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Local Government Finance Act 1988

Type Public General Act

Publication 1988-07-29

Last updated 2026-04-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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(b) the Secretary of State must make a payment to the authority of an amount equal to the amount of the payment shown by the relevant previous calculations as falling to be made by the authority to the Secretary of State.

(9) A payment by a relevant authority to the Secretary of State under this paragraph—

(a) must be made on or before such day after the end of the year in which the amending report was made, and in such manner, as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court of competent jurisdiction.

(10) A payment by the Secretary of State to a relevant authority under this paragraph must be made—

(a) at such time, or

(b) in instalments of such amounts and at such times,

as the Secretary of State determines with the Treasury’s consent; but any such time must fall after the end of the year in which the amending report was made.

18

This Part is subject to Parts 9 (pooling of authorities) and 10 (designation of areas and classes of hereditament).

Part 6 — Levy accounts

19

(1) The Secretary of State must, for each year, keep an account, to be called a “levy account”.

(2) Each such account must be kept in accordance with the provisions of this Schedule that apply to a levy account.

(3) The Secretary of State—

(a) must keep each such account in such form as the Treasury may direct, and

(b) must, at such time as the Treasury may direct, send copies of each such account to the Comptroller and Auditor General.

(4) The Comptroller and Auditor General—

(a) must examine, certify and report on any account of which copies are sent to the Comptroller and Auditor General under sub-paragraph (3), and

(b) must arrange for copies of the account and of the Comptroller and Auditor General’s report on it to be laid before each House of Parliament.

20

(1) For each year the following are to be credited (as items of account) to the levy account kept for the year—

(a) amounts received by the Secretary of State in the year under paragraph 24 (levy payments), and

(b) amounts received by the Secretary of State in the year under regulations under paragraph 28 (payments on account).

(2) If a local government finance report for a year has been approved by resolution of the House of Commons, and that report provides for an amount to be credited to the levy account kept for the year, that amount may be credited (as an item of account) to that account.

(3) For each year the following are to be debited (as items of account) to the levy account kept for the year—

(a) payments made by the Secretary of State in the year under paragraph 27 (safety net payments),

(b) payments made by the Secretary of State in the year under regulations under paragraph 28, and

21

(1) As soon as is reasonably practicable after the end of each year, the Secretary of State must calculate—

(a) the aggregate of the items of account credited to the levy account kept for the year, and

(b) the aggregate of the items of account debited to the levy account kept for the year.

(2) If the aggregate mentioned in sub-paragraph (1)(a) exceeds that mentioned in sub-paragraph (1)(b), an amount equal to the excess must be—

(a) debited (as an item of account) to the levy account kept for the year, and

(b) credited (as an item of account) to the levy account kept for the next year.

(3) If the aggregate mentioned in sub-paragraph (1)(b) exceeds that mentioned in sub-paragraph (1)(a), an amount equal to the excess must be—

(a) credited (as an item of account) to the levy account kept for the year, and

(b) debited (as an item of account) to the levy account kept for the next year.

Part 7 — Levy payments, safety net payments and distribution of remaining balance

22

(1) The Secretary of State may by regulations make provision for calculating—

(a) whether a relevant authority is required to make a payment under this Part of this Schedule (a “levy payment”) to the Secretary of State for a year, and

(b) if so, the amount of the levy payment.

(2) The regulations must make provision for calculations for a year to be made after the end of that year.

(3) The regulations may, in particular, make provision for calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference to the total payable to it in respect of the year under sections 43 and 45, subject to such adjustments as may be specified in the regulations;

(b) if the relevant authority is a major precepting authority, by reference to the total of the amounts payable in respect of the year under those sections to the billing authorities that are required to make payments to it for the year under regulations under paragraph 9, subject to such adjustments as may be specified in the regulations;

(d) by reference to such other factors as may be specified in the regulations.

(4) The regulations may, in particular, make provision for adjustments to an amount calculated under provision made under sub-paragraph (3) by reference to changes affecting the calculation of such an amount for an earlier year but not taken into account in that calculation.

23

(1) The Secretary of State must calculate in relation to each relevant authority—

(a) whether it is required to make a levy payment for a year, and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) as soon as is reasonably practicable after the end of the year, or

(b) if the authority is subject to a requirement imposed by a direction under paragraph 43 (direction to make calculations or supply information) or by or under regulations under paragraph 44 (regulations about calculations and supply of information) for the purposes of this paragraph, as soon as is reasonably practicable after the time for compliance with that requirement,

whichever is the later.

(3) The calculation must be made in accordance with regulations under paragraph 22.

(4) As soon as is reasonably practicable after making a calculation in relation to a relevant authority, the Secretary of State must notify that authority of—

(a) whether, in accordance with the calculation, it is required to make a levy payment for the year, and

(b) if so, the amount of that payment in accordance with the calculation.

24

(1) If a calculation under paragraph 23 shows that a levy payment is to be made to the Secretary of State by a relevant authority, the authority must make that payment to the Secretary of State.

