Local Government Finance Act 1988

• (3D) Transport for London shall designate a member of Transport for London, or a member of the staff of Transport for London, as the person who is to be consulted under subsection (3A) above.

• (4) Where a chief finance officer of a relevant authority has made a report under this section he shall send a copy of it to—

• (a) the person who at the time the report is made has the duty to audit the authority’s accounts, and

• (b) in the case of—

• (i) a police and crime commissioner, the commissioner and each member of the police and crime panel for the commissioner's police area;

• (ii) the Mayor's Office for Policing and Crime, that Office and each member of the police and crime panel of the London Assembly;

• (iii) a chief officer of police, in relation to a report about the exercise of policing functions of the chief officer the chief officer and the elected local policing body;

• (iiia) a chief officer of police in relation to a report about the exercise of fire and rescue functions of the chief officer, the chief officer and the relevant section 4A fire and rescue authority;

• (iiib) a chief officer of police in relation to a report about the exercise of policing and fire and rescue functions of the chief officer, the chief officer, the elected local policing body and the relevant section 4A fire and rescue authority;

• (iiic) a section 4A fire and rescue authority, the relevant police and crime commissioner and each member of the relevant police and crime panel; and

• (iv) any other relevant authority, each person who is at that time a member of the authority; and

• (c) in a case where the relevant authority has a mayor and council manager executive, the person who at the time the report is made is the council manager of that authority

• (4A) The duty under subsection (4)(b) above—

• (a) in a case where the relevant authority is the Greater London Authority, is to send a copy of the report to the Mayor of London and to each member of the London Assembly; and

• (b) in a case where the relevant authority is a functional body, within the meaning of the 1999 Act, includes a duty to send a copy of the report to the Mayor of London and to the Chair of the Assembly, within the meaning of that Act.

• (5) Subject to subsection (6) below, the duties of a chief finance officer of a relevant authority under subsections (2) and (3) above shall be performed by him personally.

• (6) If the chief finance officer is unable to act owing to absence or illness his duties under subsections (2) and (3) above shall be performed—

• (a) by such member of his staff as is a member of one or more of the bodies mentioned in section 113(3) above and is for the time being nominated by the chief finance officer for the purposes of this section, or

• (b) if no member of his staff is a member of one or more of those bodies, by such member of his staff as is for the time being nominated by the chief finance officer for the purposes of this section.

• (7) A relevant authority shall provide its chief finance officer with such staff, accommodation and other resources as are in his opinion sufficient to allow his duties under this section to be performed.

• (8) In this section—

• (a) references to a joint committee are to a committee on which two or more relevant authorities are represented, and

• (b) references to a committee (joint or otherwise) include references to a sub-committee.

• (8A) In this section “relevant police force”, in relation to the chief finance officer of a relevant authority, means—

• (a) in the case where the relevant authority is a chief officer of police, the police force of which that person is chief officer;

• (b) in any other case, the police force maintained by the relevant authority.

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

Authority’s duties as regards reports

115

• (1) This section applies where copies of a report under section 114 above have been sent under section 114(4) above.

• (1A) Where the report under section 114 above is a report by the chief finance officer of the Greater London Authority, section 115A below shall have effect in place of subsections (2) and (3) below.

• (1B) In the case of a report made by the chief finance officer of an elected local policing body, that body must consider the report and decide whether the body agrees or disagrees with the views contained in the report and what action (if any) the body proposes to take in consequence of it.

• (1BA) In the case of a report made by the chief finance officer of a section 4A fire and rescue authority, that authority must consider the report and decide whether the authority agrees or disagrees with the views contained in the report and what action (if any) the authority proposes to take in consequence of it.

• (1C) In the case of a report made by the chief finance officer of a chief officer of police, the chief officer of police must consider the report and decide whether the chief officer of police agrees or disagrees with the views contained in the report and what action (if any) the chief officer of police proposes to take in consequence of it.

• (1D) The consideration and decision-making must be concluded not later than the end of the period of 21 days beginning with the day on which copies of the report are sent.

• (1E) As soon as practicable after the elected local policing body, the section 4A fire and rescue authority or the chief officer of police has concluded the consideration of the chief finance officer's report, that body , authority or chief officer must prepare a report which specifies—

• (a) what action (if any) that body , authority or chief officer has taken in response to the report;

• (b) what action (if any) that body , authority or chief officer proposes to take in response to the report; and

• (c) the reasons for taking the action specified in the report or, as the case may be, for taking no action.

• (1F) As soon as practicable after the elected local policing body has prepared a report under subsection (1E), the elected local policing body must arrange for a copy of the report to be sent to—

• (a) the chief finance officer;

• (b) the person who at the time the report is made has the duty to audit the elected local policing body's accounts; and

• (c) each member of the police and crime panel for the police area for which the elected local policing body is established.

• (1FA) As soon as practicable after the section 4A fire and rescue authority has prepared a report under subsection (1E), the authority must arrange for a copy of the report to be sent to—

• (a) the chief finance officer;

• (b) the person who at the time the report is made has the duty to audit the authority’s accounts; and

• (c) each member of the relevant police and crime panel.

• (1G) As soon as practicable after the chief officer of police has prepared a report under subsection (1E) in relation to the exercise of policing functions of the chief officer, the chief officer of police must arrange for a copy of the report to be sent to—

• (a) the chief finance officer;

• (b) the person who at the time the report is made has the duty to audit the chief officer's accounts; and

• (c) the elected local policing body which maintains the police force in which the chief officer serves.

• (1H) As soon as practicable after the chief officer of police has prepared a report under subsection (1E) in relation to the exercise of fire and rescue functions of the chief officer, the chief officer of police must arrange for a copy of the report to be sent to—

• (a) the chief finance officer;

• (b) the person who at the time the report is made has the duty to audit the chief officer’s accounts; and

• (c) the relevant section 4A fire and rescue authority.

• (1I) As soon as practicable after the chief officer of police has prepared a report under subsection (1E) in relation to the exercise of policing and fire and rescue functions of the chief officer, the chief officer of police must arrange for a copy of the report to be sent to—

• (a) the chief finance officer;

• (b) the person who at the time the report is made has the duty to audit the chief officer’s accounts;

• (c) the elected local policing body which maintains the police force in which the chief officer serves; and

• (d) the relevant fire and rescue authority.

• (2) In the case of any authority other than an elected local policing body , a section 4A fire and rescue authority or a chief officer of police, The authority shall consider the report at a meeting where it shall decide whether it agrees or disagrees with the views contained in the report and what action (if any) it proposes to take in consequence of it.

