The Business Rate Supplements (Accounting) (England) Regulations 2010

Regulation 3

SCHEDULE 1 The BRS Revenue Account

PART 1 Credits to the Account

1.  For each year of the imposition of a BRS, a levying authority or a functional body shall carry to the credit of the account amounts equal to the items listed in this Part of the Schedule.

• Item 1: BRS revenues, comprising—

  (a)

  amounts transferable by a levying authority which is a billing authority in respect of BRS (including the amount of any financial contributions) from its collection fund under regulation 3 of and Schedule 1 to the Transfers Regulations;

  (b)

  amounts transferable by a billing authority (which is not a levying authority) in respect of BRS (including the amount of any financial contributions) from its collection fund under regulation 4 of and Schedule 2 to the Transfers Regulations;

  (c)

  amounts receivable by a functional body under section 3(5) of the Act.

• Item 2: Credit balance from previous year

• Any credit balance shown in the account for the previous year.

PART 2 Debits to the Account

2.  For each year of the imposition of a BRS, a levying authority or a functional body shall carry to the debit of the account amounts equal to the items listed in this Part of the Schedule.

• Item 1: Administrative expenses of BRS

• Administrative expenses of a billing authority for the year in respect of collection and enforcement of BRS under regulations 3 and 4 of and the Schedule to the Business Rate Supplements (Administrative Expenses) (England) Regulations 2010(1).

• Item 2: BRS expenditure, comprising—

  (a)

  the expenditure of the levying authority for the year, in respect of the project to which the BRS relates (including making good to the levying authority’s general fund any amounts transferred from the general fund in respect of any deficit on the revenue account); and

  (b)

  the expenditure of a functional body in respect of the project to which the BRS relates.

• Item 3: Payments to functional bodies

• Payments to be made by the Greater London Authority to the revenue account of a functional body.

• Item 4: Refunds

• The following—

  (a)

  payments to be made by the levying authority for refunds or credits to persons who were liable to BRS, where the imposition of a BRS has come to an end or where the Secretary of State has made a direction under section 24(3) of the Act;

  (b)

  payments to be made by the levying authority to its general fund, where the imposition of a BRS has come to an end and no further refunds or credits are due to persons who were liable to BRS; and

  (c)

  payments to be made by a functional body to the revenue account of the Greater London Authority, where the imposition of a BRS has come to an end.

• Item 5: Debit balance from previous year

• Any debit balance shown in the account for the previous year.

Regulation 6

SCHEDULE 2 Refunds and credits

Interpretation

1.  In this Schedule—

“appropriate proportion” has the meaning set out in paragraph 3(5).

Transfers by a functional body

2.  As soon as practicable after the imposition of a BRS has come to an end, the functional body shall transfer the amount by which its revenue account is in credit to the revenue account of the Greater London Authority.

Refunds by a levying authority which is not a billing authority

3.—(1) Sub-paragraphs (2) to (5) apply to a levying authority which is not a billing authority.

(2) Sub-paragraph (3) does not apply where the Secretary of State has directed the levying authority to cancel the imposition of the BRS under section 24(3) of the Act.

(3) Before making the transfer provided for in sub-paragraph (4), the levying authority shall first ensure that any amount charged to its general fund in respect of making good a deficit in its revenue account, and which has not been made good previously, shall be made good out of its revenue account.

(4) The levying authority shall transfer an amount equal to the appropriate proportion of the amount by which the revenue account is in credit to—

(a) each billing authority within the levying authority area; and

(b) each person who made a financial contribution to the levying authority.

(5) The appropriate proportion for each billing authority or person who made a financial contribution shall be calculated in accordance with the formula—

where—

A is the amount by which the revenue account of the levying authority is in credit;

B is either—

(a)

where the sum is to be transferred to a billing authority, the total amount transferred from the collection fund of the relevant billing authority in respect of the BRS levied for its area to the levying authority’s revenue account over the chargeable period of the BRS; or

(b)

where the sum is to be transferred to a person who made a financial contribution to the levying authority, the amount of the financial contribution;

C is the total amount transferred by all billing authorities in respect of the BRS levied for their areas to the levying authority’s revenue account over the chargeable period of the BRS; and

D is the total amount of all financial contributions transferred to the levying authority’s revenue account.

(6) Transfers under sub-paragraph (4) shall be made by 31st May of the financial year following the financial year in which the imposition of a BRS came to end.

Refunds by a billing authority

4.—(1) Sub-paragraphs (2) to (9) below apply to—

(a) a levying authority which is a billing authority; and

(b) a billing authority which is not a levying authority, on receipt of the appropriate proportion from the levying authority,

together referred to in this paragraph as “the billing authority”.

(2) If the billing authority received a financial contribution, before making the arrangements set out in sub-paragraphs (4) to (9), the billing authority shall make arrangements for the refund to the body which made the financial contribution of the relevant part of—

(a) the amount by which the revenue account is in credit; or

(b) the appropriate proportion.

(3) The relevant part referred to in sub-paragraph (2) shall be calculated in accordance with the formula—

where—

E is the amount by which the revenue account is in credit or the appropriate proportion, as the case may be;

F is the amount of the financial contribution received by the billing authority; and

G is the total amount collected by the billing authority in respect of any BRS levied for its area over the chargeable period of the BRS.

(4) The billing authority shall make arrangements for credits or refunds in accordance with sub-paragraphs (6) to (9).

(5) Sub-paragraphs (6) to (7) do not apply where—

(a) the levying authority is the billing authority; and

(b) the Secretary of State has directed the levying authority to cancel the imposition of the BRS under section 24(3) of the Act.

(6) If the amount of the credit of the revenue account or of the appropriate proportion, as the case may be, would not provide a credit or refund equal to or greater than the minimum refund level to each person who was subject to the BRS immediately prior to the date that the imposition of the BRS came to an end, the amount shall be transferred to the general fund of the billing authority.

(7) The minimum refund level referred to in sub-paragraph (6) shall be calculated in accordance with the formula—

where—

H is 0.025;

I is the rateable value amount as prescribed in accordance with section 12(1) of the Act for the chargeable period of the BRS (or, if there was more than one rateable value amount during the chargeable period, the average of those amounts); and

J is the multiplier for the BRS for the chargeable period of the BRS, expressed to no more than three decimal places (or, if there was more than one multiplier during the chargeable period, the average of those multipliers).

(8) The billing authority shall—

(a) calculate the amount of the credit which is to be credited or refunded to each person who was subject to the BRS;

(b) ensure the amount to be credited or refunded to each person who was subject to the BRS is calculated in proportion to the amount of BRS each person was liable to pay for the last full financial year of the chargeable period of the BRS; and

(c) make arrangements for the amount so calculated to be credited against any liability in respect of non-domestic rates or in respect of any other BRS of each person who was subject to the BRS or, where there is no such liability, for the amount to be refunded to that person.

(9) Credits or refunds under sub-paragraph (8) shall be made by 31st July of the financial year following the financial year in which the imposition of a BRS came to end.

(1)

S.I. 2010/134.