The Non-Domestic Rating (Levy and Safety Net) Regulations 2013

• Citation: S.I. 2013/737
• Sections: 22

Section 1 Citation and commencement

These Regulations may be cited as the Non-Domestic Rating (Levy and Safety Net) Regulations 2013 and come into force on the day after the day on which they are made.

Section 2 Interpretation

(1) In these Regulations—

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

“authority” means a relevant authority other than a local policing body;

“billing authority” means a billing authority in England;

“baseline funding level” means the amount calculated with respect to an authority in accordance with regulation 5;

“business rates baseline” means—

for the year commencing on 1st April 2013, the amount specified with respect to an authority by regulation 5 and Schedule 2; ...

for the year commencing on 1st April 2017, the amount specified with respect to an authority by regulation 5 and Schedule 4; and

for the year commencing on 1st April 2019, the amount specified with respect to an authority by regulation 5 and Schedule 5;

“certified non-domestic rating income” has the same meaning as in the Non-Domestic Rating (Rates Retention) Regulations 2013 ;

“individual levy rate” means the figure determined in accordance with regulation 6 for an authority;

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

“relevant year” , except in Schedule 1A where it is subject to the definition contained in that Schedule, means the financial year for which a calculation of a levy or safety net payment is being made;

“retained rates income” has the meaning given in regulation 4;

“safety net threshold” has the meaning given in regulation 6(3);

“small business non-domestic rating multiplier” in relation to a year means the small business non-domestic rating multiplier for the year determined under Part 1 of Schedule 7 to the 1988 Act .

(2) 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 3 Pools of authorities

A pool of authorities is to be treated as a relevant authority for the purpose of these Regulations.

Section 4 Meaning of retained rates income for purposes of levy and safety net calculations

(1) Where the authority is a billing authority, its retained rates income for a year is the amount calculated in accordance with paragraphs 1 and 1A of Schedule 1 and paragraphs 3 and 4 of Schedule 1A .

(2) Where the authority is a major precepting authority its retained rates income for a year is the amount calculated in accordance with paragraph 2 of Schedule 1 and paragraphs 5, 6, 7 and 8 of Schedule 1A .

(3) Where the authority is a pool of authorities, its retained rates income for a year is the amount calculated in accordance with paragraph 3 of Schedule 1.

Section 5 Business rates baseline and baseline funding level

(1) The business rates baseline of an authority for the year commencing on 1st April 2013 is the amount specified with respect to that authority in column B of the table in Schedule 2.

(1A) The business rates baseline of an authority for the year commencing on 1st April 2017 is the amount specified with respect to that authority in column B of the table in Schedule 4.

(1B) For the year commencing on 1st April 2019 the business rates baseline of an authority listed in column A of the table in Schedule 5 is the amount specified with respect to that authority in column B of that table.

(2) The baseline funding level for an authority for the year commencing on 1st April 2013 is the amount specified with respect to that authority in column C of the table in Schedule 2.

(3) Unless paragraph (3ZA) or (3ZB) applies, the baseline funding level for an authority for the years commencing on 1st April 2014, 1st April 2015 and 1st April 2016 and for the years commencing on or after 1st April 2018 is the amount calculated in accordance with the formula—

Where—

A is the baseline funding level for the year immediately preceding the relevant year;

B 2 is the small business non-domestic rating multiplier for the relevant year;

B 1 is the small business non-domestic rating multiplier for the preceding year.

(3ZA) The baseline funding level of the Council of the Isles of Scilly—

(a) for the year commencing on 1st April 2018 is £1,478,412;

(b) for the year commencing on 1st April 2019 is £1,526,779.

(3ZB) For the year commencing on 1st April 2019, the baseline funding level for an authority listed in column A of the table in Schedule 5 is the amount listed in column C of the table in Schedule 5.

(3A) The baseline funding level for an authority for the year commencing on 1st April 2017 is the amount calculated in accordance with the formula—

where—

A has the meaning given in paragraph (3).

(4) In the case of an authority which is a pool of authorities—

(a) the business rates baseline of the authority—

(i) for the year commencing on 1st April 2013, is to be the sum of the individual business rates baselines of the authorities that comprise the pool for the year commencing on 1st April 2013;

(ii) for the year commencing on 1st April 2017, is to be the sum of the individual business rates baselines of the authorities that comprise the pool for the year commencing on 1st April 2017; and

(b) the baseline funding level for the authority for a year is to be the sum of the individual baseline funding levels for the year of the authorities that comprise the pool.

Section 6 Individual levy rates and safety net thresholds

(1) For the relevant years commencing on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, an authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2), whichever is less.