• (3) The meeting must be held not later than the end of the period of 21 days beginning with the day on which copies of the report are sent.

• (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Section 101 of the 1972 Act (delegation) shall not apply to the duty under subsection (2) above where the authority is one to which that section would apply apart from this subsection.

• (4A) In the case of ... or Transport for London, paragraph 7 of Schedule 10 to the 1999 Act (delegation by Transport for London) shall not apply to the duty under subsection (2) above.

• (4B) In the case of a corporate joint committee, regulation 13 of the Corporate Joint Committees (General) (No. 2) (Wales) Regulations 2021 (arrangements for the discharge of functions) does not apply to the duty under subsection (2).

• (5) If the report was made under section 114(2) above, during the prohibition period the course of conduct which led to the report being made shall not be pursued.

• (6) If the report was made under section 114(3) above, during the prohibition period the authority shall not enter into any new agreement which may involve the incurring of expenditure (at any time) by the authority unless the chief finance officer of the authority authorises it to do so.

• (6A) The chief finance officer may only give authority for the purposes of subsection (6) above if he considers that the agreement concerned is likely to—

• (a) prevent the situation that led him to make the report from getting worse,

• (b) improve the situation, or

• (c) prevent the situation from recurring.

• (6B) Authority for the purposes of subsection (6) above shall—

• (a) be in writing,

• (b) identify the ground on which it is given, and

• (c) explain the chief finance officer’s reasons for thinking that the ground applies.

• (7) If subsection (5) above is not complied with, and the authority makes any payment in the prohibition period as a result of the course of conduct being pursued, it shall be taken not to have had power to make the payment (notwithstanding any obligation to make it under contract or otherwise).

• (8) If subsection (6) above is not complied with, the authority shall be taken not to have had power to enter into the agreement (notwithstanding any option to do so under contract or otherwise).

• (9) In this section “the prohibition period” means the period—

• (a) beginning with the day on which copies of the report are sent, and

• (b) ending with the first business day to fall after the day (if any) on which the authority’s consideration of the report under subsection (1B), (1C) (2) above is concluded.

• (9A) In the application of this section where the report under section 114 above is a report by the chief finance officer of the Greater London Authority, subsection (9) above shall have effect with the substitution for paragraph (b) of—

• (“) ending with the first business day to fall after the day (if any) on which the Mayor makes the decisions under section 115A(6) below”.

• (10) If subsection (1B), (1C) (3) above , or, where section 115A below applies, subsection (4) or (8) of that section, is not complied with, it is immaterial for the purposes of subsection (9)(b) above.

• (11) The nature of the decisions made under subsection (1B), (1C) or (2) , or, where section 115A below applies, by the Mayor under subsection (6) of that section, is immaterial for the purposes of subsection (9)(b) above.

• (12) In subsection (9)(b) above “business day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England and Wales.

• (13) In the application of this section in relation to the Greater London Authority, the references to the authority in subsections (5) to (12) above shall be taken as references to the Greater London Authority whether acting by the Mayor, the Assembly or the Mayor and Assembly acting jointly.

• (14) In this section—

• “the Assembly” means the London Assembly;

• “the chief finance officer” has the same meaning as in section 114;

• “the Mayor” means the Mayor of London.

Information about meetings

116

• (1) Where it is proposed to hold a meeting under section 115 above the authority’s proper officer shall as soon as is reasonably practicable notify its auditor of the date, time and place of the proposed meeting.

• (1A) Where it is proposed to hold a meeting under section 115B above—

• (a) where the authority has a mayor and cabinet executive, the elected mayor;

• (b) where the authority has a leader and cabinet executive, the executive leader; or

• (c) where the authority has a mayor and council manager executive, the council manager,

shall as soon as is reasonably practicable notify, or instruct the authority’s proper officer to notify, the authority’s auditor of the date, time and place of the proposed meeting.

• (2) As soon as is reasonably practicable after a meeting is held under section 115 above the authority’s proper officer shall notify its auditor of any decision made at the meeting.

• (2A) As soon as is reasonably practicable after a meeting is held under section 115B above—

• (a) where the authority has a mayor and cabinet executive, the elected mayor;

• (b) where the authority has a leader; or

• (c) where the authority has a mayor and council manager executive, the council manager,

shall notify, or instruct the authority’s proper officer to notify, the authority’s auditor of any decision made at the meeting.

• (2A) As soon as is reasonably practicable after a meeting is held under section 115B above—

• (a) where the authority has a mayor and cabinet executive, the elected mayor;

• (b) where the authority has a leader and cabinet executive, the executive leader; or

• (c) where the authority has a mayor and council manager executive, the council manager,

shall notify, or instruct the authority’s proper officer to notify, the authority’s auditor of any decision made at the meeting.

• (2B) In the case of an elected local policing body, the chief finance officer of that body must notify the body's auditor of any decisions taken by the body in accordance with section 115.

• (2BA) In the case of a section 4A fire and rescue authority, the chief finance officer of that authority must notify the authority’s auditor of any decisions taken by the authority in accordance with section 115.

• (2C) In the case of a chief officer of police, the chief officer of police's chief finance officer must notify that chief officer of police's auditor of any decisions taken by the chief officer of police in accordance with section 115.

• (3) For the purposes of this section an authority’s proper officer is the person to whom the authority has for the time being assigned responsibility to notify its auditor under this section.

• (4) For the purposes of this section an authority’s auditor is the person who for the time being has the duty to audit its accounts.

Part IX — Existing Rates, Precepts and Grants

Rates and precepts: abolition

117

• (1) The General Rate Act 1967 shall not have effect as regards any time after 31 March 1990.

• (2) As regards any time after 31 March 1990 the Common Council shall have no power to make or levy a rate under section 15 or 18 of the City of London (Union of Parishes) Act 1907, the City of London (Tithes and Rates) Act 1910 or section 68(1) of the London Government Act 1963 (general rate, poor rate and St. Botolph tithe rate).

• (3) Neither the sub-treasurer of the Inner Temple nor the under-treasurer of the Middle Temple shall have power to make or levy a rate as regards any time after 31 March 1990.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In subsection (6) below “levying body” means any body which—

• (a) is established by or under an Act,

• (b) apart from subsection (6) below would have in respect of the financial year beginning in 1990 power (conferred by or under an Act passed before, or in the same session as, this Act) to issue a precept to, make a levy on or have its expenses paid by a county council or charging authority, and

• (c) is not a precepting authority ... , or combined fire authority.

• (6) In respect of any chargeable financial year no levying body shall have power under the Act concerned to issue a precept to, make a levy on or have its expenses paid by the council concerned.

