PART 3End of year calculations and reconciliation

End of year calculations9.

(1)

F1Subject to paragraph (5), on or before F231st July in the year following the relevant year a billing authority must—

(a)

calculate the amount specified by paragraph 1 of Schedule 1 for the relevant year;

F3(b)

calculate the amount (if any) specified by paragraph 2 of Schedule 2 for the relevant year;

(ba)

calculate the amount (if any) specified by paragraph 3 of Schedule 2 for the relevant year;

(bb)

calculate the amount specified by paragraph 2(1) of Schedule 2A for the relevant year (if applicable);

(bc)

calculate the amount specified by paragraph 2 of Schedule 2B for the relevant year (if applicable);

F4(bd)

calculate the amount specified by paragraph 2(1) of Schedule 2C for the relevant year (if applicable);

(c)

calculate the amount (if any) specified by regulation 7(2) F5, 7A(2) and the amount of each relevant precepting authority’s share of any amount specified by regulation 7A for the relevant year; and

(d)

notify the Secretary of State and any relevant precepting authorities of the amounts calculated.

(2)

The billing authority must arrange for the calculations and amounts to be certified in accordance with such arrangements as the Secretary of State may direct.

(3)

The person certifying the calculations and amounts must send the certification to the Secretary of State and notify the billing authority and relevant precepting authorities of the amounts so certified.

(4)

The amount specified by paragraph 1 of Schedule 1 to these Regulations and calculated and certified in accordance with this regulation is the authority's certified non-domestic rating income for the relevant year.

F6(5)

Paragraph (1) applies in relation to calculations for the relevant year beginning on 1st April 2019 as if for “31st July” there were substituted “30th November”.

F7Special provision for end of year calculations for relevant year beginning on 1st April 20159A.

(1)

This regulation applies in relation to the relevant year beginning on 1st April 2015 to a billing authority to which Schedule 2A or 2B applies.

(2)

In addition to the calculations made under regulation 9(1) for that year, the billing authority must calculate the following amounts on or before 23rd January 2017—

(a)

the amount specified by paragraph 2(1) of Schedule 2A for that year (if applicable);

(b)

the amount specified by paragraph 2 of Schedule 2B for that year (if applicable).

(3)

The billing authority must—

(a)

notify the Secretary of State on or before 23rd January 2017 of the amounts calculated; and

(b)

arrange for the calculations and amounts to be certified in accordance with such arrangements as the Secretary of State may direct.

(4)

The person certifying the calculations and amounts must send the certification to the Secretary of State and notify the billing authority of the amounts so certified.

F8Special provision for end of year calculations for relevant year beginning on 1st April 20169B.

(1)

This regulation applies in relation to the relevant year beginning on 1st April 2016 to a billing authority to which Schedule 2C applies.

(2)

In addition to the calculations made under regulation 9(1) for that year, the billing authority must calculate the amount specified by paragraph 2(1) of Schedule 2C for that year (if applicable) on or before 2nd February 2018.

(3)

The billing authority must—

(a)

notify the Secretary of State on or before 2nd February 2018 of the amount calculated; and

(b)

arrange for the calculation and amount to be certified in accordance with such arrangements as the Secretary of State may direct.

(4)

The person certifying the calculation and amount must send the certification to the Secretary of State and notify the billing authority of the amount so certified.

F9Reconciliation of disregarded amounts10.

(1)

Where the amount included in the calculation of the certified non-domestic rating income as an amount to be disregarded in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act is different to the amount estimated for the purposes of regulation 3 (“the estimated amount”) paragraphs (2) to (4) apply.

(2)

Where the difference relates to a hereditament within the description in regulation 7(2) (county matters)—

(a)

if the certified amount is less than the amount paid to the county council, the county council must pay an amount equal to the difference to the billing authority; or

(b)

if the certified amount is more than the amount paid to the county council, the billing authority must pay an amount equal to the difference to the county council.