(2) The levy payment—

(a) must be made on or before such day and in such manner as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court of competent jurisdiction.

25

(1) The Secretary of State may by regulations make provision for calculating—

(a) whether the Secretary of State is required to make a payment under this Part of this Schedule (a “safety net payment”) to a relevant authority for a year, and

(b) if so, the amount of the payment.

(2) The regulations must make provision for calculations for a year to be made after the end of that year.

(3) The regulations may, in particular, make provision for calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference to the total payable to it in respect of the year under sections 43 and 45, subject to such adjustments as may be specified in the regulations;

(b) if the relevant authority is a major precepting authority, by reference to the total of the amounts payable in respect of the year under those sections to the billing authorities that are required to make payments to it for the year under regulations under paragraph 9, subject to such adjustments as may be specified in the regulations;

(d) by reference to such other factors as may be specified in the regulations.

(4) The regulations may, in particular, make provision for adjustments to an amount calculated under provision made under sub-paragraph (3) by reference to changes affecting the calculation of such an amount for an earlier year but not taken into account in that calculation.

26

(1) The Secretary of State must calculate in relation to each relevant authority—

(a) whether the Secretary of State is required to make a safety net payment to the authority for the year, and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) as soon as is reasonably practicable after the end of the year, or

(b) if the authority is subject to a requirement imposed by a direction under paragraph 43 (direction to make calculations or supply information) or by or under regulations under paragraph 44 (regulations about calculations and supply of information) for the purposes of this paragraph, as soon as is reasonably practicable after the time for compliance with that requirement,

whichever is the later.

(3) The calculation must be made in accordance with regulations under paragraph 25.

(4) As soon as is reasonably practicable after making a calculation under this paragraph in relation to a relevant authority, the Secretary of State must notify that authority of—

(a) whether, in accordance with the calculation, the Secretary of State is required to make a safety net payment to the authority for the year, and

(b) if so, the amount of that payment in accordance with the calculation.

(5) This paragraph is subject to regulations under paragraph 28 (payments on account).

27

(1) If a calculation under paragraph 26 shows that a safety net payment is to be made by the Secretary of State to a relevant authority, the Secretary of State must make that payment to the authority.

(2) The safety net payment must be made in instalments of such amounts, and at such times, as the Secretary of State determines with the Treasury’s consent.

(3) This paragraph is subject to regulations under paragraph 28 (payments on account).

28

(1) The Secretary of State may by regulations make provision—

(a) for a relevant authority to request the Secretary of State to make a calculation before the end of a year of—

(i) whether the Secretary of State is likely to be required to make a safety net payment under paragraph 27 to the authority for the year, and

(ii) if so, the amount of the payment;

(b) about the time at which and the manner in which a request must be made, and the information that must be provided in connection with the request;

(d) about the making of the calculation, including for the Secretary of State to make the calculation by reference to estimates of any of the amounts mentioned in paragraph 25 (3).

(2) The regulations may make provision—

(a) about the timing of a calculation in response to a request;

(b) about the notification of the results of the calculation to the relevant authority to whom it relates;

(c) for the making, as a result of the calculation, of a payment (a “payment on account”) to the authority before the end of the year to which the calculation relates.

(3) The regulations may, in particular—

(a) make provision in relation to a calculation that is similar to that made by paragraph 26, or apply that paragraph with modifications in relation to such a calculation;

(b) make provision in relation to a payment on account that is similar to that made by paragraph 27, or apply that paragraph with modifications in relation to such a payment.

(4) The regulations may make provision—

(a) about the calculation under paragraph 26 to be made in relation to a relevant authority for a year where a payment on account has been made to the authority for the year;

(b) for the making of a further payment by the Secretary of State to the authority, or of a payment by the authority to the Secretary of State, as a result of that calculation.

29

(1) The Secretary of State must, in each year other than the first year for which the levy account is kept, calculate whether there is a remaining balance on the levy account for the year in accordance with sub-paragraphs (2) to (4).

(2) The calculation must be made as soon as is reasonably practicable after—

(a) all of the calculations required by paragraph 23 (1) (calculations of levy payments) have been made for the previous year,

(b) all of the calculations required by paragraph 26 (1) (calculations of safety net payments) have been made for the previous year, and

(c) all of the calculations required by regulations under paragraph 28 (calculations of safety net payments on account) have been made for the year.

(3) The calculation must be made as follows—

Step 1Calculate the aggregate of the amounts of all of the levy payments calculated for the previous year under paragraph 23 (1).

Step 2Add any amount credited to the levy account for the year in accordance with paragraph 21 (2) (credit from previous year) to the amount found under step 1, or subtract any amount debited to that account in accordance with paragraph 21 (3) (debit from previous year) from the amount found under step 1.

Step 3Add to the amount found under steps 1 and 2 any amount credited to the levy account for the year in accordance with paragraph 20(2) (credit in accordance with local government finance report).

