The Collection Fund (England) Regulations 1989

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.