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United Kingdom Statutory Instruments


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URL: http://www.bailii.org/uk/legis/num_reg/1991/uksi_19912111_en.html

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Statutory Instruments

1991 No. 2111

RATING AND VALUATION

The Non-Domestic Rating (Payment of Interest) (Amendment) Regulations 1991

Made

17th September 1991

Laid before Parliament

25th September 1991

Coming into force

16th October 1991

The Secretary of State for the Environment as respects England and the Secretary of State for Wales as respects Wales, in exercise of the powers conferred on them by sections 55(2) and (7), 143(1) and (2) of the Local Government Finance Act 1988(1), and of all other powers enabling them in that behalf, hereby make the following Regulations:

1. These Regulations may be cited as the Non-Domestic Rating (Payment of Interest) (Amendment) Regulations 1991 and shall come into force on 16th October 1991.

2.-(1) The Non-Domestic Rating (Payment of Interest) Regulations 1990(2) "the principal Regulations" shall be amended in accordance with these Regulations.

(2) The amendments in regulation 5 shall have effect only in respect of cases where the entitlement under regulation 3 of the principal Regulations arises in consequence of an alteration of a rating list made on or after the day on which these Regulations come into force.

3.-(1) Regulation 2(1) (definitions) shall be amended as follows.

(2) After the definition of "the Local Lists Regulations" there shall be inserted-

(3) After the definition of "alteration", there shall be inserted-

(4) For the definition of "liability" there shall be substituted-

(5) For the definitions of "overpayment" and "repayment" there shall be substituted the following three definitions-

4. Regulation 4 (rates of interest) shall be amended-

(a)in paragraph (1), by the substitution for the words from "the arithmetic mean" to the end of the paragraph of the words "the standard rate.";

(b)by the substitution for paragraph (2) of the following:

"(2) For the purposes of paragraph (1)-

(a)the standard rate, in relation to a year or part of a year, is the base rate quoted by the reference banks and effective on 15th March (or, if that day is not a business day, the next business day) of the preceding year; or, if different base rates are quoted and so effective, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

(b)the reference banks, in relation to any 15th March, are the seven largest institutions-

(i)authorised by the Bank of England under the Banking Act 1987(3) and

(ii)incorporated in and carrying on a deposit-taking business within the United Kingdom,

which quote a base rate in sterling effective as mentioned in subparagraph (a); and

(c)the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the relevant 15th March.

(3) In paragraph 2(c), the reference to the consolidated gross assets of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985)(4).".

5. In regulation 5 (amount of payment)-

(a)in paragraph (a), for the definition of "B", there shall be substituted-

Michael Heseltine

Secretary of State for the Environment

12th September 1991

David Hunt

Secretary of State for Wales

17th September 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Non-Domestic Rating (Payment of Interest) Regulations 1990, which deal with entitlement to and calculation of interest on sums overpaid by way of non-domestic rates.

The principal changes are:

(1) to deal with interest on the amount finally determined after a review of, or appeal against, the decision of a valuation and community charge tribunal (regulation 3(5));

(2) to amend the method of determining the appropriate rate of interest (regulation 4); and

(3) to amend the formula by reference to which the amount of interest is calculated (regulation 5).

(1)

1988 c. 41. Section 55 is amended by the Local Government and Housing Act 1989 (c. 42), Schedule 5 paragraph 30.

(2)

S.I. 1990/1904.

(4)

1985 c. 6; section 736 was substituted by section 144(1) of the Companies Act 1989 (c. 40).


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URL: http://www.bailii.org/uk/legis/num_reg/1991/uksi_19912111_en.html