Step 4Subtract from the amount found under steps 1 to 3 the aggregate of the amounts of all the safety net payments calculated for the previous year under paragraph 26 (1).

Step 5Subtract from the amount found under steps 1 to 4 the aggregate of all the payments to be made by the Secretary of State under regulations under paragraph 28(4)(b) (adjustments following safety net payment on account).

Step 6Add to the amount found under steps 1 to 5 the aggregate of all the payments to be made to the Secretary of State under regulations under paragraph 28(4)(b).

Step 7Subtract from the amount found under steps 1 to 6 the aggregate of all the payments on account to be made in the year under regulations under paragraph 28.

(4) If the amount found under step 7 in sub-paragraph (3) is a positive amount, that is the remaining balance on the levy account for the year.

(5) Sub-paragraph (6) applies if, in the first year for which the levy account is kept—

(a) an amount is credited to the levy account for the year in accordance with paragraph 20(2), and

(b) that amount exceeds the aggregate of all the payments on account to be made in the year under regulations under paragraph 28.

(6) The amount of the excess is to be treated as the remaining balance on the levy account for the year.

30

(1) The Secretary of State may determine that an amount equal to the whole or part of the remaining balance on a levy account for a year is to be distributed among one or more relevant authorities (rather than being treated in accordance with paragraph 21 (2)).

(2) The Secretary of State may by regulations make provision about the basis (“the basis of distribution”) on which an amount referred to in sub-paragraph (1) is to be distributed.

(3) If the Secretary of State makes a determination under sub-paragraph (1), the Secretary of State must calculate what amount (if any) falls to be paid to each relevant authority as its share of the amount referred to in that sub-paragraph.

(4) The calculations must be made—

(a) as soon as is reasonably practicable after the determination is made, and

(b) in accordance with the basis of distribution specified in the regulations.

(5) As soon as is reasonably practicable after making the calculations, the Secretary of State must notify each relevant authority of—

(a) whether a payment is to be made by the Secretary of State to the authority out of the amount referred to in sub-paragraph (1), and

(b) if such a payment is to be made, the amount of the payment.

(6) If the calculations show that a payment is to be made by the Secretary of State to a relevant authority, the Secretary of State must make that payment to the authority.

(7) A payment from the Secretary of State to a relevant authority under this paragraph must be made—

(a) at such time, or

(b) in instalments of such amounts and at such times,

as the Secretary of State determines with the Treasury’s consent; but any such time must fall within the year to which the remaining balance relates.

31

This Part is subject to Parts 9 (pooling of authorities) and 10 (designation of areas and classes of hereditament).

Part 8 — Transitional protection payments

32

(1) The Secretary of State may by regulations make provision for calculating in accordance with the regulations—

(a) the total amount which would be payable to a billing authority in England in respect of a year under sections 43 and 45 if—

(i) regulations under section 57A (transitional relief following compilation of local rating list) were not in force for the year, and

(ii) the authority acted diligently, and

(b) the total amount which would be payable to a billing authority in England in respect of a year under sections 43 and 45 if the authority acted diligently.

(2) The regulations may include provision for adjustments to be made to an amount calculated under provision under sub-paragraph (1).

(3) The regulations may, in particular, make provision for adjustments to that amount by reference to changes affecting the calculation of such an amount for an earlier year but not taken into account in that calculation.

(4) In this Part of this Schedule—

(a) a billing authority’s “deemed rating income” for a year means the amount calculated for the authority and the year under provision under sub-paragraph (1)(a) and (2), and

(b) a billing authority’s “actual rating income” for a year means the amount calculated for the authority and the year under provision under sub-paragraph (1)(b) and (2).

33

(1) The Secretary of State may by regulations make provision for the making of a payment (a “transitional protection payment”) for a year—

(a) by the Secretary of State to a billing authority in England, or

(b) by a billing authority in England to the Secretary of State.

(2) The regulations must provide for the amount (if any) of a transitional protection payment in relation to an authority for a year to be calculated by reference to its deemed and actual rating income for the year, so that—

(a) if its deemed rating income for a year exceeds its actual rating income for the year, the Secretary of State is to be liable to make a transitional protection payment to the authority for the year of an amount equal to the excess;

(b) if its actual rating income for a year exceeds its deemed rating income for the year, the authority is to be liable to make a transitional protection payment to the Secretary of State for the year of an amount equal to the excess;

(c) if its deemed rating income for a year is equal to its actual rating income for the year, no transitional protection payment is to be made to or by the authority for the year.

(3) The regulations may, in particular, make provision—

(a) about the making of calculations, and the supply of information to the Secretary of State, by a billing authority in connection with the determination of the transitional protection payment (if any) to be made to or by the authority;

(b) about the assumptions and adjustments to be made, and the information to be taken into account, in making such calculations;

(i) for the making by the Secretary of State of calculations, or of assumptions as to the information that would otherwise have been supplied by the authority;

(ii) for the suspension of payments to the authority.