• (7) In subsections (5) and (6) above “Act” includes a private or local Act.

• (8) The Secretary of State may make regulations providing that the preceding provisions of this section shall have effect subject to prescribed savings.

Rates: power to abolish or modify

118

• (1) This section applies as regards any body—

• (a) which is established by or under an Act,

• (b) which as regards the financial year beginning in 1989 has power (conferred by or under an Act) to levy a rate by reference to the value or yearly value of property, and

• (c) which is not a billing authority

and, in the case of an internal drainage board, there shall be disregarded for the purposes of paragraph (b) above any agreement under section 81 of the Land Drainage Act 1976 under which the board have agreed that no drainage rate will be levied on occupiers or owners of certain rateable hereditaments.

• (2) The appropriate Minister may by regulations provide as mentioned in one of the following paragraphs as regards any such body—

• (a) that the body shall have no power to levy the rate as regards any time specified in the regulations and falling after 31 March 1990;

• (b) that the body’s power to levy the rate as regards any time specified in the regulations and falling after 31 March 1990 shall be modified in a manner specified in the regulations.

• (3) Regulations providing as mentioned in subsection (2)(b) above as regards a body may include provision—

• (a) as to the property (or description of property) in respect of which the rate may be levied and the property (or description of property) in respect of which the rate may not be levied;

• (b) as to the body’s expenditure, or the proportion of its expenditure, which may be met from the proceeds of the rate.

• (4) Regulations may provide as mentioned in this section in such way as the appropriate Minister thinks fit (whether by amending provisions or otherwise).

• (5) In this section “Act” includes a private or local Act and “the appropriate minister” means—

• (a) as respects any internal drainage board whose district is wholly within England, the Minister of Agriculture, Fisheries and Food;

• (b) as respects any internal drainage board whose district is partly in England and partly in Wales, that Minister and the Secretary of State acting jointly; and

• (c) as respects any other body, the Secretary of State.

Statutory references to rating

119

Refund of overpayments

120

Section 9(2) of the 1967 Act (restrictions on refund of overpayments) shall have effect, and be deemed always to have had effect, as if after paragraph (b) there were inserted—

; or (c) if the amount paid was charged in accordance with the understanding generally prevailing at the time when the payment was demanded about the application of the relevant statutory provisions.

Valuation according to tone of list

121

• (1) Where for the purposes of section 20 of the 1967 Act a hereditament is valued on the basis of the assumptions specified in subsection (1) of that section (basis of valuation for the purposes of a proposal to alter a valuation list to be consistent with the tone of the list), no account shall be taken of a change to which this subsection applies unless it is one which—

• (a) affects the physical state or physical enjoyment of the hereditament, or

• (b) affects the physical state of the locality in which the hereditament is situated or, though it does not affect the physical state of the locality, is nonetheless physically manifest there.

• (2) Subsection (1) above applies to any change in the state of the hereditament or the state of the locality in which the hereditament is situated which has occurred since the time by reference to which the value of the hereditament is to be ascertained, other than one relating to a factor which is a relevant factor within the meaning of that section.

• (3) This section shall have effect in relation to any proposal made on or after 10 March 1988 which is outstanding on the passing of this Act but shall not have effect in relation to any proposal made before 10 March 1988.

Rating of statutory water undertakings

122

• (1) The following section shall be substituted for section 31 of the 1967 Act—

(31) (1) The rateable values of the hereditaments in any rating district which are occupied, otherwise than as dwellings, for the water purposes of a statutory water undertaking (hereafter in this section and in Schedule 4 to this Act referred to as “water hereditaments” of the undertaking) shall be ascertained in accordance with the provisions of the said Schedule 4. (2) For the purposes of subsection (1) of this section, a hereditament is occupied for the water purposes of a statutory water undertaking if it is occupied for the purposes of any of the undertakers’ functions with respect to the supply of water. (3) In this section and the said Schedule 4, references to statutory water undertakers shall be construed in accordance with section 11(6) of the Water Act 1973 (and references to statutory water undertakings shall be construed accordingly).

• (2) This section shall have effect in relation to any proposal made on or after 10 March 1988 which is outstanding on the passing of this Act but shall not have effect in relation to any proposal made before 10 March 1988.

Rating amendments: miscellaneous

123

• (1) This subsection applies to a proposal for an alteration of a valuation list which, if made, would have the effect of rating as a non-water hereditament of a statutory water undertaking a hereditament which—

• (a) was previously so rated but ceased to be so rated by virtue of an alteration made on or after 4 December 1987,

• (b) was occupied for the purposes of the undertaking at the time of the proposal in pursuance of which the earlier alteration was made, and

• (c) was not at that time occupied for the purposes of the undertakers’ functions with respect to the supply of water.

• (2) This subsection applies to a proposal for an alteration of a valuation list which—

• (a) would, if made, have the effect of reversing an alteration of the list made on or after 11 February 1988, and

• (b) would not fall to be made but for section 121 above.

• (3) Where in the case of a proposal to which subsection (1) or (2) above applies there has been, since the making of the proposal in pursuance of which the earlier alteration was made, such a change of circumstances in relation to the hereditament to which the proposal relates as is mentioned in any of paragraphs (a) to (h) of section 68(4) of the 1967 Act, the change of circumstances shall be disregarded for the purposes of dealing with the proposal.

• (4) This subsection applies to an alteration of a valuation list which—

• (a) is made in pursuance of a proposal to which subsection (1) above applies, or

• (b) has the effect of reversing an alteration of the list made on or after 11 February 1988 and would not have fallen to be made but for section 121 above.

• (5) An alteration to which subsection (4) above applies shall be deemed to have had effect—

• (a) if the earlier alteration was made in pursuance of a proposal made before 10 March 1988, from that date, and

• (b) if the earlier alteration was made in pursuance of a proposal made on or after 10 March 1988, from the date that the earlier alteration had effect,

notwithstanding in either case that the date from which the alteration is deemed to have had effect differs from the date provided bysection 79(1) of the 1967 Act.

• (6) For the purposes of subsection (1) above, a hereditament is rated as a non-water hereditament of a statutory water undertaking if its value is ascertained otherwise than in accordance with the provisions of Schedule 4 to the 1967 Act.

• (7) In this section, the reference in subsection (1)(c) to statutory water undertakers is a reference to a water authority or statutory water company within the meaning of the Water Act 1973 and “statutory water undertaking” shall be construed accordingly.

