Calculation of basic amount of tax
4.—(1) The constituents of the calculation required by item P in sections 33(1) and 44(1) of the 1992 Act(1) are altered by substituting for the words “or additional grant” the words “, additional grant or (in the case of an authority in England) the grant specified in paragraph 4 of the special grant report approved by a resolution of the House of Commons pursuant to section 88B of the 1988 Act on 3rd February 1994”.
(2) The constituents of the calculation required by item P in subsections (1) and (3) of section 33 of the 1992 Act are altered by substituting for subsection (3) the following subsections—
“(3) The aggregate of the sums mentioned in item P in subsection (1) above shall be increased or reduced by the amount calculated in accordance with the following formula, according to whether that amount is positive or negative
where
W is the amount of any sum which the authority estimates will be transferred in the year from its collection fund to its general fund in accordance with section 97(3) of the 1988 Act;
X in the case of an authority in Wales is nil and, in the case of an authority in England, is (subject to subsection (3A) below) the amount of any sum which the authority estimates will be—
(i)transferred from its collection fund to its general fund pursuant to a direction under section 98(4) of that Act relating to the difference between amounts in respect of community charges credited and charged to a revenue account for any earlier financial year; and
(ii)credited to a revenue account for the year;
Y is the amount of any sum which the authority estimates will be transferred in the year from its general fund to its collection fund in accordance with section 97(4) of that Act;
Z in the case of an authority in Wales is nil and, in the case of an authority in England, is the amount of any sum which the authority estimates will be—
(i)transferred from its general fund to its collection fund pursuant to a direction under section 98(5) of that Act relating to the difference between amounts in respect of community charges credited and charged to a revenue account for any earlier financial year; and
(ii)charged to a revenue account for the year.
(3A) In the case of the Common Council, item X in subsection (3) above shall also include the amount of any sum which the Common Council estimates will be—
(a)transferred from its collection fund to its City fund pursuant to a direction under section 98(4) of the 1988 Act in respect of an amount calculated by reference to the provisional amount of its non-domestic rating contribution under Part II of Schedule 8 to that Act; and
(b)credited to a revenue account for the year.”.