(3)

Where the difference relates to a hereditament within the description in regulation 7A(1) (shale oil or gas hereditaments)—

(a)

if the certified amount is less than the estimated amount-

(i)

each relevant precepting authority must pay an amount equal to that relevant precepting authority’s percentage share (as set out in paragraph (5)) of the difference to the billing authority; and

(ii)

the billing authority must transfer an amount equal to its percentage share of the difference from its general fund to its collection fund; or

(b)

if the certified amount is more than the estimated amount-

(i)

the billing authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to each relevant precepting authority; and

(ii)

the billing authority must transfer an amount equal to its percentage share of the difference from its collection fund to its general fund.

(4)

Where the difference relates to any other hereditament—

(a)

if the certified amount is less than the estimated amount, the billing authority must transfer an amount equal to the difference from its general fund to its collection fund; or

(b)

if the certified amount is more than the estimated amount, the billing authority must transfer an amount equal to the difference from its collection fund to its general fund.

(5)

For the purposes of this regulation, the percentage shares are—

(a)

100% where the billing authority is—

(i)

a county council, or a district council in an area for which there is no county council, and the authority is a fire and rescue authority; or

(ii)

the Council of the Isles of Scilly;

(b)

99% where the billing authority is a county council, or a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

(c)

40% where the billing authority is a district council in an area for which there is a county council;

(d)

80% where the billing authority is a London borough council or the Common Council of the City of London;

(e)

60% where the relevant precepting authority is a county council which is a fire and rescue authority;

(f)

59% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(g)

20% where the relevant precepting authority is the Greater London Authority; and

(h)

1% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (e).

F10Reconciliation of amount deducted from central share payment11.

F11A1

This regulation applies in relation to a relevant year if a billing authority deducts an amount under regulation 4(1) from its central share payment for that year.

(1)

Where the amount certified under regulation 9 as the F12amount specified by paragraph 2 of Schedule 2 for a relevant year is different from the amount deducted under regulation 4(1)(a) from the central share payment for that year—

(a)

if the certified amount is less than the deducted amount, the billing authority must—

(i)

pay an amount equal to the difference to the Secretary of State; and

(ii)

transfer an amount equal to the difference from its general fund to its collection fund; or

(b)

if the certified amount is more than the deducted amount—

(i)

the Secretary of State must pay an amount equal to the difference to the billing authority; and

(ii)

the billing authority must transfer an amount equal to the difference from its collection fund to its general fund.

(2)

Where the amount certified under regulation 9 as the F13amount specified by paragraph 3 of Schedule 2 for a relevant year is different from the amount deducted under regulation 4(1)(b) from the central share payment for that year—

(a)

if the certified amount is less than the deducted amount—

(i)

the billing authority must pay an amount equal to the difference to the Secretary of State;

(ii)

each relevant precepting authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to the billing authority; and

(iii)

the billing authority must transfer an amount equal to its percentage share of the difference from its general fund to its collection fund; or

(b)

if the certified amount is more than the deducted amount—

(i)

the Secretary of State must pay an amount equal to the difference to the billing authority;

(ii)

the billing authority must pay an amount equal to the relevant precepting authority’s percentage share of the difference to each relevant precepting authority; and

(iii)

the billing authority must transfer an amount equal to its percentage share of the difference from its collection fund to its general fund.

F14(2A)

For F15the relevant year beginning on 1st April 2017, where the amount certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2A for that year is different from the amount deducted under F16regulation 4(1)(c) from the central share payment for that year—

(a)

if the certified amount is less than the deducted amount—

(i)

the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii)

the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b)

if the certified amount is more than the deducted amount—

(i)

the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii)

the billing authority must transfer from its collection fund to its general fund an amount equal to the difference.

(2B)

For a relevant year beginning on or after 1st April 2017, where the amount certified under regulation 9 as the amount specified by paragraph 2 of Schedule 2B for that year is different from the amount deducted under F17regulation 4(1)(d) from the central share payment for that year—

(a)

if the certified amount is less than the deducted amount—

(i)

the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii)

the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b)

if the certified amount is more than the deducted amount—

(i)

the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii)

the billing authority must transfer from its collection fund to its general fund an amount equal to the difference.

