Local Government Finance Act 1992

Part IE+W Council Tax: England and Wales

Chapter IE+W Main provisions

PreliminaryE+W

1 Council tax in respect of dwellings.E+W

(1)As regards the financial year beginning in 1993 and subsequent financial years, each billing authority shall, in accordance with this Part, levy and collect a tax, to be called council tax, which shall be payable in respect of dwellings situated in its area.

F1[(2)In this Part “billing authority” means—

(a)in relation to England, a district council or London borough council, the Common Council or the Council of the Isles of Scilly, and

(b)in relation to Wales, a county council or county borough council.]

(3)For the purposes of this Part the Secretary of State may make regulations containing rules for treating a dwelling as situated in a billing authority’s area if part only of the dwelling falls within the area.

2 Liability to tax determined on a daily basis.E+W

(1)Liability to pay council tax shall be determined on a daily basis.

(2)For the purposes of determining for any day—

(a)whether any property is a chargeable dwelling;

(b)which valuation band is shown in the billing authority’s valuation list as applicable to any chargeable dwelling;

(c)the person liable to pay council tax in respect of any such dwelling; or

(d)whether any amount of council tax is subject to a discount and (if so) the amount of the discount,

it shall be assumed that any state of affairs subsisting at the end of the day had subsisted throughout the day.

Chargeable dwellingsE+W

3 Meaning of “dwelling".E+W

(1)This section has effect for determining what is a dwelling for the purposes of this Part.

(2)Subject to the following provisions of this section, a dwelling is any property which—

(a)by virtue of the definition of hereditament in section 115(1) of the M1General Rate Act 1967, would have been a hereditament for the purposes of that Act if that Act remained in force; and

(b)is not for the time being shown or required to be shown in a local or a central non-domestic rating list in force at that time; and

(c)is not for the time being exempt from local non-domestic rating for the purposes of Part III of the M2Local Government Finance Act 1988 (“the 1988 Act”);

and in applying paragraphs (b) and (c) above no account shall be taken of any rules as to Crown exemption.

(3)A hereditament which—

(a)is a composite hereditament for the purposes of Part III of the 1988 Act; and

(b)would still be such a hereditament if paragraphs (b) to (d) of section 66(1) of that Act (domestic property) were omitted,

is also, subject to subsection (6) below, a dwelling for the purposes of this Part.

(4)Subject to subsection (6) below, none of the following property, namely—

(a)a yard, garden, outhouse or other appurtenance belonging to or enjoyed with property used wholly for the purposes of living accommodation; or

(b)a private garage which either has a floor area of not more than 25 square metres or is used wholly or mainly for the accommodation of a private motor vehicle; or

(c)private storage premises used wholly or mainly for the storage of articles of domestic use,

is a dwelling except in so far as it forms part of a larger property which is itself a dwelling by virtue of subsection (2) above.

[F2(4A)Subject to subsection (6) below, domestic property falling within section 66(1A) of the 1988 Act is not a dwelling except in so far as it forms part of a larger property which is itself a dwelling by virtue of subsection (2) above.]

(5)The Secretary of State may by order provide that in such cases as may be prescribed by or determined under the order—

(a)anything which would (apart from the order) be one dwelling shall be treated as two or more dwellings; and

(b)anything which would (apart from the order) be two or more dwellings shall be treated as one dwelling.

(6)The Secretary of State may by order amend any definition of “dwelling" which is for the time being effective for the purposes of this Part.

4 Dwellings chargeable to council tax.E+W

(1)Council tax shall be payable in respect of any dwelling which is not an exempt dwelling.

(2)In this Chapter—

• “chargeable dwelling” means any dwelling in respect of which council tax is payable;

• “exempt dwelling” means any dwelling of a class prescribed by an order made by the Secretary of State.

(3)For the purposes of subsection (2) above, a class of dwellings may be prescribed by reference to such factors as the Secretary of State sees fit.

(4)Without prejudice to the generality of subsection (3) above, a class of dwellings may be prescribed by reference to one or more of the following factors—

(a)the physical characteristics of dwellings;

(b)the fact that dwellings are unoccupied or are occupied for prescribed purposes or are occupied or owned by persons of prescribed descriptions.

5 Different amounts for dwellings in different valuation bands.E+W

(1)The amounts of council tax payable in respect of dwellings situated in the same billing authority’s area (or the same part of such an area) and listed in different valuation bands shall be in the proportion—

where 6 is for dwellings listed in valuation band A, 7 is for dwellings listed in valuation band B, and so on.

[F3(1A)For the purposes of the application of subsection (1) to dwellings situated in Wales, for the purposes of financial years beginning on or after 1st April 2005, for the proportion specified in that subsection there is substituted the following proportion:

(2)The valuation bands for dwellings in England are set out in the following Table—

(3)The valuation bands for dwellings in Wales are set out in the following Table—

(4)The Secretary of State may by order, as regards financial years beginning on or after such date as is specified in the order—

(a)substitute another proportion for that which is for the time being effective for the purposes of subsection (1) above;

(b)substitute other valuation bands for those which are for the time being effective for the purposes of subsection (2) or (3) above.

[F5(4A)The power under subsection (4)(b) above includes power to make provision for a different number of valuation bands from those which are for the time being effective for the purposes of subsection (2) or (3) above.]

(5)No order under subsection (4) above shall be made unless a draft of the order has been laid before and approved by resolution of the House of Commons.

(6)Any reference in this Part to dwellings listed in a particular valuation band shall be construed as a reference to dwellings to which that valuation band is shown as applicable in the billing authority’s valuation list.

Liability to taxE+W

6 Persons liable to pay council tax.E+W

(1)The person who is liable to pay council tax in respect of any chargeable dwelling and any day is the person who falls within the first paragraph of subsection (2) below to apply, taking paragraph (a) of that subsection first, paragraph (b) next, and so on.

(2)A person falls within this subsection in relation to any chargeable dwelling and any day if, on that day—

(a)he is a resident of the dwelling and has a freehold interest in the whole or any part of it;

(b)he is such a resident and has a leasehold interest in the whole or any part of the dwelling which is not inferior to another such interest held by another such resident;

(c)he is both such a resident and a statutory [F6, secure or introductory tenant]of the whole or any part of the dwelling;

[F7(ca)in the case of a dwelling in Wales, the person is both such a resident and has a tenancy of the whole or any part of the dwelling which is a secure contract or an introductory standard contract;]

(d)he is such a resident and has a contractual licence to occupy the whole or any part of the dwelling;

(e)he is such a resident; or

(f)he is the owner of the dwelling.

(3)Where, in relation to any chargeable dwelling and any day, two or more persons fall within the first paragraph of subsection (2) above to apply, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(4)Subsection (3) above shall not apply as respects any day on which one or more of the persons there mentioned fall to be disregarded for the purposes of discount by virtue of [F8paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act] and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day shall be determined as follows—

(a)if only one of those persons does not fall to be so disregarded, he shall be solely liable;

(b)if two or more of those persons do not fall to be so disregarded, they shall each be jointly and severally liable.

[F9(4A)Subsection (3) also does not apply in relation to a chargeable dwelling in Wales as respects any day on which one or more of the persons mentioned fall to be disregarded for the purposes of discount for a relevant reason and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day is determined as follows—

(a)if only one of those persons does not fall to be so disregarded, that person is solely liable;

(b)if two or more of those persons do not fall to be so disregarded, they are each jointly and severally liable.

(4B)For the purposes of subsection (4A), a person falls to be disregarded for the purposes of discount for a relevant reason if that person falls within, and meets the conditions prescribed in, Class G (care leavers) as prescribed in regulation 5(7) of the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 (S.I. 1992/552).]

(5)In this Part, unless the context otherwise requires—

• “owner”, in relation to any dwelling, means the person as regards whom the following conditions are fulfilled—

(a)he has a material interest in the whole or any part of the dwelling; and

(b)at least part of the dwelling or, as the case may be, of the part concerned is not subject to a material interest inferior to his interest;

(6)In this section—

7 Liability in respect of caravans and boats.E+W

(1)Subsections (2) to (4) below shall have effect in substitution for section 6 above in relation to any chargeable dwelling which consists of a pitch occupied by a caravan, or a mooring occupied by a boat.

(2)Where on any day the owner of the caravan or boat is not, but some other person is, a resident of the dwelling, that other person shall be liable to pay the council tax in respect of the dwelling and that day.

(3)Where on any day subsection (2) above does not apply, the owner of the caravan or boat shall be liable to pay the council tax in respect of the dwelling and that day.

(4)Where on any day two or more persons fall within subsection (2) or (3) above, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(5)[F12Subsections (4) and (4A)] of section 6 above shall apply for the purposes of subsection (4) above as [F12they apply] for the purposes of subsection (3) of that section.

(6)In this section “caravan” shall be construed in accordance with Part I of the M6Caravan Sites and Control of Development Act 1960.

(7)Any reference in this section to the owner of a caravan or boat shall be construed—

(a)in relation to a caravan or boat which is subject to an agreement for hire-purchase or conditional sale, as a reference to the person in possession under the agreement;

(b)in relation to a caravan or boat which is subject to a bill of sale or mortgage, as a reference to the person entitled to the property in it apart from the bill or mortgage.

8 Liability in prescribed cases.E+W

(1)Subsections (3) and (4) below shall have effect in substitution for section 6 or (as the case may be) section 7 above in relation to any chargeable dwelling of a class prescribed for the purposes of this subsection.

(2)Subsections (3) and (4) below shall have effect in substitution for section 6 or (as the case may be) section 7 above in relation to any chargeable dwelling of a class prescribed for the purposes of this subsection, if the billing authority so determines in relation to all dwellings of that class which are situated in its area.

(3)Where on any day this subsection has effect in relation to a dwelling, the owner of the dwelling shall be liable to pay the council tax in respect of the dwelling and that day.

(4)Where on any day two or more persons fall within subsection (3) above, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(5)[F13Subsections (4) and (4A)] of section 6 above shall apply for the purposes of subsection (4) above as [F13they apply] for the purposes of subsection (3) of that section.

(6)Regulations prescribing a class of chargeable dwellings for the purposes of subsection (1) or (2) above may provide that, in relation to any dwelling of that class, subsection (3) above shall have effect as if for the reference to the owner of the dwelling there were substituted a reference to the person falling within such description as may be prescribed.

