# Local Government Finance Act 1988, Paragraph 5

Extent: E+W

(1) This paragraph applies where regulations under paragraph 4 above are in force for a chargeable financial year and has effect subject to any provision made by virtue of paragraph 6(2A) below.
(2) By such time before the year begins as the Welsh Ministers may direct, a billing authority shall calculate the amount of its non-domestic rating contribution for the year and shall notify the amount to the Welsh Ministers.
(3) If the authority fails to comply with sub-paragraph (2) above or if the Welsh Ministers believe the amount notified is not likely to have been calculated in accordance with the regulations they may make their own calculation of the amount; and where they make such a calculation they shall inform the authority why they have done so and shall inform it of the amount calculated.
(4) The authority shall be liable to pay to the Welsh Ministers an amount (the provisional amount) equal to—
(a) that calculated and notified under sub-paragraph (2) above, or
(b) if sub-paragraph (3) above applies, that calculated by the Welsh Ministers under it.
(5) The authority shall pay the provisional amount during the course of the year, in such instalments and at such times as the Welsh Ministers may direct.
(6) After the year ends the authority shall—
(a) calculate the amount of its non-domestic rating contribution for the year,
(b) notify the amount so calculated to the Welsh Ministers
(ba) ... notify to the Welsh Ministers, the amount of any deduction that in accordance with provision under paragraph 4(4A) above is made in calculating the amount mentioned in paragraph (a) above, and
(c) arrange for the calculation, and the amount or amounts notifiable under paragraphs (b) and (ba) above, to be certified under arrangements made by the Auditor General for Wales.
(6A) The ... Auditor General for Wales... shall send a copy of the certification of the calculation and the amount or amounts to the Welsh Ministers.
(7) If the authority fails to comply with sub-paragraph (6) above by such time as the Welsh Ministers direct, they may suspend payments which would otherwise fall to be made to the authority under the relevant provisions (within the meaning given by paragraph 6(7) below); but if the authority then complies with the sub-paragraph they shall resume payments falling to be made to the authority under the relevant provisions and make payments to it equal to those suspended.
(8) If, at any time after the year ends, the Welsh Ministers receive notification from an authority under sub-paragraph (6)(b) above above they shall—
(a) calculate the amount of the difference (if any) between the amount notified and the provisional amount, and
(b) if there is a difference, inform the authority of the amount of the difference.
(9) If the amount notified under sub-paragraph (6)(b) above above exceeds the provisional amount the authority shall pay an amount equal to the difference to the Welsh Ministers at such time as they may direct.
(10) If the amount notified under sub-paragraph (6)(b) above is less than the provisional amount, the Welsh Ministers shall—
(a) if they believe that the amount so notified is not likely to have been calculated in accordance with the regulations under paragraph 4 above, inform the authority of their reasons for that belief;
(b) if they are not of that belief, pay to the authority, at such time as they decide ... , an amount equal to the difference between the amount so notified and the provisional amount.
(11) Sub-paragraph (12) below applies where—
(a) at any time after the year ends the Welsh Ministers have received both a notification from an authority under sub-paragraph (6)(b) above and a copy of a certification sent to them in relation to the authority under sub-paragraph (6A) above, and
(b) the amount which is certified by the certification to be the authority’s non-domestic rating contribution for the year (the certified amount) is different from the amount notified to the Welsh Ministers under sub-paragraph (6)(b) above.
(12) Where this sub-paragraph applies the Welsh Ministers shall—
(a) calculate the amount of the difference (if any) between the certified amount and the provisional amount, and
(b) if there is a difference, inform the authority of the amount of the difference.
(13) If at the time the Welsh Ministers make the calculation required by sub-paragraph (12) above no payment has been made under sub-paragraph (9) or (10) above in relation to the amount notified under sub-paragraph (6)(b) above—
(a) sub-paragraphs (9) and (10) above shall not apply in relation to that amount, and
(b) sub-paragraph (14) below shall apply.
(14) Where this sub-paragraph applies—
(a) if the certified amount exceeds the provisional amount the authority shall pay an amount equal to the difference to the Welsh Ministers at such time as they may direct, and
(b) if the certified amount is less than the provisional amount the Welsh Ministers shall pay an amount equal to the difference to the authority, and the amount shall be paid at such time as they decide ... .
(15) Regulations under this sub-paragraph may make provision for financial adjustments to be made where at the time the Welsh Ministers make the calculation required by sub-paragraph (12) above a payment has already been made under sub-paragraph (9) or (10) above in relation to the amount notified under sub-paragraph (6)(b) above; and the regulations may include provision—
(a) for the making of payments by the Welsh Ministers or the authority, and
(b) as to the time at which any such payment must be made.

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Source: https://www.legislation.gov.uk/ukpga/1988/41/schedule/8/paragraph/5 (the official version)
Page: https://openlegislation.uk/local-government-finance-act-1988/schedule-8/paragraph-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.