PART 1 General

Citation and commencement

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

Interpretation

2. —(1) In these Regulations—

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

“ authority ” means a billing authority or a major precepting authority;

“ billing authority ” means a billing authority in England;

[^F2 “central share payment” means a payment made by a billing authority to the Secretary of State under paragraph 6(2) of Schedule 7B to the 1988 Act; ^F2]

“ certified non-domestic rating income ” has the meaning given by regulation 9(4);

“ non-domestic rating income ” has the meaning given by regulation 3(3);

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

“ relevant precepting authority ” in relation to a billing authority means a major precepting authority other than a police and crime commissioner, having a power to issue a precept to that billing authority;

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

“ schedule of instalments ” has the meaning given by regulation 15;

^F3 “ 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 .

^F4 (2) In these Regulations any reference to a billing authority's general fund shall be construed in relation to the Common Council of the City of London as a reference to the City fund .

(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.

PART 2 Calculations and in-year payments

Calculation and notification of non-domestic rating income and other amounts

3. —(1) For each year a billing authority must calculate—

(a) the amount of the central share of its non-domestic rating income;

(b) the amount of each relevant precepting authority's share of its non-domestic rating income in accordance with regulation 5;

(c) the amount (if any) to be deducted from the central share payment in accordance with regulation 4(1);

(d) the amount of each relevant precepting authority's share of any amount to be deducted from the central share payment in accordance with regulation 4(1);

[^F5 (da) for a billing authority listed in [^F6 Parts 2 to 6 ^F6] of Schedule 5, the amount that is its estimate of the amount (if any) specified by paragraph 2 of Schedule 2 for that year;

(db) for a billing authority listed in [^F7 Parts 2 to 6 ^F7] of Schedule 5, the amount that is its estimate of the amount (if any) specified by paragraph 3 of Schedule 2 for that year; ^F5]

(e) the amount (if any) specified by regulation 7(2);

[^F8 (f) the amount (if any) specified by regulation 7A(2);

(g) the amount of each relevant precepting authority’s share of any amount specified by regulation 7A. ^F8]

(2) The billing authority must notify the Secretary of State and any relevant precepting authorities of the amounts that have been calculated—

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

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

[^F9 (2A) In relation to the relevant year commencing on 1st April 2017, a billing authority listed in Parts 2 to 6 of Schedule 5 must on or before 30th April 2017 notify the Secretary of State and any relevant precepting authority of the amounts it has calculated under paragraph (1)(da) and (db) for that relevant year. ^F9]

[^F10 (2B) In relation to the relevant year commencing on 1st April 2018, a billing authority listed in Parts 1 and 7 to 22 of Schedule 5 must on or before 30th April 2018 notify the Secretary of State and any relevant precepting authority of the amounts it has calculated under paragraph (1)(da) and (db) for that relevant year. ^F10]

(3) A billing authority's non-domestic rating income for the purposes of paragraph (1) is the billing authority's estimate for the relevant year of the amount specified by paragraph 1 of Schedule 1.

(4) If an authority fails to comply with paragraph (2) the Secretary of State may make a calculation of the amount or amounts; and in such cases—

(a) the Secretary of State must notify the authority and any relevant precepting authority of the amount or amounts calculated; and

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

Payment to the Secretary of State in respect of the central share

4. [^F11—(1) In relation to each relevant year, a billing authority must deduct from the central share payment the amount which is the total of the following—

(a) its estimate of the amount (if any) specified by paragraph 2 of Schedule 2 for that year;

(b) its estimate of the amount (if any) specified by paragraph 3 of Schedule 2 for that year;

[^F12 (c) for a relevant year beginning on 1st April 2017, its estimate of the amount specified by paragraph 2(1) of Schedule 2A for that year (if applicable);

(d) for a relevant year beginning on or after 1st April 2017, its estimate of the amount specified by paragraph 2 of Schedule 2B for that year (if applicable); and

(e) for a relevant year beginning on or after 1st April 2018, its estimate of the amount specified by paragraph 2(1) of Schedule 2C for that year (if applicable). ^F12,F11]]

(2) The [^F13 central share payment ^F13] must be made in the course of the relevant year in accordance with the schedule of instalments.

[^F14 (3) In relation to a relevant year commencing on or after 1st April 2017, this regulation does not apply to a billing authority listed in Parts 2 to 6 of Schedule 5. ^F14]

[^F15 (4) In relation to the relevant year commencing on 1st April 2018, this regulation does not apply to a billing authority listed in Parts 1 and 7 to 22 of Schedule 5. ^F15]

Payments by billing authorities to major precepting authorities in respect of share of income

5. —(1) This regulation applies if a local government finance report for a year is approved by resolution of the House of Commons.

(2) Each billing authority must make a payment for the year to each of its relevant precepting authorities of the amount that is that authority's share of the billing authority's non-domestic rating income.

(3)[^F16 Unless paragraph (3A) [^F17 , (3B) [^F18 , (3C) or (3D) ^F18,F17]] applies, the ^F16] relevant precepting authority shares are—

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

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

(c) 20% where the relevant precepting authority is the Greater London Authority; and

(d) 1% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (a).

[^F19 (3A) For a relevant year commencing on or after 1st April 2017, the relevant precepting authority shares are—

^F20 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) 5% where the relevant precepting authority is the West of England Combined Authority. ^F19]

[^F21 (3B) For the relevant year commencing on 1st April 2017 and a relevant year commencing on or after 1st April [^F22 2020 ^F22] , the relevant precepting authority share for the Greater London Authority is 37%.

(3C) For the relevant year commencing on 1st April 2018, the relevant precepting authority shares are—

(a) 36% where the relevant precepting authority is the Greater London Authority;

(b) 49% where the relevant precepting authority is Derbyshire County Council;

(c) 59% where the relevant precepting authority is Devon County Council;

(d) 50% where the relevant precepting authority is Gloucestershire County Council;

(e) 59% where the relevant precepting authority is Kent County Council;

(f) 40% where the relevant precepting authority is Lincolnshire County Council;

(g) 20% where the relevant precepting authority is Suffolk County Council; and

(h) 70% where the relevant precepting authority is Surrey County Council. ^F21]

[^F23 (3D) For the relevant year commencing on 1st April 2019, the relevant precepting authority shares are—

(a) 27% where the relevant precepting authority is the Greater London Authority;

(b) 31.5% where the relevant precepting authority is Buckinghamshire County Council;

(c) 26% where the relevant precepting authority is East Sussex County Council;

(d) 40% where the relevant precepting authority is Hertfordshire County Council;

(e) 17.5% where the relevant precepting authority is Lancashire County Council;

(f) 36.5% where the relevant precepting authority is Leicestershire County Council;

(g) 32.5% where the relevant precepting authority is Norfolk County Council;

(h) 21.5% where the relevant precepting authority is North Yorkshire County Council;

(i) 34% where the relevant precepting authority is Northamptonshire County Council;

(j) 30% where the relevant precepting authority is Somerset County Council;

(k) 34% where the relevant precepting authority is Staffordshire County Council;

(l) 55% where the relevant precepting authority is West Sussex County Council;

(m) 74% where the relevant precepting authority is Worcestershire County Council;

(n) 5% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority; and

(o) 1.5% where the relevant precepting authority is Lancashire Combined Fire and Rescue Authority. ^F23]

(4) The payment must be made in the course of the relevant year in accordance with the schedule of instalments.

