The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015

Amendment of the Non-Domestic Rating (Rates Retention) Regulations 2013

11.—(1) The Non-Domestic Rating (Rates Retention) Regulations 2013(1) are amended as follows.

(2) In regulation 3(1) (calculation of non-domestic rating income) after sub-paragraph (e) insert—

“(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.”

(3) After regulation 7 (payments with respect to county matters) insert—

“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.”

(4) In regulation 9(1)(c) (end of year calculations) after “regulation 7(2)” insert “, 7A(2) and the amount of each relevant precepting authority’s share of any amount specified by regulation 7A”.

(5) For regulation 10 (reconciliation of disregarded amounts) substitute—

“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).”

(6) In Schedule 3 (transfer from collection fund to general fund) for the definition of “T” substitute—

“T is the amount of any payments made to—

(a)

a county council in accordance with regulation 7 (payments with respect to county matters); and

(b)

a relevant precepting authority in accordance with regulation 7A (payments with respect to shale oil or gas hereditaments);”.

(1)

S.I. 2013/452. Amended by S.I. 2014/96.