The Business Improvement Districts (England) Regulations 2004

• (3) A relevant billing authority and a person who is liable for the BID levy may agree that the estimate of the amount payable which is required to be paid under a notice to which paragraph 6(1) applies should be paid in such manner as is provided by the agreement.

• (4) Notwithstanding anything in the preceding provisions of this paragraph, such an agreement may be entered into either before or after the demand notice concerned is issued, and may make provision for the cessation or adjustment of payments, and for the making of fresh estimates, in the event of the estimate mentioned in paragraph 6(1) turning out to be wrong; and if it is entered into after the demand notice has been issued, it may make provision dealing with the treatment for the purposes of the agreement of any sums paid before it was entered into.

• (5) A notice to which paragraph 6(3) or (5) applies shall require payment of the amount payable on the expiry of such period (being not less than 14 days) after the day of issue of the notice as is specified in it.

• (6) No payment in respect of the amount payable by a person who is liable for the BID levy in relation to a hereditament for any chargeable period need be made unless a notice served under this Schedule requires it.

Demand notices: final adjustment

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• (1) This paragraph applies where—

• (a) a notice has been issued by a relevant billing authority under this Schedule requiring a payment or payments to be made by a person who is liable for the BID levy in respect of the amount payable in relation to a hereditament for a chargeable period or part of a chargeable period;

• (b) the payment or payments required to be paid are found to be in excess of or less than the amount payable in relation to the hereditament for the period or the part; and

• (c) provision for adjusting the amounts required under the notice and (as appropriate) for the making of additional payments or the repaying or crediting of any amount overpaid is not made by any other provision of this Schedule or of any agreement entered into under paragraph 7(3).

• (2) The relevant billing authority shall as soon as practicable after the expiry of the period or the part of a period serve a further notice on the person who is liable for the BID levy stating the amount payable for the period or part in relation to the hereditament, and adjusting (by reference to that amount) the amounts required to be paid under the notice referred to in sub-paragraph (1)(a).

• (3) If the amount stated in the further notice is greater than the amount required to be paid under the notice referred to in sub-paragraph (1)(a), the amount of the difference for which such other provision as is mentioned in sub-paragraph (1)(c) is not made shall be due from the person who is liable for the BID levy to the relevant billing authority on the expiry of such period (being not less than 14 days) after the day of issue of the notice as is specified in it.

• (4) If there has been an overpayment in respect of any liability of the person who is liable for the BID levy under this Schedule, the amount overpaid for which such other provision as is mentioned in sub-paragraph (1)(c) is not made—

• (a) shall be repaid if the person who is liable for the BID levy so requires; or

• (b) in any other case shall (as the relevant billing authority determines) either be repaid or be credited against any subsequent liability of the person who is liable for the BID levy to pay anything to it by way of the BID levy or non-domestic rate.

Enforcement

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• (1) Part 3 of and Schedules 2 to 4 to the Non-Domestic Rating (Collection and Enforcement)(Local Lists) Regulations 1989¹² shall apply to the enforcement of the BID levy with the following modifications—

• (a) the reference in regulations 10 and 20 to a sum which has become payable to a billing authority under Part 2 of those regulations shall be read as including a reference to a sum which has become payable to a billing authority under this Schedule;

• (b) regulation 11(3) shall not apply;

• (c) regulation 12(1) shall be read as if the words from “an amount which has fallen due under regulation 8(2)” to “required under regulation 11)” were excluded;

• (d) the definition of “authorised person” in regulation 21(7) shall be read as including a person authorised by a billing authority to exercise any functions relating to the collection and enforcement of the BID levy;

• (e) the reference in regulation 22 to a sum which has become payable under Part 2 of those regulations to a person other than a billing authority shall be read as including a reference to a sum which has become payable under this Schedule to a person other than a billing authority;

• (f) regulation 23(2) shall be read as if the words “or the contents of any BID arrangements made under Part 4 of the Local Government Act 2003” were inserted after the words “such a list” and the words “or the arrangements” were inserted after the words “list or extract”;