Payments to major precepting authorities in respect of deductions from central share payments

6. —(1) This regulation applies where an amount has been deducted from the central share payment for a year under regulation 4(1) in respect of an amount [^F24 specified by paragraph 3 of Schedule 2 (case B hereditaments) or paragraph 2(1) of Schedule 2A (special provision for deduction from the central share payment) ^F24] .

(2) The billing authority must pay to each relevant precepting authority that authority's share of [^F25 each specified ^F25] amount.

(3)[^F26 Unless paragraph (3A) applies, ^F26] the relevant precepting authority shares are—

(a) 20% where the relevant precepting authority is a county council which is a fire and rescue authority;

(b) 18% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(c) 40% where the relevant precepting authority is the Greater London Authority; and

(d) 2% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (a).

[^F27 (3A) For the relevant year commencing on 1st April 2019, the relevant precepting authority shares are—

(a) 36% where the relevant precepting authority is the Greater London Authority;

(b) 42% where the relevant precepting authority is Buckinghamshire County Council;

(c) 34⅔% where the relevant precepting authority is East Sussex County Council;

(d) 53⅓% where the relevant precepting authority is Hertfordshire County Council;

(e) 23⅓% where the relevant precepting authority is Lancashire County Council and the billing authority is listed in Part 27 of Schedule 5;

(f) 48⅔% where the relevant precepting authority is Leicestershire County Council;

(g) 43⅓% where the relevant precepting authority is Norfolk County Council;

(h) 28⅔% where the relevant precepting authority is North Yorkshire County Council;

(i) 45⅓% where the relevant precepting authority is Northamptonshire County Council;

(j) 40% where the relevant precepting authority is Somerset County Council;

(k) 45⅓% where the relevant precepting authority is Staffordshire County Council;

(l) 73⅓% where the relevant precepting authority is West Sussex County Council;

(m) 98⅔% where the relevant precepting authority is Worcestershire County Council;

(n) 1⅓% where the relevant precepting authority is Berkshire Combined Fire and Rescue Authority;

(o) 1⅓% where the relevant precepting authority is Buckinghamshire Combined Fire and Rescue Authority and the billing authority is listed in Part 23 of Schedule 5;

(p) 1⅓% where the relevant precepting authority is Devon and Somerset Fire and Rescue Authority and the billing authority is listed in Part 35 of Schedule 5;

(q) 6⅔% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority and the billing authority is listed in Part 24 of Schedule 5;

(r) 1⅓% where the relevant precepting authority is Hampshire Combined Fire and Rescue Authority and the billing authority is listed in Part 19 of Schedule 5;

(s) 1⅓% where the relevant precepting authority is Hereford & Worcester Combined Fire and Rescue Authority and the billing authority is listed in Part 39 of Schedule 5;

(t) 1⅓% where the relevant precepting authority is Leicestershire Combined Fire and Rescue Authority and the billing authority is listed in Part 28 or 29 of Schedule 5;

(u) 1⅓% where the relevant precepting authority is North Yorkshire Police, Fire and Crime Commissioner Fire and Rescue Authority;

(v) 1⅓% where the relevant precepting authority is Northamptonshire Commissioner Fire and Rescue Authority;

(w) 1⅓% where the relevant precepting authority is Staffordshire Commissioner Fire and Rescue Authority;

(x) 1⅓% where the relevant precepting authority is Tyne and Wear Fire and Rescue Authority and the billing authority is listed in Part 33 of Schedule 5; and

(y) 1⅓% where the relevant precepting authority is West Yorkshire Fire and Rescue Authority. ^F27]

(4) The payment must be made in the course of the relevant year in accordance with the schedule of instalments.

Payments with respect to county matters

7. —(1) This regulation applies where the billing authority is a district council in an area for which there is a county council.

^F28 (2) The amount specified by this regulation is the amount to be disregarded in respect of a hereditament for the relevant year calculated in accordance with the Non-Domestic Rating (Renewable Energy Projects) Regulations 2013 where—

(a) the hereditament falls within a class designated by those Regulations; and

(b) the local planning authority responsible for determining the application for planning permission in respect of development which led to the hereditament falling within the designated class was a county council.

(3) The billing authority must make a payment for the year to the relevant county council equal to the amount estimated (if any) in accordance with regulation 3 as the amount specified by this regulation.

(4) The payment must be made in the course of the relevant year in accordance with the schedule of instalments.

^F29 (5) In this regulation, “ planning permission ” means permission under Part 3 of the Town and Country Planning Act 1990 .

[^F30 Payments with respect to shale oil or gas hereditaments

7A. —(1) This regulation applies where the area of a billing authority includes a hereditament within a class designated by Part 2 of the Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015.

(2) The amount specified by this regulation is the amount to be disregarded in respect of a hereditament for the relevant year calculated in accordance with the Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 where the hereditament falls within a class designated by Part 2 of those Regulations.

(3) The billing authority must make a payment for the year to each relevant precepting authority equal to that authority’s share (as set out in paragraph (4)) of the amount estimated (if any), in accordance with regulation 3, as the amount specified by this regulation.

(4) The relevant precepting authority shares are—

(a) 60% where the relevant precepting authority is a county council which is a fire and rescue authority;

(b) 59% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(c) 20% where the relevant precepting authority is the Greater London Authority; and

(d) 1% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (a).

(5) The payment must be made in the course of the relevant year in accordance with the schedule of instalments. ^F30]

Transfer from collection fund to general fund

8. —(1) In relation to each relevant year a billing authority must transfer from its collection fund to its general fund the amount calculated in accordance with Schedule 3.

(2) The transfer must be made in the course of the relevant year in accordance with the schedule of instalments.

PART 3 End of year calculations and reconciliation

End of year calculations

9. —(1)[^F31 Subject to paragraph (5), ^F31] on or before [^F32 31st July ^F32] in the year following the relevant year a billing authority must—

(a) calculate the amount specified by paragraph 1 of Schedule 1 for the relevant year;

[^F33 (b) calculate the amount (if any) specified by paragraph 2 of Schedule 2 for the relevant year;

(ba) calculate the amount (if any) specified by paragraph 3 of Schedule 2 for the relevant year;

(bb) calculate the amount specified by paragraph 2(1) of Schedule 2A for the relevant year (if applicable);

(bc) calculate the amount specified by paragraph 2 of Schedule 2B for the relevant year (if applicable); ^F33]

[^F34 (bd) calculate the amount specified by paragraph 2(1) of Schedule 2C for the relevant year (if applicable); ^F34]

(c) calculate the amount (if any) specified by regulation 7(2) [^F35 , 7A(2) and the amount of each relevant precepting authority’s share of any amount specified by regulation 7A ^F35] for the relevant year; and

(d) notify the Secretary of State and any relevant precepting authorities of the amounts calculated.

