hereditament in relation to which section 47(2)(a) applies were taken into account; and

(c) 75 per cent. of the difference between the amount calculated in accordance with paragraph 2 of this Schedule and the amount which would be so calculated if, in respect of any relevant day or any day in a preceding year, any reduction or remission by the billing authority under section 49 of the Act were taken into account;

less the amount calculated under sub-paragraph (2).

(2) The total of any reduction in a chargeable amount by virtue of a determination under section 47(1)(a) of the Act and any reduction or remission under section 49 of the Act which has been taken into account in a calculation for a preceding year but which—

(a) on the basis of the information before the person making the relevant calculation, should not have been so taken into account; and

(b) has not been taken into account for the purposes of this sub-paragraph in a calculation for a preceding year;

multiplied by the relevant percentage.

(3) In sub-paragraph (2), “the relevant percentage” means, in the case of a reduction in a chargeable amount by virtue of a determination under section 47(1)(a) of the Act as regards a hereditament in relation to which the condition in section 47(2)(a) applies, 25 per cent., and in the case of any other reduction or the remission of a chargeable amount, 75 per cent.

Section 4 Deductions from gross amount

(1) The amount (being provision as regards the costs of collection and recovery) calculated in accordance with the formula—

where—

A is the number of hereditaments shown in the billing authority’s local non-domestic rating list on 31st December in the immediately preceding year, and

B is the total of the rateable values shown in the billing authority’s local non-domestic rating list on 31st December in the immediately preceding year.

(2) For the purposes of sub-paragraph (1), where the financial year to which the relevant calculation relates is a year in which local non-domestic rating lists are compiled under section 41(1) of the Act , the hereditaments shown in a billing authority’s local non-domestic rating list, and the rateable value of those hereditaments, shall be taken to be the hereditaments, and the rateable values, shown in the list which the valuation officer for the billing authority proposes to compile in that year and which he has sent to the billing authority under section 41(5) of the Act.

Section 5 Deductions from gross amount

The amount calculated in accordance with the formula—

where

O is 75 per cent. of the total of any chargeable amounts—

which are payable to the billing authority under sections 43 and 45 of the Act in respect of a relevant day or any day in a preceding year;

in respect of which, in accordance with an agreement made under regulations made under paragraphs 1 and 4A of Schedule 9 to the Act, the billing authority agreed to take no steps to recover any payment, and

which have not been taken into account for the purposes of this item or paragraph 5A of Schedule 1 to the 1989 Regulations in a calculation for a preceding year;

P is the total of any amounts which have been taken into account for the purposes of item O or paragraph 5A of Schedule 1 to the 1989 Regulations in a calculation for a preceding year but which—

would not have been so taken into account on the basis of the information before the person making the relevant calculation; and

have not been taken into account for the purposes of this item in a calculation for a preceding year;

Q is 75 per cent.of the total of any chargeable amounts—

which have been taken into account for the purposes of item O or paragraph 5A of Schedule 1 to the 1989 Regulations in a calculation for the year or a preceding year;

which have been paid to the billing authority under sections 43 and 45 of the Act or in respect of which the period for which the billing authority agreed to take no steps to recover payment specified in the relevant agreement has expired; and

which have not been taken into account for the purposes of this item or paragraph 12 of Schedule 1 to the 1989 Regulations in a calculation for a preceding year;

R is 75 per cent.of the total of any amounts of interest—

which are payable to the billing authority in accordance with agreements made under regulations made under paragraphs 1 and 4A of Schedule 9 to the Act in respect of amounts taken into account for the purposes of item Q above; and

which have not been taken into account for the purposes of this item in a calculation for a preceding year;

S is the total of any amounts which have been taken into account for the purposes of item Q or R or paragraph 12 of Schedule 1 to the 1989 Regulations in a calculation for a preceding year but which—

would not have been so taken into account on the basis of the information before the person making the relevant calculation; and

have not been taken into account for the purposes of this item in a caculation for a preceding year.

Section 6 Deductions from gross amount

(1) The total of any amounts which—

(a) are payable to the billing authority under sections 43 and 45 of the Act in respect of a relevant day or a day in a preceding year, or are amounts of interest which are payable to the billing authority in accordance with agreements made under paragraphs 1 and 4A of Schedule 9 to the Act;

(b) in the opinion of the billing authority are bad debts which should be written off or are doubtful debts for which provision should be made; and

(c) have not been taken into account for the purposes of this paragraph or paragraph 7 of Schedule 1 to the 1989 Regulations in a calculation for a preceding year;

less the amount calculated under sub-paragraph (2).

(2) The total of any amounts which have been taken into account for the purposes of this paragraph or paragraph 7 of Schedule 1 to the 1989 Regulations in a calculation for a preceding year but which—

(a) would not have been so taken into account on the basis of the information before the person making the relevant calculation; and

(b) have not been taken into account for the purposes of this sub-paragraph in a calculation for a preceding year.

