General

Citation, commencement and interpretation_I1

1.—(1) These Rules may be cited as the Legal Services Act 2007 (Levy) (No.2) Rules 2010.

(2) These Rules come into force on 1st January 2011.

(3) In these Rules “the 2007 Act” means the Legal Services Act 2007 ( 2 ).

(4) In these Rules any reference, in relation to the imposition of a levy, to—

(a)the leviable Board expenditure; or

(b)the leviable OLC expenditure,

is a reference to such expenditure in relation to the 12 month period in respect of which the levy is imposed.

Annual levy

Levy imposed under these Rules_I2

2.—(1)[^F1 Subject to paragraph (6), a^F1] levy is to be imposed on leviable bodies in respect of the 12 month period ending with 31st March 2011 and in respect of each successive 12 month period.

(2) The levy is for the purpose of raising an amount corresponding to the aggregate of—

(a)the leviable Board expenditure; and

(b)the leviable OLC expenditure.

(3) The expenditure referred to in paragraph (2)(a) or (b) may include—

(a)estimated expenditure [^F2in so far as actual expenditure figures are not available to the Board^F2] ; and

(b)such amount as is necessary to make good any shortfall in respect of a levy previously imposed.

(4) For the purposes of paragraph (3)(b)—

(a)the reference to a levy previously imposed is to a levy imposed under these Rules or under the Legal Services Act 2007 (Levy) Rules 2010(3); and

(b)the reference to shortfall, in respect of any such levy, is to the difference between the amount to be raised by way of that levy and the amount actually received by the Board.

(5) The Board must obtain the Lord Chancellor’s agreement to the amount to be raised by way of the levy in respect of each 12 month period.

[^F3 (6) The levy is not to be imposed on a leviable body to whom this paragraph applies until its regulatory arrangements in respect of reserved legal activities are approved by the Board under Part 3 of Schedule 4 to the 2007 Act.

(7) Paragraph (6) applies to—

(a)the Institute of Chartered Accountants of Scotland; and

(b)the Association of Chartered Certified Accountants.^F3]

Amount payable by each leviable body

Determining the amount of the levy for each leviable body_I3

3.—(1) The amount that each leviable body must pay to the Board in respect of the levy imposed in respect of any 12 month period is to be determined by adding together the amounts determined for that body under rules 4 and 5 (subject to paragraphs (2) and (3)).

(2) Where a body becomes a leviable body [^F4 or a leviable body to whom rule 2(6) applies has its regulatory arrangements in respect of reserved legal activities approved by the Board under Part 3 of Schedule 4 to the 2007 Act ^F4] in the course of any 12 month period (“the initial period”)—

(a)[^F5 £3000^F5] is payable by the leviable body under paragraph (1) in respect of the initial period; and

(b)the amount that the leviable body must pay to the Board in respect of each subsequent 12 month period is the amount determined for that body under rule 4 only; but

(c)if the leviable body is the subject of a determination under rule 4(3) or 5(3) in respect of any 12 month period, the amount that the body must pay to the Board under paragraph (1) is—

(i)where the determination is in respect of the initial period, any amount determined for that body under rule 4(4)(a) or 5(4)(a) (or the aggregate of such amounts); and

(ii)where the determination is made in respect of any subsequent 12 month period, the amount determined for that body under rule 4, together with the amount (if any) determined for that body under rule 5(4)(a).

(3) The amount that a body would otherwise be required to pay under paragraph (1) is to be proportionately reduced where—

(a)before the end of any 12 month period, the body ceases to be a leviable body because its designation as an approved regulator is cancelled by an order under section 45 (cancellation of designation as approved regulator) of the 2007 Act; and

(b)the order is made in relation to all the reserved legal activities in relation to which the body was an approved regulator.

(4) The Board must notify each leviable body of the imposition of the levy, stating—

(a)the amount determined for that body; and

(b)the deadline for payment determined in accordance with rule 7.

(5) The leviable body must pay to the Board the amount stated in the notice.

Apportionment of leviable Board expenditure_I4

4.—(1) Subject to paragraphs (3) to [^F6(6)^F6] , the amount payable by a leviable body under this rule is an amount equal to the relevant proportion of leviable Board expenditure.

(2) For these purposes—

(a)the relevant proportion is the number at the specified date of persons authorised by the leviable body to carry on one or more reserved legal activities, as a proportion of the total number at that date of persons authorised by all leviable bodies to carry on one or more such activities; and

(b)the specified date is 1st April of the 12 month period in respect of which the levy is imposed.

(3) Paragraphs (4) and (5) apply where the Board determines on reasonable grounds that—

(a)anything done, or not done, by a leviable body has given rise to an additional amount of leviable Board expenditure; and

(b)as a result, the amount of leviable Board expenditure attributable to that body is materially disproportionate to the amount attributable to any other leviable body (apart from one in respect of whom a determination under this paragraph has also been made).