(2) The billing authority must arrange for the calculations and amounts to be certified in accordance with such arrangements as the Secretary of State may direct.

(3) The person certifying the calculations and amounts must send the certification to the Secretary of State and notify the billing authority and relevant precepting authorities of the amounts so certified.

(4) The amount specified by paragraph 1 of Schedule 1 to these Regulations and calculated and certified in accordance with this regulation is the authority's certified non-domestic rating income for the relevant year.

[^F36 (5) Paragraph (1) applies in relation to calculations for the relevant year beginning on 1st April 2019 as if for “31st July” there were substituted “30th November”. ^F36]

[^F37 Special provision for end of year calculations for relevant year beginning on 1st April 2015

9A. —(1) This regulation applies in relation to the relevant year beginning on 1st April 2015 to a billing authority to which Schedule 2A or 2B applies.

(2) In addition to the calculations made under regulation 9(1) for that year, the billing authority must calculate the following amounts on or before 23rd January 2017—

(a) the amount specified by paragraph 2(1) of Schedule 2A for that year (if applicable);

(b) the amount specified by paragraph 2 of Schedule 2B for that year (if applicable).

(3) The billing authority must—

(a) notify the Secretary of State on or before 23rd January 2017 of the amounts calculated; and

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

(4) The person certifying the calculations and amounts must send the certification to the Secretary of State and notify the billing authority of the amounts so certified. ^F37]

[^F38 Special provision for end of year calculations for relevant year beginning on 1st April 2016

9B. —(1) This regulation applies in relation to the relevant year beginning on 1st April 2016 to a billing authority to which Schedule 2C applies.

(2) In addition to the calculations made under regulation 9(1) for that year, the billing authority must calculate the amount specified by paragraph 2(1) of Schedule 2C for that year (if applicable) on or before 2nd February 2018.

(3) The billing authority must—

(a) notify the Secretary of State on or before 2nd February 2018 of the amount calculated; and

(b) arrange for the calculation and amount to be certified in accordance with such arrangements as the Secretary of State may direct.

(4) The person certifying the calculation and amount must send the certification to the Secretary of State and notify the billing authority of the amount so certified. ^F38]

[^F39 Reconciliation of disregarded amounts

10. —(1) Where the amount included in the calculation of the certified non-domestic rating income as an amount to be disregarded in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act is different to the amount estimated for the purposes of regulation 3 (“the estimated amount”) paragraphs (2) to (4) apply.

(2) Where the difference relates to a hereditament within the description in regulation 7(2) (county matters)—

(a) if the certified amount is less than the amount paid to the county council, the county council must pay an amount equal to the difference to the billing authority; or

(b) if the certified amount is more than the amount paid to the county council, the billing authority must pay an amount equal to the difference to the county council.

(3) Where the difference relates to a hereditament within the description in regulation 7A(1) (shale oil or gas hereditaments)—

(a) if the certified amount is less than the estimated amount-

(i) each relevant precepting authority must pay an amount equal to that relevant precepting authority’s percentage share (as set out in paragraph (5)) of the difference to the billing authority; and

(ii) the billing authority must transfer an amount equal to its percentage share of the difference from its general fund to its collection fund; or

(b) if the certified amount is more than the estimated amount-

(i) the billing authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to each relevant precepting authority; and

(ii) the billing authority must transfer an amount equal to its percentage share of the difference from its collection fund to its general fund.

(4) Where the difference relates to any other hereditament—

(a) if the certified amount is less than the estimated amount, the billing authority must transfer an amount equal to the difference from its general fund to its collection fund; or

(b) if the certified amount is more than the estimated amount, the billing authority must transfer an amount equal to the difference from its collection fund to its general fund.

(5) For the purposes of this regulation, the percentage shares are—

(a) 100% where the billing authority is—

(i) a county council, or a district council in an area for which there is no county council, and the authority is a fire and rescue authority; or

(ii) the Council of the Isles of Scilly;

(b) 99% where the billing authority is a county council, or a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

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

(d) 80% where the billing authority is a London borough council or the Common Council of the City of London;

(e) 60% where the relevant precepting authority is a county council which is a fire and rescue authority;

(f) 59% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(g) 20% where the relevant precepting authority is the Greater London Authority; and

(h) 1% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (e). ^F39]

[^F40 Reconciliation of amount deducted from central share payment

11. —(A1) This regulation applies in relation to a relevant year if a billing authority deducts an amount under regulation 4(1) from its central share payment for that year. ^F41]

(1) Where the amount certified under regulation 9 as the [^F42 amount specified by paragraph 2 of Schedule 2 for a relevant year is different from the amount deducted under regulation 4(1)(a) from the central share payment for that year ^F42] —

(a) if the certified amount is less than the deducted amount, the billing authority must—

(i) pay an amount equal to the difference to the Secretary of State; and

(ii) transfer an amount equal to the difference from its general fund to its collection fund; or

(b) if the certified amount is more than the deducted amount—

(i) the Secretary of State must pay an amount equal to the difference to the billing authority; and

(ii) the billing authority must transfer an amount equal to the difference from its collection fund to its general fund.

(2) Where the amount certified under regulation 9 as the [^F43 amount specified by paragraph 3 of Schedule 2 for a relevant year is different from the amount deducted under regulation 4(1)(b) from the central share payment for that year ^F43] —

(a) if the certified amount is less than the deducted amount—

(i) the billing authority must pay an amount equal to the difference to the Secretary of State;

(ii) each relevant precepting authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to the billing authority; and

(iii) the billing authority must transfer an amount equal to its percentage share of the difference from its general fund to its collection fund; or

(b) if the certified amount is more than the deducted amount—

(i) the Secretary of State must pay an amount equal to the difference to the billing authority;

(ii) the billing authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to each relevant precepting authority; and

(iii) the billing authority must transfer an amount equal to its percentage share of the difference from its collection fund to its general fund.

[^F44 (2A) For [^F45 the relevant year beginning on 1st April 2017 ^F45] , where the amount certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2A for that year is different from the amount deducted under [^F46 regulation 4(1)(c) ^F46] from the central share payment for that year—

(a) if the certified amount is less than the deducted amount—

(i) the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii) the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b) if the certified amount is more than the deducted amount—

(i) the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii) the billing authority must transfer from its collection fund to its general fund an amount equal to the difference.