(4) The regulations may, in particular, make provision—

(a) for the making by a billing authority or the Secretary of State of a payment on account of a transitional protection payment;

(b) for the calculation, where a payment on account has been made, of the amount of the final transitional protection payment (if any) to be made to or by the authority;

(c) for the certification of calculations made, or information supplied to the Secretary of State, by a billing authority in connection with the determination of the final transitional protection payment (if any) to be made to or by the authority;

(d) about the consequences where a certified calculation or certified information does not match that made or supplied by the authority, including (in particular) about the use of the certified calculation or certified information;

(e) about the making of financial adjustments where the final transitional protection payment to be made to or by the authority for the year is different from a payment on account made to or by the authority for the year.

(5) The regulations may confer power on the Secretary of State to give directions about the certification of calculations or information.

(6) The regulations may, in particular, make provision about the time and manner in which a payment under the regulations is to be made (including for payment by instalments), and as to the consequences of non-payment.

Part 9 — Pooling of authorities

34

(1) The Secretary of State may, in accordance with this paragraph, designate two or more relevant authorities as a pool of authorities for the purposes of the provisions of this Schedule applying to such pools (as to which, see paragraphs 36 and 37).

(2) The Secretary of State may make a designation only if each authority covered by the designation has agreed to it.

(3) The Secretary of State—

(a) may revoke a designation (in particular if any condition of the designation is breached), and

(b) must do so if any authority covered by the designation asks the Secretary of State to do so.

(4) Subject to sub-paragraph (5), a designation has effect—

(a) for the year beginning after it is made, and

(b) for each subsequent year, unless previously revoked.

(5) A designation or revocation has effect for a year only if it is made before the Secretary of State gives the notification for the year required by paragraph 12 (2) (notification of general basis of calculation to be specified in local government finance report for year), unless sub-paragraph (6) applies.

(6) A revocation made after the Secretary of State has given that notification has effect for the year for which the notification was given if—

(a) it is made in response to a request under sub-paragraph (3)(b) made within the period of 28 days beginning with the date on which the notification was given, and

(b) it is made before the local government finance report for that year is laid before the House of Commons.

(7) After making or revoking a designation, the Secretary of State must notify the authorities covered by the designation.

(8) A notification under sub-paragraph (7) must be given before or at the same time as the Secretary of State gives the notification required by paragraph 12 (2) for the year to which the designation or revocation relates, unless sub-paragraph (9) applies.

(9) A notification under sub-paragraph (7) of a revocation made in the circumstances described in sub-paragraph (6) must be given as soon as is reasonably practicable after it is made.

35

(1) A designation under paragraph 34 must be made subject to conditions—

(a) requiring the authorities to which it relates to appoint a lead authority to exercise the functions specified in the conditions, and

(b) requiring the authorities, if the designation is revoked, to take the steps specified in the conditions before the revocation takes effect.

(2) A designation under paragraph 34 may be made subject to such other conditions as the Secretary of State thinks fit.

(3) The Secretary of State may vary a designation by—

(a) adding a condition,

(b) modifying a condition, or

(4) Before varying a designation under sub-paragraph (3), the Secretary of State must consult the authorities covered by the designation.

(5) After varying a designation under sub-paragraph (3), the Secretary of State must notify those authorities.

36

(1) Where a designation of a pool of authorities has effect for a year, Part 5 of this Schedule (principal payments in connection with local retention of non-domestic rates) applies in relation to the pool as if—

(a) the authorities in the pool were not relevant authorities, but

(b) the pool were itself a relevant authority.

(2) Sub-paragraph (1) does not apply in relation to paragraph 15 (5) (duty to send copy of amending report to each relevant authority).

(3) This paragraph does not prevent—

(a) the local government finance report for the year, or an amending report under paragraph 15 in relation to that report, from also making provision in relation to the individual authorities in the pool,

(b) the Secretary of State from making calculations based on the local government finance report, or any such amending report, in relation to each of those authorities, or

(4) But paragraphs 14 and 17 (payments following reports) do not apply in relation to such calculations.

37

(1) Regulations under paragraph 22, 25 or 28 (levy payments, safety net payments and safety net payments on account) may provide for a pool of authorities to be treated as a relevant authority for the purposes of the regulations.

(2) Such regulations may, in particular, make provision—

(a) that is similar to provision which may be made under the paragraph in question apart from sub-paragraph (1) above, or

(b) that applies such provision with modifications.

(3) Where regulations under paragraph 22 apply to a pool of authorities for a year, paragraphs 23 and 24 (calculation and making of levy payments) apply in relation to the authorities and the year as if references in them to a relevant authority were to the pool.

(4) Where regulations under paragraph 25 apply to a pool of authorities for a year, paragraphs 26 and 27 (calculation and making of safety net payments) apply in relation to the authorities and the year as if references in them to a relevant authority were to the pool.

(5) Where a designation of a pool of authorities has effect for a year, paragraph 30 (distribution of remaining balance) applies in relation to the pool as if—

(a) the authorities in the pool were not relevant authorities, but

(b) the pool were itself a relevant authority.