(2) The formula is—

Where—

C is the authority’s baseline funding level for the year commencing on 1st April 2013;

D is the authority’s business rates baseline.

(2A) Unless paragraph (2C) , (2D), (2E) or (2F) applies, for a relevant year commencing on or after 1st April 2017 an authority’s individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2B), whichever is less.

(2B) The formula is—

where—

E is the authority’s baseline funding level for the year commencing on 1st April 2017; and

F is the authority’s business rates baseline for the year commencing on 1st April 2017.

(2C) For an authority listed in Part 1, 3, 5, 7 or 8 of Schedule 3, the individual levy rate for a relevant year beginning on or after 1st April 2017 is zero.

(2D) For an authority listed in Parts 9 to 19 in Schedule 3, and a pool of authorities named within those Parts, the individual levy rate for the relevant year beginning on 1st April 2018 is zero.

(2E) For an authority—

(a) listed in Part 6 of Schedule 3 (other than Coventry City Council); or

(b) listed in Parts 20 to 34 of that Schedule, and a pool of authorities named within those Parts,

the individual levy rate for a relevant year beginning on or after 1st April 2019 is zero.

(2F) For an authority listed in column A of the table in Schedule 5, for a relevant year beginning on or after 1st April 2019 the authority's individual levy rate is 0.5 or the figure calculated in accordance with the formula in paragraph (2G), whichever is less.

(2G) The formula is—

where—

E is the authority's baseline funding level for the year beginning on 1st April 2019; and

F is the authority's business rates baseline for the year beginning on 1st April 2019.

(3) An authority’s safety net threshold for a year is 92.5 per cent of its baseline funding level for that year.

Section 7 Safety net on account

(1) An authority may request that the Secretary of State calculate whether a safety net payment is likely to be required to be made to the authority in respect of the relevant year.

(2) A request must be accompanied by the authority’s estimate of its retained rates income for the relevant year and must be made—

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

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

(3) Where the Secretary of State calculates that a safety net payment is likely to be required to be made the Secretary of State must notify the authority and make a payment on account to the authority of the amount that is the difference between the authority’s estimate of its retained rates income for the relevant year and its safety net threshold for that year.

Section 8 Safety net on account

(1) A payment on account is to be made in 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.

(2) The first four instalments are each to be of 9 per cent of the amount payable and each other instalment is to be 8 per cent of the amount payable.

(3) 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.

(4) 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 9 Requirement to make a safety net payment

(1) The Secretary of State must make a safety net payment to an authority in respect of a year where its retained rates income for the relevant year is less than its safety net threshold for that year.

(2) The amount of the payment is to be the difference between the authority’s retained rates income for the relevant year and its safety net threshold for that year.

(3) Where a payment on account has been made in respect of the relevant year an amount equal to that payment must be deducted from the amount payable under this regulation.

(4) Where the payment on account exceeds the amount payable under this regulation, the authority must pay the difference between the two amounts to the Secretary of State.

Section 10 Requirement to make levy payment

(1) An authority must make a levy payment to the Secretary of State in respect of a year where the following conditions are met—

(a) the authority’s individual levy rate is a positive number greater than zero; and

(b) the authority’s retained rates income for the relevant year is greater than its baseline funding level for that year.

(2) The amount of the levy payment is to be the amount calculated in accordance with the formula—

Where—

E is the authority’s individual levy rate;

F is the authority’s retained rates income for the relevant year;

G is the authority’s baseline funding level for the relevant year.

Section 1 Calculation for billing authorities

(1) The retained rates income of an authority that is a billing authority is the amount calculated in accordance with the formula—

Where—

K is —

50% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is a fire and rescue authority;

49% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

40% where the billing authority is a district council in an area for which there is a county council; and

30% where the billing authority is a London borough council or the Common Council of the City of London;

L is the authority’s certified non-domestic rating income for the relevant year;

M is the amount calculated in accordance with sub-paragraph (2);

N is the amount calculated in accordance with sub-paragraph (3);

O is the amount calculated in accordance with sub-paragraph (4);

P is—

unless paragraph (b) , (c) or (d) of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column C of Schedule 4;

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column E of Schedule 4;

where the billing authority is listed in Parts 20 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

A is the amount specified for that authority in column E of Schedule 4;

B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;

Q is—

unless paragraph (b) , (c) or (d) of this definition applies, the amount paid by the authority to the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act;

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column D of Schedule 4;

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column F of Schedule 4; ...

where the billing authority is listed in Parts 20 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

A is—

subject to paragraph (b), the amount specified for that authority in column F of Schedule 4;

for Somerset West and Taunton Council, £17,694,364;

B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;

T is the amount calculated in accordance with sub-paragraph (4A) in respect of the years commencing on or after 1st April 2013 ; and

Y is—

(a) for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, zero;

(b) unless paragraph (c) applies, for a relevant year beginning on or after 1st April 2017, the amount specified for that authority in column H of Schedule 4;

(c) for an authority listed in column A of Schedule 5, for a relevant year beginning on or after 1st April 2019, the amount specified for that authority in column E of Schedule 5.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a) the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act; less

(b) the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act.