(2B) For a relevant year beginning on or after 1st April 2017, where the amount certified under regulation 9 as the amount specified by paragraph 2 of Schedule 2B for that year is different from the amount deducted under [^F47 regulation 4(1)(d) ^F47] from the central share payment for that year—

(a) if the certified amount is less than the deducted amount—

(i) the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii) the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b) if the certified amount is more than the deducted amount—

(i) the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii) the billing authority must transfer from its collection fund to its general fund an amount equal to the difference. ^F44]

[^F48 (2C) For a relevant year beginning on or after 1st April 2018, where the amount certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2C for that year is different from the amount deducted under regulation 4(1)(e) from the central share payment for that year—

(a) if the certified amount is less than the deducted amount—

(i) the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii) the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b) if the certified amount is more than the deducted amount—

(i) the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii) the billing authority must transfer from its collection fund to its general fund an amount equal to the difference. ^F48]

(3) [^F49 Unless [^F50 paragraph (4), (5) or (6) ^F50] applies, for ^F49] the purposes of this regulation, the percentage shares are—

(a) 100% where the billing authority is—

(i) a county council, or a district council in an area for which there is no county council, and the authority is a fire and rescue authority; or

(ii) the Council of the Isles of Scilly;

(b) 98% where the billing authority is a county council, or a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

(c) 80% where the billing authority is a district council in an area for which there is a county council;

(d) 60% where the billing authority is a London borough council or the Common Council of the City of London;

(e) 20% where the relevant precepting authority is a county council which is a fire and rescue authority;

(f) 18% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(g) 40% where the relevant precepting authority is the Greater London Authority; and

(h) 2% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (e).

[^F51 (4) In relation to [^F52 the relevant year commencing on ^F52] 1st April 2017, the percentage shares are—

(a) 44.8% where the billing authority is listed in Part 1 of Schedule 5; and

(b) 55.2% where the relevant precepting authority is the Greater London Authority. ^F51]

[^F53 (5) For the relevant year commencing on 1st April 2018, the percentage shares are—

(a) 64% where the billing authority is listed in Part 1 of Schedule 5; and

(b) 36% where the relevant precepting authority is the Greater London Authority.

(6) For the relevant year commencing on 1st April 2019, the percentage shares are—

(a) 64% where the billing authority is listed in Part 1 of Schedule 5;

(b) 98⅔% where the billing authority is listed in Parts 7, 16, 19, 28, 33 or 36 of Schedule 5;

(c) 70% where the billing authority is listed in Parts 15 or 32 of Schedule 5;

(d) 100% where the billing authority is listed in Parts 20 or 34 of Schedule 5;

(e) 56⅔% where the billing authority is listed in Parts 23 or 30 of Schedule 5;

(f) 58⅔% where the billing authority is listed in Parts 24 or 35 of Schedule 5;

(g) 46⅔% where the billing authority is listed in Part 25 of Schedule 5;

(h) 98% where the billing authority is listed in Part 26 of Schedule 5;

(i) 74⅔% where the billing authority is listed in Part 27 of Schedule 5;

(j) 50% where the billing authority is listed in Part 29 of Schedule 5;

(k) 53⅓% where the billing authority is listed in Parts 31 or 37 of Schedule 5;

(l) 26⅔% where the billing authority is listed in Part 38 of Schedule 5;

(m) 0% where the billing authority is listed in Part 39 of Schedule 5;

(n) 36% where the relevant precepting authority is the Greater London Authority;

(o) 42% where the relevant precepting authority is Buckinghamshire County Council;

(p) 34⅔% where the relevant precepting authority is East Sussex County Council;

(q) 53⅓% where the relevant precepting authority is Hertfordshire County Council;

(r) 23⅓% where the relevant precepting authority is Lancashire County Council and the billing authority is listed in Part 27 of Schedule 5;

(s) 48⅔% where the relevant precepting authority is Leicestershire County Council;

(t) 43⅓% where the relevant precepting authority is Norfolk County Council;

(u) 28⅔% where the relevant precepting authority is North Yorkshire County Council;

(v) 45⅓% where the relevant precepting authority is Northamptonshire County Council;

(w) 40% where the relevant precepting authority is Somerset County Council;

(x) 45⅓% where the relevant precepting authority is Staffordshire County Council;

(y) 73⅓% where the relevant precepting authority is West Sussex County Council;

(z) 98⅔% where the relevant precepting authority is Worcestershire County Council;

(z1) 1⅓% where the relevant precepting authority is Berkshire Combined Fire and Rescue Authority;

(z2) 1⅓% where the relevant precepting authority is Buckinghamshire Combined Fire and Rescue Authority and the billing authority is listed in Part 23 of Schedule 5;

(z3) 1⅓% where the relevant precepting authority is Devon and Somerset Fire and Rescue Authority and the billing authority is listed in Part 35 of Schedule 5;

(z4) 6⅔% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority and the billing authority is listed in Part 24 of Schedule 5;

(z5) 1⅓% where the relevant precepting authority is Hampshire Combined Fire and Rescue Authority and the billing authority is listed in Part 19 of Schedule 5;

(z6) 1⅓% where the relevant precepting authority is Hereford & Worcester Combined Fire and Rescue Authority and the billing authority is listed in Part 39 of Schedule 5;

(z7) 1⅓% where the relevant precepting authority is Leicestershire Combined Fire and Rescue Authority and the billing authority is listed in Part 28 or Part 29 of Schedule 5;

(z8) 1⅓% where the relevant precepting authority is North Yorkshire Police, Fire and Crime Commissioner Fire and Rescue Authority;

(z9) 1⅓% where the relevant precepting authority is Northamptonshire Commissioner Fire and Rescue Authority;

(z10) 1⅓% where the relevant precepting authority is Staffordshire Commissioner Fire and Rescue Authority;

(z11) 1⅓% where the relevant precepting authority is Tyne and Wear Fire and Rescue Authority and the billing authority is listed in Part 33 of Schedule 5; and

(z12) 1⅓% where the relevant precepting authority is West Yorkshire Fire and Rescue Authority. ^F53,F40]]

[^F54 Special provision for end of year payments in respect of relevant year beginning on 1st April 2015

11A. —(1) This regulation applies in relation to the relevant year beginning on 1st April 2015 to a billing authority to which Schedule 2A or 2B applies.

(2) Where an amount is certified under regulation 9A as the amount specified by paragraph 2(1) of Schedule 2A for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3) Where an amount is certified under regulation 9A as the amount specified by paragraph 2 of Schedule 2B for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(4) An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year.

Special provision for end of year payments in respect of relevant year beginning on 1st April 2016

11B. —(1) This regulation applies in relation to the relevant year beginning on 1st April 2016 to a billing authority to which [^F55 Schedule 2A, 2B or 2C ^F55] applies.

(2) Where an amount is certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2A for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3) Where an amount is certified under regulation 9 as the amount specified by paragraph 2 of Schedule 2B for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

[^F56 (3A) Where an amount is certified under regulation 9B as the amount specified by paragraph 2(1) of Schedule 2C for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount;

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount. ^F56]

(4) An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year. ^F54]

[^F57 Special provision for end of year payments in respect of relevant year beginning on 1st April 2017

11C. —(1) This regulation applies in relation to the relevant year beginning on 1st April 2017 to a billing authority to which Schedule 2C applies.