• (8) In this section and sections 120 to 122 above—

• (a) “the 1967 Act” means the General Rate Act 1967,

• (b) “valuation list” has the meaning assigned by section 115(1) of that Act, and

• (c) references to the date on which a proposal is made are references to the date on which the proposal is served on the valuation officer or, where the proposal is made by the valuation officer, is served on the occupier of the hereditament to which the proposal relates.

Rate support grant: abolition

124

• (1) No payments by way of rate support grant shall be made for a financial year beginning in or after 1990.

• (2) The Secretary of State may by order repeal any enactment relating to rate support grant.

• (3) If a sum paid to an authority under any provision repealed under subsection (2) above is less than the amount which should have been paid to it under the provision, the Secretary of State shall calculate the amount equal to the difference and pay a sum equal to that amount to the authority.

• (4) If a sum in excess of an amount payable to an authority has been paid under any provision repealed under subsection (2) above, the Secretary of State shall calculate the amount equal to the excess and a sum equal to that amount shall be due from the authority to the Secretary of State.

• (5) If the Secretary of State decides that a sum due under subsection (4) above is to be recoverable by deduction he may deduct a sum equalling (or sums together equalling) that sum from anything the authority is entitled to receive from him (whether by way of revenue support grant or otherwise).

• (6) If the Secretary of State decides that a sum due under subsection (4) above is to be recoverable by payment it shall be payable on such day as he may specify; and if it is not paid on or before that day it shall be recoverable in a court of competent jurisdiction.

• (7) The Secretary of State may decide that a sum due under subsection (4) above is to be recoverable partly by deduction and partly by payment, and in such a case subsections (5) and (6) above shall have effect with appropriate modifications.

• (8) The Secretary of State may decide differently under subsections (5) to (7) above as regards sums due from different authorities or as regards sums due from the same authority in respect of different financial years.

Transport grants: abolition

125

Section 6(1) to (7) of the Local Government Act 1974 (supplementary grants for transport purposes) shall not have effect for a financial year beginning in or after 1990.

Variation of multipliers in supplementary reports

126

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

London Regional Transport grants: amendment

127

• (1) No levy under section 13 of the London Regional Transport Act 1984 (contribution to expenditure on grants) shall be made in respect of any time after 31 March 1990.

• (2) The Secretary of State may make regulations providing that subsection (1) above shall have effect subject to prescribed savings.

Part X — Scotland

Levying of rates

128

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

Exemption from personal charge

129

Part XI — Miscellaneous and General

Capital expenditure

Acquisition of interests less than freehold

130

Prescribed expenditure

131

• (1) In the Local Government, Planning and Land Act 1980 (in this section referred to as “the 1980 Act”), in section 71 (expenditure to which Part VIII of the 1980 Act applies) for subsection (2) there shall be substituted the following subsection—

(2) Where any of the activities specified in paragraph 1 of Schedule 12 to this Act is undertaken by or for an authority, then, subject to paragraphs 2 to 5 of that Schedule, the amount of expenditure which,— (a) by virtue of sections 79A to 80B below, the authority is to be taken to incur on that activity, or (b) in a case not falling within those sections, the authority actually incurs on that activity, is prescribed expenditure for the purposes of this Part of this Act.

• (2) In section 80 of the 1980 Act (which determines the amount of expenditure which is to be taken to be incurred where an interest in or right over property is acquired) for subsection (4) there shall be substituted the following subsection—

(4) Where the acquisition is, or is treated by virtue of section 79A above as being, the acquisition of the fee simple absolute in possession and subsection (3) above does not apply, the amount is the consideration in money which would be obtained for that fee simple if it were sold on the open market by a willing seller at the time of the acquisition; and in determining, for the purpose of calculating that amount, to what interests and rights the fee simple is at that time subject— (a) where section 79A applies there shall be taken into account only those mentioned in subsection (2) of that section; and (b) there shall be left out of account those arising by virtue of a mortgage or charge to secure the payment of money.

• (3) In subsection (5) of the said section 80 for paragraph (a) there shall be substituted the following paragraph—

(a) the acquisition, though treated by virtue of section 79A above as the acquisition of a fee simple, is in fact the acquisition of a leasehold interest in land; and

.

• (4) In subsection (8) of the said section 80 for the words “right to occupy” there shall be substituted “right to possession or occupation of”.

• (5) Subsection (14) of the said section 80 shall be omitted.

• (6) In section 80A of the 1980 Act (payment for works carried out for an authority), in subsection (5) (value of works at any time) at the end of paragraph (b) there shall be added

and (c) the value of any consideration which is not in money and which has been or is to be given by the authority for the carrying out of the works

.

• (7) In subsection (9) of the said section 80A (works treated as carried out for an authority in cases specified in or determined under regulations) after the words “subsection (1)” there shall be inserted “and section 71(2)”.

• (8) This section shall be deemed to have come into force on 10 March 1988 but, subject to subsection (9) below, the reference in section 80A(5)(c) of the 1980 Act (as amended by subsection (6) above) to consideration which is not in money does not include consideration given in pursuance of a contract entered into before that date.

• (9) In any case where the consideration which is not in money and which is given pursuant to a contract entered into before 10 March 1988 is affected by—

• (a) a variation of the contract on or after that date,

or

• (b) the exercise on or after that date of an option or other right conferred by the contract,

so much (if any) of that consideration as exceeds what it would have been if the contract had not been so varied or, as the case may be, if the option or other right had not been so exercised shall be regarded for the purposes of subsection (8) above as given in pursuance of a contract entered into after 10 March 1988.

Share and loan capital and guarantee payments

132

• (1) In the Local Government, Planning and Land Act 1980 (in this section referred to as “the 1980 Act”), in Schedule 12 (prescribed expenditure under Part VIII), in paragraph 1, in sub-paragraph (f) the final “and” shall be omitted and at the end of sub-paragraph (g) there shall be added—

(h) the acquisition of share capital or loan capital (within the meaning of section 78 of the Finance Act 1986) of any body corporate which is not an authority to which this Part of this Act applies, and (i) the making of payments pursuant to an obligation arising under a guarantee or indemnity given with respect to money borrowed by any person

.

• (2) At the end of paragraph 3 of the said Schedule 12 there shall be inserted the following paragraph—

(3A) The reference in paragraph 3 above to a county council includes a reference to any district council or other body in whom, by virtue of an order under any provision of Part VII of the Local Government Act 1985, there is for the time being vested a superannuation fund which, before the abolition date, within the meaning of that Act, was maintained by the Greater London Council or a metropolitan county council as mentioned in section 60 of that Act.