• (g) regulation 23(3) shall be read as if—

• (i) for sub-paragraphs (a) and (b) there were substituted a reference to notification which is given under paragraph 8(2) of this Schedule; and

• (ii) the words “or the multiplier in substitution is set under paragraph 10 of Schedule 7 to the Act (as the case maybe)” were excluded; and

• (h) regulation 23(4) shall be read as if for the word “paragraph (3)(a) in the case in question, or sets a multiplier in substitution so that paragraph 10(4) of Schedule 7 to the Act applies in the case in question” there were substituted a reference to paragraph 8(2) of this Schedule.

Outstanding liabilities on death

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• (1) This paragraph applies where a person dies and at any time before his death he was (or is alleged to have been) subject to a BID levy.

• (2) Where—

• (a) before the deceased’s death a sum has become payable by him under this Schedule or by way of relevant costs in respect of a BID levy but has not been paid; or

• (b) after the deceased’s death a sum would, but for his death (and whether or not on the service of a notice) become payable by him under this Schedule in respect of a BID levy,

his executor or administrator shall, subject to sub-paragraph (3) and to the extent that it is not in excess of the deceased’s liability (including relevant costs payable by him) in respect of the BID levy, be liable to pay the sum and may deduct out of the assets and effects of the deceased any payments made (or to be made).

• (3) Where sub-paragraph (2)(b) applies, the liability of the executor or administrator does not arise until the service on him of a notice requiring payment of the sum.

• (4) Where before the deceased’s death a sum in excess of his liability (including relevant costs payable by him) in respect of a BID levy has been paid (whether the excess arises because of his death or otherwise) and has not been repaid or credited under this Schedule, his executor or administrator shall be entitled to the sum.

• (5) Costs are relevant costs for the purposes of sub-paragraphs (2) and (4) if—

• (a) an order or warrant (as the case may be) was made by the court in respect of them under regulation 12(6)(b)or (7) or 16(4)(b) of the 1989 Regulations, or in proceedings under regulation 20 of the 1989 Regulations; or

• (b) they are charges connected with distress which may be recovered pursuant to regulation 14(2)(b) of the 1989 Regulations.

• (6) A sum payable under sub-paragraph (2) shall be enforceable in the administration of the deceased’s estate as a debt of the deceased and accordingly—

• (a) no liability order need be applied for in respect of it after the deceased’s death under regulation 12 of the 1989 Regulations, and

• (b) the liability of the executor or administrator is a liability in his capacity as such.

• (7) Regulation 23(1) and (2) of the 1989 Regulations applies to proceedings to enforce a liability arising under this paragraph as it applies to other proceedings under this Schedule.

• (8) Insofar as is relevant to his liability under this paragraph in the administration of the deceased’s estate, the executor or administrator may institute, continue or withdraw proceedings.

Application of BID administration provisions to the Crown

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• (1) No contravention by the Crown of any provision of this Schedule shall make the Crown criminally liable; but the High Court may, on the application of a billing authority, declare unlawful any act or omission of the Crown which constitutes such a contravention.

• (2) Notwithstanding anything in sub-paragraph (1), the provisions of this Schedule shall apply to the Crown as it applies to other persons.

• (3) No power of entry conferred by this Schedule shall be exercisable in relation to any hereditament occupied, or, if unoccupied, owned by Her Majesty in her private capacity, and this sub-paragraph shall be construed as if section 38(3) of the Crown Proceedings Act 1947¹³ were contained in this Schedule.

Joint occupiers and owners: billing

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• (1) This paragraph applies in any case where (apart from this paragraph) there would at a particular time be more than one person who is liable for the BID levy for a hereditament, or of part of such a hereditament.

• (2) Where this paragraph applies—

• (a) as regards any time in a chargeable period when there is only one such person who is liable for the BID levy, that person shall be liable to pay the amount payable by way of the BID levy with respect to that time; and

• (b) as regards any time in a chargeable period when there is more than one such person who is liable for the BID levy, those persons shall be jointly and severally liable to pay the amount that would have been payable by way of the BID levy with respect to that time if there were only one such person.

