The Non-Domestic Rating Contributions (England) (Amendment) Regulations 1990

Made: 6th December 1990

Laid before Parliament: 10th December 1990

Coming into force: 31st December 1990

The Secretary of State, in exercise of the powers conferred on him by sections 140(4), 143(1) and 146(6) of, and paragraphs 4(1) and (5) and 6(2) and (2A) of Schedule 8 to, the Local Government Finance Act 1988[^f00001], and of all other powers enabling him in that behalf, hereby makes the following Regulations:–

Citation and commencement

1

These Regulations may be cited as the Non-Domestic Rating Contributions (England) (Amendment) Regulations 1990 and shall come into force on 31st December 1990.

Amendments

2

The Non-Domestic Rating Contributions (England) Regulations 1989[^f00002] shall have effect in relation to financial years beginning on or after 1st April 1991 with the following amendments–

• (a) in regulation 2–

• (i) in paragraph (2) at the beginning there shall be inserted–

• Subject to paragraph (3),

; and

• (ii) at the end there shall be added the following paragraph–

(3) The calculation of the amount of any deductions described in paragraphs 3, 4, 5, 5A and 7 of Schedule 1 to these Regulations (including, for the purposes of paragraphs 3, 4 and 5, the calculation of the amount calculated under or by reference to paragraph 2 of that Schedule) shall, in relation to a special authority, be made– (a) for a chargeable financial year for which the authority’s non-domestic rating multiplier is less than or equal to the non-domestic rating multiplier calculated for that year by the Secretary of State under paragraph 6 of Schedule 7 to the Act, on the basis of the chargeable amounts payable to the authority under sections 43 and 45 of the Act by virtue of the authority’s multiplier set for that year; and (b) for a chargeable financial year for which the authority’s non-domestic rating multiplier is greater than the non-domestic rating multiplier calculated for that year by the Secretary of State under paragraph 6 of Schedule 7 to the Act, on the basis of the chargeable amounts which would be payable under sections 43 and 45 of the Act if the authority’s non-domestic rating multiplier were equal to the multiplier so calculated by the Secretary of State.

[^f00003];

• (b) in Part I of Schedule 1–

• (i) in paragraph 1(1) for “paragraphs 2 to 11” there shall be substituted “paragraphs 2 to 12”;

• (ii) in paragraph 1(2) for “paragraphs 10 and 11.” there shall be substituted “paragraphs 10 to 12.”;

• (iii) after paragraph 5 there shall be inserted the following paragraph–

(5A) The amount which is 75% of the total of any chargeable amounts– (a) which are payable to the authority under sections 43 and 45 of the Act in respect of a relevant day, and (b) in respect of which, in accordance with an agreement made under regulations made under paragraphs 1 and 4A of Schedule 9 to the Act, the authority has taken no steps to recover any payment.

[^f00004];

• (iv) in paragraph 6(4) for “1990, £42.5 million.” there shall be substituted “1991, £46 million.”;

• (v) in paragraph 9 at the beginning for the words “The total of interest and additional amounts by way of interest” there shall be substituted “The amounts of interest”;

• (vi) in paragraph 9(a) there shall be omitted the words “or paragraph 2(2A) of Schedule 9 to”[^f00005] and “or under paragraph 2(2)(j) of Schedule 9 to the Act”; and

• (vii) at the end there shall be added the following paragraph–

(12) The amount which is 75% of the total of any amounts which– (a) fell within paragraph 5A(a) and (b) of this Schedule for the purposes of a calculation made for a preceding year under paragraph 5(6) of Schedule 8 to the Act, and (b) have been paid to the authority under sections 43 and 45 of the Act.

