The Collection Fund (England) Regulations 1989

Regulations 4 and 6

SCHEDULE 1 RULES FOR DETERMINATION OF SCHEDULES OF INSTALMENTS

PART I principal authorities

1.—(1) The schedule of instalments shall be determined so as to require payments and transfers from a charging authority’s collection fund to relevant principal authorities to be made in at least 10 instalments in each financial year.

(2) Payments and transfers shall be made to each relevant principal authority at the same times.

2.—(1) The schedule of instalments shall be determined so as to require the first instalment to be paid or transferred to relevant principal authorities within 4 weeks of the start of the financial year and of the final instalment to be so paid or transferred within 8 weeks of the end of the financial year.

(2) There shall be an equal number of days between each instalment in a financial year.

(3) For the purpose of the computation of days under sub-paragraph (2) a day which is a Saturday, Sunday, or bank holiday shall be excluded.

3.  The schedule of instalments shall be determined so as to require the amount of each instalment which is to be paid or transferred to relevant principal authorities, other than the last instalment in a financial year, to be a number of whole pounds.

4.—(1) The schedule of instalments shall be determined so as to require each instalment to represent the amount of the charging authority’s undischarged liability to a relevant principal authority, divided by the number of instalments remaining to be paid or transferred.

(2) The amount of the charging authority’s undischarged liability to a relevant principal authority is the amount of its liability to the principal authority for the financial year in which the instalment falls to be paid, less the amount, if any, by which that liability is treated as discharged under regulation 3.

(3) The number of instalments remaining to be paid or transferred means the number of instalments remaining to be paid or transferred immediately before the payment or transfer of the instalment in relation to which an amount is determined under sub-paragraph (1).

5.—(1) This paragraph applies where a charging authority determines its schedule of instalments otherwise than in accordance with the rules prescribed in paragraph 4.

(2) Subject to sub-paragraphs (4) and (6), the schedule of instalments shall be determined so as to require each instalment paid or transferred to a relevant principal authority after it has issued a substitute precept or made a substitute calculation to be the amount calculated in accordance with sub-paragraph (3).

(3) The amount calculated in accordance with this sub-paragraph shall be calculated in accordance with the formula

where–

• A is the amount which would have been paid or transferred on the date on which the instalment is paid or transferred had the substitute precept not been issued or the substitute calculation not been made (or, where there has been more than one such substitute precept or calculation, the latest such precept or calculation),

• B is the amount of the substitute precept or substitute calculation or the latest such precept or calculation,

• C is the amount of the previous precept or calculation or the last one to be issued or made before the substitute precept or calculation.

(4) If the amount of the substitute precept or calculation is greater than the amount of the previous precept or calculation or the last one to be issued or made before the substitute precept or calculation, the amount paid or transferred to the relevant principal authority which issued or made that substitute precept or calculation shall in the first instalment paid or transferred to that authority after the issue of that substitute precept or making of that substitute calculation be required to include the additional amount described in paragraph (5).

(5) For the purposes of sub-paragraph (4), the additional amount is the difference between–

(a) the total of

(i) the amount paid or transferred for the financial year to the relevant principal authority before the issue or making of the substitute precept or calculation, and

(ii) the amount of the instalment calculated in accordance with paragraph (3), and

(b) the amount which would have been paid or transferred for the financial year to the relevant principal authority on and before the day of the payment or transfer to that authority of the first instalment after the issue of the substitute precept or making of the substitute calculation, had the amount of the previous precept or calculation or the last one to be issued or made before the substitute precept or calculation was issued or made been the same as the amount of the substitute precept or calculation.

(6) If the amount of the substitute precept or calculation is less than the amount of the previous precept or calculation or the last one to be issued or made before the substitute precept or calculation, the amount paid or transferred to the relevant principal authority in an instalment paid or transferred to that authority after the issue of the substitute precept or making of the substitute calculation by that authority shall not be required to be an amount greater than the amount described in paragraph (7).

(7) For the purposes of sub-paragraph (6), the amount is that necessary for the amount paid or transferred to the relevant principal authority for the financial year on and before the day of the instalment to equal the amount which would have been so paid or transferred had the amount of the previous precept or calculation or the last one to be issued or made before the substitute precept or calculation been the same as the amount of the substitute precept or calculation.