(2) Where an amount is certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2C for that year (“the certified amount”)—

(a) the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b) the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3) An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year. ^F57]

Reconciliation of amounts where authority has failed to act diligently

12. Where an amount included in a calculation under regulation 9(1) as a bad debt which should be written off or a doubtful debt for which provision should be made is disallowed on certification under regulation 9(2) on the grounds that the billing authority has failed to act diligently in relation to the collection of non-domestic rates, the authority must transfer such an amount as is disallowed from its general fund to its collection fund.

PART 4 Calculation of surplus and deficit

Calculation and apportionment of surplus or deficit on collection fund for year

13. —(1) For each relevant year beginning on or after 1st April 2014 a billing authority must estimate in accordance with paragraph 1 of Schedule 4 on or before 31st January in the preceding year —

(a) whether there is a surplus or deficit with respect to non-domestic rates in its collection fund for the preceding year; and

(b) if so, the amount of the surplus or deficit.

(2) Any surplus or deficit estimated by an authority under paragraph (1) shall belong to or be borne by that authority, the Secretary of State and any relevant precepting authorities in accordance with the shares set out in paragraph 2 of Schedule 4.

Payments and transfers with respect to surplus and deficit

14. —(1) A billing authority must pay to the Secretary of State the Secretary of State's share and to any relevant precepting authority that authority's share of a surplus during the course of the relevant year in accordance with the schedule of instalments.

(2) The Secretary of State and a relevant precepting authority must pay their respective shares of a deficit to the billing authority during the course of the relevant year in accordance with the schedule of instalments.

(3) A transfer under section 97(3) or 97(4) of the 1988 Act of a billing authority's share of a surplus or deficit in respect of non-domestic rates must be made during the course of the relevant year in accordance with the schedule of instalments.

PART 5 Discharge of liabilities

Schedule of instalments

15. —(1) Where a payment under these Regulations is to be paid according to the schedule of instalments[^F58 , subject to paragraph (7), ^F58] it is to be paid in [^F59 12 ^F59] instalments such that—

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

(b) the subsequent instalments are payable on the 19th day of each of the following [^F60 11 ^F60] months starting in May.

(2) 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.

[^F61 (3) [^F62 Subject to paragraph (8), ^F62] 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. ^F61]

(4) A billing authority and a major precepting authority may by agreement vary the schedule of instalments with regard to payments between them.

(5) Any amount paid or transferred in respect of a liability under paragraph 6 of Schedule 7B to the 1988 Act or these Regulations for a year, whether or not paid in accordance with paragraph (1) is to be treated as discharging that liability to the extent of the payment.

^F63 (6) 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 .

[^F64 (7) A central share payment in relation to the relevant year beginning on 1st April 2020 is to be paid in 9 instalments, such that—

(a) the first instalment is payable on 19th July 2020; and

(b) the subsequent instalments are payable on the 19th day of each of the following 8 months.

(8) For a central share payment in relation to the relevant year beginning on 1st April 2020—

(a) the first instalment is to be of 9% of the amount payable;

(b) the second and third instalments are each to be of 8% of the amount payable; and

(c) the final six instalments are each to be of 12.5% of the amount payable. ^F64]

Interest on amount of instalments

16. —(1) An authority shall pay interest to another authority in respect of any amount which—

(a) has become payable to that authority in accordance with the schedule of instalments, but

(b) has not been so paid.

(2) Interest shall be payable on the amount outstanding for every day of the period beginning with the day on which the amount was due to be paid and ending on the day before the day on which it is paid.

(3) Interest shall be calculated at the rate which is 2 per cent above the highest base rate quoted by any of the reference banks at anytime in the period for which that interest is payable.

(4) The interest shall be paid at the same time as the amount outstanding is paid.

(5) For the purposes of paragraph (3), the reference banks are the seven largest persons for the time being who—

(a) ^F65 have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and

(c) quote a base rate in sterling.

(6) For the purposes of paragraph (5), the size of a person is to be determined by reference to the total consolidated gross assets of that person denominated in sterling, as shown in the audited end-year accounts last published before the period for which interest is payable begins.

^F66 (7) In this regulation the “consolidated gross assets” of a person is a reference to the gross assets of that person together with any subsidiary (within the meaning of section 1159 of the Companies Act 2006 ).

(8) Paragraph (5) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.

Recovery

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

Regulation 3

SCHEDULE 1 Non-Domestic Rating Income

PART 1

Calculation of non-domestic rating income

1. —(1) Subject to sub-paragraph (2) the amount specified in this paragraph is the amount calculated in accordance with the formula—

(2) For a special authority the amount specified by this paragraph shall be the amount calculated in accordance with sub-paragraph (1)—

(a) as if the authority's non-domestic rating multipliers for a year were equal to the non-domestic rating multipliers for that year determined in accordance with Part 1 of Schedule 7 to the 1988 Act; less

(b) X, where the value of X for the financial year beginning 1st April 2013 is £10,538,000 and for subsequent years is determined by the formula—

Costs of collection and recovery

2. —(1) A billing authority's allowance for costs of collection and recovery are to be calculated in accordance with the formula—

(2) For the purposes of sub-paragraph (1), where the 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 1988 Act, the hereditaments shown in an 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 authority proposes to compile in that year and which has been sent to the authority under section 41(5) of the 1988 Act.

(3) The cost factor for a billing authority is the cost factor shown for that authority in Part 2 of this Schedule.

(4) The amount allowed for the costs of collection and recovery is £84,000,000.

(5) The legal costs referred to in this paragraph are the reasonable costs of another party to proceedings brought or defended by the billing authority and paid in the preceding year where the following conditions are satisfied—

(a) the proceedings were brought or defended by the authority to clarify the law as respects liability for, or the authority's powers to enforce, non-domestic rates;

(b) before bringing or defending proceedings the authority obtained advice in writing by counsel—

(i) that the point of law concerned had not already been determined in previous proceedings; and

(ii) that a decision by the authority to bring or defend the proceedings, or to continue to do so, would be a reasonable decision; and

(c) the authority lost on that point of law and costs were awarded against the authority, or the authority withdrew from the proceedings as respects that point on the advice of counsel and payment by the authority of the other party's reasonable costs was made by that party a condition of consenting to withdrawal.

(6) For the purposes of sub-paragraph (5)—

(a) references to proceedings are to proceedings in a court of law including the Upper Tribunal;

(b) any appeal from a decision of a court shall be regarded as separate proceedings.

