When a local authority sets a targeted rate under section 16, they must calculate your liability using certain factors. These factors are the ones the local authority has identified in their funding impact statement as necessary for calculating the targeted rate. They must also be listed in Schedule 3.

However, the local authority can calculate your liability as a fixed amount per rating unit. This is an exception to the usual rule about using specific factors. The local authority can choose to do this instead of using the factors.

If the local authority sets different targeted rates for different types of land, they do not have to use the same factors to calculate each rate. This means the local authority can use different factors for each category of land. This helps to make things clear and avoids any doubt about how the rates are calculated.