# The Building (Local Authority Charges) Regulations 1998, Regulation 5: Principles of the scheme in respect of income from the charges


(1) Subject to paragraph (2) below, the amount of the charges determined within a scheme by a local authority in accordance with these Regulations shall be such that the income to be derived, or which it is reasonably expected will be derived, from them during the relevant period shall be not less than the costs directly or indirectly incurred as determined in accordance with proper accounting practices, as defined by section 66(4) and (5) of the Local Government and Housing Act 1989, by that authority in performing their functions under the Principal Regulations during that period (the “proper costs”).
(2) Where the proper costs for building regulations control functions for a local authority do not exceed £450,000 for the relevant period, or where at least 65% of all charges received by it over the relevant period relate to charges arising under Regulation 7 (excluding charges arising under regulation 7(1)(a)), the income derived may be less than the income referred to in paragraph (1) above, but shall not be less than 90% of the costs to the local authority of performing their functions under the Principal Regulations.
(3) In calculating the amount of the proper costs, a local authority shall not include in the sum of those costs any costs which they incur as a result of the performance of their functions relating to building regulations which relate to building work required solely for disabled persons as defined by regulation 9 of these Regulations.
(4) Before determining the amount of any charge mentioned in paragraph (1) above, a local authority shall on the best information estimate a reasonable amount which represents the aggregate of the proper costs during the relevant period.
(5) In this regulation, the “relevant period” means a continuous period of 3 years commencing with the date on which a scheme comes into force (whether or not it is replaced by a further scheme during that period) in which the local authority fixes the amount of the charges mentioned in paragraph (1) above.
(6) A local authority shall, at the end of the financial year within which the local authority makes a scheme and immediately after the end of each successive financial year, prepare a statement which shall set out fully the scheme made by it and the amount of the income and proper costs.

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Source: https://www.legislation.gov.uk/uksi/1998/3129/regulation/5 (the official version)
Page: https://openlegislation.uk/building-local-authority-charges-regulations-1998/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.