PART 2 Cost Factors

Regulation 4(1)

SCHEDULE 2 Qualifying relief for deduction from central share

Case A and Case B hereditaments

1. —(1) In this Schedule—

“ case A hereditament ” means a hereditament which is situated in both a blue area and a red area and meets the conditions in sub-paragraph (2);

“ case B hereditament ” means a hereditament which is situated in a red area only and meets the conditions in sub-paragraph (2);

“ blue area ” means an area designated by regulations made under paragraph 39 of Schedule 7B to the 1988 Act;

“ red area ” means an area bounded externally by the outer edge of a red line on one of the [[^F68,F69 maps numbered 1 to 86 ^F69,F68]] [^F68 maps numbered 1 to 29, 31 to 46 and 48 to [^F70 247 ^F70,F68]] and entitled “Maps referred to in the Non-Domestic Rating (Rates Retention) Regulations 2013 ” of which prints, signed by a member of the Senior Civil Service in the Department for Communities and Local Government, are deposited and available for inspection at the offices of the Secretary of State and, in relation to each map, the billing authority concerned.

(2) The conditions are that—

(a) a determination under section 47(1)(a) of the 1988 Act has had effect in respect of the ratepayer in relation to the hereditament for 5 years or less, disregarding any period before 1st April 2012; and

[^F71 (b) the ratepayer in respect of the hereditament became the ratepayer on or before—

(i) 31st March 2018 in the case of a hereditament situated in an area designated by regulation 3 of the Non-Domestic Rating (Designated Areas) Regulations 2013 ;

(ii) 31st March 2019 in the case of a hereditament situated in an area designated by regulation 3 of the Non-Domestic Rating (Designated Areas) Regulations 2014 ;

(iii) 31st March 2020 in the case of a hereditament situated in the area designated by regulation 3(1) of the Non-Domestic Rating (Designated Area) Regulations 2015 ;

(iv) 31st March 2021 in the case of a hereditament situated in an area designated by regulation 4(1) of the Non-Domestic Rating (Designated Areas etc.) Regulations 2016 ;

(v) 31st March 2022 in the case of a hereditament situated in an area designated by regulation 4(1) of the Non-Domestic Rating (Designated Areas etc.) Regulations 2017 . ^F71]

(3) In these Regulations where part of a hereditament is situated within a blue or red area, references to a hereditament are to be read as meaning the whole of the hereditament.

Case A hereditament: calculation of qualifying relief

2. —(1) The amount specified by this paragraph is the amount which is the total of the difference between—

(a) the amount calculated for the year in accordance with sub-paragraph (2); and

(b) the amount that would have been calculated in accordance with sub-paragraph (2) had a determination under section 47(1)(a) of the 1988 Act as regards a case A hereditament not been made, but disregarding any amount by which the amount of a determination would exceed the limit on the total de minimis aid that may be granted in accordance with ^F72 Commission Regulation (EU) No 1407/2013 in respect of any particular undertaking.

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

(a) amounts credited to the authority's collection fund income and expenditure account 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 case A hereditament; less

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

Case B hereditament: calculation of qualifying relief

3. —(1)[^F73 Unless sub-paragraph (1A) applies, ^F73] the amount specified by this paragraph is the amount that is 50 per cent of the difference between—

(a) the amount calculated for the year in accordance with sub-paragraph (2); and

(b) the amount that would have been calculated in accordance with sub-paragraph (2) had a determination under section 47(1)(a) of the 1988 Act as regards a case B hereditament not been made, but disregarding any amount by which the amount of a determination would exceed the limit on the total de minimis aid that may be granted in accordance with ^F74 Commission Regulation (EU) No 1407/2013 in respect of any particular undertaking.

[^F75 (1A) For the relevant year beginning on 1st April 2019, for a billing authority listed in Parts 1, 7, 15, 16, 19, 20 or 23 to 39 of Schedule 5, the amount specified by this paragraph is the amount that is 75% of the difference between—

(a) the amount calculated for that year in accordance with sub-paragraph (2); and

(b) the amount that would have been calculated in accordance with sub-paragraph (2) had a determination under section 47(1)(a) of the 1988 Act as regards a case B hereditament not been made, but disregarding any amount by which the amount of a determination would exceed the limit on the total de minimis aid that may be granted in accordance with Commission Regulation (EC) No 1407/2013 in respect of any particular undertaking. ^F75]

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

(a) amounts credited to the authority's collection fund income and expenditure account 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 case B hereditament; less

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

Regulations 4(1),9(1), 9A, 11(2A), 11A and 11B

[^F76 SCHEDULE 2A Special provision for deduction from the central share payment

Application and interpretation

1. —(1)[^F77 Subject to sub-paragraph (1A), this ^F77] Schedule applies to the billing authorities listed in column 1 of the table set out below in relation to [^F78 relevant years beginning on 1st April 2015, 1st April 2016 and 1st April 2017 ^F78] .

[^F79 (1A) This Schedule does not apply to a billing authority listed in Part 2 of Schedule 5 for a relevant year beginning on or after 1st April 2017. ^F79]

(2) In this Schedule—

“allowance for non-collection” means an allowance made by a billing authority in its principal financial statements for a relevant year, in accordance with proper practices, to recognise amounts of non-domestic rates which the billing authority estimates will not be collected;

“alteration to a local list” means an alteration to a local non-domestic rating list made in accordance with regulations under section 55 of the 1988 Act;

“Collection Regulations” means the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 ;

“growth baseline amount”, in relation to a billing authority, means the figure specified in column 2 of the table set out below in relation to that authority;

“relevant provision” means a provision made by a billing authority in its principal financial statements for a relevant year which, in accordance with proper practices, reflects amounts to be credited to ratepayers following changes to a ratepayer’s liability for non-domestic rates;

“transitional protection payment” means a payment under regulations under paragraph 33(1) of Schedule 7B to the 1988 Act.

Calculation of amount

2. —(1) Subject to sub-paragraph (2), the amount specified by this paragraph is the amount calculated in accordance with the formula—

(2) If the amount calculated under sub-paragraph (1) is less than zero, for the purposes of regulations 4, 9 and 9A the amount specified by sub-paragraph (1) is zero.

(3) If the year is not a year in which local lists must be compiled, the amount calculated in accordance with this sub-paragraph—

(a) for the year beginning on 1st April 2015, is the growth baseline amount in relation to the billing authority;

(b) for the year beginning on 1st April 2016, is the amount calculated in accordance with the formula—

(c) for a subsequent year, is the amount calculated in accordance with the formula—

(4) If the year is a year in which local lists must be compiled (“revaluation year”), the amount calculated in accordance with this sub-paragraph is the amount calculated in accordance with the formula—

Regulations 4(1),9(1), 9A, 11(2B), 11A and 11B

SCHEDULE 2B Deduction from the central share payment for Port of Bristol

Application and interpretation

1. —(1) This Schedule applies to the billing authority, North Somerset District Council, in relation to a relevant year beginning on or after 1st April 2015.