Section 7 Deductions from gross amount

The amount which is the total of—

(a) the amounts of interest which have become payable by the billing authority in the financial year to which the relevant calculation relates or in a preceding year, in accordance with regulations made under section 55 of, or paragraph 2(2A) of Schedule 9 to, the Act and which have not been taken into account by the billing authority for the purposes of this paragraph or paragraph 9 of Schedule 1 to the 1989 Regulations in a calculation for a preceding year; less

(b) any such amounts which have been taken into account by the billing authority in a calculation made for a preceding year but which—

(i) would not have been so taken into account on the basis of the information before the person making the relevant calculation; and

(ii) have not been taken into account for the purposes of this sub-paragraph in a calculation for a preceding year.

Section 8 Deductions from gross amount

For the purposes of this Schedule, any reference to the relevant calculation shall be treated as a reference to the calculation of the non-domestic rating contribution which is being made under paragraph 5(2), (3) or (6) of Schedule 8 to the Act, and any reference to a calculation for a preceding year shall be treated as a reference to a calculation of a non-domestic rating contribution made for a preceding year under paragraph 5(6) of Schedule 8 to the Act.

Section 1

(1) The assumptions prescribed in relation to paragraph 2 of Schedule 1 to these Regulations are the assumptions prescribed in paragraph 2 below.

(2) The assumptions prescribed in relation to paragraphs 3, 5, 6 and 7 of Schedule 1 to these Regulations are the assumptions prescribed in paragraphs 3 to 9 below.

Section 2 Assumptions as to gross amount

(1) Subject to sub-paragraph (7), it shall be assumed that the hereditaments to be taken into account for the purposes of calculating the amounts payable to the billing authority under sections 43 and 45 of the Act in respect of each relevant day will be the hereditaments shown in the billing authority’s local non-domestic rating list on 31st December in the immediately preceding year and any hereditaments to which sub-paragraph (2) applies.

(2) This sub-paragraph applies to any hereditaments which, by virtue of an order made under section 58(2) of the Local Government Act 1972 on or before 15th January in the immediately preceding year, will be shown in the billing authority’s local non-domestic rating list for 1st April in the year, but are shown on 31st December in the immediately preceding year in another billing authority’s local non-domestic rating list.

(3) It shall be assumed that the rateable value of the hereditaments described in sub-paragraphs (1) and (2) will on each relevant day be the rateable value shown for the hereditaments in a billing authority’s local non-domestic rating list on 31st December in the immediately preceding year.

(4) Subject to sub-paragraph (7), where the year to which the calculation relates is a year in which the local non-domestic rating lists are compiled under section 41(1) of the Act, it shall be assumed that the hereditaments shown in a billing authority’s local non-domestic rating list will be the hereditaments shown in the list which the valuation officer for the billing authority proposes to compile in that year and which he has sent to the billing authority under section 41(5) of the Act, and any hereditaments to which sub-paragraph (5) applies.

(5) This sub-paragraph applies to any hereditaments which, by virtue of an order made under section 58(2) of the Local Government Act 1972 on or before 15th January in the immediately preceding year, will be shown in the billing authority’s local non-domestic rating list for 1st April in the year, but are shown in the list which the valuation officer for another billing authority proposes to compile in that year and which he has sent to that other billing authority under section 41(5) of the Act.

(6) It shall be assumed that the rateable value of the hereditaments described in sub-paragraphs (4) and (5) will be the rateable values shown in the list which the valuation officer for a billing authority proposes to compile in the year and which he has sent to the billing authority under section 41(5) of the Act.

(7) It shall be assumed that the following hereditaments will not be shown for any relevant day, namely, any hereditaments which, by virtue of an order made under section 58(2) of the Local Government Act 1972 on or before 15th January in the immediately preceding year, will not be shown in the billing authority’s non-domestic rating list for 1st April of the year.

(8) It shall be assumed that the person in occupation of a hereditament on each relevant day will be the person in occupation of the hereditament on 31st December in the immediately preceding year.

(9) Where an apportionment of the rateable value of a hereditament under section 44A of the Act is treated as applicable for the purposes of that section for 31st December in the immediately preceding year, it shall be assumed that the apportionment will be applicable for each relevant day.

(10) Where on 31st December in the immediately preceding year a hereditament is unoccupied, it shall be assumed that the hereditament became unoccupied on that day and will remain unoccupied on each relevant day, and that the owner of the hereditament on each relevant day will be the owner of the hereditament on 31st December in that year.

(11) It shall be assumed that—

(a) there are no chargeable amounts payable to the billing authority under sections 43 and 45 of the Act in respect of any day in a preceding year which have not been taken into account in a calculation made under paragraph 5(6) of Schedule 8 to the Act for a preceding year; and

(b) item H in paragraph 2 of Schedule 1 to these Regulations will be nil.

(12) It shall be assumed that the amount calculated for the billing authority in accordance with the assumptions prescribed in sub-paragraphs (1) to (11) is the total of—

(a) the amount so calculated; and

(b) any amount prescribed in Part II of this Schedule (area ceasing to be an enterprise zone) in relation to that billing authority;

multiplied by 0.94.