(6) Regulations under paragraph 30 may provide for a pool of authorities to be treated as a relevant authority for the purposes of the regulations.

(7) This paragraph does not prevent—

(a) regulations under paragraph 22, 25, 28 or 30 from also making provision in relation to the individual authorities in a pool,

(b) the Secretary of State from making calculations under paragraph 23, 26 or 30(3) based on such regulations in relation to each of those authorities, or

(8) But paragraphs 24, 27 and 30 (6) (payments following calculations) do not apply in relation to such calculations.

38

(1) A requirement under Part 5 or 7 of this Schedule in its application by virtue of paragraph 36 or 37 to notify a pool of authorities of any matter is a requirement to notify each authority in the pool of that matter.

(2) Where by virtue of either of those paragraphs a pool of authorities is required to make a payment to the Secretary of State, each authority in the pool is jointly and severally liable to make that payment.

(3) Where by virtue of either of those paragraphs the Secretary of State is required to make a payment to a pool of authorities, the payment is to be made to the lead authority appointed in accordance with conditions under paragraph 35 (1).

Part 10 — Designation of areas and classes of hereditament

39

(1) The Secretary of State may by regulations—

(a) designate one or more areas in England (a “designated area”);

(b) provide for the calculation in accordance with the regulations, for each year for which the designation has effect and in relation to each billing authority all or part of whose area falls within a designated area, of the amount mentioned in sub-paragraph (2);

(d) provide for that amount or that proportion to be disregarded for the purposes of calculations under any of the following provisions in its application to the authority for that year—

(i) paragraph 6 (payments in respect of the central share);

(ii) regulations under paragraph 7 (administrative arrangements for payments in respect of the central share);

(iii) regulations under paragraph 9 (payments by billing authorities to major precepting authorities);

(iv) regulations under paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);

(v) paragraph 13 (calculations following local government finance report);

(vi) paragraph 16 (calculations following amending report);

(vii) paragraph 23 (calculations of levy payments);

(viii) paragraph 26 (calculations of safety net payments);

(ix) regulations under paragraph 28 (calculations of payments on account);

(x) paragraph 30 (calculations relating to distribution of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b) is the total amount which, if the authority acted diligently, would be payable to it for the year under sections 43 and 45 in respect of the hereditaments within the designated area.

(3) The regulations may provide for that amount, or any proportion calculated under sub-paragraph (1)(c), to be adjusted in accordance with the regulations (and references in this paragraph to that amount or proportion include the amount or proportion as adjusted in accordance with such provision).

(4) The regulations may, in particular, provide for adjustments to that amount or that proportion by reference to changes affecting a calculation under regulations under this paragraph for an earlier year but not taken into account in that calculation.

(5) The regulations must—

(a) specify the date on which the designation takes effect, which must be the first day of a year, or

(b) provide that the designation is to take effect on the first day of the first year after specified conditions have been met.

(6) Conditions under sub-paragraph (5)(b) may require compliance with specifications or requirements contained in a document of a specified kind.

(7) If the regulations make provision under sub-paragraph (5)(b), they must provide that they will cease to have effect at the end of a specified period unless the conditions are met by the end of that period.

(8) The regulations may specify the years for which the designation has effect.

(9) If the regulations contain provision under sub-paragraph (8)—

(a) amendments within sub-paragraph (10) may not be made to the regulations unless (in the case of amendments within paragraph (a), (b) or (c) of that sub-paragraph) the amendments are expressed to come into force after the end of that period, and

(b) the regulations may not be revoked unless the revocation is expressed to come into force after the end of that period.

(10) The amendments mentioned in sub-paragraph (9)(a) are those which have the effect of—

(a) altering the boundaries of a designated area,

(b) where provision made under paragraph (d) of sub-paragraph (1) has the effect that the amount referred to in that paragraph is to be disregarded, providing for a proportion of that amount to be disregarded,

(c) where provision made under that paragraph has the effect that a proportion is to be disregarded, reducing that proportion, or

(d) reducing the period for which the designation has effect.

(11) Regulations under this paragraph must specify each area designated by the regulations by means of a plan or map (whether or not each area is specified by any other means).

(12) An area may be designated by regulations under this paragraph by reference to such factors as the Secretary of State thinks fit.

(13) The consent of the Treasury is required to regulations under this paragraph.

(14) In this paragraph “specified” means specified in the regulations.