• (3) With respect to expenditure on the matters specified in paragraphs (h) and (i) of paragraph 1 of the said Schedule 12 (as amended by subsection (1) above), the powers conferred by paragraph 4 of that Schedule (to provide by regulations that certain expenditure which would otherwise be prescribed expenditure shall not be such expenditure) may be exercised so as to have effect with respect to expenditure incurred (or treated by virtue of any provision of Part VIII of the 1980 Act as incurred) on or after 10 March 1988.

• (4) In section 75 of the 1980 Act (capital receipts) the power conferred by subsection (5)(d) (to provide that certain assets are brought within the scope of the section) may be exercised with respect to disposals on or after 10 March 1988 of assets acquired on or after that date in cases where, by virtue of the amendments made by subsection (1) above, expenditure on the acquisition of the assets is prescribed expenditure; and, with respect to capital receipts resulting from such disposals, the powers conferred by sections 72(3)(d) and 75(5)(a) of that Act (which relate to the prescribed proportion of an authority’s capital receipts) may be similarly exercised.

• (5) In section 80 of the 1980 Act (valuation)—

• (a) in subsections (9) and (10) (which relate to the acquisition of property in goods or an interest or right in goods) after the word “goods”, in each place where it occurs, there shall be inserted “share capital or loan capital”; and

• (b) at the end of subsection (15) (definition of “property” for subsections (9) and (10)) there shall be added the words “and loan capital has the same meaning as in section 78 of the Finance Act 1986.”

• (6) Subsections (1), (2) and (5) above shall be deemed to have come into force on 10 March 1988.

Other miscellaneous provisions

Community charges: cross-border information

133

Duty to consult ratepayers

134

Social security

135

Schedule 10 below (which amends the Social Security Act 1986 so as to make provision for benefits in respect of community charges in England and Wales and Scotland) shall have effect.

Tribunals

136

Schedule 11 below (which contains provisions about the establishment of, and other matters relating to, valuation and community charge tribunals) shall have effect.

Amendments

137

Schedule 12 below (which contains amendments) shall have effect.

General

Judicial review

138

• (1) The matters mentioned in subsection (2) below shall not be questioned except by an application for judicial review.

• (2) The matters are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) a levy issued under regulations under section 74 above,

• (f) a special levy issued under regulations under section 75 above (subject to subsection (4)),

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (h) the specification of a non-domestic rating multiplier under paragraph 2 of Schedule 7 below,

• (i) the specification of a non-domestic rating multiplier under paragraph 7 of Schedule 7 below, and

• (j) the setting by a special authority of any multiplier under Schedule 7 below, whether originally or by way of substitute.

• (3) If on an application for judicial review the court decides to grant relief in respect of any of the matters mentioned in subsection (2)(e) or (f) or (h) to (j) above, it shall quash the levy, special levy, specification or setting (as the case may be).

• (4) Subsection (1) does not affect appeals made by virtue of provision made in regulations under section 75(7A)

Functions to be discharged only by authority

139

• (1) Each of the functions of an authority mentioned in subsection (2) below shall be discharged only by the authority.

• (2) The functions are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) setting a non-domestic rating multiplier or small business non-domestic rating multiplier under Schedule 7 below, whether originally or by way of substitute, in a case where the authority is a special authority.

Separate administration in England and Wales

140

• (1) Parts III and V shall be read as applying separately, and be administered separately, in England and Wales.

• (2) In particular, for England and Wales respectively—

• (a) separate central non-domestic rating lists shall be compiled and maintained ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Parts III and V shall be construed accordingly so that (for instance) references to authorities shall be read as references to those in England or Wales, as the case may be.

• (4) Any power conferred by this Act on the Secretary of State or the Treasury may be exercised differently for England and Wales, whether or not it is exercised separately; and this shall not prejudice the generality of sections 143(1) and 143A(2)(b).

Payments to and from authorities

141

• (1) The Secretary of State may make regulations in relation to any case where—

• (a) he is liable to pay to a receiving authority at any time an amount or amounts under one or more of the first relevant provisions, and

• (b) the authority is liable to pay to him at the same time an amount or amounts under one or more of the second relevant provisions.

• (2) The regulations may provide that if the total of the amount or amounts mentioned in subsection (1)(a) above exceeds the total of the amount or amounts mentioned in subsection (1)(b) above, he may set off the latter in paying the former.

• (3) The regulations may provide that if the total of the amount or amounts mentioned in subsection (1)(b) above exceeds the total of the amount or amounts mentioned in subsection (1)(a) above, the authority shall set off the latter in paying the former.

• (4) The regulations may provide that if the total of the amount or amounts mentioned in subsection (1)(a) above is the same as the total of the amount or amounts mentioned in subsection (1)(b) above no payment need be made in respect of the former or the latter.

• (5) Without prejudice to sections 143(2) and 143A(3), the regulations may include provision—

• (a) treating any liability mentioned in subsection (1) above as discharged accordingly;

• (b) requiring prescribed provisions of this Act (such as sections 79(2), 84H(2) and 86B(2) ...) to be read subject to the regulations;

• (c) requiring prescribed provisions of this Act (such as paragraph 2 of Schedule 7B or paragraph 2 of Schedule 8) to be read as if references to sums received or payments made were to sums or payments which would have been received or made apart from the regulations.

• (6) Each of the following is a receiving authority—

• (a) a billing authority, and

• (b) a major precepting authority.

• (7) The first relevant provisions are sections 83, 84C, 84K, 84N and 86B ... above, regulations under section 99(3) above, regulations made under paragraph 7 of Schedule 7B below, paragraphs 14(2), (9) and (10), 17(7) and (8) and 27(1) of that Schedule, regulations made under paragraph 28 of that Schedule, paragraph 30(6) of that Schedule, regulations made under paragraph 33 of that Schedule, regulations made under paragraph 42 of that Schedule, paragraph 5(10) and (14) of Schedule 8 below, regulations made for the purpose mentioned in paragraph 4(7) of that Schedule, regulations made under paragraph 5(15) or 6(5) of that Schedule and paragraphs 12 and 15 of that Schedule.

• (8) The second relevant provisions are sections 83, 84C, 84K and 84N above, regulations under section 99(3) above, paragraph 6 of Schedule 7B below, regulations made under paragraph 7 of that Schedule, paragraphs 14(1), (6) and (7), 17(4) and (5) and 24(1) of that Schedule, regulations made under paragraph 28 of that Schedule, regulations made under paragraph 33 of that Schedule, regulations made under paragraph 42 of that Schedule, paragraph 5 of Schedule 8 below, regulations made under sub-paragraph (15) of that paragraph and paragraphs 12 and 15 of that Schedule.