Section 3 Assumptions as to deductions from gross amount

Where—

(a) a decision has not been made by the billing authority under subsection (3) of section 47 of the Act as to whether or not that section will apply on one or more relevant days as regards a hereditament in relation to which the condition in section 47(2)(a) applies, and

(b) a reduction or remission of rates has been granted by the billing authority as regards the hereditament and has effect for the immediately preceding year under section 47(1)(a) of the Act,

it shall be assumed for the purpose of calculating the amount described in paragraph 3(1)(a) of Schedule 1 to these Regulations that such reduction or remission will apply as regards the hereditament, in respect of each relevant day, as if it had been made under section 47(1)(a) of the Act in respect of each such day.

Section 4 Assumptions as to deductions from gross amount

Where—

(a) a decision has not been made by the billing authority under subsection (3) of section 47 of the Act as to whether or not that section will apply on one or more relevant days as regards a hereditament other than a hereditament in relation to which the condition in section 47(2)(a) applies, and

(b) a reduction or remission of rates has been granted by the billing authority as regards the hereditament and has effect for the immediately preceding year under section 47(1)(a) of the Act,

it shall be assumed for the purpose of calculating the amount described in paragraph 3(1)(b) of Schedule 1 to these Regulations that such reduction or remission will apply as regards the hereditament, in respect of each relevant day, as if it had been made under section 47(1)(a) of the Act in respect of each such day.

Section 5 Assumptions as to deductions from gross amount

It shall be assumed that the amount described in paragraph 3(1)(c) of Schedule 1 to these Regulations will be nil.

Section 6 Assumptions as to deductions from gross amount

It shall be assumed that the amount described in paragraph 3(2) of Schedule 1 to these Regulations will be nil.

Section 7 Assumptions as to deductions from gross amount

It shall be assumed that the amount described in paragraph 5 of Schedule 1 to these Regulations will be nil.

Section 8 Assumptions as to deductions from gross amount

(1) It shall be assumed that the amount described in paragraph 6 of Schedule 1 to these Regulations will be 1.6 per cent. of the amount described in sub-paragraph (2) below.

(2) The amount is the total of the chargeable amounts payable to the billing authority under sections 43 and 45 of the Act in respect of each relevant day, calculated in accordance with the provisions of paragraph 2 of this Schedule, less the deduction from that amount prescribed in paragraph 3 of Schedule 1 to these Regulations, calculated in accordance with the provisions of paragraphs 3 to 6 of this Schedule.

Section 9 Assumptions as to deductions from gross amount

It shall be assumed that the amount described in paragraph 7 of Schedule 1 to these Regulations will be nil.

Section 1

(1) The amount calculated in accordance with this Part of this Schedule is an amount calculated, under regulation 3, as if it were a calculation under paragraph 5(6) of Schedule 8 to the Act of the billing authority’s non-domestic rating contribution for the year.

(2) For the purposes of sub-paragraph (1), Schedule 1 to these Regulations shall have effect subject to paragraph 2 of this Schedule.

Section 2

(1) The references to relevant days shall be treated as references to relevant days preceding the day on which the calculations in accordance with this Schedule are made.

(2) The references to relevant calculations shall be treated as references to the calculations made in accordance with this Schedule.

(3) The amount described in paragraph 4 of Schedule 1 to these Regulations shall be replaced by the amount calculated in accordance with the formula—

where

T is the amount calculated in relation to the billing authority for the year in accordance with paragraph 4 of Schedule 1 to these Regulations;

U is the number of relevant days preceding the day on which the calculations in accordance with this Schedule are made;

V is the number of days in the year for which the calculations in accordance with this Schedule are made.

Section 3

(1) The amount calculated in accordance with this Part of this Schedule is an amount calculated, under regulations 3 and 4, as if it were a calculation under paragraph 5(2) of Schedule 8 to the Act of the billing authority’s non-domestic rating contribution for the year.

(2) For the purposes of sub-paragraph (1), Schedules 1 and 2 to these Regulations shall have effect subject to paragraph 4 of this Schedule.

Section 4

(1) The references to relevant days shall be treated as references to relevant days on and after the day on which the calculations in accordance with this Schedule are made.

(2) The references to relevant calculations shall be treated as references to calculations made in accordance with this Schedule.

(3) The amounts described in paragraph 4 of Schedule 1 shall be replaced by the amount calculated in accordance with the formula—

where

W is the amount calculated in relation to the billing authority for the year in accordance with paragraph 4 of Schedule 1 to these Regulations;

Y is the number of relevant days on and after the day on which the calculations in accordance with this Schedule are made;

Z is the number of days in the year for which the calculations in accordance with this Schedule are made.

(4) In paragraph 2 of Schedule 2, the references to 31st December in the immediately preceding year shall be treated as references to the day on which the calculations in accordance with this Schedule are made.

(5) Where an enterprise zone has ceased to be designated as such during the year there shall be deducted from any amount prescribed in relation to that enterprise zone, in accordance with paragraph 2(12)(b) of Schedule 2, the total of the chargeable amounts which are payable to the billing authority under sections 43 and 45 of the Act—

(a) for any relevant days preceding the day on which the calculations in accordance with this Schedule are made; and

(b) in respect of any hereditament which has ceased to be exempt from non-domestic rating during the year and the entry of which on the non-domestic rating list has been notified to the billing authority.