• (3) This Schedule shall have effect to accord with sub-paragraph (2); and in particular a notice which falls to be given under this Schedule which relates to a time when paragraph (2)(b) applies may be given—

• (a) severally to each or any of the persons who is liable for the BID levy concerned from whom payment is demanded; or

• (b) where the persons concerned are jointly and severally liable as partners or trustees, jointly to the partnership or trust (in which case only a single notice need be given in respect of them and references to “the person who is liable for the BID levy” in this Schedule shall be construed as regards the notice as references to the partners or trustees jointly).

• (4) A notice given to a partnership or trust pursuant to paragraph (3)(b) may be served—

• (a) in the case of a partnership, in the manner described in section 233(3)(b) of the Local Government Act 1972 (“the 1972 Act”); or

• (b) in the case of a trust, by being served on one of the trustees;

and where such a notice falls to be served on a partnership, a person having control or management of the partnership business or a trust under this paragraph, the proper address of the partnership, person or trust (as the case may be) shall include (as well as the address mentioned in section 233(4) of the 1972 Act) any place of business which is a hereditament to which the notice relates.

• (5) Where a notice is given pursuant to paragraph (3)(a) to more than one person in respect of the same amount, the billing authority shall notify that fact to each person to whom notice is so given.

• (6) Where a notice given pursuant to paragraph (3)(a) to a person who is liable for the BID levy relates to a time in the relevant year when paragraph (2)(a) applies and a time when paragraph (2)(b) applies, any payment made by the person under the notice shall be treated as being made towards satisfaction of the amount for which he is solely liable unless and until his liability in respect of that amount is discharged.

• (7) For the purposes of any time to which paragraph (2)(b) applies, where the description of the person who is to be liable for the BID levy in the BID arrangements under section 46 of the Act requires that the ratepayer should be a charity or trustees for a charity this shall be treated as met if one or more of the persons jointly and severally liable is a charity or (as the case may be) some or all of them are trustees for a charity.

• (8) Where any sum paid in respect of an amount calculated by reference to paragraph (2)(b) falls to be repaid, it may be repaid to such of the persons concerned as the billing authority considers appropriate.

• (9) Subject to sub-paragraph (10), any payment or repayment in respect of a liability under paragraph (2)(b) shall be due between the persons who are liable for the BID levy as will secure that in respect of a liability falling within paragraph (2)(b) the burden or benefit of the payment or repayment accrues to them in equal shares.

• (10) Paragraphs (2)(b) and (8) are without prejudice to any right or duty in law or equity of a person who is liable for the BID levy who has made a payment, or receives a repayment, in respect of a liability under paragraph (2)(b) to recover all or part of the payment from, or to account for all or part of the repayment to, the other persons who are liable for the BID levy or any beneficiaries interested in the hereditament.

Joint owners and occupiers: enforcement

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• (1) Part 3 of and Schedules 2 to 4 to the 1989 Regulations, shall have effect, with the following modifications, for the recovery of a sum for which persons are liable under section 46 of the Act as applied by paragraph 12.

• (2) A reminder notice shall be served in accordance with regulation 11(1) and (2) of the 1989 Regulations on every person against whom an application for a liability order is to be made.

• (3) Paragraph 12(3) to (6) applies to a reminder notice as it applies to a notice under this Schedule.

• (4) A liability order may be applied for and made against one or more of the persons who are liable for the BID levy concerned in respect of an amount to which paragraph 12(2)(b) applies, whether they have been served with a notice in respect of the amount jointly or severally.

• (5) Where a liability order has been made against more than one person in respect of an amount, subject to sub-paragraph (9) distress may be made against one or more of them.

• (6) Where distress has been made against more than one person in respect of an amount, a warrant of commitment may be applied for at any time against one of them or different warrants may be applied for against more than one of them.

• (7) Where distress has been made against one person only, a warrant of commitment may be applied for against that person.