40

(1) The Secretary of State may by regulations—

(a) designate one or more classes of hereditaments in England (a “designated class”);

(b) provide for the calculation in accordance with the regulations, for each year for which the designation has effect and in relation to each billing authority whose area includes hereditaments within the designated class, of the amount mentioned in sub-paragraph (2);

(d) provide for that amount or that proportion to be disregarded for the purposes of calculations under any of the following provisions in its application to the authority for that year—

(i) paragraph 6 (payments in respect of the central share);

(ii) regulations under paragraph 7 (administrative arrangements for payments in respect of the central share);

(iii) regulations under paragraph 9 (payments by billing authorities to major precepting authorities);

(iv) regulations under paragraph 10 (administrative arrangements for payments by billing authorities to major precepting authorities);

(v) paragraph 13 (calculations following local government finance report);

(vi) paragraph 16 (calculations following amending report);

(vii) paragraph 23 (calculations of levy payments);

(viii) paragraph 26 (calculations of safety net payments);

(ix) regulations under paragraph 28 (calculations of payments on account);

(x) paragraph 30 (calculations relating to distribution of remaining balance).

(2) Subject as follows, the amount referred to in sub-paragraph (1)(b) is the total amount which, if the authority acted diligently, would be payable to it for the year under sections 43 and 45 in respect of the hereditaments within the designated class.

(3) The regulations may provide for that amount, or any proportion calculated under sub-paragraph (1)(c), to be adjusted in accordance with the regulations (and references in this paragraph to that amount or proportion include the amount or proportion as adjusted in accordance with such provision).

(4) The regulations may, in particular, provide for adjustments to that amount or that proportion by reference to changes affecting a calculation under regulations under this paragraph for an earlier year but not taken into account in that calculation.

(5) The regulations may include provision imposing duties or conferring powers on valuation officers (whether as regards determinations, certificates or otherwise) for the purpose of the calculation referred to in sub-paragraph (1)(c).

(6) The regulations—

(a) must specify the date on which the designation takes effect (which must be at the beginning of a year), and

(b) may specify the years for which the designation has effect.

(7) A class may be designated by regulations under this paragraph by reference to such factors as the Secretary of State thinks fit.

(8) Before making regulations under this paragraph the Secretary of State must consult such persons as the Secretary of State thinks fit.

(9) The fact that this paragraph was not in force when consultation in relation to proposed regulations under it took place is to be disregarded in determining whether there has been compliance with sub-paragraph (8).

(10) The consent of the Treasury is required to regulations under this paragraph.

41

(1) Regulations under paragraph 39 or 40 may make provision for a billing authority to make a payment for a year to a relevant authority of an amount equal to the whole or part of the amount or proportion that, in relation to the billing authority and the year, is to be disregarded for the purposes of the calculations mentioned in paragraph 39 (1)(d) or 40 (1)(d) (as the case may be).

(2) Sub-paragraph (3) applies where the regulations include provision for payments to be made in accordance with sub-paragraph (1) to two or more relevant authorities.

(3) The regulations may include provision for imposing duties or conferring powers on valuation officers (whether as regards determinations, certificates or otherwise) for the purpose of arriving at the amounts of those payments.

(4) The regulations may make provision about the administration of payments to relevant authorities under the regulations.

(5) The regulations may, in particular, make provision in relation to payments to relevant authorities of the same kind as the provision that may be made under sub-paragraph (2) of paragraph 10 in relation to payments to major precepting authorities to which that sub-paragraph applies.

42

(1) The Secretary of State may by regulations make provision for—

(a) calculations of a kind mentioned in paragraph 39(1)(d) or 40(1)(d) to be made on the basis of an estimate of an amount or proportion that is to be disregarded under regulations under that paragraph;

(b) for the making of a payment by the Secretary of State to a billing authority or vice versa where it is subsequently determined that the amount or proportion to be disregarded is more or less than the amount of the estimate.

(2) Regulations under this paragraph may make provision about the administration of payments under the regulations, including as to—

(a) the time and manner in which a payment is to be made, and

(b) the consequences of non-payment.

Part 11 — Supplementary

43

(1) The Secretary of State may, for the purposes of any provision of or made under this Schedule or Part 6 (funds) so far as applying to non-domestic rates, direct a relevant authority to make calculations, or to supply information to the Secretary of State, in accordance with the direction.

(2) The direction may require the calculations to be made, or the information to be supplied, before such time as is specified in the direction.

(3) The direction may require the calculations or information to be certified in accordance with the direction.

(4) If a relevant authority does not comply with a direction under this paragraph, the Secretary of State may make the calculations that the Secretary of State thinks would have been made, or make assumptions as to the information that would have been supplied, by the authority if it had complied with the direction.

(5) If the Secretary of State proceeds under sub-paragraph (4), the Secretary of State must notify the authority—

(a) of that fact, and

(b) of the calculations or assumptions that the Secretary of State has made.

(6) If any calculation or information certified in accordance with a direction under this paragraph does not match that made or supplied by the authority in question, the Secretary of State may use the certified calculation or information.

(7) If the Secretary of State proceeds under sub-paragraph (6), the Secretary of State must notify the authority of that fact.

(8) For the purposes of any provision made by or under Part 5 or 7 of this Schedule that applies to pools of authorities, this paragraph has effect as if references to a relevant authority included a reference to such a pool.