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

Saving for remedies

142

No provision of this Act which provides an express remedy shall prejudice any remedy available to a person (apart from that provision) in respect of a failure to observe a provision of this Act; and references here to this Act include references to instruments made under it.

Orders and regulations

143

• (A1) This section applies in respect of powers to make an order or regulations under this Act except where section 143A applies.

• (1) The power to make an order or regulations under this Act may be exercised differently in relation to different areas or in relation to other different cases or descriptions of case.

• (2) An order or regulations under this Act may include such supplementary, incidental, consequential or transitional provisions as appear to the Secretary of State the Minister of Agriculture, Fisheries and Food or the Treasury (as the case may be) to be necessary or expedient.

• (3) Subject to subsections (3D) to (9E) below, the power to make an order or regulations under this Act shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament ....

• (3ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3D) Any power to make regulations conferred by section 55 (alteration of non-domestic rating lists) is exercisable by statutory instrument.

• (3E) A statutory instrument which contains (whether alone or with other provision) regulations made by virtue of section 55(4A)(c) or (4B) (alteration of non-domestic rating lists: financial penalties) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

• (3F) Any other statutory instrument containing regulations under section 55 is subject to annulment in pursuance of a resolution of either House of Parliament.

• (3G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) The power to make regulations under section . . . 57A above shall be exercisable by statutory instrument, and no such regulations shall be made unless a draft of them has been laid before and approved by resolution of each House of Parliament.

• (4ZA) The power to make regulations under section 63A or 66A shall be exercisable by statutory instrument, and no such regulations shall be made unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament.

• (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4B) The power to make regulations under section 74 above, so far as they are made in relation to a combined authority by virtue of subsection (8) of that section, shall be exercisable by statutory instrument, and no such regulations shall be made unless a draft of them has been laid before and approved by a resolution of each House of Parliament.

• (4C) The power to make regulations under section 74 above, so far as they are made in relation to a combined county authority by virtue of subsection (15) of that section, are to be exercisable by statutory instrument, and no such regulations are to be made unless a draft of them has been laid before and approved by a resolution of each House of Parliament.

• (5) As regards the power to make regulations under section 75 , 91(3C) or 118 above other than regulations relating to an internal drainage board, subsection (3) above shall have effect without the words from “subject” to the end.

• (6) As regards the power to make an order under . . . section 150 below, subsection (3) above shall have effect without the words from “subject” to the end.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7A) The power to make regulations under paragraph 3(3) or 6(3) of Schedule 4ZA is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

• (7B) The power to make regulations under paragraph 8(1)(d)(ii) or 10(9) of Schedule 4ZA is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

• (7C) The power to make regulations under paragraph 1(2) or 3(9) of Schedule 4ZB is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

• (7D) The power to make regulations under paragraph 3(6) of Schedule 4ZB is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

• (7E) The power to make regulations under paragraph 3(4) of Schedule 5A is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

• (7F) The power to make regulations under paragraph 6(8) of Schedule 5A is exercisable by statutory instrument, and a statutory instrument containing any such regulations may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

• (8) The power to make an order under paragraph 3 of Schedule 6 below shall be exercisable by statutory instrument, and no such order shall be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

• (9) The powers to make regulations under paragraph A6A A10(4)(b) , 5(13A) or 9B of Schedule 7 are exercisable as mentioned in that Schedule.

• (9A) The power to make an order under paragraph 5 of Schedule 7A below shall be exercisable by statutory instrument, and no such order shall be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

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

• (9AA) The power of the Secretary of State to make an order under paragraph 5G of Schedule 9 shall be exercisable by statutory instrument, and no such order shall be made by him unless a draft of it has been laid before and approved by resolution of each House of Parliament.

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

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

• (9C) Any power to make regulations conferred by Schedule 7B (local retention of non-domestic rates) is exercisable by statutory instrument.

• (9D) A statutory instrument containing regulations under any of the following provisions of that Schedule (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament—

• (a) paragraph 9 (regulations about payments by billing authorities to major precepting authorities);

• (b) paragraph 11 (regulations about payments by billing authorities to major precepting authorities out of deductions from central share payments);

• (c) paragraph 22 (regulations about calculation of levy payments);

• (d) paragraph 25 (regulations about calculation of safety net payments);

• (e) paragraph 30 (regulations about distribution of remaining balance);

• (f) paragraph 39 or 40 (regulations about designated areas or classes of hereditament), if the regulations contain provision within paragraph 41 (payments to relevant authorities).

• (9E) Any other statutory instrument containing regulations under that Schedule is subject to annulment in pursuance of a resolution of either House of Parliament.

• (10) Before he makes regulations under section 75 or 118 above other than regulations relating to an internal drainage board, the Secretary of State shall, by means of a notice in a newspaper or newspapers, take such steps as he thinks reasonably practicable to bring the contents of the proposed regulations to the notice of persons likely to be affected.

• (11) An order under paragraph 3 of Schedule 6 below shall, if apart from the provisions of this subsection it would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, proceed in that House as if it were not such an instrument.

Interpretaion: authorities

144

• (1) Each of the following is a charging authority—

• (a) a district council,

• (b) a London borough council,

• (c) the Common Council, and

• (d) the Council of the Isles of Scilly.

• (2) “Billing authority”, “precepting authority”, “major precepting authority” and “local precepting authority” have the same meaning as in Part I of the Local Government Finance Act 1992; but, in the case of references to a billing authority in Part 2 of Schedule 8, this is subject to paragraph 3A of that Schedule.

• (3) A waste disposal authority is an authority established at any time by an order under section 10(1) of the Local Government Act 1985.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) A combined fire and rescue authority is a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.

• (6) A billing authority is a special authority if its population on 1 April 1986 was less than 10,000, and its gross rateable value on that date divided by its population on that date was more than £10,000.

• (7) An authority’s population on 1 April 1986 is the Registrar General’s estimate of its population on that date as certified by him to the Secretary of State for the purposes of the enactments relating to rate support grant; and an authority’s gross rateable value on that date is the aggregate of the rateable values on that date of the hereditaments in its area.

Interpretaion: financial years etc

145

• (1) Chargeable financial years are financial years beginning in 1990 and subsequent years.

• (2) Transitional years are financial years beginning in 1990, 1991, 1992 and 1993; and the first transitional year is that beginning in 1990.

• (3) A financial year is a period of 12 months beginning with 1 April.

Interpretation: other provisions

146

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Unless the context otherwise requires, a levy is a levy under regulations made under section 74 above, and a levying body is a body with power to issue a levy under those regulations.