(7)Subsections (3) and (4) of section 4 above shall apply for the purposes of subsections (1) and (2) above as they apply for the purposes of subsection (2) of that section.

9 Liability of spouses.E+W

(1)Where—

(a)a person who is liable to pay council tax in respect of any chargeable dwelling of which he is a resident and any day is married to [F14, or is the civil partner of,] another person; and

(b)that other person is also a resident of the dwelling on that day but would not, apart from this section, be so liable,

those persons shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(2)Subsection (1) above shall not apply as respects any day on which the other person there mentioned falls to be disregarded for the purposes of discount by virtue of [F15paragraph 2 (the severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act].

[F16(2A)Subsection (1) also does not apply in relation to a chargeable dwelling in Wales as respects any day on which the other person mentioned falls to be disregarded for the purposes of discount by virtue of falling within, and meeting the conditions prescribed in, Class G (care leavers) as prescribed in regulation 5(7) of the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 (S.I. 1992/552).]

[F17(3)For the purposes of this section, two persons are to be treated as married to, or civil partners of, each other if they are living together as if they were a married couple or civil partners.]

Amounts of tax payableE+W

10 Basic amounts payable.E+W

(1)Subject to sections 11 to [F1813A] below, a person who is liable to pay council tax in respect of any chargeable dwelling and any day shall, as respects the dwelling and the day, pay to the billing authority for the area in which the dwelling is situated an amount calculated in accordance with the formula—

(2)For the purposes of this Part the Secretary of State may make regulations containing rules for ascertaining in what part of a billing authority’s area a dwelling is situated (whether situated in the area in fact or by virtue of regulations made under section 1(3) above).

11 Discounts.E+W

(1)The amount of council tax payable in respect of any chargeable dwelling and any day shall be subject to a discount equal to the appropriate percentage of that amount if on that day—

(a)there is only one resident of the dwelling and he does not fall to be disregarded for the purposes of discount; or

(b)there are two or more residents of the dwelling and each of them except one falls to be disregarded for those purposes.

(2)Subject to [F19sections 11A[F20, 11B] [F21, 11C] [F22, 12, 12A and 12B]] below, the amount of council tax payable in respect of any chargeable dwelling and any day shall be subject to a discount equal to twice the appropriate percentage of that amount if on that day—

(a)there is no resident of the dwelling; or

(b)there are one or more residents of the dwelling and each of them falls to be disregarded for the purposes of discount.

(3)In this section F23. . . “the appropriate percentage” means 25 per cent. or, if the Secretary of State by order so provides in relation to the financial year in which the day falls, such other percentage as is specified in the order.

(4)No order under subsection (3) above shall be made unless a draft of the order has been laid before and approved by resolution of the House of Commons.

(5)Schedule 1 to this Act shall have effect for determining who shall be disregarded for the purposes of discount.

[F2411ADiscounts: special provision for EnglandE+W

(1)The Secretary of State may for any financial year by regulations prescribe one or more classes of dwelling in England for the purposes of subsection (3)[F25, (4) or (4A)] below.

(2)A class of dwellings may be prescribed under subsection (1) above by reference to such factors as the Secretary of State sees fit and may, in particular, be prescribed by reference to—

(a)the physical characteristics of dwellings, or

(b)the fact that dwellings are unoccupied.

(3)For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in England may by determination provide in relation to all dwellings of that class in its area, or in such part of its area as it may specify in the determination, that the discount under section 11(2)(a) shall be such lesser percentage of at least 10 as it may so specify.

(4)For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in England may by determination provide in relation to all dwellings of that class in its area, or in such part of its area as it may specify in the determination—

(a)that the discount under section 11(2)(a) above shall not apply, or

(b)that the discount under that provision shall be such lesser percentage as it may so specify.

[F26(4A)For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in England may by determination provide—

(a)in relation to all dwellings of that class in its area, or

(b)in relation to such description of dwellings of that class as it may specify in the determination,

that the discount under section 11(2)(a) shall not apply or shall be such percentage (which may be 100) as it may so specify.

(4B)Where a class of dwellings is prescribed for the purposes of subsection (4A) by reference to the period of time for which a condition is met, a billing authority may not, under paragraph (b) of that subsection, specify a description of dwellings of that class by reference (wholly or partly) to a shorter such period.]

[F27(4C)Subsections (3), (4) and (4A) are subject to section 11B(4) [F28and 11C(5)].]

(5)A billing authority may make a determination varying or revoking a determination under subsection (3)[F29, (4) or (4A)] for a financial year, but only before the beginning of the year.

(6)A billing authority which makes a determination under this section shall publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination.

(7)Failure to comply with subsection (6) above shall not affect the validity of a determination.]

[F3011BHigher amount for long-term empty dwellings: EnglandE+W

(1)For any financial year, a billing authority in England may by determination provide in relation to its area, or such part of its area as it may specify in the determination, that if on any day a dwelling is a long-term empty dwelling—

(a)the discount under section 11(2)(a) shall not apply, and

(b)the amount of council tax payable in respect of that dwelling and that day [F31(“the relevant day”)] shall be increased by such percentage of not more than [F32the relevant maximum] as it may so specify.

[F33(1A)For the financial year beginning on 1 April 2019 the “relevant maximum” is 100.

(1B)For the financial year beginning on 1 April 2020 the “relevant maximum” is—

(a)in respect of any dwelling where the period mentioned in subsection (8) ending on the relevant day is less than 5 years, 100;

(b)in respect of any dwelling where the period mentioned in subsection (8) ending on the relevant day is at least 5 years, 200.

(1C)For financial years beginning on or after 1 April 2021 the “relevant maximum” is—

(a)in respect of any dwelling where the period mentioned in subsection (8) ending on the relevant day is less than 5 years, 100;

(b)in respect of any dwelling where the period mentioned in subsection (8) ending on the relevant day is at least 5 years but less than 10 years, 200;

(c)in respect of any dwelling where the period mentioned in subsection (8) ending on the relevant day is at least 10 years, 300.]

[F34(1D)In exercising its functions under this section a billing authority must have regard to any guidance issued by the Secretary of State.]

(2)The Secretary of State may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under this section.

(3)A class of dwellings may be prescribed under subsection (2) by reference to such factors as the Secretary of State thinks fit and may, in particular, be prescribed by reference to—

(a)the physical characteristics of, or other matters relating to, dwellings;

(b)the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned.

(4)Where a determination under this section has effect in relation to a class of dwellings—

(a)the billing authority may not make a determination under section 11A(3), (4) or (4A) in relation to that class, and

(b)any determination that has been made under section 11A(3), (4) or (4A) ceases to have effect in relation to that class.

(5)A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year.

(6)A billing authority which makes a determination under this section must publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination.

(7)Failure to comply with subsection (6) does not affect the validity of a determination.

(8)For the purposes of this section, a dwelling is a “long-term empty dwelling” on any day if for a continuous period of at least [F351 year] ending with that day—

(a)it has been unoccupied, and

(b)it has been substantially unfurnished.

(9)In determining whether a dwelling is a long-term empty dwelling, no account is to be taken of any one or more periods of not more than 6 weeks during which either of the conditions in subsection (8)(a) and (b) is not met (or neither of them is met).

(10)The Secretary of State may by regulations substitute a different period, of not less than 6 weeks, for the period which is for the time being specified in subsection (9).]

[F3611CHigher amount for dwellings occupied periodically: EnglandE+W

(1)For any financial year, a billing authority in England may by determination provide in relation to its area, or such part of its area as it may specify in the determination, that if on any day the conditions mentioned in subsection (2) are satisfied in respect of a dwelling—

(a)the discount under section 11(2)(a) does not apply, and

(b)the amount of council tax payable in respect of that dwelling and that day is increased by such percentage of not more than 100 as it may specify in the determination.

(2)The conditions are—

(a)there is no resident of the dwelling, and

(b)the dwelling is substantially furnished.

(3)A billing authority’s first determination under this section must be made at least one year before the beginning of the financial year to which it relates.

(4)In exercising its functions under this section a billing authority must have regard to any guidance issued by the Secretary of State.

(5)Where a determination under this section has effect in relation to a class of dwellings—

(a)the billing authority may not make a determination under section 11A(3), (4) or (4A) in relation to that class, and

(b)any determination that has been made under section 11A(3), (4) or (4A) ceases to have effect in relation to that class.

(6)A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year.

(7)Where a billing authority makes a determination under this section it must publish a notice of the determination in at least one newspaper circulating in the area.

(8)The notice must be published before the end of the period of 21 days beginning with the date of the determination.

(9)The validity of the determination is not affected by a failure to comply with subsection (7) or (8).

11DSection 11C: regulationsE+W

(1)The Secretary of State may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under section 11C.

(2)A class of dwellings may be prescribed under subsection (1) by reference to such factors as the Secretary of State thinks fit and may, amongst other factors, be prescribed by reference to—

(a)the physical characteristics of, or other matters relating to, dwellings;

(b)the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned.

(3)The Secretary of State may by regulations specify a different percentage limit for the limit which is for the time being specified in section 11C(1)(b).

(4)A statutory instrument containing regulations made under subsection (3) may not be made unless a draft of the instrument has been approved by resolution of the House of Commons.]

[F3712 Discounts: special provision for Wales.E+W

(1)The National Assembly for Wales may for any financial year by regulations prescribe one or more classes of dwelling in Wales for the purposes of subsection (3) or (4) below.

(2)A class of dwellings may be prescribed under subsection (1) above by reference to such factors as the Assembly sees fit and may, in particular, be prescribed by reference to—

(a)the physical characteristics of dwellings, or

(b)the fact that dwellings are unoccupied.

(3)For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in Wales may by determination provide in relation to all dwellings of that class in its area, or in such part of its area as it may specify in the determination, that the discount under section 11(2)(a) shall be such lesser percentage of at least 10 as it may so specify.

(4)For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in Wales may by determination provide in relation to all dwellings of that class in its area, or in such part of its area as it may specify in the determination—

(a)that the discount under section 11(2)(a) above shall not apply, or

(b)that the discount under that provision shall be such lesser percentage as it may so specify.

[F38(4A)Subsections (3) and (4) are subject to section 12A(6) and 12B(7).]

(5)A billing authority may make a determination varying or revoking a determination under subsection (3) or (4) for a financial year, but only before the beginning of the year.