(2) In this Schedule—

“First Corporate Shipping Limited” means the company limited by shares and incorporated under the Companies Act 1985 , whose registered number is 2542406;

“Port of Bristol hereditament” means those hereditaments which consist of the harbour undertaking carried on by First Corporate Shipping Limited that are treated under regulation 5(4) of the Non-Domestic Rating (Miscellaneous Provisions) (No. 2) Regulations 1989 as one hereditament situated in the area of North Somerset District Council; and

“transitional protection payment” means a payment under regulations under paragraph 33(1) of Schedule 7B to the 1988 Act.

Calculation of amount

2. The amount specified by this paragraph in respect of the Port of Bristol hereditament for a year is the amount calculated in accordance with the formula—

Regulations 4(1), 9(1), 9B, 11(2C), 11B and 11C

[^F80 SCHEDULE 2C Further special provision for deduction from the central share payment

Application and interpretation

1. —(1) Subject to sub-paragraph (2), this Schedule applies to the billing authorities listed in column 1 of the table set out below in relation to a relevant year beginning on or after 1st April 2016.

(2) This Schedule does not apply to a billing authority listed in Part 4 of Schedule 5 for a relevant year beginning on or after 1st April 2017.

(3) In this Schedule—

“allowance for non-collection” means an allowance made by a billing authority in its principal financial statements for a relevant year, in accordance with proper practices, to recognise amounts of non-domestic rates which the billing authority estimates will not be collected;

“growth baseline amount”, in relation to a billing authority, means the figure specified in column 2 of the table set out below in relation to that authority;

“relevant provision” means a provision made by a billing authority in its principal financial statements for a relevant year which, in accordance with proper practices, reflects amounts to be credited to ratepayers following changes to a ratepayers’ liability for non-domestic rates;

“transitional protection payment” means a payment under regulations under paragraph 33(1) of Schedule 7B to the 1988 Act.

Calculation of amount

2. —(1) Subject to sub-paragraph (2), the amount specified by this paragraph is the amount calculated in accordance with the formula—

(2) If the amount calculated under sub-paragraph (1) is less than zero, for the purposes of regulations 4, 9 and 9B the amount specified by sub-paragraph (1) is zero.

(3) If the year is not a year in which local lists must be compiled, the amount calculated in accordance with this sub-paragraph—

(a) for the year beginning on 1st April 2016, is the growth baseline amount in relation to the billing authority;

(b) for a year beginning on or after 1st April 2018, is the amount calculated in accordance with the formula—

(4) If the year is a year in which local lists must be compiled (“revaluation year”), the amount calculated in accordance with this sub-paragraph is the amount calculated in accordance with the formula—

Regulation 8(1)

SCHEDULE 3 Transfer from collection fund to general fund

The amount to be transferred is the amount calculated in accordance with the formula:

Regulation 13

SCHEDULE 4 Rules for estimation and apportionment of surplus and deficit

Calculation of surplus or deficit

1. —(1) A billing authority must estimate whether there is a surplus or deficit with respect to non-domestic rates in its collection fund for the preceding year, and if so, the amount of the surplus or deficit by calculating the difference between the amount referred to in sub-paragraph (3) and the amount referred to in sub-paragraph (4).

(2) Where the amount referred to in sub-paragraph (3) is—

(a) more than the amount referred to in sub-paragraph (4), there is a surplus, the amount of which is the difference;

(b) less than the amount referred to in sub-paragraph (4), there is a deficit, the amount of which is the difference;

(c) the same as the amount referred to in sub-paragraph (4), there is no surplus or deficit.

(3) The amount referred to in this sub-paragraph is the total of—

(a) the amount of any opening surplus with respect to non-domestic rating on the billing authority's collection fund income and expenditure account which was brought forward from the relevant prior year and was shown in the billing authority's accounts for the relevant prior year as such a surplus.;

(b) the billing authority's estimate of the total of amounts credited or to be credited to the authority's collection fund income and expenditure account in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in the preceding year;

(c) transitional protection payments received or to be received by the billing authority under paragraph 33(1) of Schedule 7B to the 1988 Act;

(d) transfers to the billing authority's collection fund made or to be made under Part 3 of these Regulations (end of year reconciliations);

(e) transfers to the collection fund and any payments by relevant precepting authorities or the Secretary of State under regulation 14 made or to be made in respect of an estimated deficit with respect to non-domestic rating in the billing authority's collection fund for the relevant prior year.

(4) The amount referred to in this sub-paragraph is the total of—

(a) the amount of any opening deficit with respect to non-domestic rating on the billing authority's collection fund income and expenditure account which was brought forward from the relevant prior year and was shown in the billing authority's accounts for the relevant prior year as such a deficit;

(b) the billing authority's estimate of the total of amounts charged or to be charged to the authority's collection fund income and expenditure account in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in the preceding year;

(c) transitional protection payments made or to be made by the billing authority under paragraph 33(1) of Schedule 7B to the 1988 Act;

(d) payments to the Secretary of State made or to be made under [^F91 paragraph 6(2) ^F91] of Schedule 7B to the 1988 Act;

(e) payments to relevant precepting authorities made or to be made under regulations made under paragraph 9 of Schedule 7B to the 1988 Act;

(f) transfers to the billing authority's general fund made or to be made under [^F92 regulation 8 or ^F92] Part 3 of these Regulations;

(g) transfers to the billing authority's general fund and payments to relevant precepting authorities and the Secretary of State under regulation 14 in respect of an estimated surplus with respect to non-domestic rating in the billing authority's collection fund for the relevant prior year.

(5) For the relevant year beginning 1st April 2014 the amounts referred to in sub-paragraphs (3)(a) and (4)(a) are to be zero.

(6) In this paragraph, a reference to the relevant prior year is a reference to the year beginning two years before the beginning of the relevant year.

[^F93 Special provision for the relevant years beginning on 1st April 2014, 1st April 2015 and 1st April 2016

1A. —(1) This paragraph has effect in relation to a billing authority that, in its calculation under regulation 3 (calculation of non-domestic rating income) of the amount specified by paragraph 1 of Schedule 1 for the relevant year beginning on 1st April 2013, spread its provision for refunds in respect of previous years over a 5 year period.

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

(3) The authority shall include in the amount specified by paragraph 1(3) an amount equal to the relevant proportion of the provision for refunds in respect of previous years that it anticipates including in its calculation under regulation 9 (end of year calculations) of the amount specified by paragraph 1 of Schedule 1 for the relevant year beginning on 1st April 2013.

(4) For the purpose of this paragraph the relevant proportion is –

(a) 60% for the relevant year beginning on 1st April 2014;

(b) 40% for the relevant year beginning on 1st April 2015;

(c) 20% for the relevant year beginning on 1st April 2016.

(5) In this paragraph “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 day in a year prior to the year beginning on 1st April 2013. ^F93]

Apportionment of surplus and deficit

2. —(1)[^F94 Unless sub-paragraph (1A), (1B), (1C) [^F95 , (1D), (1E), (1F), [^F96 (1FA), (1G), (1GA), (1H), (1I) or (1J) ^F96,F95]] applies, the ^F94] Secretary of State's share of any surplus or of any deficit for a relevant year is 50% of the surplus or deficit for that year.

