The Non-Domestic Rating (Transitional Protection Payments) Regulations 2013

• Citation: S.I. 2013/106
• Sections: 8

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Non-Domestic Rating (Transitional Protection Payments) Regulations 2013 and come in to force on 18th February 2013.

(2) In these Regulations—

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

“ billing authority ” means a billing authority in England;

“ preceding year ” means the year immediately preceding the relevant year;

“ relevant year ” means the year for which a calculation of non-domestic rating income or of a payment is being made; and

“ relevant hereditament ” means a hereditament shown in a local non-domestic rating list.

(3) In these Regulations any reference to a billing authority's collection fund income and expenditure account is a reference to a revenue account to which, in accordance with proper practices, are credited or charged, as the case may be, amounts in respect of the authority's income and expenditure relating to sums paid or to be paid into or payments met or to be met from the authority's collection fund.

Section 2 Rules for calculation of deemed rating income

(1) A billing authority's deemed rating income for a year is the amount calculated in accordance with the formula—

Where—

A is the total of the amount that would be credited to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act if no regulations under section 57A of the 1988 Act (transitional relief following compilation of local rating list) were in force for the relevant year or any earlier year;

B is the total of amounts that would be charged to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act if no regulations under section 57A of the 1988 Act were in force for the relevant year or any earlier years.

(2) For the purposes of paragraph (1) it shall be assumed that in relation to all relevant hereditaments and all days in the relevant year and all previous years—

(a) the hereditament is wholly occupied;

(b) the conditions prescribed for the purposes of paragraph 4(2) of Schedule 4ZA to the 1988 Act (small business rate relief) are fulfilled and the value of E in paragraph 4(1) of Schedule 4ZA to that Act is 1;

(c) paragraphs 2(2) (charitable rate relief), 6 (heat networks rate relief), 7 (public lavatories relief) and 8(1) (rural rate relief) of Schedule 4ZA to the 1988 Act do not apply;

(d) a determination under section 47 (discretionary relief) or reduction or remission under section 49 of the 1988 Act (reduction or remission in the case of hardship) has not been made;

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3 Rules for calculation of actual rating income

(1) An authority's actual rating income for a year is the amount calculated in accordance with the formula—

Where—

C is the total of the amount that would be credited to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act; and

D is the total of amounts that would be charged to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act.

(2) For the purposes of paragraph (1) it shall be assumed that in relation to all relevant hereditaments and all days in the relevant year and all previous years—

(a) the hereditament is wholly occupied;

(b) the conditions prescribed for the purposes of paragraph 4(2) of Schedule 4ZA to the 1988 Act (small business rate relief) are fulfilled and the value of E in paragraph 4(1) of Schedule 4ZA to that Act is 1;

(c) paragraphs 2(2) (charitable rate relief), 6 (heat networks rate relief), 7 (public lavatories relief) and 8(1) (rural rate relief) of Schedule 4ZA to the 1988 Act do not apply;

(d) a determination under section 47 (discretionary relief) or reduction or remission under section 49 of the 1988 Act (reduction or remission in the case of hardship) has not been made;

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 4 Calculation of payments on account

(1) On or before the specified date, an authority must—

(a) estimate the amount of its deemed rating income for the relevant year;

(b) estimate the amount of its actual rating income for the relevant year; and

(c) notify the Secretary of State of the estimated amounts.

(2) The specified date is—

(a) for the year commencing on 1st April 2013, 15th March 2013; and

(b) for a year commencing on or after 1st April 2014, 31st January in the preceding year.

(3) If the authority fails to comply with paragraph (1) the Secretary of State may make an estimate of the amount or amounts; and in such cases—

(a) the Secretary of State must notify the authority of the amounts calculated; and

(b) these Regulations take effect as if the amounts calculated by the Secretary of State were calculated in accordance with paragraph (1).

Section 5 Payments on account

(1) If an authority's deemed rating income for a year estimated in accordance with regulation 4 exceeds its actual rating income for the year estimated in accordance with that regulation, the Secretary of State must pay to the authority an amount equal to the excess.

(2) If the amount of an authority's actual rating income for a year estimated in accordance with regulation 4 exceeds its deemed rating income for the year estimated in accordance with that regulation, the authority must pay to the Secretary of State an amount equal to the excess.

(3) Amounts payable under this regulation shall be paid during the course of the relevant year by means of 12 instalments such that—

(a) the first instalment is payable on the 30th April; and

(b) the subsequent instalments are payable on the 19th day of each of the following 11 months starting in May.

(4) Where an instalment falls to be paid on a Friday or a day that is not a working day, it shall instead be payable on the first working day that is not a Friday following that day.

(4A) The first four instalments are each to be of 9% of the amount payable and each other instalment is to be 8% of the amount payable.

(5) For the purpose of this regulation “ working day ” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England under the Banking and Financial Dealings Act 1971 .

Section 6 End of year calculations

(1) Subject to paragraphs (3) to (6) , on or before 30 September in the year following a relevant year a billing authority must—

(a) calculate the amount of its deemed rating income for the relevant year;

(b) calculate the amount of its actual rating income for the relevant year; and

(c) arrange for the calculations and amounts to be certified in accordance with such arrangements as the Secretary of State may direct.

(2) The person certifying the calculations and amounts must send the certification to the Secretary of State and notify the billing authority of the amounts certified.

(3) Paragraph (1) applies in relation to calculations for a relevant year beginning on 1st April 2019 or 1st April 2021 as if for “30 September” there were substituted “30 November”.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Subject to paragraph (6), paragraph (1) applies in relation to calculations for the relevant years listed in the first column of the following table as if for “30 September in the year following a relevant year” there were substituted the words in the second column—

(6) Paragraph (1) applies in relation to calculations for the relevant year as if for “30 September in the year following the relevant year” there were substituted “the date the accountability statements are published” where—

(a) the relevant year begins in 2023, 2024, 2025, 2026 or 2027, and

(b) the billing authority has not published its accountability statements on or before the last publication date.

(7) In this regulation, “accountability statements” and “last publication date” have the meanings given in regulation 9A of the Accounts and Audit Regulations 2015.

Section 7 End of year payments

(1) The end of year payment (if any) due shall be calculated according to the formula—

Where—

E is the authority's deemed rating income for the relevant year certified in accordance with regulation 6;

F is the authority's actual rating income for the relevant year certified in accordance with regulation 6;

G is the amount of any payments on account made by the Secretary of State to the authority in accordance with regulation 5;

H is the amount of any payments on account made by the authority to the Secretary of State in accordance with regulation 5.

(2) If the amount calculated in accordance with paragraph (1) is a positive figure, the Secretary of State must pay that amount to the authority.

(3) If the amount calculated in accordance with paragraph (1) is a negative figure, the authority must pay that amount to the Secretary of State.

(4) If the amount calculated in accordance with paragraph (1) is zero, no payment is due.

(5) A payment under this regulation is to be made as soon as reasonably practicable following the receipt by the Secretary of State of the certification sent to him in accordance with regulation 6(2).

Section 8 Recovery

Where an amount has become payable by an authority under any provision of these Regulations, and it has not been paid, it shall be recoverable in a court of competent jurisdiction.