(3) The amount calculated in accordance with this sub-paragraph is the amount that would have been calculated in accordance with sub-paragraph (2) if, in respect of any day in the relevant year or any day in a preceding year, any determination under section 47 or reduction or remission under section 49 of the 1988 Act had not been made.

(4) The amount calculated in accordance with this sub-paragraph is the amount which is the total of—

(a) the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken into account—

(i) the ratepayer is a charity or trustees for a charity, and the hereditament is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities); or

(ii) the ratepayer is a registered club for the purposes of Chapter 9 of Part 13 of the Corporation Tax Act 2010 (community amateur sports clubs) and the hereditament is not an excepted hereditament and is wholly or mainly used—

(aa) for the purposes of that club; or

(bb) for the purposes of that club and of other such registered clubs;

(b) the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act where one or more of the following applies in relation to the hereditament to which the determination relates were taken in to account—

(i) the hereditament is not an excepted hereditament, and all or part of it is occupied for the purposes of one or more institutions or other organisations none of which is established or conducted for profit and each of whose main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts;

(ii) the hereditament is not an excepted hereditament, it is wholly or mainly used for purposes of recreation, and all or part of it is occupied for the purposes of a club, society or other organisation not established or conducted for profit;

(iii) the hereditament meets the following conditions—

(aa) that the hereditament is within a settlement identified in the billing authority’s rural settlement list for the relevant year; and

(bb) that the rateable value of the hereditament shown in the local non-domestic rating list at the beginning of the relevant year is not more than £16,500;

(c) the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if, in respect of any day in the relevant year or any day in a preceding year, any reduction or remission by the authority under section 49 of the Act were taken into account; and

(d) the difference between the amount calculated in accordance with sub-paragraph (3) and the amount which would be so calculated if a determination under section 47 of the 1988 Act were taken into account where the determination relates to a ... Case B hereditament within the meaning of paragraph 1 of Schedule 2 to the Non-Domestic Rating (Rates Retention) Regulations 2013 and the conditions in paragraph 1(2) of that Schedule are met.

(4A) The amount calculated in accordance with this sub-paragraph is A% of the amount which is the difference between—

(a)

(i) the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year and in respect of a day in a previous year (disregarding days prior to 1st April 2013) where the amount was not credited in a previous year ; less

(ii) the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the specified year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of a day in that year and in respect of a day in a previous year (disregarding days prior to 1st April 2013) where the amount was not charged in a previous year ; and

(b) the amount that would have been calculated under paragraph (a) if section 43(4A) to (4D) of the 1988 Act were omitted.

(4B) For the purpose of sub-paragraph (4A), A is—

(a) for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, 50;

(b) unless paragraph (c) applies, for a relevant year beginning on or after 1st April 2017, the amount specified for that authority in column G of Schedule 4;

(c) for an authority listed in column A of Schedule 5, for a relevant year beginning on or after 1st April 2019, the amount specified for that authority in column D of Schedule 5.

(5) For the purposes of this paragraph “excepted hereditament” has the meaning given by section 47(9) of the 1988 Act.

Section 1A Calculation for billing authorities

In calculating the values in paragraph 1(2), (3), (4) and (4A) there is to be disregarded in relation to the billing authority and for each relevant year the proportion of the authority’s non-domestic rating income calculated in respect of an area which has been designated in regulations made under paragraph 39(1) of Schedule 7B to the Local Government Finance Act 1998 within which all or part of the authority’s area falls.

