The Non-Domestic Rating (Deferred Payments) (England) Regulations 2009

Made: 30th June 2009

Laid before Parliament: 6th July 2009

Coming into force: 31st July 2009

The Secretary of State, in exercise of the powers conferred by section 143(1) and (2) and 146(6) of, paragraph 6(5) and (6) of Schedule 8 to, and paragraphs 1 to 4 of Schedule 9 to, the Local Government Finance Act 1988¹, makes the following Regulations:

Citation, application and commencement

1

These Regulations, which apply to England only, may be cited as the Non-Domestic Rating (Deferred Payments) (England) Regulations 2009 and come into force on 31st July 2009.

Amendment of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989

2

• (1) The Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Regulations 1989² are amended as follows.

• (2) After regulation 7A (backdated liability: special provision in relation to 2005 rating lists) insert—

(7B) Schedules 1B and 1C, which contain special provision in relation to payments under demand notices relating to financial years beginning on 1st April 2009, 1st April 2010 and 1st April 2011, shall have effect.

• (3) After Schedule 1A, insert Schedule 1B set out in Schedule 1 to these Regulations.

• (4) After Schedule 1B, as inserted by paragraph (3), insert Schedule 1C set out in Schedule 2 to these Regulations.

Amendment of the Non-Domestic Rating (Collection and Enforcement) (Central List) Regulations 1989

3

• (1) The Non-Domestic Rating (Collection and Enforcement) (Central Lists) Regulations 1989³ are amended as follows.

• (2) After regulation 7 (payments under demand notices: further provision) insert—

(7A) Schedule 1A, which contains special provision in relation to payments under demand notices relating to financial years beginning on 1st April 2009, 1st April 2010 and 1st April 2011, shall have effect.

• (3) Renumber the Schedule as Schedule 1, and after that Schedule, insert Schedule 1A set out in Schedule 3 to these Regulations.

Modification of the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003

4

The Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003⁴ shall apply in relation to the financial years beginning on 1st April 2010 and 1st April 2011 as if for the definition of “the relevant year” in paragraph (2) of regulation 1 (citation, commencement and interpretation) there were substituted—

• “the relevant year”, in relation to a notice, means the financial year to which the demand for payment made by the notice relates; but where, pursuant to regulation 4 (the requirement for demand notices) of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 (as modified by the Non-Domestic Rating (Deferred Payments) (England) Regulations 2009), the notice relates to more than one chargeable financial year “the relevant year” means the financial year beginning on 1st April 2010 or 1st April 2011 (as the case may be);

Modification of the Non-Domestic Rating Contributions (England) Regulations 1992

5

For the financial year beginning on 1st April 2009, regulation 6 (recalculation of provisional amounts) of the Non-Domestic Rating Contributions (England) Regulations 1992⁵ shall have effect as if there were omitted paragraphs (2)(b) and (4).

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

Signed

Signed by authority of the Secretary of State for Communities and Local Government

Rosie Winterton — Minister of State — Department for Communities and Local Government — 30th June 2009

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 (“the Local Lists Regulations”) and the Non-Domestic Rating (Collection and Enforcement) (Central Lists) Regulations 1989 (“the Central Lists Regulations”) to make special provision in relation to the collection of non-domestic rates payable in respect of the financial year beginning on 1st April 2009 (“the financial year 2009/10”). These Regulations also make consequential modifications to the Non-Domestic Rating (Contributions) (England) Regulations 1992 and the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003.

The Local Lists Regulations and the Central Lists Regulations provide for annual rates liability to be discharged in instalments. However, under the existing instalment scheme the instalments are payable in the financial year to which the demand for payment relates.

These Regulations insert a new Schedule 1B into the Local Lists Regulations and a new Schedule 1A into the Central Lists Regulations to provide that where a ratepayer who is subject to non-domestic rates in respect of the financial year 2009/10 satisfies certain conditions, they can defer payment of a specified proportion of that liability to the financial years beginning on 1st April 2010 and 1st April 2011.

The conditions that must be satisfied before a ratepayer can take advantage of deferral are set out in paragraph 1 of new Schedule 1B and paragraph 1 of new Schedule 1A and paragraphs 2 and 3 of those Schedules (“the new schedules”) make provision about the application for deferral.

In relation to the Local Lists Regulations paragraphs 4 to 13 of new Schedule 1B make provision about the calculations that the billing authority must carry out in order to establish the amount that a ratepayer may defer (“the actual deferrable amount”) and the amount which must be paid in the financial year 2009/10 (“the non-deferrable amount”).

Paragraphs 14 to 16 make provision about payment of the non-deferrable amount. Paragraph 17 makes provision about the cessation of instalments where the ratepayer ceases to occupy the property. Paragraph 18 makes provision about the adjustment of instalments during the 2009/10 financial year where the amount payable by the ratepayer or the amount the ratepayer is eligible to defer needs to be recalculated for whatever reason.

Paragraph 19 makes provision about how the actual deferrable amount is to be paid in the financial years beginning on 1st April 2010 and 1st April 2011.

Paragraph 20 modifies regulation 8 of the Local Lists Regulations so that where a ratepayer fails to pay any instalment due in respect of the actual deferrable amount the provisions in those Regulations that deal with enforcement apply in respect of that amount.

Paragraphs 21 and 22 deal with the cessation and adjustment of instalments in the financial years beginning on 1st April 2010 and 1st April 2011.

Paragraph 23 modifies regulation 4 of the Local Lists Regulations so that where a ratepayer has deferred payment of rates under the new Schedule the billing authority may, in respect of the financial years 2010/11 and 2011/12, issue a single notice which relates to the amount payable in respect of that year and to payment of the actual deferrable amount.

Paragraphs 4 to 22 of new Schedule 1A to the Central Lists Regulations make equivalent provision in relation to the payment of rates in the financial year beginning on 1st April 2009/10 by ratepayers whose names appear on the central rating list.

Regulation 4 of these Regulations modifies the definition of “relevant year” in regulation 1 of the Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003 so that where a demand notice is issued under regulation 4 of the Local Lists Regulations (as modified by these Regulations), which relates to the payment of rates in respect of the financial year beginning on 1st April 2010 or 1st April 2011 and to payment of the actual deferrable amount, the notice need only include the information required by the Demand Notice Regulations as it relates to the financial year beginning on 1st April 2010 or 2011 (as the case may be).

Regulation 5 of these Regulations modifies regulation 6 (recalculation of provisional amounts) of the Non-Domestic Rating Contributions (England) Regulations 1992 (“the 1992 Regulations”) in respect of the financial year 2009/10. The 1992 Regulations make provision about the calculation of non-domestic rating contributions which billing authorities are required to make to the Secretary of State. The modification, which applies in relation to the financial year 2009/10, removes the financial thresholds below which a billing authority would otherwise be unable to recalculate its provisional contribution for the year. This is to enable authorities to recalculate their non-domestic rates contributions as a result of ratepayers deferring payment of rates relating to the financial year 2009/10 under these Regulations.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department for Communities and Local Government’s Business Rates and Valuation Division (telephone 020 7944 4224) and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).

Footnotes