(9) Where sub-paragraph (5) or (7) applies to a pool of authorities by virtue of sub-paragraph (8), the Secretary of State must notify each relevant authority in the pool of the matters in question.

44

The Secretary of State may by regulations—

(a) make any provision that could be made by a direction under paragraph 43;

(b) make provision for the Secretary of State to give a direction that could be given under that paragraph;

(i) in relation to provision made by regulations under this paragraph, or

(ii) in relation to a direction given by the Secretary of State under regulations under this paragraph.

45

In this Schedule—

“actual rating income”, in relation to a billing authority, has the meaning given by paragraph 32 (4)(b);

“basis of calculation” has the meaning given by paragraph 12 (1);

“the central share” has the meaning given by paragraph 4;

“deemed rating income”, in relation to a billing authority, has the meaning given by paragraph 32 (4)(a);

“local government finance report” has the meaning given by paragraph 5 (1);

“the local share” has the meaning given by paragraph 4;

“levy account” has the meaning given by paragraph 19 (1);

“levy payment” has the meaning given by paragraph 22 (1);

“main non-domestic rating account” has the meaning given by paragraph 1 (1);

a “pool of authorities” means two or more relevant authorities designated as a pool of authorities under paragraph 34;

“relevant authority” means—a billing authority in England, ora major precepting authority in England;

“safety net payment” has the meaning given by paragraph 25 (1);

“year” means a chargeable financial year.

Interpretation

3A

Any reference in this Part of this Schedule to a billing authority is a reference to a billing authority in Wales.

Power for member of First-tier Tribunal to act as member of the Tribunal

A18A

(1) A member of the First-tier Tribunal (an “FTT member”) may act as a member of the Valuation Tribunal for England.

(2) An FTT member may only act as a member of the Tribunal—

(a) at the request of the President and with the approval of the Senior President of Tribunals,

(b) in relation to an appeal that relates, in whole or in part, to a council tax reduction scheme made or having effect as if made by a billing authority in England, and

(3) A request under sub-paragraph (2)(a)—

(a) may relate to a particular appeal or to appeals of a particular kind,

(b) may be made only if the President thinks that FTT members are likely to have particular expertise that is relevant to the determination of the appeal, or to appeals of the kind, to which it relates.

(4) An approval under sub-paragraph (2)(a) may relate to a particular appeal or to appeals of a particular kind.

(5) The President may withdraw a request at any time; and an FTT member acting as a Tribunal member in response to a request must cease to do so if it is withdrawn.

(6) References in this Schedule and in regulations made under paragraph A19 to a member of the Tribunal include an FTT member acting as a member of the Tribunal.

(7) But sub-paragraph (6) does not apply—

(a) to paragraph A7, A8, A9, A10 or A12 (which make provision about the appointment and removal of, numbers of, and payments to, members of the Tribunal);

(b) to regulations under paragraph A19, if and to extent that the regulations provide that it does not apply.

(8) The Valuation Tribunal Service may make payments to the Lord Chancellor in respect of the expenditure incurred by the Lord Chancellor in paying remuneration, allowances or expenses to an FTT member whilst acting as a member of the Tribunal.

(9) In this paragraph—

(a) references to an appeal include a review by the Tribunal of a decision made by it on an appeal,

(b) “council tax reduction scheme” has the same meaning as in Part 1 of the Local Government Finance Act 1992 (see section 13A(9) of that Act).

54A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

62A

Where a liability order has been made against a person under regulations under Schedule 9, the billing authority 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.

These repeals shall have effect for financial years beginning in or after 1990, but subject to any saving under section 117(8) above.

6B

(1) If a valuation officer needs to value a hereditament in England for the purpose of carrying out functions conferred or imposed on the officer by or under this Part, the officer and any person authorised by the officer in writing may enter on, survey and value the hereditament if sub-paragraphs (2) and (4) are fulfilled and (where it applies) sub-paragraph (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 sub-paragraph (1).

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

(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 the valuation officer proposes to exercise the power, the person must if required produce the authorisation.

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

(7) For the purpose of the requirement under sub-paragraph (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 paragraph 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 paragraph “the tribunal” means the First-tier Tribunal.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

These repeals shall have effect for financial years beginning in or after 1990.

63A

(1) An officer of the Valuation Office of Her Majesty's Revenue and Customs may disclose Revenue and Customs information to a qualifying person for a qualifying purpose.

(2) Information disclosed to a qualifying person under this section may be retained and used for any qualifying purpose.

(3) Each of the following is a “qualifying person”—

(a) a billing authority;

(b) a major precepting authority;

(c) a person authorised to exercise any function of an authority within paragraph (a) or (b) relating to non-domestic rating;

(d) a person providing services to an authority within paragraph (a) or (b) relating to non-domestic rating;

(e) the Secretary of State;

(f) the Welsh Ministers;

(g) a prescribed person.

