The Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2010

Statutory Instruments

2010 No. 1507

Rating And Valuation, England

The Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2010

Made

27th May 2010

Laid before Parliament

2nd June 2010

Coming into force

3rd June 2010

The Secretary of State in exercise of the powers conferred by section 143(1) and (2) of, and paragraph 1 of Schedule 9 to, the Local Government Finance Act 1988(1), makes the following Regulations:

Citation, commencement and application

1.  These Regulations, which apply to England only, may be cited as the Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2010 and shall come into force on 3rd June 2010.

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

2.—(1) Schedule 1A to the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989(2) is amended as follows.

(2) In paragraph 1, for sub-paragraph (1)(b), substitute—

“(b) the demand notice or notices were served in the financial year beginning on 1st April 2007, 1st April 2008, 1st April 2009 or 1st April 2010.”.

(3) In paragraph 2—

(a) for sub-paragraph (2)(b), substitute—

“(b) provide for the backdated liability to be discharged—

(i) in instalments over a period not exceeding eight years commencing on the day that the agreement is reached; or

(ii) over a period not exceeding eight years commencing on the day that the agreement is reached in instalments beginning on or after 1st April 2011.”; and

(b) in sub-paragraph (3)—

(i) after “it is in force”, insert “and instalments are payable”;

(ii) for paragraph (b), substitute—

“(b) B equals—

(i) in relation to an agreement mentioned in sub-paragraph (2)(b)(i), the total number of days the agreement will be in force,

(ii) in relation to an agreement mentioned in sub-paragraph (2)(b)(ii), the total number of days the agreement will be in force but ignoring any day before 1st April 2011; and”.

(4) After paragraph 2, insert—

“Replacement of existing agreements to reschedule backdated liability

2A.— (1) This paragraph applies where a billing authority and a ratepayer have entered into an agreement under paragraph 2 on or before the date that the Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2010 come into force (“the existing agreement”).

(2) Where this paragraph applies, a billing authority and a ratepayer may agree that backdated liability should be discharged in the manner provided by a further agreement under paragraph 2 (“the new agreement”) which will replace, from the day the new agreement is reached, the existing agreement.

(3) The new agreement may relate to any backdated liability which should have been discharged under the existing agreement prior to the day the new agreement is reached but has not been so discharged, notwithstanding the service of a notice under regulation 8 (as modified by paragraph 4) requiring payment of the unpaid balance or any action taken under Part 3.

(4) The new agreement may not—

(a) relate to any backdated liability which has already been discharged under the existing agreement, prior to the day the new agreement is reached;

(b) provide for the period of the new agreement (including any period during which instalments are not payable) to extend beyond eight years from the day the existing agreement was reached; and

(c) be entered into after 31st March 2011.”.

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

Bob Neill

Parliamentary Under Secretary of State

Department for Communities and Local Government

27th May 2010

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend Schedule 1A to the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 (“the 1989 Regulations”) (S.I.1989/1058). Schedule 1A was inserted by the Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2009 (“the 2009 Regulations”) (S.I.2009/204) to make special provision in relation to the collection of certain backdated liability to non-domestic rates.

The 1989 Regulations provide for a ratepayer’s annual rates liability to be discharged in instalments in many cases. However, where a demand notice – or rates bill – is issued after the end of the financial year to which it relates, the sum becomes payable in full. This can happen where a hereditament is shown on a rating list for the first time with effect from a date in that year following an amendment to the rating list which is not made until after the year has ended.

Schedule 1A provides that, subject to the criteria in paragraph 1 being satisfied, where a ratepayer is subject to backdated liability that has not already been discharged, the billing authority and the ratepayer can agree to reschedule payment of the liability that accrued in the period between the effective date of the amendment to the rating list and the date the amendment was actually made, over a period not exceeding eight years.

These Regulations amend paragraph 2 of Schedule 1A which, subject to the existing criteria being satisfied, allows a billing authority and a ratepayer to agree that backdated liability that has not already been discharged shall be paid over a period not exceeding eight years. The amendments give the ratepayer and the billing authority the power to agree that instalments of the payment of the backdated liability shall be deferred until on or after 1st April 2011, within the eight year period. The Regulations also amend paragraph 1 of Schedule 1A so that an agreement may apply to demand notices served as a consequence of one or more list alterations, if served in the financial year beginning on 1st April 2010.

The Regulations also insert a new paragraph 2A into Schedule 1A which allows a ratepayer and billing authority who have already entered into an agreement under paragraph 2 before the coming into force of the Regulations to enter into a new agreement under paragraph 2 which replaces the existing agreement. The new agreement may relate to any backdated liability which should have been discharged under the existing agreement but has not been so discharged but not to any backdated liability which has already been discharged under the existing agreement. It must, however, be entered into on or before 31st March 2011 and the period over which the instalments are to be discharged must not exceed a period of eight years from the day of the existing agreement.

A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the public and voluntary sector is available from Business Rates Team, Department for Communities and Local Government, Zone 5/H2, Eland House, Bressenden Place, London, SW1E 5DU and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website (www.opsi.gov.uk).

(1)

1988 c.41. Paragraph 1 of Schedule 9 has been prospectively amended by Schedule 13 to the Tribunals, Courts and Enforcement Act 2007 (c.15). These powers are now vested in the Welsh Ministers so far as they are exercisable in relation to Wales. They were previously transferred to the National Assembly for Wales by article 2 of the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672); see the entry in Schedule 1 for the Local Government Finance Act 1988. By virtue of paragraphs 30 and 32 of Schedule 11 to the Government of Wales Act 2006 (c.32), they were transferred to the Welsh Ministers.

(2)

S.I. 1989/1058 amended by S.I.2009/204. There are other amending instruments but none is relevant.