F18(2C)

For a relevant year beginning on or after 1st April 2018, where the amount certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2C for that year is different from the amount deducted under regulation 4(1)(e) from the central share payment for that year—

(a)

if the certified amount is less than the deducted amount—

(i)

the billing authority must pay to the Secretary of State an amount equal to the difference; and

(ii)

the billing authority must transfer from its general fund to its collection fund an amount equal to the difference; or

(b)

if the certified amount is more than the deducted amount—

(i)

the Secretary of State must pay to the billing authority an amount equal to the difference; and

(ii)

the billing authority must transfer from its collection fund to its general fund an amount equal to the difference.

(3)

F19Unless F20paragraph (4), (5) or (6) applies, for the purposes of this regulation, the percentage shares are—

(a)

100% where the billing authority is—

(i)

a county council, or a district council in an area for which there is no county council, and the authority is a fire and rescue authority; or

(ii)

the Council of the Isles of Scilly;

(b)

98% where the billing authority is a county council, or a district council in an area for which there is no county council, and the authority is not a fire and rescue authority;

(c)

80% where the billing authority is a district council in an area for which there is a county council;

(d)

60% where the billing authority is a London borough council or the Common Council of the City of London;

(e)

20% where the relevant precepting authority is a county council which is a fire and rescue authority;

(f)

18% where the relevant precepting authority is a county council which is not a fire and rescue authority;

(g)

40% where the relevant precepting authority is the Greater London Authority; and

(h)

2% where the relevant precepting authority is a fire and rescue authority not falling within sub-paragraph (e).

F21(4)

In relation to F22the relevant year commencing on 1st April 2017, the percentage shares are—

(a)

44.8% where the billing authority is listed in Part 1 of Schedule 5; and

(b)

55.2% where the relevant precepting authority is the Greater London Authority.

F23(5)

For the relevant year commencing on 1st April 2018, the percentage shares are—

(a)

64% where the billing authority is listed in Part 1 of Schedule 5; and

(b)

36% where the relevant precepting authority is the Greater London Authority.

(6)

For the relevant year commencing on 1st April 2019, the percentage shares are—

(a)

64% where the billing authority is listed in Part 1 of Schedule 5;

(b)

98⅔% where the billing authority is listed in Parts 7, 16, 19, 28, 33 or 36 of Schedule 5;

(c)

70% where the billing authority is listed in Parts 15 or 32 of Schedule 5;

(d)

100% where the billing authority is listed in Parts 20 or 34 of Schedule 5;

(e)

56⅔% where the billing authority is listed in Parts 23 or 30 of Schedule 5;

(f)

58⅔% where the billing authority is listed in Parts 24 or 35 of Schedule 5;

(g)

46⅔% where the billing authority is listed in Part 25 of Schedule 5;

(h)

98% where the billing authority is listed in Part 26 of Schedule 5;

(i)

74⅔% where the billing authority is listed in Part 27 of Schedule 5;

(j)

50% where the billing authority is listed in Part 29 of Schedule 5;

(k)

53⅓% where the billing authority is listed in Parts 31 or 37 of Schedule 5;

(l)

26⅔% where the billing authority is listed in Part 38 of Schedule 5;

(m)

0% where the billing authority is listed in Part 39 of Schedule 5;

(n)

36% where the relevant precepting authority is the Greater London Authority;

(o)

42% where the relevant precepting authority is Buckinghamshire County Council;

(p)

34⅔% where the relevant precepting authority is East Sussex County Council;

(q)

53⅓% where the relevant precepting authority is Hertfordshire County Council;

(r)

23⅓% where the relevant precepting authority is Lancashire County Council and the billing authority is listed in Part 27 of Schedule 5;

(s)

48⅔% where the relevant precepting authority is Leicestershire County Council;

(t)

43⅓% where the relevant precepting authority is Norfolk County Council;

(u)

28⅔% where the relevant precepting authority is North Yorkshire County Council;

(v)

45⅓% where the relevant precepting authority is Northamptonshire County Council;

