Regulations 4 and 6
SCHEDULE 1RULES FOR DETERMINATION OF SCHEDULES OF INSTALMENTS
PART IPRINCIPAL AUTHORITIES
1.—(1) A schedule of instalments so far as it relates to principal authorities shall be determined in accordance with this Part of this Schedule.
(2) The schedule of instalments shall be determined so as to require any payments and transfers from a billing authority’s collection fund in respect of its liabilities to principal authorities to be made in at least 12 instalments.
(3) The total of the instalments required to be paid by the schedule must discharge that billing authority’s liabilities to principal authorities within the financial year to which the schedule relates.
(4) The instalments shall be of the same number and shall become payable and transferable on the same dates in that financial year for each such liability, as determined by the billing authority.
(5) The schedule of instalments shall be determined so as to specify–
(a)the number of the instalments,
(b)the amount which each instalment will be as a proportion of the amount of each such liability, and
(c)the date on which each instalment shall become due.
(6) The reference in sub-paragraph (2) to transfers from a billing authority’s collection fund shall be construed, in the case of a liability under section 97(4) of the 1988 Act, as a reference to transfers from that authority’s general fund to its collection fund.
2. Where the billing authority determines that 12 instalments are to be paid or transferred in discharge of each liability referred to in paragraph 1(2), the authority shall determine the schedule of instalments so as to require either–
(a)that each instalment shall become due on the last working day of a different month in the financial year, or
(b)that each instalment shall become due on the same working day of a different month in that financial year.
3. Where the billing authority determines that more than 12 instalments are to be paid or transferred in discharge of each liability referred to in paragraph 1(2), the authority shall determine the schedule of instalments so as to require that–
(a)the authority shall pay and transfer the amount of each first instalment in the financial year within 4 weeks of the start of that financial year and the amount of each last instalment within 4 weeks prior to the end of that financial year, and
(b)there shall be an equal number of working days between each instalment in that financial year.
4.—(1) The schedule of instalments shall be determined so as to require each instalment to represent the amount of the billing authority’s undischarged liability to a principal authority, divided by the number of instalments remaining to be paid or transferred immediately before the payment or transfer of the instalment in question.
(2) The amount of the billing authority’s undischarged liability to a principal authority is the amount of its liability to that authority for the financial year in which the instalment falls to be paid or transferred, less the amount, if any, by which that liability is treated as discharged under regulation 3.
5. Paragraph 4 shall not apply where paragraph 6 applies.
6.—(1) This paragraph applies where a principal authority has issued a substitute precept under section 42(1) of the 1992 Act or made a substitute calculation.
(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 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 by applying 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 payable or transferable in respect of the substitute precept or substitute calculation or the latest such precept or calculation,
C is the amount payable or transferable in respect 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 payable or transferable in respect of the substitute precept or calculation is greater than the amount payable or transferable in respect 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 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 sub-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 principal authority before the issue or making of the substitute precept or calculation, and
(ii)the amount of the instalment calculated in accordance with sub-paragraph (3),
and
(b)the amount which would have been paid or transferred for the financial year to the 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 payable or transferable in respect 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 payable or transferable in respect of the substitute precept or calculation.
(6) If the amount payable or transferable in respect of the substitute precept or calculation is less than the amount payable or transferable in respect 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 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 sub-paragraph (7).
(7) For the purposes of sub-paragraph (6), the amount is that necessary for the amount paid or transferred to the 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 payable or transferable in respect 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 payable or transferable in respect of the substitute precept or calculation.
(8) In this paragraph any reference (however framed) to an amount payable in respect of a precept or transferable in respect of a calculation–
(a)in the case of an amount payable in respect of a precept, is a reference to the amount stated in a precept issued to the billing authority under section 40(2)(b) of the 1992 Act, and
(b)in the case of an amount transferable in respect of a calculation, is a reference to the amount which a billing authority which has made calculations in accordance with sections 32 to 36 of the 1992 Act is required to transfer from its collection fund to its general fund under section 97(1) of the 1988 Act.
PART IILOCAL PRECEPTING AUTHORITIES
7. A schedule of instalments so far as it relates to relevant local precepting authorities shall be determined in accordance with this part of this Schedule.
8.—(1) The amount of a billing authority’s liability to each relevant local precepting authority for a financial year shall be discharged by payment from the authority’s general fund to be made in not more than 3 instalments, of the same number for each such liability, as determined by the authority, and payable on the same dates for each such liability, as determined by the authority in accordance with the rules prescribed in paragraph 9 or 10.
(2) The schedule of instalments shall be determined so as to specify–
(a)the number of the instalments,
(b)the amount which each instalment will be as a proportion of the amount of each such liability, and
(c)the date in that financial year on which each instalment shall become payable.
(3) The schedule of instalments shall be determined so as to provide that if–
(a)a relevant local precepting 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 working day of a month which is referred to in paragraph 9 or 10 and which applies to that relevant local precepting 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 local precepting authority to be paid in that month.
9.—(1) At least one third of the amount of a billing authority’s liability to a relevant local precepting authority for a financial year shall become payable to that local precepting authority on or before–
(a)the last working day of April in that financial year, or
(b)the last working day of the month following the month in which a precept for that financial year was issued by that local precepting authority,
whichever is the later.
(2) At least two thirds of that amount shall become payable to that local precepting authority on or before–
(a)the last working day of August in that financial year, or
(b)the last working day of the fifth month following the month in which a precept for that financial year was issued by that local precepting authority,
whichever is the later.
(3) The remainder of that amount shall become payable to that local precepting authority on or before–
(a)the last working day of December in that financial year, or
(b)the last working day of the ninth month following the month in which a precept for that financial year was issued by that local precepting authority,
whichever is the later.
(4) Sub-paragraphs (1) to (3) shall not apply to the discharge of a billing authority’s liabilities to its relevant local precepting authorities for a financial year in relation to which it determines a schedule of instalments in accordance with paragraph 10.
10.—(1) Instead of determining a schedule of instalments in accordance with paragraph 9(1) to (3), the billing authority may determine that schedule in accordance with the provisions of this paragraph.
(2) The amount of a billing authority’s liability to a relevant local precepting authority shall become payable on whichever is the later of–
(a)a date, specified in the schedule of instalments, which is on or before the last working day of September in the financial year, or
(b)the last working day of the sixth month following the month in which a precept for that financial year is issued by that local precepting authority.
11. References in paragraphs 9 and 10 to a precept for a financial year are references to the last such precept issued by that local precepting authority.