(6)A billing authority which makes a determination under this section shall publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination.

(7)Failure to comply with subsection (6) above shall not affect the validity of a determination.]

[F3912AHigher amount for long-term empty dwellings: WalesE+W

(1)For any financial year, a billing authority in Wales may by determination provide in relation to its area that if on any day a dwelling is a long-term empty dwelling—

(a)the discount under section 11(2)(a) does not apply, and

(b)the amount of council tax payable in respect of that dwelling and that day is increased by such percentage of not more than [F40300] as it may specify in the determination.

(2)A billing authority may specify different percentages for different dwellings based on the length of time for which they have been long-term empty dwellings.

(3)In exercising its functions under this section a billing authority must have regard to any guidance issued by the Welsh Ministers.

(4)The Welsh Ministers may, by regulations, prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under this section.

(5)A class of dwellings may be prescribed under subsection (4) by reference to such factors as the Welsh Ministers think fit and may, amongst other factors, be prescribed by reference to—

(a)the physical characteristics of, or other matters relating to, dwellings;

(b)the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned.

(6)Where a determination under this section has effect in relation to a class of dwellings—

(a)the billing authority may not make a determination under section 12(3) or (4) in relation to that class, and

(b)any determination that has been made under section 12(3) or (4) ceases to have effect in relation to that class.

(7)A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year.

(8)Where a billing authority makes a determination under this section it must publish a notice of the determination in at least one newspaper circulating in its area.

(9)The notice must be published before the end of the period of 21 days beginning with the date of the determination.

(10)The validity of a determination is not affected by a failure to comply with subsection (8) or (9).

(11)For the purposes of this section, a dwelling is a “long-term empty dwelling” on any day if for a continuous period of at least 1 year ending with that day—

(a)it has been unoccupied, and

(b)it has been substantially unfurnished.

(12)In determining whether a dwelling is a long-term empty dwelling, no account is to be taken of—

(a)any period which pre-dates the coming into force of this section;

(b)any one or more periods of not more than 6 weeks during which one or both of the conditions in subsection (11) are not met.

(13)The Welsh Ministers may by regulations—

(a)substitute a different percentage limit for the limit which is for the time being specified in subsection (1)(b);

(b)substitute a different period, of not less than 1 year, for the period which is for the time being specified in subsection (11);

(c)substitute a different period, of not less than 6 weeks, for the period which is for the time being specified in subsection (12)(b).

(14)A statutory instrument containing regulations made under subsection (13)(a) or (b) may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the National Assembly for Wales.

(15)Any other statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

12BHigher amount for dwellings occupied periodically: WalesE+W

(1)For any financial year, a billing authority in Wales may by determination provide in relation to its area that if on any day the conditions mentioned in subsection (2) are satisfied in respect of a dwelling—

(a)the discount under section 11(2)(a) does not apply, and

(b)the amount of council tax payable in respect of that dwelling and that day is increased by such percentage of not more than [F41300] as it may specify in the determination.

(2)The conditions are—

(a)there is no resident of the dwelling, and

(b)the dwelling is substantially furnished.

(3)But a billing authority's first determination under this section must be made at least one year before the beginning of the financial year to which it relates.

(4)In exercising its functions under this section a billing authority must have regard to any guidance issued by the Welsh Ministers.

(5)The Welsh Ministers may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under this section.

(6)A class of dwellings may be prescribed under subsection (5) by reference to such factors as the Welsh Ministers think fit and may, amongst other factors, be prescribed by reference to—

(a)the physical characteristics of, or other matters relating to, dwellings;

(b)the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned.

(7)Where a determination under this section has effect in relation to a class of dwellings—

(a)the billing authority may not make a determination under section 12(3) or (4) in relation to that class, and

(b)any determination that has been made under section 12(3) or (4) ceases to have effect in relation to that class.

(8)A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year.

(9)Where a billing authority makes a determination under this section it must publish a notice of the determination in at least one newspaper circulating in its area.

(10)The notice must be published before the end of the period of 21 days beginning with the date of the determination.

(11)The validity of a determination is not affected by a failure to comply with subsection (9) or (10).

(12)The Welsh Ministers may by regulations specify a different percentage limit for the limit which is for the time being specified in subsection (1)(b).

(13)A statutory instrument containing regulations made under subsection (12) may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the National Assembly for Wales.

(14)Any other statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the National Assembly for Wales.]

13 Reduced amounts.E+W

(1)The Secretary of State may make regulations as regards any case where—

(a)a person is liable to pay an amount to a billing authority in respect of council tax for any financial year which is prescribed; and

(b)prescribed conditions are fulfilled.

(2)The regulations may provide that the amount he is liable to pay shall be an amount which—

(a)is less than the amount it would be apart from the regulations; and

(b)is determined in accordance with prescribed rules.

(3)This section applies whether the amount mentioned in subsection (1) above is determined under section 10 above or under that section read with section 11 [F42, 11A][F43, 11B] [F44, 11C] [F45, 12, 12A or 12B] above.

(4)The conditions mentioned in subsection (1) above may be prescribed by reference to such factors as the Secretary of State thinks fit; and in particular such factors may include the making of an application by the person concerned and all or any of—

(a)the factors mentioned in subsection (5) below; or

(b)the factors mentioned in subsection (6) below.

(5)The factors referred to in subsection (4)(a) above are—

(a)community charges for a period before 1st April 1993;

(b)the circumstances of, or other matters relating to, the person concerned;

(c)an amount relating to the authority concerned and specified, or to be specified, for the purposes of the regulations in a report laid, or to be laid, before the House of Commons;

(d)such other amounts as may be prescribed or arrived at in a prescribed manner.

(6)The factors referred to in subsection (4)(b) above are—

(a)a disabled person having his sole or main residence in the dwelling concerned;

(b)the circumstances of, or other matters relating to, that person;

(c)the physical characteristics of, or other matters relating to, that dwelling.

(7)The rules mentioned in subsection (2) above may be prescribed by reference to such factors as the Secretary of State thinks fit; and in particular such factors may include all or any of the factors mentioned in subsection (5) or subsection (6)(b) or (c) above.

(8)Without prejudice to the generality of section 113(2) below, regulations under this section may include—

(a)provision requiring the Secretary of State to specify in a report, for the purposes of the regulations, an amount in relation to each billing authority;

(b)provision requiring him to lay the report before the House of Commons;

(c)provision for the review of any prescribed decision of a billing authority relating to the application or operation of the regulations;

(d)provision that no appeal may be made to a valuation tribunal in respect of such a decision, notwithstanding section 16(1) below.

(9)To the extent that he would not have power to do so apart from this subsection, the Secretary of State may—

(a)include in regulations under this section such amendments of any social security instrument as he thinks expedient in consequence of the regulations under this section;

(b)include in any social security instrument such provision as he thinks expedient in consequence of regulations under this section.

(10)In subsection (9) above “social security instrument” means

[F46(a)]an order or regulations made, or falling to be made, by the Secretary of State under the Social Security Acts, that is to say, the M7Social Security Contributions and Benefits Act 1992 and the M8Social Security Administration Act 1992[F47; or

(b)regulations made, or falling to be made, under Part 4 of the Welfare Reform Act 2012.]

[F4813AReductions by billing authorityE+W

(1)The amount of council tax which a person is liable to pay in respect of any chargeable dwelling and any day (as determined in accordance with sections 10 to 13)—

(a)in the case of a dwelling situated in the area of a billing authority in England, is to be reduced to the extent, if any, required by the authority's council tax reduction scheme (see subsection (2));

(b)in the case of a dwelling situated in the area of a billing authority in Wales, is to be reduced to the extent, if any, required by any council tax reduction scheme made under regulations under subsection (4) that applies to that dwelling;

(c)in any case, may be reduced to such extent (or, if the amount has been reduced under paragraph (a) or (b), such further extent) as the billing authority for the area in which the dwelling is situated thinks fit.

(2)Each billing authority in England must make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings situated in its area, by—

(a)persons whom the authority considers to be in financial need, or

(b)persons in classes consisting of persons whom the authority considers to be, in general, in financial need.

(3)Schedule 1A (which contains provisions about schemes under subsection (2)) has effect.

(4)The Welsh Ministers may by regulations—

(a)require a person or body specified in the regulations to make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings to which the scheme applies, by persons to whom the scheme applies,

(b)impose requirements on that person or body regarding the matters which must be included in that scheme, and

(c)make other provision for and in connection with such schemes.

(5)Schedule 1B (which contains further provisions about regulations under subsection (4) and about schemes under those regulations) has effect.

(6)The power under subsection (1)(c) includes power to reduce an amount to nil.

(7)The power under subsection (1)(c) may be exercised in relation to particular cases or by determining a class of case in which liability is to be reduced to an extent provided by the determination.

(8)No regulations under subsection (4) are to be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the National Assembly for Wales.

(9)In this Part “council tax reduction scheme” means a scheme under subsection (2) or regulations under subsection (4).]

[F4913BTransitional arrangementsE+W

(1)The Secretary of State may by regulations make provision for the purpose of smoothing changes in council tax liability resulting from the coming into force in relation to a billing authority in England of—

(a)an order under section 5 above, or

(b)a list under section 22B below.

(2)The National Assembly for Wales may by regulations make provision for the purpose of smoothing changes in council tax liability resulting from the coming into force in relation to a billing authority in Wales of—

(a)an order under section 5 above, or

(b)a list under section 22B below.

(3)Regulations under this section may, in particular—

(a)make provision about the circumstances in which changes are to be smoothed;

(b)make provision for changes to be smoothed over such one or more financial years as may be specified in the regulations;

(c)make provision for liability for any financial year to be determined in accordance with such rules as may be so specified, which may result in liability being the same as or different from what it would otherwise be.

(4)Without prejudice to section 113(1) below, regulations under this section may make different provision for different financial years.

(5)To the extent that he would not have power to do so apart from this subsection, the Secretary of State may—

(a)include in regulations made by him under this section such amendments of any social security instrument as he thinks expedient in consequence of the regulations;

(b)include in any social security instrument such provision as he thinks expedient in consequence of regulations under this section.

(6)In subsection (5) above, “social security instrument” has the meaning given by section 13(10) above.]

Administration and appealsE+W

14 Administration, penalties and enforcement.E+W

(1)Schedule 2 to this Act (which contains provisions about administration, including collection) shall have effect.

