SCHEDULE
Schedule C1 to the Damages Act 1996, as inserted
“SCHEDULE C1
Setting the rate for section C1(1): Northern Ireland
Regular review of rates of return
(1) The rate-assessor must review any original rate of return.
(2) A review under sub-paragraph (1) must be started by the rate-assessor on the appointed day.
(3) For the purposes of this paragraph, an original rate of return is—
(a)
(a) a rate of return to which paragraph 27(1) applies, or
(b)
(b) the position of there being no rate of return to which paragraph 27(1) applies.
(1) The rate-assessor must review every subsequent rate of return.
(2) A review under sub-paragraph (1) must be started by the rate-assessor—
(a)
(a) in relation to the first such review—
(i) on 1st July 2024, or
(ii) earlier as is required by the Department of Justice;
(b)
(b) in relation to any subsequent review—
(i) on the day after the last day of the 5-year period, or
(ii) earlier within the 5-year period as is required by the Department of Justice.
(3) Where a review under sub-paragraph (1) is started earlier by virtue of sub-paragraph (2)(a)(ii) or (2)(b)(ii), it is to be treated as an extra review that does not affect the starting date for the first review of 1st July 2024 or the running of the 5-year period in relation to the previous review (and no 5-year period runs under sub-paragraph (2) in relation to the extra review).
(4) For the purposes of this paragraph—
(a)
(a) a subsequent rate of return is a rate of return that is set—
(i) for the time being (including by reason of an extra review as mentioned in sub-paragraph (3)), and
(ii) subsequently to an original rate of return as described in paragraph 1(3)(a) (including as a result of a review under sub-paragraph (1) conducted from time to time by virtue of the continuing operation of sub-paragraph (2)(a) and (b)),
(b)
(b) the 5-year period is the period of 5 years beginning with the day on which the previous review of a rate of return must be started (ignoring an extra review as mentioned in sub-paragraph (3)).
(1) A review of a rate of return under paragraph 1(1) or 2(1) must be concluded by the rate-assessor within the 90-day period.
(2) For the purposes of this paragraph, the 90-day period is the period of 90 days beginning with the day on which the review must be started by the rate-assessor.
Overview as to rate-setting
(1) The conduct by the rate-assessor of a review of a rate of return under paragraph 1(1) or 2(1) is governed by—
(a)
(a) paragraphs 5 to 7,
(b)
(b) paragraphs 9 and 10,
(c)
(c) paragraphs 12 and 13,
(d)
(d) paragraphs 19 to 21.
(2) A rate of return is to be set as a result of a review under paragraph 1(1) or 2(1) accordingly (plus see paragraph 23 as to reporting afterwards on the conduct of such a review).
5 In a review under paragraph 1(1) or 2(1), the rate-assessor must determine whether a rate of return to be set is to be—
a
(a) different from the rate of return with which the review is concerned, or
b
(b) the same as the rate of return with which the review is concerned.
6 In a review under paragraph 1(1) or 2(1), the rate-assessor must have regard to views—
a
(a) of any person whom the rate-assessor chooses to consult, and
b
(b) of any person whose advice the rate-assessor chooses to seek,
where received by the rate-assessor within a reasonable time in connection with the review.
Returns-based assessment
(1) The basis on which the rate-assessor is to make a rate determination in a review under paragraph 1(1) or 2(1) is as set out in sub-paragraph (2).
(2) A rate of return should reflect the return that could reasonably be expected to be achieved by a person who invests—
(a)
(a) in the notional portfolio, and
(b)
(b) for a period of 43 years.
(3) This is without prejudice to paragraphs 10 and 20 (with paragraph 10 to be met before paragraph 20 is met).
(4) The notional portfolio is shown in the table in paragraph 12(3).
8 The Department of Justice may by regulations modify a period mentioned in paragraph 7(2).
(1) Allowance must be made by the rate-assessor for the impact of inflation on the value of the return or investment to which paragraph 7(2) relates.
(2) The impact of inflation is to be allowed for by reference to, whether indicating an upward or downward trend—
(a)
(a) the retail prices index, or
(b)
(b) some published information relating to costs, earnings or other monetary factors as is, for use instead of the retail prices index, prescribed in regulations made by the Department of Justice.
(3) In sub-paragraph (2), “” means the general index (for all items) published by the Statistics Board or, if that index is not published for a relevant month, any substituted index or index figures published by that Board.
Standard adjustments
(1) The standard adjustments must be made by the rate-assessor to a rate of return that would be arrived at but for this paragraph.
(2) The standard adjustments are the deduction of—
(a)
(a) 0.75 of a percentage point, to represent—
(i) the impact of taxation, and
(ii) the costs of investment advice and management, and
(b)
(b) 0.5 of a percentage point, as the further margin involved in relation to the rate of return.
(1) The Department of Justice may by regulations modify a figure appearing in paragraph 10(2)(a) or (b).
(2) A figure as so modified—
(a)
(a) may be zero or a positive number,
(b)
(b) if not a whole number (including zero), may comprise or incorporate a decimal fraction.
Notional investment portfolio
(1) As for the basis on which the rate-assessor is to proceed by virtue of paragraph 7(1), the notional portfolio is a combination of various types of things for investment in.
(2) In the table—
(a)
(a) the first column shows the types of things that the portfolio is composed of,
(b)
(b) the second column shows the percentage that each of the types of things is of the portfolio.
(3) The table is as follows—
Cash or equivalents |
10% |
... |