• (8) Where a liability order has been made against more than one person in respect of an amount, and a warrant of commitment is issued against (or a term of imprisonment is fixed in the case of) one of them under regulation 16(3) of the 1989 Regulations, no steps, or no further steps, may be taken against any of them by way of distress, bankruptcy or winding up in relation to the amount mentioned in regulation 16(4) of the 1989 Regulations.

• (9) Where a liability order has been made against more than one person in respect of an amount—

• (a) steps by way of distress, commitment, bankruptcy or winding up may not be taken against a person in respect of the amount while steps by way of another of those methods are being taken against him in respect of it; and

• (b) subject to sub-paragraph (10), steps by way of distress may not be taken against a person in respect of an amount whilst steps by way of distress are being taken against one of the others in respect of it.

• (10) Where a liability order has been made against more than one person in respect of an amount and in making distress against one of them goods jointly owned by him and another of them are found, paragraph (9)(b) does not preclude distress being levied against those goods with respect to that amount; but in any subsequent proceedings under regulation 16 of the 1989 Regulations, charges arising under Schedule 3 to the 1989 Regulations from such a distress shall be treated as charges relating to the person against whose goods the levy was intended to be made when the jointly owned goods were found, and not as charges relating to the other.

• (11) Where—

• (a) a liability order has been made against more than one person in respect of an amount; and

• (b) a charge has arisen as regards one of them under head B of the Table in paragraph 1 of Schedule 3 to the 1989 Regulations in respect of that amount,

no further charge may be aggregated for the purposes of regulation 14(2) of the 1989 Regulations under that head or head A of that Table in consequence of any subsequent levy or attempted levy against any of them in respect of that amount; and a charge under head A(i) or charges under that head and head A(ii) against one of them shall be treated for those purposes as a charge or, as the case may be, charges under that head with respect to the others as well as that one.

• (12) Where a liability order is made against one person in respect of an amount, and also against another person or persons (whether at the same time as the order against the first mentioned person or subsequently and whether in respect of all or part of that amount)—

• (a) the order made as respects all but the relevant person shall not include under regulation 12(6)(b) or (7) of the 1989 Regulations any additional sum in respect of the costs of obtaining the order against the other or others;

• (b) those persons (with the relevant person) shall be treated as jointly and severally liable for the amount included in the order against the relevant person in respect of costs;

• (c) the order against them shall (as regards regulations 12(6)(b) or (7) of the 1989 Regulations) be made in respect of the sum outstanding in relation to it.

• (13) For the purposes of sub-paragraph (12), the relevant person is the person against whom the liability order was first made in respect of the amount or, if there are more than one such person, such one of them as the court considers appropriate.

• (14) Sub-paragraph (12) is not to be construed as permitting a billing authority to apply under regulation 12(2) of the 1989 Regulations for a liability order against a person in respect of costs alone after an order has been made for those costs against another person.

Enforcement in relation to partnerships

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• (1) Where persons are liable to pay an amount to which paragraph 12(2)(b) applies as partners in consequence of the service of a notice pursuant to paragraph 12(3)(b), a liability order in relation to it may be applied for and made against them in their firm name; and such an order shall be as effective as if orders were made against each partner concerned in respect of his liability for that amount.

• (2) If a liability order is made against partners in their firm name in respect of an amount and no order has earlier been made against another person in respect of it, references in paragraph 13(12) to the relevant person shall be construed as references to the partnership.

• (3) Without prejudice to regulation 13(2) of the 1989 Regulations, a summons issued pursuant to an application for a liability order against partners in their firm name may be served by leaving it at, or by sending it by post to the partnership at, the principal office of the partnership.

• (4) Where a liability order has been made against partners in their firm name in respect of an amount, paragraph 13(9)(b) does not preclude distress being levied against partnership property with respect to that amount; and in any subsequent proceedings under regulation 16 of the 1989 Regulations, the partners shall be treated as jointly and severally liable for charges arising under Schedule 3 to those regulations from such a distress.

