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

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations designate classes of hereditaments in relation to which a billing authority disregards an amount of non-domestic rating income for the purpose of certain calculations under Schedule 7B to the Local Government Act 1988 (local retention of non-domestic rates).

Part 1 provides for preliminary matters.

Part 2 sets out the designated classes of hereditaments in relation to which an amount of non-domestic rating income is to be disregarded.

Part 3 makes provision for the calculation of the amounts to be disregarded for the purpose of calculations under the rates retention scheme.

Part 4 amends the Non-Domestic Rating (Rates Retention) Regulations 2013 (“the 2013 Regulations”) to provide for payments to relevant precepting authorities of a proportion of the amount to be disregarded.

Part 5 further amends the 2013 Regulations. Regulation 12(2) inserts a requirement for reconciliation payments between billing authorities and major precepting authorities where there are changes in qualifying relief in relation to Case B hereditaments (see Schedule 2 to the 2013 Regulations). Regulation 12(3) amends the schedule of instalments by which any payment under the 2013 Regulations are made through the course of the financial year. Regulation 12(4) updates the area cost factors for calculating an authority’s costs of collection. Regulation 12(5) extends the period for which qualifying relief may be funded through a deduction from central share and adds an additional area in Derby in relation to which qualifying relief may be funded. Regulation 12(6) makes express provision in respect of the transfers between funds to be made by the Council of the Isles of Scilly.

Part 6 amends the Non-Domestic Rating (Transitional Protection Payments) Regulations 2013 to change the schedule of instalments for transitional protection payments on account.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.