Paragraph 3 Deductions: further administrative expenses where the BRS is due to begin on first day of financial year

Sub-paragraphs (2) to (4) apply in a financial year for which a levying authority intends to impose a BRS and where—

The billing authority is authorised to deduct, for the purposes of section 22(1) of the Act, such proportion of the amount due under its final return as is equal to the amount of the section 18 administrative expenses.

For the purposes of the calculation at paragraph 7(1)(a) of Schedule 2 to the Transfers Regulations, the amount of the section 18 administrative expenses (if any) is to be deducted from the amount the billing authority collected during that year by way of BRS before entry in the billing authority’s final return for the financial year under that paragraph.

The “section 18 administrative expenses” means the amount of the reasonable expenses, if any, incurred by the billing authority in respect of the collection and enforcement of a BRS where the circumstances set out in sub-paragraph (1) apply including (but not limited to) the expenses of employing staff for the purposes of answering queries from the general public and staff training, but not exceeding the maximum amount calculated in accordance with sub-paragraph (5) below.

The maximum amount of the section 18 administrative expenses is to be calculated in accordance with the formula—

$$\left(\genfrac{}{}{0.1ex}{}{A}{B}\times C\right)D$$

where—

• A is the total number of persons in the area of a billing authority who, as regards a hereditament in the billing authority’s area, are subject to a non-domestic rate under section 43^f1 or section 45 of the 1988 Act and who are subject to a BRS imposed for that year by the levying authority in whose area the hereditament is situated;

• B is the total number of persons in the area of a levying authority who, as regards a hereditament in the levying authority’s area, are subject to a non-domestic rate under section 43 or section 45 of the 1988 Act and who are subject to a BRS imposed for that year by the levying authority in whose area the hereditament is situated;  

• C is the levying authority’s estimate of the aggregate amount it will collect by way of BRS in the financial year; 

• D is the relevant percentage, as set out in Table 1, where the year of BRS refers to the number of years that the levying authority has imposed a BRS.

The levying authority must notify the billing authority of—