[^f00006];

• (c) for Part II of Schedule I there shall be substituted the following Part–

; and

• (d) for Schedule 2 there shall be substituted the following Schedule–

SCHEDULE 2 (1) (1) The assumptions prescribed in relation to paragraph 2 of Schedule 1 to these Regulations are the assumptions prescribed in paragraph 2 below. (2) The assumptions prescribed in relation to paragraphs 3 to 5A and 7 to 12 of Schedule 1 to these Regulations are the assumptions prescribed in paragraphs 3 to 7 below. (2) (1) Subject to sub-paragraph (7) below, it shall be assumed that the hereditaments shown for each relevant day will be the hereditaments shown in the authority’s local non-domestic rating list on 31st December in the immediately preceding year and any hereditaments to which sub-paragraph (2) below applies. (2) This sub-paragraph applies to any hereditaments which, by virtue of an order made under section 51(2) of the Local Government Act 1972[^f00007] on or before 15th January in the immediately preceding year, will be shown in the authority’s local non-domestic rating list for 1st April in the financial year to which the calculation relates, but are shown on 31st December in the immediately preceding year in another authority’s local non-domestic rating list. (3) It shall be assumed that the rateable value of the hereditaments described in sub-paragraphs (1) and (2) above will on each relevant day be the rateable value shown for the hereditaments in an authority’s local non-domestic rating list on 31st December in the immediately preceding year. (4) Subject to paragraph (7) below, where the year to which the calculation relates is a year in which local non-domestic rating lists are compiled under section 41(1) of the Act, it shall be assumed that the hereditaments shown in an authority’s local non-domestic rating list will be the hereditaments shown in the list which the valuation officer for the authority proposes to compile in that year and which he has sent to the authority under section 41(5) of the Act, and any hereditaments to which sub-paragraph (5) below applies. (5) This sub-paragraph applies to any hereditaments which, by virtue of an order made under section 51(2) of the Local Government Act 1972 on or before 15th January in the immediately preceding year, will be shown in the authority’s local non-domestic rating list for 1st April in the financial year to which the calculation relates, but are shown in the list which the valuation officer for another authority proposes to compile in that year and which he has sent to that other authority under section 41(5) of the Act. (6) It shall be assumed that the rateable value of the hereditaments described in sub-paragraphs (4) and (5) above will be the rateable values shown in the list which the valuation officer for an authority proposes to compile in the financial year to which the calculation relates and which he has sent to the authority under section 41(5) of the Act. (7) It shall be assumed that the following hereditaments will not be shown for any relevant day, namely, any hereditaments which, by virtue of an order made under section 51(2) of the Local Government Act 1972 on or before 15th January in the immediately preceding year, will not be shown in the authority’s non-domestic rating list for 1st April of the financial year to which the calculation relates. (8) It shall be assumed that the person in occupation of a hereditament on each relevant day will be the person in occupation of the hereditament on 31st December in the immediately preceding year. (9) Where on 31st December in the immediately preceding year a hereditament is unoccupied, it shall be assumed that the hereditament became unoccupied on that day and will remain unoccupied on each relevant day, and that the owner of the hereditament on each relevant day will be the owner of the hereditament on 31st December in that year. (10) It shall be assumed that the amount calculated for the authority in accordance with the assumptions prescribed in sub-paragraphs (1) to (9) above is the total of– (a) the amount so calculated; (b) the amount, if any, prescribed in relation to that authority in Part II of this Schedule (area ceasing to be an enterprise zone[^f00008]); and (c) where the year to which a calculation relates is the financial year beginning on 1st April 1991, an amount prescribed in relation to that authority in column 1 of Part III of this Schedule (the removal of Crown immunities of health service bodies[^f00009]); multiplied by the percentage for projected change in rateable values prescribed in relation to the authority in column 2 of Part III of this Schedule. (3) Where– (a) a decision has not been made by the authority under subsection (3) of section 47 of the Act as to whether or not that section will apply on one or more relevant days as regards a hereditament in relation to which the condition in section 47(2)(a) applies, and (b) a reduction or remission of rates has been granted by the authority as regards the hereditament and has effect for the immediately preceding financial year under section 47(1)(a) of the Act, it shall be assumed for the purpose of calculating the amount described in paragraph 3 of Schedule 1 to these Regulations that such reduction or remission will apply as regards the hereditament, in respect of each relevant day, as if it had been made under section 47(1)(a) of the Act in respect of each such day. (4) Where– (a) a decision has not been made by the authority under subsection (3) of section 47 of the Act as to whether or not that section will apply on one or more relevant days as regards a hereditament other than a hereditament in relation to which the condition in section 47(2)(a) applies, and (b) a reduction or remission of rates has been granted by the authority as regards the hereditament and has effect for the immediately preceding financial year under section 47(1)(a) of the Act, it shall be assumed for the purpose of calculating the amount described in paragraph 4 of Schedule 1 to these Regulations that such reduction or remission will apply as regards the hereditament, in respect of each relevant day, as if it had been made under section 47(1)(a) of the Act in respect of each such day. (5) It shall be assumed that the amounts described in paragraphs 5, 5A, 10, 11 and 12 of Schedule 1 will be nil. (6) (1) It shall be assumed that the amounts described in paragraph 7 of Schedule 1 to these Regulations will be– (a) in the case of an authority which is the council of an inner London Borough or the Common Council of the City of London, 0.45% of the amount described in sub-paragraph (2) below, (b) in the case of an authority which is the council of an outer London Borough or the council of a metropolitan district, 0.4% of the amount described in that sub-paragraph, and (c) in the case of any other authority, 0.2% of the amount described in that sub-paragraph. (2) The amount is the total of the chargeable amounts payable to the authority under sections 43 and 45 of the Act in respect of each relevant day, calculated in accordance with the provisions of paragraph 2 of this Schedule, less the deductions from that amount prescribed in paragraphs 3 and 4 of Schedule 1 to these Regulations, calculated in accordance with the provisions of paragraphs 3 and 4 of this Schedule. (7) It shall be assumed that, in relation to each authority, the total of amounts deducted in accordance with paragraph 1(2) of Schedule 1 to these Regulations by virtue of paragraphs 8 and 9 of that Schedule will be the amount prescribed for that authority in column 3 of Part III of this Schedule.

