Explanatory note

The purpose of these Regulations is to designate the specific area within which the non-domestic rating income is to be calculated in accordance with the Regulations. This amount is to be disregarded by the billing authority part of whose area falls within the designated area for the purpose of particular calculations made under Schedule 7B to the Local Government Finance Act 1988 (“the 1988 Act”) (local retention of non-domestic rates).

Regulation 3 designates the area in relation to which the non-domestic rating income is to be disregarded from certain calculations. The designation is made by reference to a map which is available for inspection at the office of the Secretary of State for Communities and Local Government (2 Marsham Street, London, SW1P 4DF) or the office of the billing authority in whose area the designated area falls, Derby City Council (Corporation Street, Derby, DE1 2FS).

Regulation 4 specifies that the designation takes effect on the 1st April 2015, and has effect for a period of 25 years. The effect of specifying the years is to trigger paragraph 39(9) of Schedule 7B to the 1988 Act, which restricts the type of amendments that may be made to the Regulations and prevents the revocation of the Regulations until after the end of the 25 year period.

Regulation 5 provides for the amount to be disregarded for the purpose of the specified calculations.

Regulation 6 provides for the calculation of non-domestic rating income that is the amount to be disregarded. The definition of non-domestic rating income is essentially the amounts payable to the authority under sections 43 and 45 of the 1988 Act in respect of hereditaments situated in the designated area, subject to a number of adjustments.

An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation.