The Non-Domestic Rating (Rates Retention) Regulations 2013

Regulation 3

SCHEDULE 1 E+W Non-Domestic Rating Income

PART 1 E+W

Calculation of non-domestic rating income E+W

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

Where—

A is the total of the amounts credited to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

B is the total of the amounts charged to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

C is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made to the billing authority in the year;

D is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made by the billing authority in the year;

E is the billing authority's allowance for costs of collection and recovery for the year, calculated in accordance with paragraph 2; and

F is the total of amounts calculated in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act in respect of the billing authority as an amount to be disregarded for the purpose of a calculation of non-domestic rating income for the year.

(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—

Where—

X₁ is the value of X for the preceding year;

S₂ is the small business non-domestic rating multiplier for the relevant year;

S₁ is the small business non-domestic rating multiplier for the preceding year.

Costs of collection and recovery E+W

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

Where—

G is the number of hereditaments shown in the billing authority's local non-domestic rating list on 30th September in the preceding year, multiplied by the cost factor for the billing authority;

H is the total of G for all billing authorities;

J is 76 per cent of the amount allowed for the costs of collection and recovery;

K is the total of the rateable values shown in the billing authority's local non-domestic rating list on 30th September in the preceding year, multiplied by the cost factor for the billing authority;

L is the total of K for all authorities;

M is 24 per cent of the amount allowed for the costs of collection and recovery;

N is the total amount of the legal costs of the billing authority referred to in sub-paragraph (5) below.

(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 E+W Cost Factors

[F1 Area	Name or description of authority	Cost factor
	The Council of the Isles of Scilly	1.5000
	The Common Council of the City of London	1.4059
Inner London	The councils of the boroughs of Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark, Tower Hamlets, Wandsworth and Westminster	1.2208
West outer London	The councils of the boroughs of Barnet, Brent, Ealing, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Merton, Richmond upon Thames and Sutton	1.1113
Rest of outer London	The councils of the boroughs of Barking and Dagenham, Bexley, Bromley, Croydon, Enfield, Haringey, Havering, Newham, Redbridge and Waltham Forest	1.0760
Avon	The councils of the districts of Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire	1.0378
Bedfordshire & Hertfordshire non-fringe	The councils of the boroughs of Bedford, Central Bedfordshire, Luton, North Hertfordshire and Stevenage	1.0393
Berkshire non-fringe	The councils of the districts of Reading, West Berkshire and Wokingham	1.0806
Berkshire, Surrey & West Sussex fringe	The councils of the districts of Bracknell Forest, Crawley, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate and Banstead, Runneymede, Slough, Spelthorne, Surrey Heath, Tandridge, Waverley, Windsor and Maidenhead and Woking	1.1039
Buckinghamshire non-fringe	The councils of the districts of Aylesbury Vale, Milton Keynes and Wycombe	1.0675
Cambridgeshire	The councils of the districts of Cambridge, East Cambridgeshire, Fenland, Huntingdonshire, Peterborough and South Cambridgeshire	1.0339
Cheshire	The councils of the districts of Cheshire East, Cheshire West and Chester, Halton and Warrington	1.0130
East Sussex	The councils of the districts of Brighton and Hove, Eastbourne, Hastings, Lewes, Rother and Wealden	1.0090
Essex non-fringe	The councils of the districts of Braintree, Castle Point, Chelmsford, Colchester, Maldon, Rochford, Southend-on-Sea, Tendring and Uttlesford	1.0130
Gloucestershire	The councils of the districts of Cheltenham, Cotswold, Forest of Dean, Gloucester, Stroud and Tewkesbury	1.0197
Greater Manchester	The councils of the metropolitan districts of Bolton, Bury, Manchester, Oldham, Rochdale, Salford Stockport, Tameside, Trafford and Wigan	1.0169
Hampshire & Isle of Wight	The councils of the districts of Basingstoke and Deane, East Hampshire, Eastleigh, Fareham, Gosport, Hart, Havant, New Forest, Portsmouth, Rushmoor, Southampton, Test Valley and Winchester and Isle of Wight Council	1.0360
Hertfordshire & Buckinghamshire fringe	The councils of the districts of Broxbourne, Chiltern, Dacorum, East Hertfordshire, Hertsmere, South Buckinghamshire, St Albans, Three Rivers, Watford and Welwyn Hatfield	1.0816
Kent & Essex fringe	The councils of the districts of Basildon, Brentwood, Dartford, Epping Forest, Harlow, Sevenoaks and Thurrock	1.0618
Kent non-fringe	The councils of the districts of Ashford, Canterbury, Dover, Gravesham, Maidstone, Medway, Shepway, Swale, Thanet, Tonbridge and Malling and Tunbridge Wells	1.0068
Merseyside	The councils of the metropolitan districts of Knowsely, Liverpool, Sefton, St Helens and Wirral	1.0075
Northamptonshire	The councils of the districts of Corby, Daventry, East Northamptonshire, Kettering, Northampton, South Northamptonshire and Wellingborough	1.0132
Nottinghamshire	The councils of the districts of Ashfield, Bassetlaw, Broxtowe, Gedling, Mansfield, Newark and Sherwood, Nottingham and Rushcliffe	1.0121
Oxfordshire	The councils of the districts of Cherwell, Oxford, South Oxfordshire Vale of White Horse and West Oxfordshire	1.0534
Suffolk	The councils of the districts of Babergh, Forest Heath, Ipswich, Mid-Suffolk, St Edmundsbury, Suffolk Coastal and Waveney	1.0054
Warwickshire	The councils of the districts of North Warwickshire, Nuneaton and Bedworth, Rugby, Stratford-on-Avon and Warwick	1.0213
West Midlands	The councils of the metropolitan districts of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton	1.0134
West Yorkshire	The councils of the metropolitan districts of Bradford, Calderdale, Kirklees, Leeds and Wakefield	1.0055
Wiltshire	The councils of the district of Swindon and the County of Wiltshire	1.0216
Other authorities	A billing authority not named or not falling within a description given above	1.0000]

Textual Amendments

F1 Sch. 1 Pt. 2 Table substituted (10.3.2015) by The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 (S.I. 2015/628), regs. 1(4), 12(4)

Regulation 4(1)

SCHEDULE 2 E+W Qualifying relief for deduction from central share

Case A and Case B hereditaments E+W

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 [F2 [F3 maps numbered 1 to 86]] [F2 maps numbered 1 to 29, 31 to 46 and 48 to 178] 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

(b) the ratepayer in respect of the hereditament became the ratepayer on or before [F4 31st March 2018].

(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.

Textual Amendments

F2 Words in Sch. 2 para. 1(1) substituted (E.) (1.4.2016) by The Non-Domestic Rating (Designated Areas etc.) Regulations 2016 (S.I. 2016/317), regs. 1(2), 6(2)

F3 Words in Sch. 2 para. 1(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 (S.I. 2015/628), regs. 1(2), 12(5)(a)

F4 Words in Sch. 2 para. 1(2)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 (S.I. 2015/628), regs. 1(2), 12(5)(b)

Case A hereditament: calculation of qualifying relief E+W

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 [F5 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.

Textual Amendments

F5 Words in Sch. 2 para. 2(1)(b) substituted (16.1.2017) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2016 (S.I. 2016/1268), regs. 1(2), 9(a)

Case B hereditament: calculation of qualifying relief E+W

3.—(1) 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 [F6 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 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.

Textual Amendments

F6 Words in Sch. 2 para. 3(1)(b) substituted (16.1.2017) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2016 (S.I. 2016/1268), regs. 1(2), 9(b)

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

[F7 SCHEDULE 2A E+W Special provision for deduction from the central share payment

Textual Amendments

F7 Schs. 2A, 2B inserted (16.1.2017) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2016 (S.I. 2016/1268), regs. 1(2), Sch.

Application and interpretation E+W

1.— (1) [F8 Subject to sub-paragraph (1A), 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 2015.

[F9 (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.]

(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.

