(1)The IFR may require a club to pay to the IFR a levy in respect of a chargeable period during which the club is a licensed club.
(2)The amount of the levy is to be calculated in accordance with rules made by the IFR (“levy rules”).
(3)Levy rules must secure that the aggregate amount payable by virtue of this section in respect of a chargeable period does not exceed the sum of—
(a)the costs which the IFR estimates it will incur in exercising its functions under this Act during that period, which may include an amount in respect of contingencies in relation to that period,
(b)the amount of any financial reserves which the IFR considers it appropriate to raise in that period for the purpose of meeting any costs of exercising its functions under this Act in future periods,
(c)where the IFR’s actual costs incurred in exercising its functions under this Act in the previous chargeable period exceed the IFR’s estimate of those costs, the amount by which the IFR’s actual costs in the previous period exceeded the IFR’s estimate,
(d)where the IFR’s estimate of the costs it would incur in exercising its functions in the previous chargeable period exceeds the IFR’s actual costs incurred, the amount (expressed as a negative figure) by which the IFR’s estimated costs in the previous period exceeded the IFR’s actual costs, and
(e)an amount in respect of any of the IFR’s initial costs, and any of the Secretary of State’s establishment costs, that have not been recovered before the beginning of the chargeable period.
(4)“The IFR’s initial costs” are the costs incurred by the IFR before the first chargeable period—
(a)in preparing for the exercise of any of its functions under this Act, and
(b)in exercising any of those functions.
(5)“The Secretary of State’s establishment costs” are such costs as are—
(a)incurred by the Secretary of State in relation to the establishment of the IFR before the coming into force of section 5, and
(b)notified by the Secretary of State to the IFR before the first chargeable period.
(6)Levy rules must make provision about—
(a)how the IFR is to estimate the costs which it expects to incur in exercising its functions under this Act during a chargeable period;
(b)how the IFR is to calculate the costs which it actually incurs in exercising those functions during a chargeable period;
(c)how the IFR is to calculate an appropriate financial reserve to raise in a chargeable period;
(d)how the IFR is to calculate the IFR’s initial costs;
(e)the number of chargeable periods over which the IFR’s initial costs and the Secretary of State’s establishment costs will be recovered (“recovery periods”);
(f)the maximum percentage of the IFR’s initial costs and of the Secretary of State’s establishment costs that may be recovered in each recovery period;
(g)how the aggregate amount payable in respect of a chargeable period is to be divided between clubs that are licensed clubs during that period;
(h)the administration and payment of the levy.
(7)Levy rules may make provision—
(a)for a club that would otherwise be required to pay the levy to not be required to pay it where conditions specified in levy rules are met;
(b)for interest to be charged, at a rate specified in or calculated in accordance with the rules, on any amount of levy not paid by the day on which it is due.
(8)If levy rules make the provision mentioned in subsection (7)(b), they must provide—
(a)for the rate at which interest is charged not to exceed an annual percentage rate of 5% plus the Bank of England base rate,
(b)that the IFR may charge interest at a rate determined by the IFR that is lower than the rate that would otherwise be applicable under the rules, where the IFR considers that appropriate, and
(c)that the IFR may disapply a requirement for interest to be charged, where the IFR considers that appropriate.
(9)In making the provision mentioned in subsection (6)(g) the IFR must (among other things) have regard to—
(a)the financial resources of each licensed club, and
(b)the specified competition in relation to which a relevant team is operated by each licensed club.
(10)An amount payable by a club in accordance with this section and levy rules is recoverable as a civil debt due to the IFR.
(11)For the purposes of this section and section 54 a “chargeable period” means—
(a)the period of 12 months beginning with such day as may be specified by the IFR by notice for the purposes of this subsection (which is the first chargeable period), and
(b)each subsequent period of 12 months.
Commencement Information
I1S. 53 in force at Royal Assent for specified purposes, see s. 100(2)(g)