Local Government Finance Act 1988

Part I

Charges

Improvement rate relief

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In accordance with this Part, each charging authority shall have rights and duties in respect of the following community charges—

• (a) personal community charges,

• (b) standard community charges, and

• (c) collective community charges.

Persons subject to personal community charge

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• (1) A person is subject to a charging authority’s personal community charge on any day if—

• (a) he is an individual who is aged 18 or over on the day,

• (b) he has his sole or main residence in the area of the authority at any time on the day, and

• (c) he is not an exempt individual on the day.

• (1A) But a person cannot be subject to a charging authority’s personal community charge on a day which falls before 1 December 1989.

• (2) Schedule 1 below shall have effect to determine whether a person is for the purposes of this section an exempt individual on a particular day.

• (3) In deciding whether a person has his sole or main residence in an area, the fact that he does not live in a building is irrelevant.

• (4) If a person’s sole or main residence at a particular time consists of premises, and the premises are situated in the areas of two or more authorities, he shall be treated as having his sole or main residence in the area in which the greater or greatest part of the premises is situated.

• (5) Subsection (5A) below applies in the case of a person if—

• (a) he is undertaking a full-time course of education, and

• (b) for at least some of the time while undertaking the course he is, or proposes to be, resident in England and Wales for the purpose of making attendances in term time in connection with the course.

• (5A) On a day on which he is undertaking the course he shall be treated as having his sole or main residence in—

• (a) the place where he is resident at any time on the day for the purpose of making attendances in term time in connection with the course;

• (b) if he is not resident in a place for that purpose at any time on the day, the place where he was last resident for that purpose;

• (c) if he is not resident in a place for that purpose at any time on the day, and he has not been resident in a place for that purpose, the place where he would be taken to have his sole or main residence if this subsection did not apply to him.

• (6) A person detained in legal custody (other than an individual for the time being exempt) is not to be treated as having his sole or main residence in the place where he is detained.

Persons subject to standard community charge

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• (1) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a freehold interest in the whole of a building, and the following conditions are fulfilled as regards the building throughout the day—

• (a) it is situated in the authority’s area,

• (b) it is not the sole or main residence of an individual (construing sole or main residence in accordance with section 2 above),

• (c) it is domestic property,

• (d) it is not designated for the purposes of collective community charges of the authority,

• (e) it is not divided into self-contained parts, and

• (f) it is not subject (as a whole) to a single relevant leasehold interest.

• (2) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a relevant leasehold interest in the whole of a building, and the following conditions are fulfilled as regards the building throughout the day—

• (a) the conditions mentioned in subsection (1)(a) to (e) above, and

• (b) the condition that it is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.

• (3) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a freehold interest in the whole of a self-contained part of a building, and the following conditions are fulfilled as regards the part throughout the day—

• (a) the conditions mentioned in subsection (1)(a) to (d) above, and

• (b) the condition that it is not subject (as a whole) to a single relevant leasehold interest.

• (4) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a relevant leasehold interest in the whole of a self-contained part of a building, and the following conditions are fulfilled as regards the part throughout the day—

• (a) the conditions mentioned in subsection (1)(a) to (d) above, and

• (b) the condition that it is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) Notwithstanding anything in subsections (1) to (5) above, a person cannot be subject to a charging authority’s standard community charge on a day which falls before 1 December 1989.

Section 3: interpretation

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• (1) This section applies for the purposes of section 3 above.

• (2) “Interest” means a legal estate.

• (3) A relevant leasehold interest is an interest under a lease or underlease which was granted for a term of 6 months or more and conferred the right to exclusive possession throughout the term.

• (4) Subject to subsections (5) and (5B) below, a building or self-contained part of a building is domestic property if it is used wholly for the purposes of living accommodation.

• (5) A building or self-contained part of a building is not domestic property if it is wholly or mainly used in the course of a business for the provision of short-stay accommodation, that is to say accommodation—

• (a) which is provided for short periods to individuals whose sole or main residence is elsewhere, and

• (b) which is not self-contained self-catering accommodation provided commercially.

• (5A) Subsection (5) above does not apply if—

• (a) it is intended that within the year beginning with the end of the day in relation to which the question is being considered, short-stay accommodation will be not be provided within the building or part for more than six persons simultaneously; and

• (b) the person intending to provide such accommodation will have his sole or main residence within the building or part throughout any period when such accommodation is to be provided.