• (3) A special levy is a special levy under regulations made under section 75 above.

• (4) The Common Council is the Common Council of the City of London.

• (5) The Inner Temple and the Middle Temple shall be taken to fall within the area of the Common Council.

• (5A) Unless the context otherwise requires, “information” includes accounts, estimates and returns.

• (6) “Prescribed”, in the context of an order or regulations, means prescribed by the order or regulations.

• (7) This section and sections 144 and 145 above apply for the purposes of this Act.

Power to make supplementary provision

147

• (1) The Secretary of State may at any time by order make such supplementary, incidental, consequential or transitional provision as appears to him to be necessary or expedient for the general purposes or any particular purposes of this Act or in consequence of any of its provisions or for giving full effect to it.

• (2) An order under this section may in particular make provision for amending, repealing or revoking (with or without savings) any provision of an Act passed before or in the same session as this Act, or of an instrument made under an Act before the passing of this Act, and for making savings or additional savings from the effect of any amendment or repeal made by this Act.

• (3) Any provision that may be made under this section shall be in addition and without prejudice to any other provision of this Act.

• (4) No other provision of this Act shall be construed as prejudicing the generality of the powers conferred by this section.

• (5) In this section “Act” includes a private or local Act.

Finance

148

• (1) There shall be paid out of money provided by Parliament—

• (a) any expenses of the Secretary of State incurred in consequence of this Act, and

• (b) any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

• (2) Any sums received by the Secretary of State in consequence of this Act shall be paid into the Consolidated Fund.

Repeals

149

The enactments mentioned in Schedule 13 below are repealed to the extent specified in column 3, but subject to any provision at the end of any Part of that Schedule.

Commencement: Scotland

150

The provisions of this Act which extend only to Scotland shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or for different purposes.

Extent

151

• (1) Part X of this Act, section 150 above, Part II of Schedule 12 below, and Part IV of Schedule 13 below, extend to Scotland only.

• (2) Sections 133, 135, 137, 143, 144(1), 145, 146(6) and (7), 147, 148 and 149 above, this section, section 152 below, Schedule 10 below, and Part III of Schedule 12 below, extend to England and Wales and Scotland.

• (3) Subject to subsections (1) and (2) above, this Act extends to England and Wales only.

Citation

152

This Act may be cited as the Local Government Finance Act 1988.

SCHEDULE 1

Persons in detention

1

• (1) A person is an exempt individual on a particular day if at any time on the day—

• (a) he is detained in a prison, a hospital or any other place by virtue of an order of a court to which sub-paragraph (2) below applies,

• (b) he is detained under paragraph 2 of Schedule 3 to the Immigration Act 1971 (deportation),

• (c) he is detained under section 136 of the Mental Health Act 1983 (detention in place of safety), or

• (d) he is detained under a warrant issued under the Repatriation of Prisoners Act 1984.

• (2) This sub-paragraph applies to the following courts—

• (a) a court in the United Kingdom, and

• (b) a Standing Civilian Court established under the Armed Forces Act 1976.

• (3) If a person is temporarily discharged under section 28 of the Prison Act 1952, or temporarily released under rules under section 47(5) of that Act, for the purposes of sub-paragraph (1) above he shall be treated as detained.

• (4) Sub-paragraph (1) above does not apply where the person is detained under regulations made under paragraph 8 of Schedule 4 below.

• (5) Sub-paragraph (1) above does not apply where the person is detained under section 76 of the Magistrates’ Courts Act 1980, or section 9 of the Criminal Justice Act 1982, for default in payment of a fine.

• (6) In sub-paragraph (1) above “order” includes a sentence, direction, warrant or other means of giving effect to the decision of the court concerned.

• (7) The Secretary of State may by order provide that a person is an exempt individual on a particular day if—

• (a) at any time on the day he is imprisoned, detained or in custody under the Army Act 1955, the Air Force Act 1955 or the Naval Discipline Act 1957, and

• (b) such conditions as may be prescribed are fulfilled.

Visiting forces

2

• (1) A person is an exempt individual on a particular day if at any time on the day he has a relevant association with a visiting force.

• (2) A visiting force, in relation to any particular time, is any body, contingent or detachment of the forces of a country to which any provision in Part I of the Visiting Forces Act 1952 applies at that time.

• (3) A person has, at any particular time, a relevant association with a visiting force if he has at that time such an association within the meaning of that Part.

International headquarters and defence organisations

3

• (1) A person is an exempt individual on a particular day if at any time on the day he is a member of a headquarters or a dependant of such a member.

• (2) A headquarters, in relation to any particular time, is a headquarters or organisation designated at that time by an Order in Council under section 1 of the International Headquarters and Defence Organisations Act 1964.

• (3) A person is, at any particular time, a member of a headquarters if he is at that time such a member within the meaning of the Schedule to that Act.

• (4) A person is, at any particular time, a dependant of such a member if he is at that time such a dependant within the meaning of that Schedule.

The severely mentally impaired

4

• (1) A person is an exempt individual on a particular day if—

• (a) as regards the day he fulfils one or more of the conditions mentioned in sub-paragraph (2) below,

• (b) at any time on the day he is severely mentally impaired, and

• (c) he is stated to be severely mentally impaired at that time in a certificate of a registered medical practitioner.

• (2) The conditions are that—

• (a) he is entitled for the day to an invalidity pension under section 15 of the Social Security Act 1975;

• (b) he is entitled for the day to a severe disablement allowance under section 36 of that Act;

• (c) . . .

• (d) he is entitled for the day to an invalidity pension under section 15 or 16 of the Social Security Pensions Act 1975;

• (e) he is entitled for the day to an unemployability supplement under section 58 of the Social Security Act 1975;

• (f) he is entitled for the day to an unemployability allowance under—

• (i) article 18(1) of the Personal Injuries (Civilians) Scheme 1983, or

• (ii) article 18(1) of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (including that provision as applied, whether with or without modifications, by any other instrument).

• (g) he is entitled for the day to an attendance allowance under section 35 of the Social Security Act 1975;

• (h) he would be entitled for the day to such an allowance but for the prescribed conditions as to residence or presence in Great Britain mentioned in subsection (1) of that section, or the requirement for a claim under subsection (4) of that section, or both of those matters;

• (i) he is entitled for the day to an increase in the rate of his disablement pension under section 61 of that Act (increase where constant attendance needed);

• (j) he is entitled for the day to a constant attendance allowance under—

• (i) article 14 of the Personal Injuries (Civilians) Scheme 1983; or

• (ii) article 14 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (including that provision as applied, whether with or without modifications, by any other instrument).

