Legalize
Legalize / United Kingdom / Statutory-Instrument

The Non-Domestic Rating (Rates Retention) Regulations 2013

Type Statutory-Instrument
Publication 2013-02-28
Last updated 2026-03-27
State In force
Department King's Printer of Acts of Parliament
Source legislation.gov.uk
PDF Download
articles Not indexed
Reform history JSON API

Made: 28th February 2013

Coming into force in accordance with regulation 1

The Secretary of State makes the following Regulations in the exercise of the powers conferred by sections 97(2A) and (2B), 99 and 143(1) and (2) of and paragraphs 6(3) to (5), 7 to 11, 39 to 42 and 44 of Schedule 7B to the Local Government Finance Act 1988 .

These Regulations are made with the consent of the Treasury in accordance with paragraphs 8(3), 39(13) and 40 (10) of Schedule 7B to the Local Government Finance Act 1988.

In accordance with section 143(9D) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

PART 1 — General

Citation and commencement

1

These Regulations may be cited as the Non-Domestic Rating (Rates Retention) Regulations 2013 and come into force on the day after the day on which they are made.

Interpretation

2

PART 2 — Calculations and in-year payments

Calculation and notification of non-domestic rating income and other amounts

3

Payment to the Secretary of State in respect of the central share

4

Payments by billing authorities to major precepting authorities in respect of share of income

5

Payments to major precepting authorities in respect of deductions from central share payments

6

Payments with respect to county matters

7

Transfer from collection fund to general fund

8

PART 3 — End of year calculations and reconciliation

End of year calculations

9

Relevant year beginning in— Date
2023 “28th February 2025”
2024 “27th February 2026”
2025 “31st January 2027”
2026 “30th November 2027”
2027 “30th November 2028”.

Reconciliation of disregarded amounts

10

Reconciliation of amount deducted from central share payment

11

Reconciliation of amounts where authority has failed to act diligently

12

Where an amount included in a calculation under regulation 9(1) or (1A) as a bad debt which should be written off or a doubtful debt for which provision should be made is disallowed on certification under regulation 9(2) on the grounds that the billing authority has failed to act diligently in relation to the collection of non-domestic rates, the authority must transfer such an amount as is disallowed from its general fund to its collection fund.

PART 4 — Calculation of surplus and deficit

Calculation and apportionment of surplus or deficit on collection fund for year

13

Payments and transfers with respect to surplus and deficit

14

PART 5 — Discharge of liabilities

Schedule of instalments

15

where—

Interest on amount of instalments

16

Recovery

17

Where an amount has become payable by a billing authority or major precepting authority under any provision of these Regulations, and it has not been paid, it shall be recoverable in a court of competent jurisdiction.

SCHEDULE 1 — Non-Domestic Rating Income

PART 1

Calculation of non-domestic rating income

1

$$(A − B) + (C − D) − E − F + (G − H)$Where—A is the total of the amounts credited to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;B is the total of the amounts charged to the billing authority's collection fund income and expenditure account in the year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act;C is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made to the billing authority in the year;D is the amount of any transitional protection payments under paragraph 33(1) of Schedule 7B to the 1988 Act made by the billing authority in the year;E is the billing authority's allowance for costs of collection and recovery for the year, calculated in accordance with paragraph 2; ...F is the total of amounts calculated in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act in respect of the billing authority as an amount to be disregarded for the purpose of a calculation of non-domestic rating income for the year. “G” is— for a relevant year commencing on or after 1st April 2026, the amount calculated in accordance with sub-paragraph (1A);for any other relevant year, zero; and“H” is—for a relevant year commencing on or after 1st April 2026, the amount calculated in accordance with sub-paragraph (1B);for any other relevant year, zero.$

$$X1×D×B2±E×C2D×B1±E×C1$where—where—X1 is the value of X for the preceding year;B2 is the small business non-domestic rating multiplier for the relevant year;B1 is the small business non-domestic rating multiplier for the preceding year;C2 is the non-domestic rating multiplier for the relevant year;C1 is the non-domestic rating multiplier for the preceding year;D is the sum of the total rateable value of all small business hereditaments shown in the authority’s list on 1st April 2023;E is the sum of the total rateable value of standard hereditaments shown in the authority’s list on 1st April 2023;$

$$X1×S2S1$Where—X₁ is the value of X for the preceding year;S₂ is the small business non-domestic rating multiplier for the relevant year;S₁ is the small business non-domestic rating multiplier for the preceding year.$