• (5B) A building or self-contained part of a building is not domestic property if—

• (a) the relevant person intends that, in the year beginning with the end of the day in relation to which the question is being considered, the whole of the building or self-contained part will be available for letting commercially, as self-catering accommodation, for short periods totalling 140 days or more; and

• (b) on that day his interest in the building or part is such as to enable him so to let it for such periods.

• (5C) For the purposes of subsection (5B) above the relevant person is—

• (a) where the property in question is a building and is not subject as a whole to a relevant leasehold interest, the person having the freehold interest in the whole of the building; and

• (b) in any other case, any person having a relevant leasehold interest in the building or self-contained part which is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.

• (6) In construing subsections (4) and (5) above, anything not in use shall be treated as domestic property if it appears that when next in use it will be domestic property.

• (6A) In this section—

• “business” includes—

• (a) any activity carried on by a body of persons, whether corporate or unincorporate, and

• (b) any activity carried on by an institution or other organisation established for charitable purposes only or any persons administering a trust established for charitable purposes only; and

• (7) The Secretary of State may by order amend, or substitute another definition for, any definition of domestic property for the time being effective for the purposes of section 3 above.

• (8) A self-contained part of a building is a part of a building used, or suitable for use, as a separate dwelling.

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (11) Where a building is situated in the areas of two or more authorities, it and each part of it shall be treated as situated in the area in which the greater or greatest part of the building is situated; . . ..

Persons subject to collective community charge

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• (1) A person is subject to a charging authority’s collective community charge on any day if—

• (a) he has on the day a qualifying interest in a dwelling situated in the authority’s area, and

• (b) on the day the dwelling is a designated dwelling.

• (1A) But a person cannot be subject to a charging authority’s collective community charge on a day which falls before 1 December 1989.

• (2) For the purposes of this Part a dwelling is a designated dwelling on a particular day if it is a building, or part of a building, which on the day concerned is designated under this section.

• (3) The registration officer may designate all or part of a building for the purposes of a charging authority’s collective community charges if at the time of designation—

• (a) the building is situated in the authority’s area,

• (b) in his opinion the building or part is used wholly or mainly as the sole or main residence of individuals most or all of whom reside there for short periods and are not undertaking full-time courses of education,

• (c) in his opinion it would probably be difficult to maintain the register in respect of, and collect payments in respect of personal community charges from, individuals who would be subject to such charges of the authority if the designation were not made, and

• (d) the building does not fall within a description prescribed for the purposes of this paragraph by regulations made by the Secretary of State.

• (4) A registration officer who has designated a building or part may revoke the designation if at the time of revocation the conditions for designation in subsection (3) above are no longer satisfied.

• (5) A designation under this section shall take effect at the end of the period of 7 days beginning with the day on which it is made, and shall cease to have effect at the end of the day (if any) on which it is revoked.

• (6) A person has a qualifying interest in a designated dwelling on a particular day if at any time on the day—

• (a) he has a freehold interest in the whole dwelling and it is not subject (as a whole) to a single leasehold interest, or

• (b) he has an interest in the whole dwelling under a lease or underlease and it is not subject (as a whole) to a single inferior leasehold interest.

• (7) “Interest” means a legal estate.

• (8) Where a building is situated in the areas of two or more authorities, it and each part of it (whether or not designated) shall be treated as situated in the area in which the greater or greatest part of the building is situated.

Registers

Community charges register

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• (1) The registration officer for a charging authority shall compile, and then maintain, a community charges register for the authority in accordance with this Part.

• (2) A charging authority’s register must be compiled on or before 1 December 1989.

• (3) A charging authority’s register shall contain an item in relation to each community charge of the authority to which a person becomes subject on or after 1 December 1989.

• (4) The item shall state—

• (a) whether the charge is a personal, a standard or a collective community charge,

• (b) the person’s name,

• (c) the day of his becoming subject to the charge and (if applicable) the day of his ceasing to be subject to it, and

• (d) which (if any) of the days on which he is shown in the register as subject to the charge is a day on which he is undertaking a full-time course of education.