(2)Schedule 3 to this Act (which contains provisions about civil penalties) shall have effect.

(3)Schedule 4 to this Act (which contains provisions about the recovery of sums due, including sums due as penalties) shall have effect.

[F50(4)Where a liability order has been made against a person under regulations under Schedule 4, the billing authority concerned may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (taking control of goods) to recover the amount in respect of which the order was made, to the extent that it remains unpaid.]

[F5114ARegulations about powers to require informationE+W

(1)The appropriate authority may by regulations provide for the exercise, for prescribed council tax purposes, of—

(a)powers to require the provision of information;

(b)powers to require a person to enter into arrangements under which access is permitted to the person's electronic records.

(2)The appropriate authority may by regulations make provision about arrangements for access to electronic records for prescribed council tax purposes where the arrangements are entered into otherwise than under a requirement of the kind mentioned in subsection (1)(b).

(3)The appropriate authority may by regulations—

(a)make provision about the persons by whom powers conferred by regulations under this section may be exercised;

(b)make provision about the persons by whom arrangements under regulations under this section may be made;

(c)in particular, make provision for the authorisation by billing authorities of persons to exercise those powers or make those arrangements.

(4)The provision that may be made by regulations under this section includes, in particular, provision equivalent to—

(a)provision made by a relevant enactment, or

(b)provision that is capable of being made under a relevant enactment,

with such modifications as the appropriate authority thinks fit.

(5)For the purposes of subsection (4), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”—

(a)section 109A(8) of the Social Security Administration Act 1992 (application of section 109B of that Act to the Crown);

(b)section 109B of that Act (powers to require information);

(c)section 110A of that Act (authorisations by local authorities to exercise powers of investigation);

(d)section 110AA of that Act (power of local authority to require electronic access to information);

(e)section 121DA of that Act (interpretation of Part 6 of that Act);

(f)section 191 of that Act (interpretation of that Act).

(6)This section does not affect the operation of Schedule 2 (administration of council tax).

(7)In this section “council tax purposes” means purposes relating to a person's liability to pay council tax.

14BRegulations about offencesE+W

(1)The appropriate authority may by regulations provide for the creation of offences that may be committed by a person in prescribed circumstances—

(a)by intentionally delaying or obstructing a person in the exercise of a power conferred by regulations under section 14A(1);

(b)by refusing or failing to comply with any requirement under regulations under section 14A(1)(b) or with the requirements of any arrangements entered into in accordance with such regulations;

(c)by refusing or failing, when required to do so by or under this Act or by or under regulations made under this Act, to provide any information or document in connection with a person's liability to pay council tax;

(d)by making a false statement or representation in connection with such liability;

(e)by providing, or causing or allowing to be provided, in connection with such liability, a document or information which is false;

(f)by failing to notify, or causing or allowing a person to fail to notify, a matter that is relevant to such liability (including in particular any matter that is required to be notified by or under this Act or by or under regulations made under this Act).

(2)Regulations under subsection (1)(a), (b) or (c)—

(a)must provide for an offence under the regulations to be triable only summarily;

(b)may not provide for such an offence to be punishable with a fine exceeding level 3 on the standard scale.

(3)Regulations under subsection (1)(a), (b) or (c)—

(a)may provide, in a case where a person is convicted of an offence under the regulations and the act or omission constituting the offence continues after the conviction, for the person to be guilty of a further offence and liable on summary conviction to a daily fine;

(b)may not provide for the daily fine to exceed £40.

(4)Regulations under subsection (1)(d), (e) or (f) that create an offence that may only be committed by a person acting dishonestly—

(a)must provide for the offence to be triable summarily or on indictment;

(b)may not provide for the offence to be punishable on summary conviction with imprisonment for a term exceeding [F52the general limit in a magistrates’ court] or with a fine exceeding the statutory maximum;

(c)may not provide for the offence to be punishable on conviction on indictment with imprisonment for a term exceeding 7 years (and may provide for the offence to be punishable on conviction on indictment with a fine).

(5)Regulations under this section that create an offence within subsection (4) that may be committed before [F532 May 2022] may not provide for such an offence committed before that date to be punishable on summary conviction with imprisonment for a term exceeding 6 months.

(6)Regulations under subsection (1)(d), (e) or (f) that create an offence that may be committed by a person acting otherwise than dishonestly—

(a)must provide for the offence to be triable only summarily;

(b)may not provide for the offence to be punishable with imprisonment for a term exceeding 51 weeks or with a fine exceeding level 5 on the standard scale.

(7)Regulations under this section that create an offence within subsection (6) that may be committed before the date that section 281(5) of the Criminal Justice Act 2003 comes into force may not provide for such an offence committed before that date to be punishable with imprisonment for a term exceeding 3 months.

(8)The appropriate authority may by regulations make provision—

(a)about defences to an offence under regulations under this section;

(b)about the commission by a body corporate of such an offence;

(c)about the conduct of proceedings for such an offence;

(d)about the time limits for bringing such proceedings;

(e)about the determination of issues arising in such proceedings;

(f)about other matters of procedure and evidence in relation to such offences.

(9)The provision that may be made by regulations under this section includes, in particular, provision equivalent to—

(a)provision made by a relevant enactment, or

(b)provision that is capable of being made under a relevant enactment,

with such modifications as the appropriate authority thinks fit.

(10)For the purposes of subsection (9), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”—

(a)section 111 of the Social Security Administration Act 1992 (offences relating to powers under that Act);

(b)section 111A of that Act (dishonest representations for obtaining benefit etc);

(c)section 112 of that Act (false representations for obtaining benefit etc.);

(d)section 115 of that Act (offences by bodies corporate);

(e)section 116 of that Act (legal proceedings);

(f)section 121DA of that Act (interpretation of Part 6 of that Act);

(g)section 191 of that Act (interpretation of that Act).

14CRegulations about penaltiesE+W

(1)The appropriate authority may by regulations make provision for the imposition of a penalty by a billing authority on a person where in prescribed circumstances—

(a)that person's act or omission results or could result in the amount of council tax that a person (“P”) is liable to pay being reduced or subject to a discount, and

(b)P is not or will not be entitled to that reduction or discount.

(2)The appropriate authority may by regulations make provision for the imposition of a penalty by a billing authority on a person where in prescribed circumstances—

(a)that person's act or omission results or could result in a dwelling in respect of which a person (“P”) would otherwise be liable to pay council tax being treated as an exempt dwelling for a period, and

(b)the dwelling is not or will not be an exempt dwelling for all or part of that period.

(3)Regulations under this section must—

(a)make provision with the effect that a penalty may only be imposed on a person where the person agrees to the imposition of the penalty as an alternative to criminal proceedings being taken against the person in respect of the act or omission to which the penalty relates,

(b)make provision with the effect that a penalty may only be imposed on a person where the person has not been charged with an offence in respect of the act or omission to which the penalty relates, or

(c)make provision within paragraph (a) and (b).

(4)Where—

(a)regulations under this section specify a sum as a penalty (or a minimum or maximum penalty), and

(b)it appears to the Treasury that there has been a change in the value of money since those regulations were made or (as the case may be) the last occasion when an order under this subsection was made,

the Treasury may by order substitute for that sum such other sum as appears to them to be justified by the change.

(5)An order under subsection (4) does not apply in relation to any act done or omission which began before the date on which the order comes into force.

(6)This section does not affect the operation of paragraph 1 of Schedule 3 (penalties).

(7)The provision that may be made by regulations under this section includes, in particular, provision equivalent to—

(a)provision made by a relevant enactment, or

(b)provision that is capable of being made under a relevant enactment,

with such modifications as the appropriate authority thinks fit.

(8)For the purposes of subsection (7), each of the following is a “relevant enactment”—

(a)section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution);

(b)section 115B of that Act (penalty as alternative to prosecution: colluding employers etc);

(c)section 115C of that Act (penalties in respect of incorrect statements etc);

(d)section 115D of that Act (penalties in respect of failures to disclose information);

(e)section 121DA of that Act (interpretation of Part 6 of that Act);

(f)section 191 of that Act (interpretation of that Act).

(9)The reference in subsection (8)—

(a)to section 115C or 115D of the Social Security Administration Act 1992 is to that section without the repeals in it contained in Part 1 of Schedule 14 to the Welfare Reform Act 2012;

(b)to any other provision of that Act is to the provision as it had effect on the day on which the Local Government Finance Act 2012 was passed.

14DSections 14A to 14C: supplementaryE+W

(1)In sections 14A to 14C—

• “the appropriate authority” means—

  (a)

  the Secretary of State, in relation to England, and

  (b)

  the Welsh Ministers, in relation to Wales;

• “prescribed”, in relation to regulations made by the Welsh Ministers, means prescribed by such regulations.

(2)A statutory instrument containing regulations made by the Secretary of State under any of sections 14A to 14C may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(3)A statutory instrument containing regulations made by the Welsh Ministers under any of sections 14A to 14C may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.]

15 Valuation tribunals.E+W

(1)Valuation and community charge tribunals established under Schedule 11 to the 1988 Act shall be known as valuation tribunals.

(2)Such tribunals shall exercise, in addition to the jurisdiction conferred on them by or under the 1988 Act, the jurisdiction conferred on them by—

(a)section 16 below;

(b)regulations made under section 24 below; and

(c)paragraph 3 of Schedule 3 to this Act.

16 Appeals: general.E+W

(1)A person may appeal to a valuation tribunal if he is aggrieved by—

(a)any decision of a billing authority that a dwelling is a chargeable dwelling, or that he is liable to pay council tax in respect of such a dwelling; or

(b)any calculation made by such an authority of an amount which he is liable to pay to the authority in respect of council tax.

(2)In subsection (1) above the reference to any calculation of an amount includes a reference to any estimate of the amount.

(3)Subsection (1) above shall not apply where the grounds on which the person concerned is aggrieved fall within such category or categories as may be prescribed.

(4)No appeal may be made under subsection (1) above unless—

(a)the aggrieved person serves a written notice under this subsection; and

(b)one of the conditions mentioned in subsection (7) below is fulfilled.

(5)A notice under subsection (4) above must be served on the billing authority concerned.

(6)A notice under subsection (4) above must state the matter by which and the grounds on which the person is aggrieved.