• (5) Where a liability order is made against partners in their firm name, regulation 18(2) of the 1989 Regulations shall have effect as if the reference to a company included a reference to the partnership and the reference to section 221(5)(b) of the Insolvency Act 1986¹⁴ were—

• (a) in a case where article 7 of the Insolvent Partnerships Order 1994¹⁵ applies, a reference to section 221(5)(c) as applied by that article; or

• (b) in a case where article 8 of that Order applies, a reference to section 221(5) as substituted by paragraph (1)(c) of that article.

• (6) Where a liability order is made against partners in their firm name, paragraph 13(9)(a) does not preclude insolvency proceedings being brought against the partnership as well as against members of the partnership, and those proceedings being dealt with in accordance with the Insolvent Partnerships Order 1994.

Signed

Signed by authority of the First Secretary of State

Nick Raynsford — Minister of State, — Office of the Deputy Prime Minister — 16th September 2004

Explanatory note

(This note is not part of the Regulations)

These Regulations make provision in relation to business improvement districts. Business improvement districts are provided for in Part 4 of the Local Government Act 2003 as areas within which projects specified in the BID arrangements are to be carried out for the benefit of that district or those who live, work or carry on any activity in the district. Those projects are to be financed (in whole or in part) by a BID levy imposed on the non-domestic ratepayers, or a class of such ratepayers in the district. A business improvement district may only be established where those entitled to vote approve the BID proposals.

Regulation 2 provides for the billing authority to supply information from its non-domestic rates records to persons developing BID proposals. Authorities may charge for supply of this information.

Regulation 3 specifies the persons who may draw up BID proposals and regulations 4 and 5 specify the procedures to be followed in connection with drawing up of BID proposals and Schedule 1 specifies the matters to be included in them.

Regulation 6 provides that the returning officer for local elections in the billing authority area is to be the ballot holder for any ballot in respect of BIDs required under the Act or these Regulations and regulation 7 and Schedule 2 make provision for the arrangements for holding a ballot and the conduct of a ballot. Regulation 8 provides for who is entitled to vote in a ballot.

Regulation 9 confers a power on the Secretary of State to declare ballot void in cases of material irregularity and procedures connected therewith.

Regulation 10 enables a billing authority to recover the costs of a BID ballot or a renewal ballot from the BID proposer or BID body in the prescribed circumstances.

Regulation 11 provides for the billing authority to supply information from its non-domestic rates records for the purpose of canvassing in relation to a ballot. Authorities may charge for supply of this information. Provision is also made for inspection of the information to any person and for the restriction of the use of the information.

Regulation 12 prescribes the circumstances in which a billing authority may veto BID proposals, the period within which this is to be done and matters to which the authority is to have regard in deciding whether to exercise the veto. Regulation 13 makes provision in relation to appeals against the exercise of the veto.

Regulations 14 and Schedule 3 make further provision in relation to the BID Revenue Account.

Regulation 15 and Schedule 4 make provision with respect to the imposition, administration, collection, recovery and application of the BID levy. The provisions in Schedule 4 are based on the rules for the non-domestic rates in the Non-Domestic Rating (Collection and Enforcement)(Local Lists) Regulations 1989 (S.I. 1989/1058) and the Non-Domestic Rating (Collection and Enforcement)(Miscellaneous Provisions) Regulations 1989 (S.I. 1989/1060).

Provision is also made for the alteration of BID arrangements without or with an alteration ballot (regulations 16 and 17 respectively) and the circumstances in which BID arrangements may be terminated (regulation 18).

Regulation 19 provides for the supply of information by the billing authority to the ballot holder for the purposes of carrying out his functions under the Regulations. Regulation 20 provides for the expenses of the ballot holder in holding ballots under the Regulations to be paid by the billing authority.

Regulation 21 provides for electronic communication of notices etc. This provision does not apply to notices under Schedule 4 because that Schedule makes specific provision for electronic communication of demand notices etc.

Footnotes

1

The proceedings of the ballot shall be conducted in accordance with the following Table.

Editorial notes