Signed

Michael Heseltine — Secretary of State for the Environment — 6th December 1990

Explanatory note

(This note is not part of the Regulations)

Under Part II of Schedule 8 to the Local Government Finance Act 1988, charging authorities are required to pay amounts (called non-domestic rating contributions) to the Secretary of State. Provisional amounts are paid during the financial year, final calculations and payments being made after the year ends. These Regulations amend the rules for the calculation of payments contained in the Non-Domestic Rating Contributions (England) Regulations 1989 (“the 1989 Regulations”).

Minor changes are made to the rules for the final calculation of a non-domestic rating contribution set out in Schedule 1 to the 1989 Regulations, including fresh provision for a deduction to be made where authorities have entered into agreements to defer recovery of non-domestic rates. New figures are substituted for financial years beginning on or after 1st April 1991 to replace those set out in Part II of Schedule 1 (cost factors).

A new Schedule 2 to the 1989 Regulations is substituted for the existing Schedule. The Schedule sets out the assumptions which are to be made when calculating the provisional amount of a non-domestic rating contribution. Changes made take account of local government boundary changes, and require certain assumptions to be made when an area ceases to be an enterprise zone and in relation to the cessation on 1st April 1991 of Crown exemption from rating for certain health service bodies.

Footnotes

[^f00001]: 1988 c. 41; sections 140, 143 and 146 were amended, and paragraph 6(2A) of Schedule 8 was inserted, by the Local Government and Housing Act 1989 (c. 42), Schedule 5, paragraphs 69, 72, 75 and 42 respectively.

[^f00002]: S.I. 1989/2435.

[^f00003]: Section 45 was amended by the Local Government and Housing Act 1989, Schedule 5, paragraph 23.

[^f00004]: Paragraph 4A of Schedule 9 was inserted by the Local Government and Housing Act 1989, Schedule 5, paragraph 45.

[^f00005]: Paragraph 2(2A) of Schedule 9 was inserted by the Local Government and Housing Act 1989, Schedule 5, paragraph 44(4).

[^f00006]: Paragraph 5 of Schedule 8 was amended by the Local Government and Housing Act 1989, Schedule 5, paragraph 42.

[^f00007]: 1972 c. 70.

[^f00008]: See Schedule 32 to the Local Government, Planning and Land Act 1980 (c. 65).

[^f00009]: See section 60 of the National Health Service and Community Care Act 1990 (c. 19).