Article 2 Interpretation

In this Order—

• “the 1967 Act” means the General Rate Act 1967^f1;

• “late rating adjustments”, in relation to—

  1. (a)

     a relevant year and a rating authority other than the Common Council, means the amount ascertained in accordance with the formula—

     $$\mathrm{A}-\left(\mathrm{B}+\mathrm{C}\right)$$

     where —

     • A is an amount equal to the total of amounts by way of rates for the financial year beginning in 1989 or any earlier financial year found during the relevant year to be recoverable in respect of hereditaments or former hereditaments in the authority’s area under sections 6 or 79 of the 1967 Act, or in respect of rates previously written off as irrecoverable;

     • B is an amount equal to the loss on collection in that relevant year, that is to say, the total recorded in the authority’s accounts for that year of amounts by way of rates for the financial year beginning in 1989 or any earlier financial year refunded in that relevant year under section 9 of the 1967 Act or written off in that year; and

     • C is an amount equal to the cost of collection, recovery, refunding and writing off in that relevant year, that is to say, the net cost, determined in accordance with proper accounting practice, incurred by the authority in that year in connection with—

       1. (i)

          the collection or recovery of such amounts by way of rates as are referred to in the definition of A; and

       2. (ii)

          the refunding or writing off of amounts as mentioned in the definition of B;

  2. (b)

     a relevant year and the Common Council, means such part of the amount ascertained in accordance with the formula set out in paragraph (a) above, substituting for references in the definitions of A, B and C to an authority, its area and its accounts references to the Common Council, the City of London and the accounts of the Common Council, as does not relate to, or is not connected with, the rating of empty, untenanted or unoccupied property^f2

• “precepting body”—

  1. (a)

     means an authority referred to in section 12(1) of the 1967 Act^f3 which issued a precept in respect of the financial year beginning in 1989; and

  2. (b)

     in relation to the precept issued by the Inner London Education Authority in respect of that year, shall be treated as including the London Residuary Body;

• “precept poundage” means—

  1. (a)

     where the whole of a precepting body’s precept for the financial year beginning in 1989 relates to part only of a rating authority’s area, the amount ascertained by the application of the formula—

     $$\genfrac{}{}{0.1ex}{}{\text{D x E}}{\mathrm{F}}$$

     where—

     • D is the number of pence in the pound of the precept;

     • E is the rateable value on 1st April 1989 of the part of the area to which the precept relates; and

     • F is the rateable value on that date of the whole of the rating authority’s area;

  2. (b)

     where part of a precepting body’s precept for that year does not relate to the whole of a rating authority’s area, the amount ascertained by the application of the formula—

     $$\mathrm{G}+\mathrm{H}$$

     where—

     • G is the number of pence in the pound of such part of that precept as relates to the whole of the rating authority’s area; and

     • H is the amount determined in accordance with the formula specified below in relation to such part of that precept as does not so relate or, where there is more than one such part, the aggregate of the amounts determined in accordance with that formula in relation to each of those parts; and the formula is—

     $$\genfrac{}{}{0.1ex}{}{\text{I x J}}{\mathrm{F}}$$

     • I is the number of pence in the pound of such part of the precept as relates to the part of the area of the rating authority;

     • J is the rateable value on 1st April 1989 of the part of the rating authority’s area to which the part of the precept relates; and

     • F has the same meaning as in sub-paragraph (a);

  3. (c)

     in any other case, the number of pence in the pound of the precepting body’s precept for that year;

• “rate poundage” means—

  1. (a)

     in relation to the area of a rating authority in England other than the sub-treasurer of the Inner Temple and the under-treasurer of the Middle Temple, the aggregate of—

     1. (i)

        an amount equal to the amount specified as the assumed rate poundage for the charging authority for that area in column 2 of the Annex to the Community Charge Transitional Relief Report (England)^f4; and

     2. (ii)

        an amount equal to the appropriate domestic rate relief poundage for that authority for the financial year ended in 1990 as specified in paragraph 2.3 of that Report;

  2. (b)

     in relation to a rating authority in Wales, the amount specified in relation to that authority in column (2) of the Schedule hereto;

  3. (c)

     in relation to the sub-treasurer of the Inner Temple, 122.82 pence;

  4. (d)

     in relation to the under-treasurer of the Middle Temple, 113.66 pence;

• “rating authority” means each of the following—

  1. (a)

     a district council,

  2. (b)

     a London borough council,

  3. (c)

     the Common Council,

  4. (d)

     the sub-treasurer of the Inner Temple,

  5. (e)

     the under-treasurer of the Middle Temple; and

• “relevant year” means the financial year beginning in 1990 and each subsequent financial year.