Billing authority Column 1	Growth baseline amount Column 2 (£)
Greater Manchester
Bolton	89,545,561
Bury	52,217,065
Manchester	343,637,824
Oldham	60,286,829
Rochdale	62,963,048
Salford	100,185,762
Stockport	91,637,000
Tameside	57,763,975
Trafford	166,096,865
Wigan	82,383,374
Cheshire
Cheshire East	141,320,753
Cambridgeshire
Cambridge	98,386,258
East Cambridgeshire	18,601,752
Fenland	25,365,993
Huntingdonshire	60,392,226
Peterborough	98,862,997
South Cambridgeshire	71,379,837

Textual Amendments

F8 Words in Sch. 2A para. 1(1) substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 8(a)

F9 Sch. 2A para. 1(1A) inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 8(b)

Calculation of amount E+W

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

where—

• A is the total amount credited to the billing authority’s collection fund income and expenditure account in the year in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

• B is the total amount charged to that account in the year in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

• C is the total amount written back for the year from the allowance for non-collection;

• D is the total amount written off for the year in excess of that allowance;

• E is the total amount released from that allowance for the year;

• F is the total amount by which that allowance is increased for the year after amounts written off against the allowance have been made for the year;

• G is the amount of any transitional protection payment due to be made to the billing authority for the year;

• H is the amount of any transitional protection payment due to be made by the billing authority for the year;

• J is the total amount of a relevant provision utilised for the year;

• K is the amount calculated in relation to the billing authority for the year in accordance with sub-paragraph (3) or (4).

(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—

where—

• L is the growth baseline amount in relation to the billing authority;

• M₁ is the small business non-domestic rating multiplier for the year beginning on 1st April 2015;

• M₂ is the small business non-domestic rating multiplier for the year beginning on 1st April 2016;

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

where—

• N is the amount calculated for the preceding year in accordance with paragraph (b) or this paragraph;

• O₁ is the small business non-domestic rating multiplier for the preceding year;

• O₂ is the small business non-domestic rating multiplier for the relevant year.

(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—

where—

• Q is the amount calculated for the preceding year in accordance with sub-paragraph (3)(b) or (c);

• R is the aggregate rateable values shown in the billing authority’s local list for 1st April in the revaluation year;

• S is the aggregate rateable values shown in the billing authority’s local list for 31st March in the preceding year;

• T₁ is the small business non-domestic rating multiplier for the preceding year;

• T₂ is the small business non-domestic rating multiplier for the revaluation year.

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

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

Application and interpretation E+W

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 E+W

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—

where—

• A is the total of the amounts credited to the billing authority’s collection fund income and expenditure account in respect of that hereditament in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

• B is the total of the amounts charged to that account in respect of that hereditament in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;

• C is the amount of any transitional protection payment due to be made to the billing authority in respect of that hereditament for the year;

• D is the amount of any transitional protection payment due to be made by the billing authority in respect of that hereditament for the year;

• E is—

  (a)

  for the year beginning on 1st April 2015, 0.4203

  (b)

  for a year beginning on or after 1st April 2016, 0.51.]

Regulation 8(1)

SCHEDULE 3 E+W Transfer from collection fund to general fund

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

Where—

P is the billing authority's non-domestic rating income for the year

Q is —

(a)

[F10 [F11 unless paragraph (e) applies, 50%] 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)

[F12 unless paragraph (e) applies, 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)

[F13 unless paragraph (e) applies, 40%] where the billing authority is a district council in an area for which there is a county council; and

(d)

[F14 unless paragraph (e) applies, 30%] where the billing authority is a London borough council or the Common Council of the City of London;

(e)

[F15 for a relevant year beginning on or after 1st April 2017—

(i)

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

(ii)

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

(iii)

for a billing authority listed in Part 6 of Schedule 5, 100%;]

R is the billing authority's allowance for costs of collection and recovery for the year, calculated in accordance with paragraph 2(1) of Schedule 1;

S is the total of amounts calculated in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act in respect of the billing authority as an amount to be disregarded for the purpose of a calculation of non-domestic rating income for the year;

[F16 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);]

U is the amount of a deduction from the central share payment made in accordance with regulation 4(1);

V is the total of any amounts paid to major precepting authorities in accordance with regulation 6.

Textual Amendments

F10 Words in Sch. 3 substituted (10.3.2015) by The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 (S.I. 2015/628), regs. 1(4), 12(6)

F11 Words in Sch. 3 substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 9(a)

F12 Words in Sch. 3 substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 9(b)

F13 Words in Sch. 3 substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 9(c)

F14 Words in Sch. 3 substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 9(d)

F15 Words in Sch. 3 inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 9(e)

F16 Words in Sch. 3 substituted (10.3.2015) by The Non-Domestic Rating (Shale Oil and Gas and Miscellaneous Amendments) Regulations 2015 (S.I. 2015/628), regs. 1(4), 11(6)

Regulation 13

SCHEDULE 4 E+W Rules for estimation and apportionment of surplus and deficit

Calculation of surplus or deficit E+W

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 [F17 paragraph 6(2)] 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 [F18 regulation 8 or] 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.

Textual Amendments

F17 Words in Sch. 4 para. 1(4)(d) substituted (30.1.2014) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2014 (S.I. 2014/96), regs. 1, 2(2)

F18 Words in Sch. 4 para. 1(4)(f) inserted (30.1.2014) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2014 (S.I. 2014/96), regs. 1, 2(3)

[F19 Special provision for the relevant years beginning on 1st April 2014, 1st April 2015 and 1st April 2016 E+W

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.]

Textual Amendments

F19 Sch. 4 para. 1A inserted (30.1.2014) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2014 (S.I. 2014/96), regs. 1, 2(4)

Apportionment of surplus and deficit E+W

2.—(1)  [F20 Unless sub-paragraph (1A), (1B), (1C) or (1D) applies, the] 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.

[F21 (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—

(1C) 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 Part 1 of Schedule 5 is 33%.

(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.]

(2) [F22 Unless sub-paragraph (2A) or (2B) applies, a relevant] 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) [F23 or (3A)].

[F24 (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—

(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—

]

(3) [F25 Unless any of the following sub-paragraphs applies, the] billing authority's share of any surplus or of any deficit for a relevant year is—

[F26 (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;]

(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.

[F27 (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%.

(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).]

Textual Amendments

F20 Words in Sch. 4 para. 2(1) substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(2)

F21 Sch. 4 para. 2(1A)-(1D) inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(3)

F22 Words in Sch. 4 para. 2(2) substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(4)(a)

F23 Words in Sch. 4 para. 2(2) inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(4)(b)

F24 Sch. 4 para. 2(2A)(2B) inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(5)

F25 Words in Sch. 4 para. 2(3) substituted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(6)

F26 Sch. 4 para. 2(3)(a) substituted (16.1.2017) by The Non-Domestic Rating (Rates Retention) (Amendment) Regulations 2016 (S.I. 2016/1268), regs. 1(2), 11

F27 Sch. 4 para. 2(4)-(8) inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), regs. 1(2), 10(7)

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

[F28 SCHEDULE 5 E+W List of billing authorities

Textual Amendments

F28 Sch. 5 inserted (30.3.2017) by The Non-Domestic Rating (Rates Retention) and (Levy and Safety Net) (Amendment) Regulations 2017 (S.I. 2017/496), reg. 1(2), Sch. 1

PART 1 E+W

Greater London Authority

The councils for the following local government areas—
Barking and Dagenham
Barnet
Bexley
Brent
Bromley
Camden
City of London
Croydon
Ealing
Enfield
Greenwich
Hackney
Hammersmith and Fulham
Haringey
Harrow
Havering
Hillingdon
Hounslow
Islington
Kensington and Chelsea
Kingston upon Thames
Lambeth
Lewisham
Merton
Newham
Redbridge
Richmond upon Thames
Southwark
Sutton
Tower Hamlets
Waltham Forest
Wandsworth
Westminster

PART 2 E+W

Greater Manchester Combined Authority

The councils for the following local government areas—
Bolton
Bury
Manchester
Oldham
Rochdale
Salford
Stockport
Tameside
Trafford
Wigan

PART 3 E+W

Liverpool City Region

The councils for the following local government areas—
Halton
Knowsley
Liverpool
Sefton
St Helens
Wirral

PART 4 E+W

West Midlands Combined Authority

The councils for the following local government areas—
Birmingham
Coventry
Dudley
Sandwell
Solihull
Walsall
Wolverhampton

PART 5 E+W

West of England Combined Authority

The councils for the following local government areas—
Bath and North East Somerset
Bristol
South Gloucestershire

PART 6 E+W

Cornwall

The council for the following local government area—
Cornwall]