Costs of collection and recovery

2

$$( G � J H ) + ( K � M L ) + N$Where—G is the number of hereditaments shown in the billing authority's local non-domestic rating list on 30th September in the preceding year, multiplied by the cost factor for the billing authority;H is the total of G for all billing authorities;J is 76 per cent of the amount allowed for the costs of collection and recovery;K is the total of the rateable values shown in the billing authority's local non-domestic rating list on 30th September in the preceding year, multiplied by the cost factor for the billing authority;L is the total of K for all authorities;M is 24 per cent of the amount allowed for the costs of collection and recovery;N is the total amount of the legal costs of the billing authority referred to in sub-paragraph (5) below.$

PART 2 — Cost Factors

Area Name or description of authority Cost factor
The Council of the Isles of Scilly 1.5000
The Common Council of the City of London 1.4059
Inner London The councils of the boroughs of Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark, Tower Hamlets, Wandsworth and Westminster 1.2208
West outer London The councils of the boroughs of Barnet, Brent, Ealing, Harrow, Hillingdon, Hounslow, Kingston upon Thames, Merton, Richmond upon Thames and Sutton 1.1113
Rest of outer London The councils of the boroughs of Barking and Dagenham, Bexley, Bromley, Croydon, Enfield, Haringey, Havering, Newham, Redbridge and Waltham Forest 1.0760
Avon The councils of the districts of Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire 1.0378
Bedfordshire & Hertfordshire non-fringe The councils of the boroughs of Bedford, Central Bedfordshire, Luton, North Hertfordshire and Stevenage 1.0393
Berkshire non-fringe The councils of the districts of Reading, West Berkshire and Wokingham 1.0806
Berkshire, Surrey & West Sussex fringe The councils of the districts of Bracknell Forest, Crawley, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate and Banstead, Runneymede, Slough, Spelthorne, Surrey Heath, Tandridge, Waverley, Windsor and Maidenhead and Woking 1.1039
Buckinghamshire Buckinghamshire Council 1.0719
Cambridgeshire The councils of the districts of Cambridge, East Cambridgeshire, Fenland, Huntingdonshire, Peterborough and South Cambridgeshire 1.0339
Cheshire The councils of the districts of Cheshire East, Cheshire West and Chester, Halton and Warrington 1.0130
East Sussex The councils of the districts of Brighton and Hove, Eastbourne, Hastings, Lewes, Rother and Wealden 1.0090
Essex non-fringe The councils of the districts of Braintree, Castle Point, Chelmsford, Colchester, Maldon, Rochford, Southend-on-Sea, Tendring and Uttlesford 1.0130
Gloucestershire The councils of the districts of Cheltenham, Cotswold, Forest of Dean, Gloucester, Stroud and Tewkesbury 1.0197
Greater Manchester The councils of the metropolitan districts of Bolton, Bury, Manchester, Oldham, Rochdale, Salford Stockport, Tameside, Trafford and Wigan 1.0169
Hampshire & Isle of Wight The councils of the districts of Basingstoke and Deane, East Hampshire, Eastleigh, Fareham, Gosport, Hart, Havant, New Forest, Portsmouth, Rushmoor, Southampton, Test Valley and Winchester and Isle of Wight Council 1.0360
Hertfordshire fringe The councils of the districts of Broxbourne, Dacorum, East Hertfordshire, Hertsmere, St Albans, Three Rivers, Watford and Welwyn Hatfield 1.0816
Kent & Essex fringe The councils of the districts of Basildon, Brentwood, Dartford, Epping Forest, Harlow, Sevenoaks and Thurrock 1.0618
Kent non-fringe The councils of the districts of Ashford, Canterbury, Dover, Gravesham, Maidstone, Medway, Shepway, Swale, Thanet, Tonbridge and Malling and Tunbridge Wells 1.0068
Merseyside The councils of the metropolitan districts of Knowsely, Liverpool, Sefton, St Helens and Wirral 1.0075
Milton Keynes The council of the district of Milton Keynes 1.0675
Northamptonshire The councils of the districts of Corby, Daventry, East Northamptonshire, Kettering, Northampton, South Northamptonshire and Wellingborough 1.0132
Nottinghamshire The councils of the districts of Ashfield, Bassetlaw, Broxtowe, Gedling, Mansfield, Newark and Sherwood, Nottingham and Rushcliffe 1.0121
Oxfordshire The councils of the districts of Cherwell, Oxford, South Oxfordshire Vale of White Horse and West Oxfordshire 1.0534
Suffolk The councils of the districts of Babergh, Forest Heath, Ipswich, Mid-Suffolk, St Edmundsbury, Suffolk Coastal and Waveney 1.0054
Warwickshire The councils of the districts of North Warwickshire, Nuneaton and Bedworth, Rugby, Stratford-on-Avon and Warwick 1.0213
West Midlands The councils of the metropolitan districts of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton 1.0134
West Yorkshire The councils of the metropolitan districts of Bradford, Calderdale, Kirklees, Leeds and Wakefield 1.0055
Wiltshire The councils of the district of Swindon and the County of Wiltshire 1.0216
Other authorities A billing authority not named or not falling within a description given above 1.0000