(w)

40% where the relevant precepting authority is Somerset County Council;

(x)

45⅓% where the relevant precepting authority is Staffordshire County Council;

(y)

73⅓% where the relevant precepting authority is West Sussex County Council;

(z)

98⅔% where the relevant precepting authority is Worcestershire County Council;

z1

1⅓% where the relevant precepting authority is Berkshire Combined Fire and Rescue Authority;

z2

1⅓% where the relevant precepting authority is Buckinghamshire Combined Fire and Rescue Authority and the billing authority is listed in Part 23 of Schedule 5;

z3

1⅓% where the relevant precepting authority is Devon and Somerset Fire and Rescue Authority and the billing authority is listed in Part 35 of Schedule 5;

z4

6⅔% where the relevant precepting authority is East Sussex Combined Fire and Rescue Authority and the billing authority is listed in Part 24 of Schedule 5;

z5

1⅓% where the relevant precepting authority is Hampshire Combined Fire and Rescue Authority and the billing authority is listed in Part 19 of Schedule 5;

z6

1⅓% where the relevant precepting authority is Hereford & Worcester Combined Fire and Rescue Authority and the billing authority is listed in Part 39 of Schedule 5;

z7

1⅓% where the relevant precepting authority is Leicestershire Combined Fire and Rescue Authority and the billing authority is listed in Part 28 or Part 29 of Schedule 5;

z8

1⅓% where the relevant precepting authority is North Yorkshire Police, Fire and Crime Commissioner Fire and Rescue Authority;

z9

1⅓% where the relevant precepting authority is Northamptonshire Commissioner Fire and Rescue Authority;

z10

1⅓% where the relevant precepting authority is Staffordshire Commissioner Fire and Rescue Authority;

z11

1⅓% where the relevant precepting authority is Tyne and Wear Fire and Rescue Authority and the billing authority is listed in Part 33 of Schedule 5; and

z12

1⅓% where the relevant precepting authority is West Yorkshire Fire and Rescue Authority.

F24Special provision for end of year payments in respect of relevant year beginning on 1st April 201511A.

(1)

This regulation applies in relation to the relevant year beginning on 1st April 2015 to a billing authority to which Schedule 2A or 2B applies.

(2)

Where an amount is certified under regulation 9A as the amount specified by paragraph 2(1) of Schedule 2A for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3)

Where an amount is certified under regulation 9A as the amount specified by paragraph 2 of Schedule 2B for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(4)

An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year.

Special provision for end of year payments in respect of relevant year beginning on 1st April 201611B.

(1)

This regulation applies in relation to the relevant year beginning on 1st April 2016 to a billing authority to which F25Schedule 2A, 2B or 2C applies.

(2)

Where an amount is certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2A for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3)

Where an amount is certified under regulation 9 as the amount specified by paragraph 2 of Schedule 2B for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

F26(3A)

Where an amount is certified under regulation 9B as the amount specified by paragraph 2(1) of Schedule 2C for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount;

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(4)

An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year.

F27Special provision for end of year payments in respect of relevant year beginning on 1st April 201711C.

(1)

This regulation applies in relation to the relevant year beginning on 1st April 2017 to a billing authority to which Schedule 2C applies.

(2)

Where an amount is certified under regulation 9 as the amount specified by paragraph 2(1) of Schedule 2C for that year (“the certified amount”)—

(a)

the Secretary of State must pay to the billing authority an amount equal to the certified amount; and

(b)

the billing authority must transfer from its collection fund to its general fund an amount equal to the certified amount.

(3)

An amount paid to an authority under this regulation is to be recognised by that authority in accordance with proper practices in a revenue account for that year.

Reconciliation of amounts where authority has failed to act diligently12.

Where an amount included in a calculation under regulation 9(1) as a bad debt which should be written off or a doubtful debt for which provision should be made is disallowed on certification under regulation 9(2) on the grounds that the billing authority has failed to act diligently in relation to the collection of non-domestic rates, the authority must transfer such an amount as is disallowed from its general fund to its collection fund.