[^F97 (1A) For the relevant year beginning on 1st April 2018, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula—

(1B) For the relevant year beginning on 1st April 2018, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 2 to 6 of Schedule 5 is calculated in accordance with the formula—

[^F98 (1C) For the relevant year beginning on 1st April 2019, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula— ^F98]

(1D) For a relevant year beginning on or after 1st April 2019, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 2 to 6 of Schedule 5 is zero. ^F97]

[^F99 (1E) For the relevant year beginning on 1st April 2019, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 7 to 22 of Schedule 5 is calculated in accordance with the formula—

(1F) For the relevant year beginning on 1st April 2020, the Secretary of State’s share of any surplus or deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula—

^F100[^F101 (1FA) For the relevant year beginning on 1st April 2020, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 7, 15, 16, 19 and 20 of Schedule 5 is calculated in accordance with the formula— ^F101]

(1G) For the relevant year beginning on 1st April 2020, the Secretary of State’s share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in [^F102 Parts 8 to 14, 17, 18, 21 and 22 ^F102] of Schedule 5 is calculated in accordance with the formula—

[^F103 (1GA) For the relevant year beginning on 1st April 2020, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 23 to 39 of Schedule 5 is calculated in accordance with the formula— ^F103]

[^F104 (1H) For the relevant year beginning on 1st April 2021, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is calculated in accordance with the formula—

(1I) For the relevant year beginning on 1st April 2021, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Parts 7, 15, 16, 19, 20, or 23 to 39 of Schedule 5 is calculated in accordance with the formula—

(1J) For a relevant year beginning on or after 1st April 2022, the Secretary of State's share of any surplus or of any deficit estimated for that year under paragraph 1 by a billing authority listed in Part 1 of Schedule 5 is 33%. ^F104,F99]]

(2)[^F105 Unless sub-paragraph (2A) [^F106 , (2B) [^F107 , (2C) or (2E) ^F107,F106]] applies, a relevant ^F105] precepting authority's share of any surplus or of any deficit for a relevant year is the amount of the surplus or deficit for that year multiplied by the relevant precepting authority share set out in regulation 5(3) [^F108 , (3A), (3B) or (3C) ^F108] .

[^F109 (2A) Where the relevant precepting authority is the Greater London Authority, its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2017, is 20%;

(b) for the relevant year beginning on 1st April 2018, is calculated in accordance with the formula—

[^F110 (c) for the relevant year beginning on 1st April 2019, is calculated in accordance with the formula—

(d) for the relevant year beginning on 1st April 2020, is calculated in accordance with the formula— ^F110]

^F111[^F112 (e) for the relevant year beginning on 1st April 2021, is calculated in accordance with the formula— ^F112]

(2B) Where the relevant precepting authority is the West of England Combined Authority, its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2017, is zero;

(b) for the relevant year beginning on 1st April 2018, is calculated in accordance with the formula— ^F109]

[^F113 (2C) For a relevant precepting authority listed in sub-paragraph (2D), its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2019, is calculated in accordance with the formula—

(b) for the relevant year beginning on 1st April 2020, is calculated in accordance with the formula—

(2D) The relevant precepting authorities are Derbyshire County Council, Devon County Council, Gloucestershire County Council, Kent County Council, Lincolnshire County Council, Suffolk County Council and Surrey County Council. ^F113]

[^F114 (2E) For a relevant authority listed in the table below, the share of any surplus or of any deficit for the relevant years beginning on 1st April 2020 and 1st April 2021 is calculated in accordance with the formula—

where the values of α and β are set out in that table—

(3)[^F115 Unless any of the following sub-paragraphs applies, the ^F115] billing authority's share of any surplus or of any deficit for a relevant year is—

[^F116 (a) 50% where the billing authority—

(i) is a county council or a district council in an area for which there is no county council, and the authority is a fire and rescue authority; or

(ii) is the Council of the Isles of Scilly; ^F116]

(b) 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;

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

(d) 30% where the billing authority is a London borough council or the Common Council of the City of London.

[^F117 (4) For the relevant year beginning on 1st April 2018, for a billing authority listed in Parts 2 to 4 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(5) For the relevant year beginning on 1st April 2018, for a billing authority listed in Part 5 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(6) For the relevant year beginning on 1st April 2018, for a billing authority listed in Part 6 of Schedule 5, the billing authority’s share of any surplus or of any deficit for that year is calculated in accordance with the formula—

(7) For a relevant year beginning on or after 1st April 2019, the billing authority’s share of any surplus or of any deficit for that year is—

(a) for a billing authority listed in Parts 2 to 4 of Schedule 5, 99%;

(b) for a billing authority listed in Part 5 of Schedule 5, 94%;

(c) for a billing authority listed in Part 6 of Schedule 5, 100%.

[^F118 (7A) For a billing authority listed in Parts 1, 7, 8, 9, 11, 12 and 14 to 22 of Schedule 5, its share of any surplus or of any deficit—

(a) for the relevant year beginning on 1st April 2019, is calculated in accordance with the formula—

(b) for the relevant year beginning on 1st April 2020, is calculated in accordance with the formula— ^F118]

[^F119 (7B) For a billing authority listed in Parts 23 to 39 of Schedule 5, its share of any surplus or of any deficit for the relevant year beginning on 1st April 2020 is calculated in accordance with the formula—

(7C) For a billing authority listed in Parts 1, 7, 15, 16, 19, 20 or 23 to 39 of Schedule 5, its share of any surplus or of any deficit for the relevant year beginning on 1st April 2021 is calculated in accordance with the formula—

Where α and β are as determined in accordance with the table below—

(8) In this paragraph—

A is the surplus or deficit estimated for the relevant year beginning on 1st April 2018;

B is the amount mentioned in paragraph 1(3)(a);

C is the amount mentioned in paragraph 1(3)(e);

D is the amount mentioned in paragraph 1(4)(a);

E is the amount mentioned in paragraph 1(4)(g). ^F117]

[^F120 F is—

G is—

H is—

I is—

J is—

K is—

L is—

M is—

Regulations 3, 4 and 11 and Schedules 2A, 3 and 4

[^F128 SCHEDULE 5 List of billing authorities

PART 1

PART 2

PART 3

PART 4

PART 5

PART 6

[^F129 PART 7

PART 8

PART 9

PART 10

PART 11

PART 12

PART 13

PART 14

PART 15

PART 16

PART 17

PART 18

PART 19

PART 20

PART 21

PART 22

[^F130 PART 23

PART 24

PART 25

PART 26

PART 27

PART 28

PART 29

PART 30

PART 31

PART 32

PART 33

PART 34

PART 35

PART 36

PART 37

PART 38

PART 39