SCHEDULE 2 — Qualifying relief for deduction from central share

Case A and Case B hereditaments

1

Case A hereditament: calculation of qualifying relief

2

Case B hereditament: calculation of qualifying relief

3

SCHEDULE 3 — Transfer from collection fund to general fund

The amount to be transferred is the amount calculated in accordance with the formula:

$$PQ+R+(S−T)+(U−V)$ Where— P is the billing authority’s non-domestic rating income for the year Q is — 50% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is a fire and rescue authority; 49% where the billing authority is a county council, or is a district council in an area for which there is no county council, and the authority is not a fire and rescue authority; 40% where the billing authority is a district council in an area for which there is a county council; and 30% where the billing authority is a London borough council or the Common Council of the City of London; R is the billing authority’s allowance for costs of collection and recovery for the year, calculated in accordance with paragraph 2(1) of Schedule 1; S is the total of amounts calculated in accordance with regulations made under paragraph 39 or 40 of Schedule 7B to the 1988 Act in respect of the billing authority as an amount to be disregarded for the purpose of a calculation of non-domestic rating income for the year; T is the amount of any payment made to a county council in accordance with regulation 7 (payments with respect to county matters); U is the amount of a deduction from the central share payment made in accordance with regulation 4(1); V is the total of any amounts paid to major precepting authorities in accordance with regulation 6.$