(7)The conditions are that—

(a)the aggrieved person is notified in writing, by the authority on which he served the notice, that the authority believes the grievance is not well founded, but the person is still aggrieved;

(b)the aggrieved person is notified in writing, by the authority on which he served the notice, that steps have been taken to deal with the grievance, but the person is still aggrieved;

(c)the period of two months, beginning with the date of service of the aggrieved person’s notice, has ended without his being notified under paragraph (a) or (b) above.

(8)Where a notice under subsection (4) above is served on an authority, the authority shall—

(a)consider the matter to which the notice relates;

(b)include in any notification under subsection (7)(a) above the reasons for the belief concerned;

(c)include in any notification under subsection (7)(b) above a statement of the steps taken.

MiscellaneousE+W

17 Completion of new dwellings.E+W

(1)Subject to the provisions of this section, Schedule 4A to the M9 1988 Act (which makes provision with respect to the determination of a day as the completion day in relation to a new building) shall, with the exception of paragraph 6, apply for the purposes of this Part as it applies for the purposes of Part III of that Act.

(2)Any reference in this section to the Schedule is a reference to Schedule 4A to the 1988 Act as it applies for the purposes of this Part.

(3)Where—

(a)a completion notice is served under the Schedule; and

(b)the building to which the notice relates is not completed on or before the relevant day,

any dwelling in which the building or any part of it will be comprised shall be deemed for the purposes of this Part to have come into existence on that day.

(4)For the purposes of subsection (3) above the relevant day in relation to a completion notice is—

(a)where [F54no appeal] against the notice is brought under paragraph 4 of the Schedule, the day stated in the notice; and

(b)where [F55an appeal] against the notice is brought under that paragraph, the day determined under the Schedule as the completion day in relation to the building to which the notice relates.

(5)Where—

(a)a day is determined under the Schedule as the completion day in relation to a new building; and

(b)the building is one produced by the structural alteration of a building which is comprised in one or more existing dwellings,

the existing dwelling or dwellings shall be deemed for the purposes of this Part to have ceased to exist on that day.

(6)Any reference in this section or the Schedule to a new building includes a reference to a building produced by the structural alteration of an existing building where—

(a)the existing building or any part of it is comprised in a dwelling which, by virtue of the alteration, becomes, or becomes part of, a different dwelling or different dwellings; or

(b)neither the existing building nor any part of it is, except by virtue of the alteration, comprised in any dwelling.

(7)Any reference in this section to a building includes a reference to a part of a building; and any reference in the Schedule to the valuation officer shall be construed as a reference to the listing officer.

18 Death of persons liable.E+W

(1)The Secretary of State may make such regulations as he thinks fit to deal with any case where a person dies and at any time before his death—

(a)he was (or is alleged to have been) liable to pay council tax under section 6, 7 or 8 above;

(b)he was (or is alleged to have been) so liable, as spouse [F56or civil partner] , under section 9 above; or

(c)a penalty was imposed on him [F57under regulations under section 14C or] under paragraph 1 of Schedule 3 to this Act.

(2)Nothing in the following provisions of this section shall prejudice the generality of subsection (1) above.

(3)The regulations may provide that where before his death a sum has become payable by the deceased but has not been paid his executor or administrator shall be liable to pay the sum and may deduct out of the assets and effects of the deceased any payments made (or to be made).

(4)The regulations may provide that where before his death a sum in excess of his liability has been paid (whether the excess arises because of his death or otherwise) and has not been repaid or credited his executor or administrator shall be entitled to the sum.

(5)The regulations may provide for the recovery of any sum which is payable under the regulations and is not paid.

(6)The regulations may provide that proceedings (whether by way of appeal or otherwise) may be instituted, continued or withdrawn by the deceased’s executor or administrator.

F5819 Exclusion of Crown exemption in certain cases.E+W

(1)Subsection (2) below applies in the case of a dwelling provided and maintained by an authority mentioned in subsection (3) below for purposes connected with the administration of justice, police purposes or other Crown purposes.

(2)Any rules as to Crown exemption which would have applied apart from this subsection shall not prevent—

(a)the dwelling being a chargeable dwelling; or

(b)any person being liable to pay council tax in respect of the dwelling.

(3)The authorities are—

(a)a billing authority other than the Council of the Isles of Scilly;

(b)a county council;

[F59(bb)the Greater London Authority;

(bc)any functional body, within the meaning of the Greater London Authority Act 1999;]

[F60(c)a police and crime commissioner;]

(ca)F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(cb)F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F62(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)the Receiver for the Metropolitan Police District; F63. . .

F64(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F65(g)The Residuary Body for Wales (Corff Gweddilliol Cymru).]

(4)The Secretary of State may by order provide that subsection (2) above shall also apply in relation to any dwelling of a class prescribed by the order.

(5)Subsections (3) and (4) of section 4 above shall apply for the purposes of subsection (4) above as they apply for the purposes of subsection (2) of that section.

Chapter IIE+W Valuation Lists

PreliminaryE+W

20 Listing officers.E+W

(1)The Commissioners of Inland Revenue shall appoint a listing officer for each billing authority.

(2)The remuneration of, and any expenses incurred by, listing officers in carrying out their functions (including the remuneration and expenses of persons, whether or not in the service of the Crown, to assist them) shall be paid out of money provided by Parliament.

(3)Any reference in this Chapter to a listing officer’s or the Commissioners’ functions is a reference to the functions imposed or conferred on him or them by or under this Chapter.

The listsE+W

21 Valuations for purposes of lists.E+W

(1)The Commissioners of Inland Revenue shall—

(a)carry out such valuations of dwellings in England and Wales;

(b)furnish listing officers with such information obtained in carrying out the valuations or in the exercise of the powers conferred by section 27 below; and

(c)disclose to such officers such contents of particulars delivered documents,

as they consider necessary or expedient for the purpose of facilitating the compilation and maintenance by those officers of valuation lists in accordance with this Chapter.

(2)The valuations shall be carried out by reference to [F66the appropriate date] and on such assumptions and in accordance with such principles as may be prescribed.

[F67(2A)For the purposes of subsection (2) above, the appropriate date is—

(a)in relation to a list under section 22, 1st April 1991, and

(b)in relation to a list under section 22B, the later of—

(i)two years before the date on which the list falls to be compiled, and

(ii)such date, if any, within that two year period as may be specified by regulations.

(2B)The power to make regulations under subsection (2A)(b)(ii) is exercisable—

(a)in relation to a list to be compiled for a billing authority in England, by the Secretary of State, and

(b)in relation to a list to be compiled for a billing authority in Wales, by the National Assembly for Wales.]

(3)Without prejudice to the generality of their powers, the Commissioners of Inland Revenue may appoint persons who are not in the service of the Crown to assist them in carrying out the valuations.

(4)For the purposes of the valuations the Commissioners of Inland Revenue may disclose to a person appointed under subsection (3) above—

(a)any survey report obtained for any purpose of rating, including non-domestic rating; and

(b)any information obtained in the exercise of the powers conferred by section 27 below.

(5)If any person to whom any report or information is disclosed by virtue of subsection (4) above uses or discloses the report or information, in whole or in part, otherwise than for the purposes of the valuations, he shall be liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both; and

(b)on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum or both.

(6)Except as provided by subsection (4) above, nothing in this section permits the disclosure to any person appointed under subsection (3) above of information which is subject to the rules of confidentiality applicable to the Commissioners of Inland Revenue.

22 Compilation and maintenance of lists.E+W

(1)In accordance with this Chapter, the listing officer for a billing authority shall compile, and then maintain, a list for the authority (to be called its valuation list).

(2)The list must be compiled on 1st April 1993 [F68, shall come into force on that day and shall remain in force until a new list for the authority is compiled under section 22B below] .

(3)Before the list is compiled the listing officer must take such steps as are reasonably practicable in the time available to ensure that it is accurately compiled on 1st April 1993.

(4)Any valuation of a dwelling carried out by the listing officer in pursuance of subsection (3) above shall be carried out in accordance with section 21(2) above.

(5)At the following times, namely—

(a)not later than 1st September 1992; and

(b)not earlier than 15th November 1992 and not later than 1st December 1992,

the listing officer shall send to the billing authority a copy of the list which he proposes (on the information then before him) to compile.

(6)As soon as reasonably practicable after receiving the copy under subsection (5)(b) above the authority shall deposit it at its principal office and take such steps as it thinks most suitable for giving notice of it.

(7)As soon as reasonably practicable after compiling a list the listing officer shall send a copy of it to the authority.

(8)As soon as reasonably practicable after receiving the copy under subsection (7) above the authority shall deposit it at its principal office.

(9)The list must be maintained for so long as is necessary for the purposes of this Part.

[F6922A Amalgamated valuation lists for Welsh billing authorities.E+W

(1)Every new listing officer shall, on 1st April 1996, compile a list (“the amalgamated list”) for the new billing authority for which he is appointed, based on the information provided for him under this section.

(2)The amalgamated list shall contain the information which was included in the valuation lists compiled on 1st April 1993 for the old billing authorities (“the current lists”) so far as that information is relevant.

(3)The amalgamated list shall also include the information which was included in any current list by way of an alteration, so far as that information is relevant.

(4)A new listing officer’s amalgamated list shall be treated, for the purposes of this Act, as the valuation list for his new billing authority and shall be deemed to have come into force on 1st April 1993.

(5)Where an amalgamated list contains information which is derived from any alteration made to any valuation list or lists from which it is derived, the amalgamated list shall be treated as having been varied on the date on which the alteration was made.

(6)Subsections (2) to (8) of section 22 above shall not apply in relation to an amalgamated list.

(7)Every listing officer shall—

(a)on or before 15th November 1995, provide the appropriate new listing officer with the information recorded in his valuation list as at 31st October 1995 so far as it is relevant; and

(b)on 31st March 1996, provide the appropriate new listing officer with the information recorded in his valuation list as at that date, so far as it is relevant.

(8)A new listing officer receiving any information under subsection (7)(a) above shall send a copy of it to his new billing authority as soon as is reasonably practicable.

(9)As soon as is reasonably practicable after compiling the amalgamated list, a new listing officer shall send a copy of it to his new billing authority.

(10)A new billing authority receiving a copy of an amalgamated list under subsection (9) above shall, as soon as is reasonably practicable, deposit it at its principal office.

