The Non-Domestic Rating Contributions (Wales) Regulations 1989

Explanatory Note

(This note is not part of the Regulations)

Under Part II of Schedule 8 to the Local Government Finance Act 1988(c. 41), charging authorities are required to pay amounts (called non-domestic rating contributions) to the Secretary of State. Payments in respect of a provisional amount of the contributions are made during the financial year, final calculations and payments being made after the year ends. These Regulations contain rules for the calculation of those contributions for Welsh charging authorities.

Regulation 3 and Schedule 1 provide for the calculation of a final non-domestic rating contribution which is broadly the same as the total payable to the charging authority under sections 43 and 45 of the Act. Provision is included in Schedule 1 for the deduction of prescribed percentages of relief granted by the authority under sections 47 and 49 of the Act, of a fixed allowance in respect of costs of collection and recovery, and of amounts in respect of matters such as bad debts and amounts repaid to ratepayers.

Regulation 4 and Schedule 2 provide for the assumptions which are to be made when calculating the provisional amount.

Regulations 5 and 6 provide that where prescribed conditions are fulfilled, the amount calculated under regulation 4 will be replaced by an amount calculated under regulations 5 and 6 and Schedule 3. These provisions will operate where the amounts expected to be received by the charging authority in respect of non-domestic rates have been substantially reduced during the financial year.

Regulations 7 and 8 provide that where a provisional amount has been recalculated under regulations 5 and 6, repayments will be made to the charging authority and further amounts payable by the authority will be reduced.