PART II parish authorities and temples authorities

6.  A schedule of instalments so far as it relates to relevant parish authorities or Temples authorities shall be determined in accordance with this Part of this Schedule.

7.  The schedule of instalments shall be determined so as to require the amount of each instalment which is to be paid to relevant parish authorities or Temples authorities, other than the last instalment in a financial year, to be a number of whole pounds.

8.—(1) Paragraph 9 shall apply in relation to a relevant parish authority or Temples authority where the amount referred to in sub-paragraph (3) for the financial year to which a schedule of instalments relates is 1 per cent or less of the amount referred to in sub-paragraph (4).

(2) In any other case paragraph 10 shall apply.

(3) The amount referred to in this sub-paragraph is the amount of the liability of the charging authority in respect of a precept which has been issued to it by the relevant parish authority or Temples authority in question at the time the charging authority sets an amount or amounts for the year under section 32 of the Act(1), or (if no such precept has been issued) the amount included among the items listed in section 32(4) of the Act in relation to that authority under section 37(3) of the Act.

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

(a) the amount of the liabilities of the charging authority in respect of the precepts which have at the time at which it sets an amount or amounts in accordance with section 32 of the Act been issued to it under the Act for the financial year,

(b) the amount of the liabilities of the charging authority in respect of the amount which has at that time been calculated (or last calculated) under section 95(4) of the Act for the financial year, and

(c) the amount which at that time the charging authority has included pursuant to section 37(3) of the Act for the financial year among the items listed in section 32(4) of the Act.

9.—(1) In a case to which this paragraph applies, the schedule of instalments shall be determined so as to require that if the relevant parish authority or Temples authority issued a precept by the time at which the charging authority set an amount or amounts in accordance with section 32 of the Act–

(a) at least 50 per cent of the charging authority’s liability to that authority will be paid to that authority within 1 month of the start of the financial year in respect of which the precept was issued, and

(b) the remainder of the charging authority’s liability to that authority will be paid to that authority within 6 months of the start of that financial year.

(2) In any other case to which this paragraph applies, the schedule of instalments shall be determined so as to require that at least 50 per cent of the charging authority’s liability to the relevant parish authority or Temples authority will be paid to that authority within 1 month of the issue to it of a precept by that authority, and the remainder of the charging authority’s liability to that authority will be paid to that authority within 6 months of the issue to the charging authority of that precept.

10.—(1) In a case to which this paragraph applies, the schedule of instalments shall be determined so as to require that if the relevant parish authority or Temples authority has issued a precept by the time at which the charging authority set an amount or amounts in accordance with section 32 of the Act–

(a) at least 50 per cent of the charging authority’s liability to that authority will be paid to that authority within 3 months of the start of the financial year in respect of which the precept was issued, and

(b) the remainder of the charging authority’s liability to that authority will be paid to that authority within 9 months of the start of that financial year.

(2) In any other case to which this paragraph applies, the schedule of instalments shall be determined so as to require that at least 50 per cent of the charging authority’s liability to the relevant parish authority or Temples authority will be paid to that authority within 3 months of the issue to it of a precept by that authority, and the remainder of the charging authority’s liability to that authority will be paid to that authority within 9 months of the issue to the charging authority of that precept.

11.  The schedule of instalments shall be determined so as to provide that if–

(a) a relevant parish authority or Temples authority issues a substitute precept for a financial year which is greater than the amount of the previous precept to be issued or the last one to be issued, and

(b) that substitute precept was issued on or after the last day of a 1 or 3 month period which is prescribed in paragraph 9 or 10 and which applies to that relevant parish authority or Temples authority in that financial year,

the difference between the liability in respect of that substitute precept and the liability in respect of the previous precept to be issued or the last one to be issued shall not be taken into account for the purpose of determining the amount of the liability to that relevant parish authority or Temples authority to be paid in that 1 or 3 month period.

(1)

Section 32 was amended by the Local Government and Housing Act 1989 (c. 42), Schedule 5, paragraph 14.