(11)In this section—

• “old authority” has the same meaning as in the Local Government (Wales) Act 1994;

• “old billing authority” means a billing authority which is an old authority;

• “new billing authority” means a billing authority which is a new principal council;

• “listing officer” means a listing officer for an old billing authority;

• “new listing officer” means a listing officer for a new billing authority; and

• “new principal council” has the same meaning as in the Local Government (Wales) Act 1994.

(12)For the purposes of this section—

(a)references to a listing officer’s valuation list are references to the valuation list maintained by him under this Act;

(b)a new listing officer’s area is the area of the new billing authority for which he is appointed;

(c)the appropriate new listing officer, in relation to any information which relates to a dwelling is the new listing officer for the new billing authority in whose area the dwelling is situated; and

(d)information is relevant in relation to a new listing officer, or his area, if it relates to a dwelling which is in his area.]

[F7022BCompilation and maintenance of new listsE+W

(1)The listing officer for a billing authority shall compile, and then maintain, new lists for the authority in accordance with this Chapter (each such list to be called its valuation list).

[F71(1A)A new list must be compiled, in relation to billing authorities in England, on 1 April in each year specified by order made by the Secretary of State.]

(2)A new list must be compiled—

(a)F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)in relation to billing authorities in Wales, on 1 April 2005.

(3)After that, a new list must be compiled [F73in relation to billing authorities in Wales] on [F741 April in each year specified by order made by the Welsh Ministers.]

(4)A new list shall come into force on the day on which it is compiled and shall remain in force until the next such list is compiled.

(5)The duty to maintain a list compiled under this section continues for so long as is necessary for the purposes of this Part and is not affected by the list ceasing to be in force.

(6)Before a list is compiled under this section, the listing officer must take such steps as are reasonably practicable in the time available to ensure that it is accurately compiled on the date on which it is to be compiled.

(7)Where a list is to be compiled under this section, the listing officer for a billing authority shall send the authority a copy of the list he proposes to compile (on the information then before him) not later than 1st September before the date on which it is to be compiled.

(8)As soon as reasonably practicable after receiving a copy list under subsection (7) above, a billing authority shall deposit it at its principal office and take such steps as it thinks most suitable for giving notice of it.

(9)As soon as reasonably practicable after the listing officer for a billing authority has compiled a list under this section, he shall send a copy of it to the authority.

(10)As soon as reasonably practicable after receiving a copy list under subsection (9) above, a billing authority shall deposit it at its principal office.

(11)No order under [F75subsection (1A)] above may be made unless a draft of the order has been laid before, and approved by resolution of, the House of Commons.]

[F76(12)No order under subsection (3) may be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the National Assembly for Wales.]

23 Contents of lists.E+W

(1)A valuation list must show, for each day for which it is in force, each dwelling which is situated in the billing authority’s area.

(2)For each day on which a dwelling is shown in a list, the list must also show which of the valuation bands is applicable to the dwelling.

(3)A list must also contain such information about dwellings shown in it as may be prescribed.

(4)The omission from a list of any matter required to be included in it shall not of itself render the list invalid.

(5)Any rules as to Crown exemption which would have applied apart from this subsection shall not prevent a list showing a dwelling, showing the valuation band applicable to a dwelling and containing any prescribed information about a dwelling.

24 Alteration of lists.E+W

(1)The Secretary of State may make regulations about the alteration by listing officers of valuation lists which have been compiled under this Chapter; and subsections (2) to (10) below shall apply for the purposes of this subsection.

(2)The regulations may include provision that where a listing officer intends to alter the list with a view to its being accurately maintained, he shall not alter it unless prescribed conditions (as to notice or otherwise) are fulfilled.

(3)The regulations may include provision that any valuation of a dwelling carried out in connection with a proposal for the alteration of the list shall be carried out in accordance with section 21(2) above.

(4)The regulations may include provision that no alteration shall be made of a valuation band shown in the list as applicable to any dwelling unless—

(a)since the valuation band was first shown in the list as applicable to the dwelling—

(i)there has been a material increase in the value of the dwelling and a relevant transaction has been subsequently carried out in relation to the whole or any part of it;

(ii)there has been a material reduction in the value of the dwelling;

(iii)the dwelling has become or ceased to be a composite hereditament for the purposes of Part III of the 1988 Act; or

(iv)in the case of a dwelling which continues to be such a hereditament, there has been an increase or reduction in its domestic use,

and (in any case) prescribed conditions are fulfilled;

(b)the listing officer is satisfied that—

(i)a different valuation band should have been determined by him as applicable to the dwelling; or

(ii)the valuation band shown in the list is not that determined by him as so applicable; or

(c)an order of a valuation tribunal or of the High Court requires the alteration to be made.

(5)The regulations may include provision—

(a)as to who (other than a listing officer) may make a proposal for the alteration of the list with a view to its being accurately maintained;

(b)as to the manner and circumstances in which a proposal may be made and the information to be included in a proposal;

(c)as to the period within which a proposal must be made;

(d)as to the procedure for and subsequent to the making of a proposal;

(e)as to the circumstances in which and the conditions upon which a proposal may be withdrawn; and

(f)requiring the listing officer to inform other prescribed persons of the proposal in a prescribed manner.

(6)The regulations may include provision that, where there is a disagreement between the listing officer and another person making a proposal for the alteration of a list—

(a)about the validity of the proposal; or

(b)about the accuracy of the list,

an appeal may be made to a valuation tribunal.

(7)The regulations may include—

(a)provision as to the period for which or day from which an alteration of a list is to have effect (including provision that it is to have retrospective effect);

(b)provision requiring a list to be altered so as to indicate the effect (retrospective or otherwise) of the alteration;

(c)provision requiring the listing officer to inform prescribed persons of an alteration within a prescribed period;

(d)provision requiring the listing officer to keep for a prescribed period a record of the state of the list before the alteration was made.

(8)The regulations may include provision as to financial adjustments to be made as a result of alterations, including—

(a)provision requiring payments or repayments to be made; and

(b)provision as to the recovery (by deduction or otherwise) of sums due.

(9)The regulations may include provision that where—

(a)the listing officer for a billing authority has informed the authority of an alteration of the list; and

(b)a copy of the list has been deposited by the authority under section 22(8) [F77, 22A(10) or 22B(10)] above,

the authority must alter the copy accordingly.

(10)In this section—

• “domestic use”, in relation to a dwelling, means use in such a manner as to constitute it domestic property for the purposes of Part III of the 1988 Act;

• “material increase”, in relation to the value of a dwelling, means any increase which is caused (in whole or in part) by any building, engineering or other operation carried out in relation to the dwelling, whether or not constituting development for which planning permission is required;

• “material reduction”, in relation to the value of a dwelling, means any reduction which is caused (in whole or in part) by the demolition of any part of the dwelling, any change in the physical state of the dwelling’s locality or any adaptation of the dwelling to make it suitable for use by a physically disabled person;

• “relevant transaction” means a transfer on sale of the fee simple, a grant of a lease for a term of seven years or more or a transfer on sale of such a lease.

25 Compilation and maintenance of new lists.E+W

F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SupplementalE+W

[F7925A.Powers of entry: EnglandE+W

(1)If a valuation officer needs to value a dwelling in England for the purpose of carrying out any of the officer’s functions, the officer and any servant of the Crown authorised by the officer in writing may enter on, survey and value the dwelling if subsections (2) and (4) are fulfilled and (where it applies) subsection (5) is fulfilled.

(2)The valuation officer must obtain the approval of the tribunal before the officer or a person authorised by the officer exercises the power under subsection (1).

(3)The tribunal must not give its approval unless it is satisfied that the valuation officer needs to value the dwelling.

(4)After the tribunal has given its approval, at least 3 days’ notice in writing must be given of the proposed exercise of the power.

(5)In a case where a person authorised by a valuation officer proposes to exercise the power, that person must if required produce the authorisation.

(6)A person who intentionally delays or obstructs a person in the exercise of a power under this section is liable on summary conviction to a fine not exceeding level 1 on the standard scale.

(7)For the purpose of the requirement under subsection (4), the following days are to be disregarded—

(a)a Saturday, a Sunday, Christmas Day or Good Friday;

(b)a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in England and Wales.

(8)The tribunal may—

(a)determine any application brought under this section and any question arising from that application;

(b)specify the arrangements by which any entry approved by it must be conducted, including whether the entry may occur on more than one day.

(9)In this section—

• “the tribunal” means the First-tier Tribunal, and

• “valuation officer” means any listing officer and any other officer of Revenue and Customs who is for the time being appointed by the Commissioners of Her Majesty’s Revenue and Customs to carry out any of their functions.]

26 Powers of entry[F80: Wales] E+W

(1)If a valuation officer needs to value a dwelling [F81in Wales] for the purpose of carrying out any of his functions, he and any servant of the Crown authorised by him in writing may enter on, survey and value the dwelling if subsections (2) and (3) below are fulfilled.

(2)At least three clear days’ notice in writing of the proposed exercise of the power must be given; and there shall be disregarded for this purpose any day which is—

(a)a Saturday, a Sunday, Christmas Day or Good Friday; or

(b)a day which is a bank holiday under the M10Banking and Financial Dealings Act 1971 in England and Wales.

(3)In a case where a person authorised by a valuation officer proposes to exercise the power, that person must if required produce his authority.

(4)If a person intentionally delays or obstructs a person in the exercise of a power under this section, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(5)In this section and section 27 below “valuation officer” means any listing officer and any other officer of the Commissioners of Inland Revenue who is for the time being appointed by them to carry out any of their functions.

27 Information about properties.E+W

(1)In any case where—

(a)a notice is served by a listing officer or the Commissioners of Inland Revenue on a charging or billing authority, a community charges registration officer or any other person prescribed for the purposes of this subsection;

(b)the notice requests the supply of information of a description specified in the notice; and

(c)the information relates to property and is information which the listing officer or the Commissioners reasonably believe will assist him or them in carrying out any of his or their functions,

the authority, officer or other person shall supply the information requested, and shall do so in such form and manner and at such time as the listing officer or the Commissioners specify in the notice.

(2)For the purpose of carrying out any of his functions, a valuation officer may serve on a person who is or has been an owner or occupier of any dwelling a notice—

(a)requesting him to supply to the officer information which is of a description specified in the notice; and

(b)stating that the officer believes the information requested will assist him in carrying out his functions.

(3)A person on whom a notice is served under subsection (2) above shall supply the information requested if it is in his possession or control, and shall do so in such form and manner as is specified in the notice and within the period of 21 days beginning with the day on which the notice is served.

