Appendix 4
S.I. 2009/2543: memorandum from the Department
for Communities and Local Government
Business Rate Supplements (Transfers to Revenue
Accounts) (England) Regulations 2009 (S.I. 2009/2543)
1. The Committee has requested a memorandum on
the following points-
1) Since an authority cannot levy BRS before
1 April 2010 (see section 27(1) of the Business Rate Supplements
Act 2009), why does paragraph 3(1) of Schedule 1 require the billing
authority to calculate the amount it received in BRS in the financial
year ending on 31 March 2010?
2) What is the intended purpose of the words
"except in the expressions "revised provisional return"
and "varied provisional return"" in the definition
of "final return" in paragraph 1 of Schedule 2?
3) How, for the purposes of paragraph 5(7)
of Schedule 2, is it to be determined whether the amount referred
to in sub-paragraph (2)(c) is greater or lesser than zero, given
that the amount in question could be either that in sub-paragraph
(2)(a) minus that in sub-paragraph (2)(b) or vice versa?
4) In paragraph 10(1)(b) of Schedule 2, why
do the words in parentheses duplicate what precedes them?
2. The Department for Communities and Local Government's
response to those points is set out below.
(1) Since an authority cannot levy BRS before
1 April 2010 (see section 27(1) of the Business Rate Supplements
Act 2009), why does paragraph 3(1) of Schedule 1 require the billing
authority to calculate the amount it received in BRS in the financial
year ending on 31 March 2010?
3. Having reviewed this paragraph we agree that
the reference should be to the financial year beginning on 1st
April 2011 and not 1st April 2010. We will amend at the earliest
suitable opportunity prior to 1st April 2010.
(2) What is the intended purpose of the words
"except in the expressions "revised provisional return"
and "varied provisional return"" in the definition
of "final return" in paragraph 1 of Schedule 2?
4. This is a drafting error. The words "except
in the expressions "revised provisional return" and
"varied provisional return" should appear in the definition
of "provisional return" in the same paragraph. Again,
we will amend the instrument to correct this error at the earliest
suitable opportunity.
(3) How, for the purposes of paragraph 5(7) of
Schedule 2, is it to be determined whether the amount referred
to in sub-paragraph (2)(c) is greater or lesser than zero, given
that the amount in question could be either that in sub-paragraph
(2)(a) minus that in sub-paragraph (2)(b) or vice versa?
5. We have considered the point raised, but do
not think that, reading paragraph 5 as a whole and in context,
there would be any uncertainty as to the meaning of the wording
in paragraph 5(7) referred to. Paragraph 5 makes provision for
revisions to provisional returns and for the adjustment of instalments
following a variation to a BRS. Sub-paragraphs (7), (8) and (9)
make provision for what happens in the three possible cases which
could arise following a variation: (7) deals with the case where
the revised estimated amount payable for the year is greater than
the amount already paid; (8) deals with the case where the revised
estimated amount is equal to the amount already paid; and (9)
deals with the case where the revised estimated amount is less
than the amount already paid. The cross referencing in sub-paragraph
(7) to paragraph 4 and the modifications made in sub-paragraph
(7) to paragraph 4 (where (7) applies), make it clear that sub-paragraph
(7) only applies where the revised estimated amount payable for
the year is greater than the amount already paid (i.e. where instalments
are still payable). Whilst we do not think it is necessary to
add any words of clarification in paragraph 5(7), we would be
content to do so (alongside the other amendments) should the JCSI
think otherwise.
(4) In paragraph 10(1)(b) of Schedule 2, why do
the words in parentheses duplicate what precedes them?
6. This is a drafting oversight. Whilst we do
not believe that the additional wording has any practical or legal
effect, we will remove it when we make the other amendments referred
to above.
Department for Communities and Local Government
10th November 2009
| 
