The Local Government Changes for England (Collection Fund Surpluses and Deficits) Regulations 1995

Major precepting authority— estimated amount

6.—(1) This regulation applies in relation to an estimate where, in accordance with regulation 11 of the Funds Regulations, in the case of a surplus it is to be shared by, or, in the case of a deficit, part of it is to be borne by, a relevant major precepting authority and that authority is an abolished or relinquishing authority.

(2) In this regulation and regulation 7—

(a) the major precepting authority referred to in paragraph (1) is referred to as a “transferring major precepting authority”, and

(b) “transferring major precepting authority’s estimated share” means that part of the estimate which in accordance with the Funds Regulations is to be its share in the surplus, or its part of the deficit, calculated by the relevant billing authority using the formula in paragraph 6(4) of Part II of Schedule 2 to the Funds Regulations.

(3) The relevant billing authority shall, within 7 days of the date on which it makes an estimate, calculate in relation to, and notify to, each transferee authority of a transferring major precepting authority and, where such a major precepting authority is a relinquishing authority, that authority, its estimated amount, and for this purpose the estimated amount—

(a) of a transferee authority, where the transferring major precepting authority is an abolished authority in respect of which there is a single successor authority, shall be the amount of the transferring major precepting authority’s estimated share, and

(b) of any other transferee authority, or of a relinquishing authority, shall be a proportion of the transferring major precepting authority’s estimated share, and for the purpose of the calculation of the proportion paragraph (4) below shall apply.

(4) In order to calculate the proportion referred to in paragraph (3)(b) above—

(a) where the transferring major precepting authority is an abolished authority, all the successor authorities shall seek to agree together, and where the transferring major precepting authority is a relinquishing authority, that authority and all the acquiring authorities shall seek to agree together, and inform the relevant billing authority, the apportionment of the transferring major precepting authority’s estimated share among them, and

(b) for the purposes of seeking the agreement referred to in paragraph (a) above the following conditions shall apply—

(i) no part of such share shall remain unapportioned,

(ii) the authorities may agree that one or more of them shall have a proportion which is nil, and

(iii) if such agreement has not been reached and the proportions notified to the relevant billing authority by a date which is 5 days after the date on which the relevant billing authority makes the estimate, the apportionment shall be according to proportions notified to the relevant billing authority by the transferring major precepting authority by that date and calculated according to tax base as provided in regulations 4(4) and (5), which regulations shall apply as if the references to “the relevant billing authority” were references to the transferring major precepting authority and as if in regulation 4(5) after paragraph (b) there were inserted—

“(ba) the tax base for an authority shall in the case of a major precepting authority be item T for the purposes of and calculated in accordance with section 44 of the 1992 Act and Regulations made under that section,”.

(5) Subject to paragraph (6) below, where the estimated amount of a transferee or relinquishing authority is a proportion of an estimated surplus in the collection fund of the relevant billing authority, the relevant billing authority shall pay that authority an amount equal to the estimated amount, and where the estimated amount is a proportion of an estimated deficit, that authority shall pay the relevant billing authority such amount, in either case by instalments for the purposes of which regulations 3(7) and (8) and 12(2) and (3) of the Funds Regulations shall apply as if—

(a) the reference to the amount “so calculated”included the estimated amount,

(b) references to “the financial year in question” were references to the immediately preceding year and references to “that financial year” were references to the year in which payment falls to be made as provided in regulation 8, and

(c) references to a relevant major precepting authority in those Regulations included references to the transferee authority.

(6) Paragraph (5) above shall not apply in relation to a transferee authority where that authority is the relevant billing authority.

(7) Subject to regulation 8, where a transferee authority is a billing authority it shall, where its estimated amount is a proportion of an estimated surplus in the collection fund of the relevant billing authority, transfer that amount from its collection fund to its general fund, and, where its estimated amount is a proportion of an estimated deficit, it shall transfer that amount from its general fund to its collection fund.