SCHEDULE 4 — Rules for estimation and apportionment of surplus and deficit

Calculation of surplus or deficit

1

Apportionment of surplus and deficit

2

$(A−(B+C−D−E))×33%+((B+C−D−E)×50%)$

$(B+C−D−E)×50%$

$(B+C−D−E)×33%.$

$(B+C−D−E)×50%.$

$( A − ( B + C − D ) ) × 25 %$

$( A − ( B + C − D − E ) ) × 25 %$

$(A−(B+C−D−E))×50%.$

$( ( A − ( B + C − D − E ) ) × 25 % ) + ( ( B + C − D − E ) × 50 % )$

$( ( A − ( B + C − D − E ) ) × 33 % ) + ( ( B + C − D − E ) × 25 % )$

$( ( A − ( B + C − D − E ) ) × 50 % ) + ( ( B + C − D − E ) × 25 % )$

$(A−(B+C−D−E))×37%+((B+C−D−E)×20%)$

$(A−(B+C−D−E))×36%+((B+C−D−E)×37%);$

$(A−(B+C−D−E))×37%+((B+C−D−E)×36%).$

$( ( A − ( B + C − D − E ) ) × 37 % ) + ( ( B + C − D − E ) × 27 % )$

$(A−(B+C−D−E))×5%$

$(A−(B+C−D−E))×F+((B+C−D−E)×G);$

$(A−(B+C−D−E))×H+((B+C−D−E)×I).$

$( ( A − ( B + C − D − E ) ) × α % ) + ( ( B + C − D − E ) × β % )$

where the values of α and β are set out in that table—

Authority Relevant year beginning 1st April 2020 Relevant year beginning 1st April 2020 Relevant year beginning 1st April 2021 Relevant year beginning 1st April 2021
Authority Value of α Value of β Value of α Value of β
East Sussex Combined Fire and Rescue Authority, where the billing authority is listed in Part 24 of Schedule 5 5% 1% 1% 5%
Lancashire Combined Fire and Rescue Authority, where the billing authority is listed in Part 27 of Schedule 5 1.5% 1% 1% 1.5%
Buckingham-shire County Council 31.5% 9% 9% 31.5%
East Sussex County Council 26% 9% 9% 26%
Hertfordshire County Council 40% 10% 10% 40%
Lancashire County Council where the billing authority is listed in Part 27 of Schedule 5 17.5% 9% 9% 17.5%
Leicestershire County Council 36.5% 9% 9% 36.5%
Norfolk County Council 32.5% 10% 10% 32.5%
Northampton-shire County Council 34% 9% 9% 34%
North Yorkshire County Council 21.5% 9% 9% 21.5%
Somerset County Council 30% 9% 9% 30%
Staffordshire County Council 34% 9% 9% 34%
West Sussex County Council 55% 10% 10% 55%
Worcestershire County Council 74% 9% 9% 74%.

$(A−(B+C−D−E))×99%+((B+C−D−E)×49%)$

$(A−(B+C−D−E))×94%+((B+C−D−E)×49%)$

$(A−(B+C−D−E))×100%+((B+C−D−E)×50%)$

$(A−(B+C−D−E))×J+((B+C−D−E)×K);$

$(A−(B+C−D−E))×L+((B+C−D−E)×M).$

$( ( A − ( B + C − D − E ) ) × L ) + ( ( B + C − D − E ) × M % )$

$( ( A − ( B + C − D − E ) ) × α % ) + ( ( B + C − D − E ) × β % )$

Where α and β are as determined in accordance with the table below—

Part of Schedule 5 in which billing authority is listed Value of α Value of β
1 30% 48%
7, 16, 19, 26, 28, 33 or 36 49% 74%
15 or 32 40% 52.5%
20 or 34 50% 75%
23 or 30 40% 42.5%
24 or 35 40% 44%
25 40% 35%
27 40% 56%
29 40% 37.5%
38 40% 20%
39 40% 0%.

Signed

We consent to the making of these Regulations

Stephen Crabb — Desmond Swayne — Two of the Lords Commissioners of Her Majesty's Treasury — 2013-02-27

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

Brandon Lewis — Parliamentary Under Secretary of State — 2013-02-28

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: 1988 c.41. Sections 97(2A) and (2B) of the Local Government Finance Act 1988 (“the 1988 Act”) were inserted by paragraph 25(2) of Schedule 3 to the Local Government Finance Act 2012 (c.17) (“the 2012 Act”). Section 99 of the 1988 Act was substituted by paragraph 24 of Schedule 10 to the Local Government Finance Act 1992(c.14) and amended by section 70 of the Local Government Act 2003 (c.26) and paragraph 26 of Schedule 3 to the 2012 Act. Schedule 7B was inserted into the 1988 Act by section 1 of the 2012 Act.

[^f00002]: Relevant amendments were made to Schedule 7 by section 62 of the Local Government Act 2003.

[^f00003]: See section 93 of the 1988 Act.

[^f00004]: S.I. 2013/

[^f00005]: 1990 c.8.

[^f00006]: 1971 c.80.

[^f00007]: 2000 c.8

[^f00008]: 2006 c.46

[^f00009]: Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid.,Official Journal L 379, 28/12/2006 P. 0005-0010.

The amount to be transferred is the amount calculated in accordance with the formula:

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.