Section 2 Calculation for major precepting authorities

The retained rates income of an authority that is a major precepting authority is the amount calculated in accordance with the formula—

Where—

R is the sum of the certified non-domestic rating income of all billing authorities required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act (payments by billing authorities to major precepting authorities);

S is—

10% where the relevant authority is a county council which is a fire and rescue authority;

9% where the relevant authority is a county council which is not a fire and rescue authority;

unless paragraph (iiia) applies, 20% where the relevant authority is the Greater London Authority;

for a relevant year commencing on or after 1st April 2017, 37% where the relevant authority is the Greater London Authority;

1% where the relevant authority is a fire and rescue authority not falling within paragraph (i) ;

P is—

unless paragraph (b), (c) or (d) of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column C of Schedule 4;

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column E of Schedule 4; and

where the major precepting authority is listed in Parts 21 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where— A is—

subject to paragraph (b), the amount specified for that authority in column E of Schedule 4;

for Northamptonshire County Council, £60,927,097;

B is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2018;

Q is—

unless paragraph (b), (c) or (d) of this definition applies, the amount paid to the authority by the Secretary of State for the relevant year in accordance with Part 5 of Schedule 7B to the 1988 Act (principal payments in connection with local retention of non-domestic rates);

for the relevant year beginning on 1st April 2017, the amount specified for that authority in column D of Schedule 4;

for the relevant year beginning on 1st April 2018, the amount specified for that authority in column F of Schedule 4; and

where the major precepting authority is listed in Parts 21 to 34 of Schedule 3, for the relevant year beginning on 1st April 2019, the amount calculated for that authority in accordance with the formula—

where—

A is the amount specified for that authority in column F of Schedule 4;

B is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2019; and

C is the small business non-domestic rating multiplier in relation to the year commencing on 1st April 2018;

...

U is, in respect of the years commencing on or after 1st April 2013 , the sum of the amounts calculated in accordance with paragraph 1(4A) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act ....

and Z is—

for the relevant years beginning on 1st April 2013, 1st April 2014, 1st April 2015 and 1st April 2016, zero;

for a relevant year beginning on or after 1st April 2017, the sum of the amounts specified as Y for the relevant year in accordance with paragraph 1(1) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act.

Section 3 Calculation for pools

The retained rates income of a relevant authority that is a pool of authorities is the sum of the retained rates income of all the authorities in the pool.

Section 1 Interpretation

In this Schedule—

“the 2003 Regulations ” means the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003;

“the 2013 Regulations ” means the Non-Domestic Rating (Rates Retention) Regulations 2013;

“end of year calculations” means the calculation of non-domestic rating income that a billing authority is required to make in accordance with regulation 9(1)(a) of, and paragraph 1 of Schedule 1 to, the 2013 Regulations for the relevant year;

“refunds in respect of previous years” means amounts to be repaid to ratepayers as a consequence of an alteration to a list in accordance with regulations made under section 55 of the 1988 Act in respect of a year prior to the year beginning on 1st April 2013;

“relevant proportion” means the relevant proportion of the provision for refunds in respect of previous years that a billing authority included in its calculation of surplus or deficit on the collection fund for the relevant year beginning on 1st April 2014, in accordance with paragraph 1A of Schedule 4 to the 2013 Regulations ;

“relevant provision” means provision made by an authority to recognise amounts to be repaid to ratepayers as a consequence of an alteration to a list in accordance with regulations made under section 55 of the 1988 Act;

“relevant year” means the year for which a calculation of non-domestic rating income or of a payment is being made in accordance with the 2013 Regulations ; and

“surplus or deficit with respect to non-domestic rates” means the billing authority’s estimate as to whether there is a surplus or deficit with respect to non-domestic rates in its collection fund for the preceding year calculated in accordance with regulation 13 of, and paragraph 1 of Schedule 4 to, the 2013 Regulations .

Section 2 Application of Schedule

This Schedule applies where—

(a) a billing authority—

(i) in its calculation under regulation 3 of the 2013 Regulations (calculation of non domestic income) of the amount specified by paragraph 1 of Schedule 1 to those Regulations, for the year beginning on 1st April 2013, spread its provision for refunds in respect of previous years over a 5 year period; and

(ii) in its calculation of the surplus or deficit with respect to non domestic rates for the relevant year beginning on 1st April 2014 included in the amount specified by paragraph 1(3) of Schedule 4 to the 2013 Regulations an amount equal to the relevant proportion;

(b) a billing authority in accordance with regulation 30J(2) of the 2003 Regulations credited to a revenue account an amount equal to 80% of the amount of the relevant provision;

(c) a major precepting authority, in accordance with proper practices, was required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013 and in accordance with regulation 30J(3) of the 2003 Regulations credited to a revenue account an amount equal to 80% of the amount found in accordance with paragraph (4) of that regulation;

(d) a major precepting authority, in accordance with proper practices, was required to recognise a relevant provision in a revenue account for the financial year beginning on 1st April 2013 and a billing authority from whom the major precepting authority received non-domestic rating income for that year, in accordance with regulations 5(2), 6(2) or 14(1) of the 2013 Regulations , included in its calculation of surplus or deficit on the collection fund for the financial year beginning on 1st April 2014 an amount in accordance with paragraph 1A of Schedule 4 to those Regulations.