• (5) The item shall also state—

• (a) in the case of a personal community charge, the address of the residence by virtue of which the person is subject to the charge,

• (b) in the case of a standard community charge, the address of the property by virtue of which the person is subject to the charge and (if different) his residential address for the time being, and

• (c) in the case of a collective community charge, the address of the dwelling by virtue of which the person is subject to the charge and (if different) his residential address for the time being.

• (6) The item shall also state, in the case of a standard community charge, the class (if any) which is for the time being specified under section 40 below and into which the property concerned falls.

• (7) Where a person is subject to a personal community charge, and the place of residence giving rise to the charge has no address, under subsection (5)(a) above the item shall state that place.

• (8) A registration officer’s duty to compile and maintain a register in accordance with this Part includes the duty to take reasonable steps to obtain information for that purpose under the powers conferred on him.

Charges and registers: miscellaneous

Persons subject to charges: miscellaneous

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• (1) A person shall by virtue of different residences, or different periods of residence in the same residence, be subject (if at all) to different personal community charges, whether of the same or different authorities.

• (2) If a person becomes and ceases to be exempt under section 2 above he shall be subject (if at all) to different personal community charges by virtue of different periods when he is not exempt.

• (3) A person shall by virtue of different properties, or different periods of having an interest in the same property, be subject (if at all) to different standard community charges, whether of the same or different authorities.

• (4) A person shall by virtue of different dwellings, or different periods of having an interest in the same dwelling, be subject (if at all) to different collective community charges, whether of the same or different authorities.

• (5) The day a person becomes subject to a community charge shall be taken, subject to the rules in section 8(2) and (4) below, to be the first (or only) day on which he is subject to it.

• (6) The day a person ceases to be subject to a community charge shall be taken, subject to the rule in section 8(3) below, to be the last (or only) day on which he is subject to it.

Registers: miscellaneous

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• (1) An entry may be made in an authority’s register in anticipation of, or after, the occurrence of an event (such as a person’s becoming or ceasing to be subject to a community charge of the authority).

• (2) If on any day a person becomes subject to an authority’s community charge but a period of more than 2 years (beginning with the day) ends without an entry being made in the register in respect of the charge, he shall be treated as becoming subject to it 2 years before the day on which an entry is made in the register in respect of it.

• (3) If a person becomes subject to an authority’s community charge, an entry is made in the register accordingly, he then ceases to be subject to it and a period of more than 2 years (beginning with the day of his ceasing) ends without an entry being made in the register in respect of his ceasing, he shall be treated as having ceased to be subject to the charge 2 years before the day on which an entry is made in the register in respect of his ceasing.

• (4) If a person in fact becomes and ceases to be subject to an authority’s community charge but a period of more than 2 years (beginning with the day of his ceasing) ends without an entry being made in the register in respect of the charge, he shall be treated as not having become subject to it; and subsection (2) above shall have effect subject to this.

• (5) The registration officer may remove from an authority’s register an item relating to a community charge of the authority at any time after the end of the period of 2 years beginning with the day on which the register shows the person subject to the charge as having ceased to be subject to it.

• (6) For the purposes of this Part—

• (a) a day on which a person is shown in a charging authority’s register as becoming subject to a community charge of the authority shall be treated as a day on which he is shown in the register as subject to the charge,

• (b) a day on which a person is shown in a charging authority’s register as ceasing to be subject to a community charge of the authority shall not be treated as a day on which he is shown in the register as subject to the charge, and

• (c) as regards a day on which a person is shown in a charging authority’s register as both becoming and ceasing to be subject to the same community charge of the authority, paragraph (b) above shall apply and paragraph (a) shall not.

Collective community charge contributions

Liability to contribute

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• (1) A period of a day or successive days is a contribution period if it falls within a chargeable financial year and each of the following conditions is fulfilled on each day in the period—

• (a) an individual is resident in a dwelling,

• (b) he is a qualifying individual,

• (c) the dwelling is a designated dwelling, and

• (d) another person is shown in a charging authority’s register as subject to a collective community charge of the authority in respect of the dwelling.

• (2) In respect of the contribution period, the individual shall be liable to pay to the person mentioned in subsection (1)(d) above an amount by way of contribution to the amount he is liable to pay to the authority in respect of the charge as it has effect for the year.

• (3) The amount shall be calculated by—