Paragraph 29 Calculation of remaining balance on levy accountF1

(1)

The Secretary of State must, in each year other than the first year for which the levy account is kept, calculate whether there is a remaining balance on the levy account for the year in accordance with sub-paragraphs (2) to (4).

(2)

The calculation must be made as soon as is reasonably practicable after—

(a)

all of the calculations required by paragraph 23 (1) (calculations of levy payments) have been made for the previous year,

(b)

all of the calculations required by paragraph 26 (1) (calculations of safety net payments) have been made for the previous year, and

(c)

all of the calculations required by regulations under paragraph 28 (calculations of safety net payments on account) have been made for the year.

(3)

The calculation must be made as follows—

Step 1
Calculate the aggregate of the amounts of all of the levy payments calculated for the previous year under paragraph 23 (1).
Step 2
Add any amount credited to the levy account for the year in accordance with paragraph 21 (2) (credit from previous year) to the amount found under step 1, or subtract any amount debited to that account in accordance with paragraph 21 (3) (debit from previous year) from the amount found under step 1.
Step 3
Add to the amount found under steps 1 and 2 any amount credited to the levy account for the year in accordance with paragraph 20(2) (credit in accordance with local government finance report).
Step 4
Subtract from the amount found under steps 1 to 3 the aggregate of the amounts of all the safety net payments calculated for the previous year under paragraph 26 (1).
Step 5
Subtract from the amount found under steps 1 to 4 the aggregate of all the payments to be made by the Secretary of State under regulations under paragraph 28(4)(b) (adjustments following safety net payment on account).
Step 6
Add to the amount found under steps 1 to 5 the aggregate of all the payments to be made to the Secretary of State under regulations under paragraph 28(4)(b).
Step 7
Subtract from the amount found under steps 1 to 6 the aggregate of all the payments on account to be made in the year under regulations under paragraph 28.

(4)

If the amount found under step 7 in sub-paragraph (3) is a positive amount, that is the remaining balance on the levy account for the year.

(5)

Sub-paragraph (6) applies if, in the first year for which the levy account is kept—

(a)

an amount is credited to the levy account for the year in accordance with paragraph 20(2), and

(b)

that amount exceeds the aggregate of all the payments on account to be made in the year under regulations under paragraph 28.

(6)

The amount of the excess is to be treated as the remaining balance on the levy account for the year.

Annotations

Textual amendments

F1: Sch. 7B inserted (with effect in accordance with s. 1(6) of the amending Act) by Local Government Finance Act 2012 (c. 17), s. 1(4), Sch. 1