Section 3 Calculation for billing authorities for the financial year beginning on 1st April 2013

(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013.

(2) For the purposes of regulation 9 (requirement to make a safety net payment) and regulation 10 (requirement to make a levy payment) the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a billing authority is calculated by adding to the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with the formula—

Where—

K has the same meaning as in paragraph 1 of Schedule 1; and

V is the provision for refunds in respect of previous years that the authority has included in its end of year calculation of non-domestic rating income for the financial year beginning on 1st April 2013.

Section 4 Calculation for billing authorities for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial years beginning on 1st April 2014 of an authority that is a billing authority is calculated by deducting from the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with the formula—

Where—

K has the same meaning as in paragraph 1 of Schedule 1; and

V is the provision for refunds in respect of previous years that the authority has included in its end of year calculation of non-domestic rating income for the financial year beginning on 1st April 2013.

(3) For the purposes of regulation 7 (safety net on account) and regulations 9 and 10, the retained rates income for the financial years beginning on 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a billing authority is calculated by deducting from the amount calculated in accordance with paragraph 1 of Schedule 1 the amount calculated in accordance with subparagraph (2).

Section 5 Calculation for major precepting authorities for the financial year beginning on 1st April 2013

(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013 if the circumstances mentioned in paragraph 2(c) alone applies or if the circumstances mentioned in paragraph 2(c) and (d) both apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a major precepting authority is calculated by adding to the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

Where—

S is calculated as in paragraph 2 of Schedule 1; and

W is the sum of the provision for refunds in respect of previous years that every billing authority from whom the major precepting authority received non-domestic rating income has included in its end of year calculations.

Section 6 Calculation for major precepting authorities for the financial year beginning on 1st April 2013

(1) This paragraph has effect in respect of the financial year beginning on 1st April 2013 if the circumstances mentioned in paragraph 2(d) alone apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2013 of an authority that is a major precepting authority is calculated by adding to the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

Where—

S is calculated as in paragraph 2 of Schedule 1; and

Y is the aggregate of the provision for refunds in respect of previous years of every billing authority from whom the major precepting authority received non-domestic rating income, where that billing authority has—

in its calculation under regulation 3 of the 2013 Regulations (calculation of non domestic income) of the amount specified by paragraph 1 of Schedule 1 to those Regulations, for the year beginning on 1st April 2013, spread its provision for refunds in respect of previous years over a 5 year period; and

in its calculation of the surplus or deficit with respect to non domestic rates for the relevant year beginning on 1st April 2014 included in the amount specified by paragraph 1(3) of Schedule 4 to the 2013 Regulations an amount equal to the relevant proportion.

Section 7 Calculation for major precepting authorities for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 if the circumstances in paragraph 2(c) alone applies or if the circumstances in paragraph 2(c) and (d) apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2014 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

Where—

S is calculated as in paragraph 2 of Schedule 1; and

W is the sum of the provision for refunds in respect of previous years that every billing authority from whom the major precepting authority received non-domestic rating income has included in its end of year calculations.

(3) For the purposes of regulations 7, 9 and 10, the retained rates income for the financial years beginning on 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with subparagraph (2).

Section 8 Calculation for major precepting authorities for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017

(1) This paragraph has effect in respect of the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 if the circumstances in paragraph 2(d) alone apply.

(2) For the purposes of regulations 9 and 10, the retained rates income for the financial year beginning on 1st April 2014 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with the formula—

Where—

S is calculated as in paragraph 2 of Schedule 1; and

Y is the aggregate of the provision for refunds in respect of previous years of every billing authority from whom the major precepting authority received non-domestic rating income, where that billing authority has—

in its calculation under regulation 3 of the 2013 Regulations (calculation of non domestic income) of the amount specified by paragraph 1 of Schedule 1 to those Regulations, for the year beginning on 1st April 2013, spread its provision for refunds in respect of previous years over a 5 year period; and

in its calculation of the surplus or deficit with respect to non domestic rates for the relevant year beginning on 1st April 2014 included in the amount specified by paragraph 1(3) of Schedule 4 to the 2013 Regulations an amount equal to the relevant proportion.

(3) For the purposes of regulations 7, 9 and 10, the retained rates income for the financial years beginning on 1st April 2014, 1st April 2015, 1st April 2016 and 1st April 2017 of an authority that is a major precepting authority is calculated by deducting from the amount calculated in accordance with paragraph 2 of Schedule 1 the amount calculated in accordance with subparagraph (2).