(1)A precept may only be issued to an appropriate charging authority.
(2)If the whole or part of a charging authority’s area falls within a precepting authority’s area, it is an appropriate charging authority in relation to the precepting authority to the extent of the area which so falls.
(3)A precepting authority must secure that such of its general expenses as are to be met by precepts are borne by its appropriate charging authorities (if more than one) in proportion.
(4)A precepting authority must secure that such of its special expenses as are to be met by precepts are borne by the appropriate charging authority to whose area or part the expenses concerned relate or by all such charging authorities (if more than one) in proportion.
(5)Proportions under subsection (3) above shall be determined by reference to the relevant population of each charging authority’s area or (as the case may be) the part which falls within the precepting authority’s area.
(6)Proportions under subsection (4) above shall be determined by reference to the relevant population of each area or part to which the expenses concerned relate.
(7)The relevant population in relation to an area or part shall be calculated by—
(a)taking the number of those members of the population of the area or part who fall within such description as is specified in regulations made by the Secretary of State, and
(b)making such adjustments (if any) by way of addition or subtraction (or both) as are specified in, or calculated in a manner specified in, the regulations.
(8)A precept may be issued to the same authority in respect of both general and special expenses of the precepting authority.
(9)A precept must state—
(a)whether it or any portion of it is issued in respect of general expenses,
(b)whether it or any portion of it is issued in respect of special expenses, and
(c)whether it or any portion of it is applicable to all or part of the area of the authority to which it is issued and, in the case of a part, what part.