(4)If a person on whom a notice has been served under subsection (2) above fails without reasonable excuse to comply with subsection (3) above, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(5)If, in supplying information in purported compliance with subsection (3) above, a person on whom a notice has been served under subsection (2) above—

(a)makes a statement which he knows to be false in a material particular; or

(b)recklessly makes a statement which is false in a material particular,

he shall be liable on summary conviction to imprisonment for a term not exceeding three months or a fine not exceeding level 3 on the standard scale or both.

(6)If in the course of the exercise of its functions any information comes to the notice of a charging or billing authority which it considers would assist a listing officer in carrying out any of his functions, it shall be the authority’s duty to inform the listing officer.

(7)In carrying out any of his or their functions, a listing officer or the Commissioners of Inland Revenue may also take into account any other information available to him or them, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act.

(8)In this section—

• “charging authority” shall be construed in accordance with section 144(1) of the 1988 Act;

• “community charges registration officer” shall be construed in accordance with section 26 of that Act.

28 Information about lists.E+W

(1)A person may require a listing officer to give him access to such information as will enable him to establish what is the state of a list, or has been its state at any time since it came into force, if—

(a)the officer is maintaining the list; and

(b)the list is in force or has been in force at any time in the preceding five years.

(2)A person may require a billing authority to give him access to such information as will enable him to establish what is the state of a copy of a list, or has been its state at any time since it was deposited, if—

(a)the authority has deposited the copy under section 22(8) [F82, 22A(10) or 22B(10)] above; and

(b)the list is in force or has been in force at any time in the preceding five years.

(3)A person may require a billing authority to give him access to such information as will enable him to establish what is the state of a copy of a proposed list if—

(a)the authority has deposited the copy under section 22(6) [F83or 22B(8)] above; and

(b)the list itself is not yet in force.

(4)A requirement under subsection (1), (2) or (3) above must be complied with at a reasonable time and place and without payment being sought; but the information may be in documentary or other form, as the person or authority of whom the requirement is made thinks fit.

(5)Where access is given under this section to information in documentary form the person to whom access is given may—

(a)make copies of (or of extracts from) the document;

(b)require a person having custody of the document to supply to him a photographic copy of (or of extracts from) the document.

(6)Where access is given under this section to information in a form which is not documentary the person to whom access is given may—

(a)make transcripts of (or of extracts from) the information;

(b)require a person having control of access to the information to supply to him a copy in documentary form of (or of extracts from) the information.

(7)If a reasonable charge is required for a facility under subsection (5) or (6) above, the subsection concerned shall not apply unless the person seeking to avail himself of the facility pays the charge.

(8)If without reasonable excuse a person having custody of a document containing, or having control of access to, information access to which is sought under this section—

(a)intentionally obstructs a person in exercising a right under subsection (1), (2), (3), (5)(a) or (6)(a) above; or

(b)refuses to comply with a requirement under subsection (5)(b) or (6)(b) above,

he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

29 Information about proposals and appeals.E+W

(1)A person may, at a reasonable time and without making payment, inspect any proposal made or notice of appeal given under regulations made under section 24 above, if made or given as regards a list which is in force when inspection is sought or has been in force at any time in the preceding five years.

(2)A person may—

(a)make copies of (or of extracts from) a document mentioned in subsection (1) above; or

(b)require a person having custody of such a document to supply to him a photographic copy of (or of extracts from) the document.

(3)If a reasonable charge is required for a facility under subsection (2) above, that subsection shall not apply unless the person seeking to avail himself of the facility pays the charge.

(4)If without reasonable excuse a person having custody of a document mentioned in subsection (1) above—

(a)intentionally obstructs a person in exercising a right under subsection (1) or (2)(a) above; or

(b)refuses to supply a copy to a person entitled to it under subsection (2)(b) above,

he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

Chapter IIIE+W Setting of Council Tax

Setting of amountsE+W

30 Amounts for different categories of dwellings.E+W

(1)For each financial year and each category of dwellings in its area, a billing authority shall, in accordance with subsection (2) below, set an amount of council tax.

(2)An amount so set shall be calculated by taking the aggregate of—

(a)the amount which, in relation to the year and the category of dwellings, has been calculated (or last calculated) by the authority in accordance with [F84—

(i)in the case of a billing authority in England, sections 31A, 31B and 34 to 36 below, or

(ii)in the case of a billing authority in Wales, sections 32 to 36 below;] and

(b)any amounts which, in relation to the year and the category of dwellings [F85—

(i)in the case of a billing authority in England, have been calculated in accordance with sections 42A, 42B and 45 to 47 below and have been stated (or last stated) in accordance with section 40 below in precepts issued to the authority by major precepting authorities, or

(ii)in the case of a billing authority in Wales, have been calculated in accordance with sections 43 to 47 below and have been stated (or last stated) in accordance with section 40 below in precepts issued to the authority by major precepting authorities.]

(3)Where the aggregate amount given by subsection (2) above is a negative amount, the amount set shall be nil.

(4)Dwellings fall within different categories for the purposes of subsections (1) and (2) above according as different calculations have been made in relation to them in accordance with [F86—

(a)in the case of a billing authority in England, sections 31A, 31B and 34 to 36 below, or sections 42A, 42B and 45 to 47 below, or both, or

(b)in the case of a billing authority in Wales, sections 32 to 36 below, or sections 43 to 47 below, or both.]

(5)A billing authority shall assume for the purposes of subsections (1) and (2) above that each of the valuation bands is shown in its valuation list as applicable to one or more dwellings situated in its area or (as the case may be) each part of its area as respects which different calculations have been so made.

(6)Any amount must be set before 11th March in the financial year preceding that for which it is set, but is not invalid merely because it is set on or after that date.

(7)No amount may be set before the earlier of the following—

(a)1st March in the financial year preceding that for which the amount is set;

(b)the date of the issue to the authority of the last precept capable of being issued to it (otherwise than by way of substitute) by a major precepting authority for the financial year for which the amount is set.

(8)No amount may be set unless the authority has made in relation to the year the calculations required by this Chapter.

(9)A purported setting of an amount, if done in contravention of subsection (7) or (8) above, shall be treated as not having occurred.

[F87(10)Where the major precepting authority in question is the Greater London Authority, subsections (2)(b) and (4) above shall have effect as if the references to sections 43 to 47 below were references to the appropriate Greater London provisions.

(11)In this section, “the appropriate Greater London provisions” means—

(a)sections 85 to 90 of the Greater London Authority Act 1999 and section 47 below; or

(b)in the case of calculations by way of substitute, sections 85, 86 and 88 to 90 of, and Schedule 7 to, that Act and section 47 below.]

31 Substituted amounts.E+W

(1)Where a billing authority has set amounts for a financial year under section 30 above and at any later time—

(a)it makes substitute calculations under section [F8836A,] 37 [F89, 52I or 52T] below;

[F90(aa)substitute calculations it has made under section 52ZF below have effect by virtue of section 52ZH or 52ZI below; or]

(b)it is issued with a precept for the year (originally or by way of substitute) by a major precepting authority,

it shall as soon as reasonably practicable after that time set amounts in substitution so as to give effect to those calculations or that precept.

(2)Any amount set in substitution under subsection (1) above must be set in accordance with section 30 above, but subsection (6) of that section shall be ignored for this purpose.

(3)Where a billing authority sets any amount in substitution under subsection (1) above (a new amount), anything paid to it by reference to the amount for which it is substituted (the old amount) shall be treated as paid by reference to the new amount.

(4)If the old amount exceeds the new amount, the following shall apply as regards anything paid if it would not have been paid had the old amount been the same as the new amount—

(a)it shall be repaid if the person by whom it was paid so requires;

(b)in any other case it shall (as the billing authority determines) either be repaid or be credited against any subsequent liability of the person to pay in respect of any council tax set by the authority in accordance with section 30 above.

[F91(4A)Subject to any provision made by regulations under subsection (6) below, where an authority sets amounts in substitution under subsection (1)(a) above in the circumstances described in section 52ZO(6) or 52ZP(6) or (8) below, it may recover from the local precepting authority in question administrative expenses incurred by it in, or in consequence of, so doing.]

(5)[F92Subject to any provision made by regulations under subsection (6) below,] where an authority sets amounts in substitution under subsection (1)(b) above, it may recover from the major precepting authority administrative expenses incurred by it in, or in consequence of, so doing.

[F93(6)The Secretary of State may by regulations make provision for cases in which—

(a)subsection (4A) or (5) above does not apply, or

(b)that subsection applies with modifications.]

The requisite calculationsE+W

[F9431ACalculation of council tax requirement by authorities in EnglandE+W

(1)In relation to each financial year a billing authority in England must make the calculations required by this section.

(2)The authority must calculate the aggregate of—

(a)the expenditure which the authority estimates it will incur in the year in performing its functions and will charge to a revenue account, other than a BID Revenue Account, for the year in accordance with proper practices,

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices,

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure,

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for,

[F95(da)any amounts which it estimates will be transferred in the year from its general fund to its collection fund in accordance with regulations under section 97(2B) of the 1988 Act,]

(e)any amounts which it estimates will be transferred in the year from its general fund to its collection fund in accordance with section 97(4) of the 1988 Act, and

(f)any amounts which it estimates will be transferred from its general fund to its collection fund pursuant to a direction under section 98(5) of the 1988 Act and charged to a revenue account for the year.

(3)The authority must calculate the aggregate of—

(a)the income which it estimates will accrue to it in the year and which it will credit to a revenue account, other than a BID Revenue Account, for the year in accordance with proper practices,

[F96(aa)any amounts which it estimates will be transferred in the year from its collection fund to its general fund in accordance with regulations under section 97(2A) of the 1988 Act,]

(b)any amounts which it estimates will be transferred in the year from its collection fund to its general fund in accordance with section 97(3) of the 1988 Act,

(c)any amounts which it estimates will be transferred from its collection fund to its general fund pursuant to a direction under section 98(4) of the 1988 Act and will be credited to a revenue account for the year, and

(d)the amount of the financial reserves which the authority estimates it will use in order to provide for the items mentioned in subsection (2)(a), (b), (e) and (f) above.

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated is to be its council tax requirement for the year.

