Paragraph 6 Deductions from gross amount

The amount calculated in accordance with the formula:

where—

• A is the number of hereditaments shown in the authority’s local non-domestic rating list on 31st December in the immediately preceding year, multiplied by the cost factor for the authority,

• B is the total of A for all charging authorities,

• C is the total of the rateable values shown in the authority’s local non-domestic rating list on 31st December in the immediately preceding year, multiplied by the cost factor for the authority,

• D is the total of C for all charging authorities,

• X is 80% of the amount allowed for the costs of collection and recovery,

• Y is 20% of the amount allowed for the costs of collection and recovery.

For the purposes of sub-paragraph (1) above, where the financial year to which the calculation relates is a year in which local non-domestic rating lists are compiled under section 41(1) of the Act^f1, the hereditaments shown in an authority’s local non-domestic rating list, and the rateable value of those hereditaments, shall be taken to be the hereditaments, and the rateable values, shown in the list which the valuation officer for the authority proposes to compile in that year and which he has sent to the authority under section 41(5) of the Act.

The cost factor for each authority is the cost factor shown for the authority in Part II of this Schedule.

The amount allowed for the costs of collection and recovery is, in relation to calculations for the chargeable financial year beginning in 1990, £42.5 million.