(4) The total amount of leviable Board expenditure to be used in applying the calculation described in paragraph (1) is to be reduced as follows—

(a)in relation to each leviable body which is the subject of a determination under paragraph (3), the Board must determine the additional amount of leviable Board expenditure referred to in paragraph (3)(a); and

(b)the amount so determined (or the aggregate of such amounts) is to be deducted from the total amount of the leviable Board expenditure which would otherwise be used for the purposes of the calculation described in paragraph (1).

(5) The amount payable by each leviable body which is the subject of a determination under paragraph (3) is the aggregate of the amounts determined for that body under paragraphs (1) and (4)(a).

[^F7 (6) The total amount of leviable Board expenditure to be used in applying the calculation under paragraph (1) is to be reduced by any amount payable by a leviable body under rule 3(2)(a).^F7]

Apportionment of leviable OLC expenditure_I5

5.—(1) Subject to paragraphs (3) to (5), the amount payable by a leviable body under this rule is [^F8£5000 plus^F8] an amount equal to the relevant proportion of leviable OLC expenditure.

[^F9 (2) For these purposes—

(a) subject to paragraph (2A), “ the relevant proportion ” in relation to a leviable body is the number of service complaints in respect of that leviable body accepted in the course of the reference period by the OLC, as a proportion of the total number of service complaints in respect of all leviable bodies accepted in the course of that period by the OLC; and

(b) “the reference period” is the three year period ending on 31st March prior to the 12 month period in respect of which the levy is imposed.

(2A) For the purposes of paragraph (2)(a), the number of service complaints in respect of the leviable body accepted in the course of the reference period by the OLC shall be reduced by three.^F9]

(3) Paragraphs (4) and (5) apply where the Board determines on reasonable grounds that—

(a)anything done, or not done, by a leviable body has given rise to an additional amount of leviable OLC expenditure; and

(b)as a result, the amount of leviable OLC expenditure attributable to that body is materially disproportionate to the amount attributable to any other leviable body (apart from one in respect of whom a determination under this paragraph has also been made).

(4) The total amount of leviable OLC expenditure to be used in applying the calculation described in paragraph (1) is to be reduced as follows—

(a)in relation to each leviable body which is the subject of a determination under paragraph (3), the Board must determine the additional amount of leviable OLC expenditure referred to in paragraph (3)(a); and

(b)the amount so determined (or the aggregate of such amounts) is to be deducted from the total amount of leviable OLC expenditure which would otherwise be used for the purposes of the calculation described in paragraph (1).

(5) The amount payable by each leviable body which is the subject of a determination under paragraph (3) is the aggregate of the amounts determined for that body under paragraphs (1) and (4)(a).

[^F10 (6) In this rule, “ service complaint ” means a complaint which is within the jurisdiction of the ombudsman scheme as provided for in Part 6 of the 2007 Act. ^F10]

Duty to provide information

Duty to provide information required to calculate the levy_I6

6.—(1) For the purpose of enabling the Board to determine the amount payable by a leviable body in respect of any 12 month period, each leviable body must provide the Board with the information required by paragraphs (2) and (3).

(2) The information to be provided is—

(a)for the purposes of rule 4, a statement of the number of persons who were authorised by the leviable body at 1st April of the 12 month period in question; and

[^F11 (b) for the purposes of rule 5, a statement of the number of service complaints accepted in the course of the reference period by the OLC (and for this purpose “ reference period ” has the meaning given in rule 5). ^F11]

(3) Any statement provided under paragraph (2) must contain or be accompanied by such information as will enable the Board, or such person as the Board may appoint, to be satisfied that the numbers stated are correct.

(4) The information must be provided—

(a)before the end of the period of one month starting with 1st April of the 12 month period in respect of which the levy is to be imposed; or

(b)on or before such later date as may be agreed in writing between the Board and the leviable body.

^F12(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Arrangements for payment

Making payment_I7

7.—(1) Subject to paragraph (2), the amount of levy that a leviable body is required to pay to the Board under rule 3 must be paid in full by the leviable body no later than—

(a)31st March of the 12 month period to which the levy relates; or

(b)the end of the period of 28 days that starts with the date of the notice given to the leviable body under rule 3(4),

whichever is the later.

(2) Where a cancellation order in relation to any body has been made as described in rule 3(3), the reduced amount determined for that body under rule 3(3) is immediately payable with effect from the date of the cancellation order.

Interest payable on late payment_I8

8. If payment is not made by a leviable body in accordance with the requirements of rule 7, [^F13the unpaid balance from time to time carries interest^F13] at the rate which is for the time being specified in section 17(1) of the Judgments Act 1838(4) in relation to a judgment debt.