(4) Each of the following is a “qualifying purpose”—

(a) enabling or assisting the qualifying person to whom the disclosure is made, or any other qualifying person, to carry out any functions conferred by or under this Part which are not functions of the Secretary of State or the Welsh Ministers;

(b) enabling or assisting the Secretary of State or the Welsh Ministers to carry out functions conferred by or under section 53 or 54 (central non-domestic rating), or by or under Schedule 9 so far as relating to central non-domestic rating lists;

(5) In this section—

“prescribed” means—in relation to England, prescribed by regulations made by the Secretary of State, andin relation to Wales, prescribed by regulations made by the Welsh Ministers;

“Revenue and Customs information” means information held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005.

(6) Regulations under this section may only be made with the consent of the Commissioners for Her Majesty's Revenue and Customs.

63B

(1) Information disclosed under section 63A or this section may not be further disclosed unless that further disclosure is—

(a) to a qualifying person for a qualifying purpose,

(b) for the purposes of the initiation or conduct of any proceedings relating to the enforcement of any obligation imposed by or under this Part of this Act,

(d) with the consent of each person to whom the information relates, or

(e) required or permitted under any other enactment.

(2) Information may not be disclosed under subsection (1)(a) to a qualifying person within section 63A(3)(c), (d), (e), (f) or (g) except with the consent of the Commissioners for Her Majesty's Revenue and Customs (which may be general or specific).

(3) Information disclosed to a qualifying person under this section may be retained and used for any qualifying purpose.

(4) A person commits an offence if the person contravenes subsection (1) or (2) by disclosing information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it.

(5) It is a defence for a person charged with an offence under this section of disclosing information to prove that the person reasonably believed—

(a) that the disclosure was lawful, or

(b) that the information had already lawfully been made available to the public.

(6) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine, or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or to both.

(7) A prosecution for an offence under this section may be instituted only by or with the consent of the Director of Public Prosecutions.

(8) In relation to an offence under this section committed before 2 May 2022 the reference in subsection (6)(a) to the general limit in a magistrates’ court is to be taken as a reference to 6 months.

(9) This section is without prejudice to the pursuit of any remedy or the taking of any action in relation to a contravention of subsection (1) or (2) (whether or not subsection (4) applies to the contravention).

(10) In this section—

“qualifying person” has the same meaning as in section 63A;

“qualifying purpose” has the same meaning as in that section.

63C

(1) Revenue and customs information relating to a person which has been disclosed under section 63A or 63B is exempt information by virtue of section 44(1)(a) of the Freedom of Information Act 2000 (prohibition on disclosure) if its further disclosure—

(a) would specify the identity of the person to whom the information relates, or

(b) would enable the identity of such a person to be deduced.

(2) In this section “revenue and customs information relating to a person” has the same meaning as in section 19(2) of the Commissioners for Revenue and Customs Act 2005.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54ZA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alteration of lists.

Unoccupied hereditaments rate relief

Power to confer additional full reliefs

Other years

Credits and debits

Functions to be discharged only by authority.

Separate administration in England and Wales.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credits and debits

These repeals shall have effect for financial years beginning in or after 1990.

6AA

(1) The Welsh Ministers may by regulations require persons to provide to billing authorities in Wales information relevant to determining—

(a) whether a person is, as regards a hereditament in Wales, subject to a non-domestic rate in respect of a chargeable financial year;

(b) where a person is, as regards a hereditament in Wales, subject to a non-domestic rate, the amount the person is liable to pay.

(2) Regulations under sub-paragraph (1) must specify—

(a) the information to be provided,

(b) the persons who must provide the information,

(d) the period within which the information is to be provided.

(3) The regulations may provide that a billing authority may impose a financial penalty on a person who fails to comply with a requirement in the regulations to provide information.

(4) If provision is made under sub-paragraph (3)—

(a) the penalty specified in the regulations must be £500;

(b) the regulations must require any sum received by a billing authority by way of penalty to be paid into the Welsh Consolidated Fund;

(c) the regulations may include provision for any penalty to be recovered by the billing authority concerned as a civil debt due to the authority;

(d) the regulations must include provision enabling a person on whom a financial penalty is imposed to require a review of the imposition of the penalty or its amount by the billing authority that imposed the penalty;

(e) the regulations must include provision enabling a person on whom a financial penalty is imposed to appeal against the imposition of the penalty or its amount to a valuation tribunal established under paragraph 1 of Schedule 11.

(5) The regulations may provide that a person who knowingly or recklessly provides information required under the regulations which is false in a material particular is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(6) The Welsh Ministers may by regulations substitute a different amount for the amount for the time being specified in sub-paragraph (4)(a).

7A

(1) A billing authority in Wales may enter and survey a hereditament in its area if the authority has grounds for believing that the inspection is required for the purpose of carrying out functions conferred or imposed upon it by or under this Part.

(2) But the billing authority must obtain the approval of a valuation tribunal established under paragraph 1 of Schedule 11 before it exercises the power under sub-paragraph (1) above.

(3) After the tribunal has given its approval, the billing authority must give at least 24 hours' notice in writing of the proposed exercise of the power.

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