The Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2011

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”) (SI 1989/1058). Schedule 1A was inserted by the Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2009 (SI 2009/204) and amended by the Non-Domestic Rating (Collection and Enforcement) (Local Lists) (Amendment) (England) Regulations 2010 (“the 2010 Regulations”) (SI 2010/1507) 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. The 2010 Regulations amended that Schedule so that the ratepayer and the billing authority have 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.

These Regulations amend Schedule 1A so that a ratepayer and a billing authority may agree that payment of the instalments of the backdated liability are deferred until on or after 1st April 2012, although liability must still be discharged within the overall eight year period from the date of the earliest agreement between the ratepayer and the billing authority. The new agreement will replace any earlier agreement.

The impact assessment completed for the Localism Bill, introduced to Parliament on 13th December 2010, includes an assessment of the effect that the extension of the moratorium will have on the costs of business and the public and voluntary sector and can be found at the website www.communities.gov.uk/corporate/publications/impact-assessments/.