(5)In making the calculation under subsection (2) above the authority must ignore[F97—

(a)] payments which must be met from its collection fund under section 90(2) of the 1988 Act or from a trust fund[F98, and

(b)subject to paragraphs (da), (e) and (f) of subsection (2) above, sums which have been or are to be transferred from its general fund to its collection fund.]

(6)In estimating under subsection (2)(a) above the authority must take into account—

(a)the amount of any expenditure which it estimates it will incur in the year in making any repayments of grants or other sums paid to it by the Secretary of State, and

(b)the amount of any precept issued to it for the year by a local precepting authority and the amount of any levy or special levy issued to it for the year.

(7)But (except as provided by regulations under section 41 below or regulations under section 74 or 75 of the 1988 Act) the authority must not anticipate a precept, levy or special levy not issued.

(8)For the purposes of subsection (2)(c) above an authority's estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year in accordance with proper practices and will have to defray in the year before the following sums are sufficiently available—

(i)sums which will be payable for the year into its general fund and in respect of which amounts will be credited to a revenue account for the year in accordance with proper practices, and

(ii)sums which will be transferred as regards the year from its collection fund to its general fund, and

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year in accordance with proper practices.

(9)In making the calculation under subsection (3) above the authority must ignore—

(a)payments which must be made into its collection fund under section 90(1) of the 1988 Act or to a trust fund, and

(b)subject to paragraphs [F99(aa),] (b) and (c) of subsection (3) above, sums which have been or are to be transferred from its collection fund to its general fund.

(10)The Secretary of State may by regulations do either or both of the following—

(a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items);

(b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsections (5) to (9) above, or any of them, or by adding other provisions, or by a combination of those methods).

(11)Calculations to be made in relation to a particular financial year under this section must be made before 11th March in the preceding financial year, but they are not invalid merely because they are made on or after that date.

(12)This section is subject to section 52ZS below (which requires a direction to a billing authority that the referendum provisions in Chapter 4ZA are not to apply to the authority for a financial year to state the amount of the authority's council tax requirement for the year).

(13)In this section “BID Revenue Account” has the same meaning as in Part 4 of the Local Government Act 2003.

31BCalculation of basic amount of tax by authorities in EnglandE+W

(1)In relation to each financial year a billing authority in England must calculate the basic amount of its council tax by applying the formula—

(2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 31A above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above is to be nil.

(3)The Secretary of State must make regulations containing rules for making for any year the calculation required by item T in subsection (1) above; and a billing authority must make the calculation for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

(4)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the major precepting authorities concerned within that period, that item must be determined in the prescribed manner by such authority or authorities as may be prescribed.

(5)The Secretary of State may by regulations do either or both of the following—

(a)alter the constituents of any calculation to be made under subsection (1) above (whether by adding, deleting or amending items);

(b)provide for rules governing the making of any calculation under that subsection (whether by adding provisions to, or deleting or amending provisions of, this section, or by a combination of those methods).]

32 Calculation of budget requirement [F100by authorities in Wales].E+W

(1)In relation to each financial year a billing authority [F101in Wales] shall make the calculations required by this section.

(2)The authority must calculate the aggregate of—

[F102(a)the expenditure which the authority estimates it will incur in the year in performing its functions and will charge to a revenue account for the year;]

[F103(aa)the expenditure that the authority estimates it will incur in the year in making repayments of—

(i)grant paid to it by the Secretary of State or the Welsh Ministers, or

(ii)amounts paid to it by the Welsh Ministers in respect of redistributed non-domestic rates;]

(b)such allowance as the authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c)the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure; [F104and]

(d)such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for; F105...

F106(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F107(2A)The expenditure mentioned in subsection (2)(a) does not include expenditure which the authority estimates it will charge to a BID Revenue Account.]

(3)The authority must calculate the aggregate of—

(a)the sums which it estimates will be payable for the year into its F108... [F109council fund] and in respect of which amounts will be credited to a revenue account for the year, other than sums which it estimates will be so payable in respect of redistributed non-domestic rates, [F110BID levy or financial contribution made under section 43 of the Local Government Act 2003,] revenue support grant, [F111its council tax reduction scheme,] additional grant [F112or [F113special grant] F114...;];

[F115(aa)the sums that it estimates will be payable to it for an earlier financial year in respect of—

(i)redistributed non-domestic rates,

(ii)revenue support grant, or

(iii)additional grant;]

F116(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the amount of the financial reserves which the authority estimates that it will use in order to provide for the items mentioned in paragraphs (a) [F117and (b)] of subsection (2) above.

[F118(3A)F119... subsection (3)(a) above does not require the estimation of sums payable into [F120a billing authority's] council fund in respect of council tax or [F121non-domestic rates or the grant paid to them under section 88A of the Local Government Finance Act 1988].]

(4)If the aggregate calculated under subsection (2) above exceeds that calculated under subsection (3) above, the authority must calculate the amount equal to the difference; and the amount so calculated shall be its budget requirement for the year.

[F122(5)In making the calculation under subsection (2) above the authority must ignore—

(a)payments which must be met from a trust fund;

(b)payments to be made to the [F123Welsh Ministers] under paragraph 5 of Schedule 8 to the 1988 Act or regulations made under paragraph 5(15) of that Schedule;

(c)payments to be made in respect of the amount of any precept issued by a major precepting authority under Part 1 of this Act (but not payments to be so made in respect of interest on such an amount); and

(d)payments to be made to another person in repaying, under regulations under the 1988 Act or Part 1 of this Act, excess receipts by way of non-domestic rates or council tax.]

(6)In estimating under subsection (2)(a) above the authority shall take into account—

(a)the amount of any precept issued to it for the year by a local precepting authority; and

(b)the amount of any levy or special levy issued to it for the year;

but (except as provided by regulations under section 41 below or regulations under section 74 or 75 of the 1988 Act) shall not anticipate a precept, levy or special levy not issued.

F124(6A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)For the purposes of subsection (2)(c) above an authority’s estimated future expenditure is—

(a)that which the authority estimates it will incur in the financial year following the year in question, will charge to a revenue account for the year and will have to defray in the year before the following sums are sufficiently available, namely—

(i)sums which will be payable for the year into its F125... [F126council fund] and in respect of which amounts will be credited to a revenue account for the year; and

F127(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)that which the authority estimates it will incur in the financial year referred to in paragraph (a) above or any subsequent financial year in performing its functions and which will be charged to a revenue account for that or any other year.

F128(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F128(8A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F128(8B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)The [F129Welsh Ministers] may by regulations do one or both of the following—

(a)alter the constituents of any calculation to be made under subsection (2) or (3) above (whether by adding, deleting or amending items);

(b)alter the rules governing the making of any calculation under subsection (2) or (3) above (whether by deleting or amending subsections (5) to [F130(7)] above, or any of them, or by adding other provisions, or by a combination of those methods).

[F131(9A)A statutory instrument containing regulations under subsection (9) is subject to annulment in pursuance of a resolution of Senedd Cymru.]

(10)Calculations to be made in relation to a particular financial year under this section must be made before 11th March in the preceding financial year, but they are not invalid merely because they are made on or after that date.

F132(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F133(12)In this section and section 33—

(a)references to sums payable for a financial year in respect of redistributed non-domestic rates are to sums so payable in accordance with the local government finance report for the year under section 84G of the 1988 Act relating to the authority (including as amended by a report under paragraph 13 of Schedule 8 to that Act);

(b)references to sums payable for a financial year in respect of revenue support grant are to sums so payable in accordance with the local government finance report for the year under section 84G of the 1988 Act (including as amended by a report under section 84L of that Act);

(c)references to sums payable for a financial year in respect of an authority’s council tax reduction scheme are to sums payable by the Welsh Ministers under section 31 of the Local Government Act 2003 in respect of a scheme which applies in accordance with regulations under section 13A or in default in accordance with regulations under section 13A of, and paragraph 6 of Schedule 1B;

(d)references to sums payable for a financial year in respect of additional grant are to sums so payable in accordance with a report for the year under section 86A of the 1988 Act; and

(e)references to sums payable for a financial year in respect of special grant are to sums payable in the year in accordance with a special grant report under section 88C of the 1988 Act.]

[F134(12A)“BID levy” and “BID Revenue Account” have the meaning given in Part 4 of the Local Government Act 2003.]

33Calculation of basic amount of tax [F135by authorities in Wales].E+W

(1)In relation to each financial year a billing authority [F136in Wales] shall calculate the basic amount of its council tax by applying the formula—

[F143(1A)In this section, references to sums payable for a financial year in respect of—

(i)redistributed non-domestic rates,

(ii)revenue support grant,

(iii)an authority’s council tax reduction scheme,

(iv)additional grant, and

(v)special grant,

are to be construed in accordance with section 32(12).]

(2)Where the aggregate calculated (or last calculated) by the authority for the year under subsection (2) of section 32 above does not exceed that so calculated under subsection (3) of that section, the amount for item R in subsection (1) above shall be nil.

F144(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F144(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F145(3B)F146... the aggregate of the sums mentioned in item P in subsection (1) above shall be reduced by the amount calculated in accordance with the following formula—

[F148[F149(3C)In the case of a Welsh county council or county borough council the aggregate of the sums mentioned in item P in subsection (1) above shall be reduced by an amount calculated by applying the formula–

F148F149(3D)E is to be calculated by applying the formula–

(4)Regulations under section 32(9) above may make such consequential alterations of the constituents of any calculation required by item P in subsection (1) above F150... (whether by adding, deleting or amending items) as appear to the Secretary of State to be necessary or expedient.

(5)The [F151Welsh Ministers] shall make regulations containing rules for making for any year the calculation required by item T in subsection (1) above; and a billing authority shall make the calculation for any year in accordance with the rules for the time being effective (as regards the year) under the regulations.

[F152(5A)A statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of Senedd Cymru.]

(6)Regulations prescribing a period for the purposes of item T in subsection (1) above may provide that, in any case where a billing authority fails to notify its calculation to the major precepting authorities concerned within that period, that item shall be determined in the prescribed manner by such authority or authorities as may be prescribed.

34 Additional calculations where special items relate to part only of area.E+W

(1)This section applies where for any financial year an item mentioned in section 35(1) below relates to a part only of a billing authority’s area; and in this section “special item” means any such item which so relates and “the relevant part”, in relation to such an item, means the part concerned.

(2)The authority shall calculate the basic amount of its council tax for dwellings in a part of its area to which no special item relates by applying the formula—