• (3) A person is severely mentally impaired if he has a severe impairment of intelligence and social functioning (however caused) which appears to be permanent.

• (4) The Secretary of State may by order amend sub-paragraph (2) above as it has effect for the time being (whether by adding, deleting or amending conditions, or by any combination of those methods).

• (5) The Secretary of State may by order substitute another definition for the definition of severe mental impairment for the time being effective for the purposes of this paragraph.

Children

5

A person is an exempt individual on a particular day if the day falls within a week for which—

• (a) a person is entitled to child benefit in respect of the individual, or

• (b) a person would be entitled to child benefit in respect of the individual but for paragraph 1(c) of Schedule 1 to the Child Benefit Act 1975.

Students

6

A person is an exempt individual on a particular day if—

• (a) the day falls within a period in which he is undertaking a full-time course of education, and

• (b) on the day he is resident in Scotland or Northern Ireland for the purpose of undertaking the course.

Members of religious communities

7

• (1) A person is an exempt individual on a particular day if at any time on the day—

• (a) he is a member of a relevant religious community, and

• (b) he has no income or capital of his own and is dependent on the community concerned for his material needs.

• (2) A relevant religious community is a religious community whose principal occupation—

• (a) is prayer, contemplation, the relief of suffering, education, or any prescribed occupation, or

• (b) consists of two or more of the occupations mentioned in paragraph (a) above.

• (3) A prescribed occupation is such occupation as may for the time being be prescribed for the purposes of this paragraph by regulations made by the Secretary of State.

• (4) In construing sub-paragraph (1)(b) above income by way of pension in respect of a former employment is to be ignored.

Hospital patients

8

• (1) A person is an exempt individual on a particular day if at any time on the day one or more of the following paragraphs applies to him—

• (a) he is a patient who has his sole or main residence in a hospital;

• (b) he is detained under Part II of the Mental Health Act 1983 in a hospital;

• (c) he is detained under section 46, 47 or 48 of that Act in a hospital.

• (2) “Hospital” means -.

• (a) a health service hospital within the meaning of the National Health Service Act 1977; and

• (b) a military, air-force or naval unit or establishment in England and Wales at or in which medical or surgical treatment is provided for persons subject–

• (i) by virtue of section 205 of the Army Act 1955, to military law;

• (ii) by virtue of section 205 of the Air Force Act 1955, to air-force law; or

• (iii) by virtue of section 111 of the Naval Discipline Act 1957, to that Act.

• (3) The Secretary of State may by order substitute another definition for the definition of hospital for the time being effective for the purposes of this paragraph.

Patients in homes

9

• (1) A person is an exempt individual on a particular day if at any time on the day one or each of the following paragraphs applies to him—

• (a) he has his sole or main residence in a residential care home, nursing home, mental nursing home or hostel, and he is receiving care or treatment (or both) in the home or hostel;

• (b) he is detained under Part II of the Mental Health Act 1983 in a mental nursing home.

• (2) A residential care home is—

• (a) an establishment in respect of which registration is required under Part I of the Registered Homes Act 1984 or would be so required but for section 1(4) or (5)(j) of that Act;

• (b) a building or part of a building in which residential accommodation is provided under section 21 of the National Assistance Act 1948 or paragraph 2(1)(a) of Schedule 8 to the National Health Service Act 1977; or

• (c) a building or part of a building in which residential accommodation is provided and which is run by the Abbeyfield Society, including all bodies corporate or unincorporate which are affiliated to that Society.

• (3) A nursing home is anything which is a nursing home within the meaning of the Registered Homes Act 1984 or would be but for section 21(3)(a) of that Act.

• (4) A hostel is anything which falls within any definition of hostel for the time being prescribed by order made by the Secretary of State under this sub-paragraph.

• (5) A mental nursing home is anything which is a mental nursing home within the meaning of the Registered Homes Act 1984.

• (6) The Secretary of State may by order substitute another definition for any definition of a residential care home, nursing home or mental nursing home for the time being effective for the purposes of this paragraph.

Care workers

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• (1) A person is an exempt individual on a particular day if—

• (a) at any time on the day he is employed to provide care or support (or both) to another person or other persons, and

• (b) such conditions as may be prescribed by regulations made by the Secretary of State are fulfilled.

• (2) Without prejudice to the generality of sub-paragraph (1)(b) above the conditions may—

• (a) require the person’s employer to be a charity or fulfil some other description;

• (b) relate to the period for which he is employed or other factors concerning his employment;

• (c) require his income for a prescribed period (which contains the day concerned) not to exceed a prescribed amount;

• (d) require his capital not to exceed a prescribed amount;

• (e) require him to be resident in prescribed premises;

• (f) require him not to exceed a prescribed age;

• (g) require the other person or persons to fulfil a prescribed description (whether relating to age, disablement or otherwise).

Residents of certain Crown buildings

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• (1) A person is an exempt individual on a particular day if at any time on the day he has his sole or main residence in a building which on the day concerned is designated under this paragraph.

• (2) The Secretary of State may designate a building under this paragraph if at the time of designation the first and second conditions are fulfilled.

• (3) The first condition is that—

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

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

• (4) The second condition is that in the Secretary of State’s opinion the building is used wholly or mainly as the sole or main residence of individuals, and in his opinion most or all of them—

• (a) reside there for short periods, or

• (b) should in the interests of national security not be registered as subject to a personal community charge.

• (5) The Secretary of State shall revoke a designation under this paragraph if the first or second condition ceases to be fulfilled.

• (6) A designation under this paragraph shall take effect at the beginning of the day following that on which it is made, and shall cease to have effect at the end of the day (if any) on which it is revoked.

• (7) The Crown has an interest in a building if the interest belongs to Her Majesty in right of the Crown or of the Duchy of Lancaster, or belongs to the Duchy of Cornwall or a government department, or is held for the purposes of a government department.

Residents of certain other dwellings

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A person is an exempt individual on a particular day if—

• (a) at any time on the day he has his sole or main residence in a designated dwelling in respect of which a person is shown in the register as subject on the day to a collective community charge of a charging authority, and

• (b) the day does not fall within a period in which he is undertaking a full-time course of education.

13

A person is an exempt individual on a particular day if at any time on the day he has his sole or main residence in a building falling within a description prescribed under section 5(3)(d) above.

Persons without fixed abodes

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• (1) A person is an exempt individual on a particular day if—

• (a) throughout the day he has no fixed abode in England and Wales or elsewhere, and

• (b) at the end of the day the place of his sole or main residence does not consist of a building, caravan or residential boat.

• (2) A residential boat is a boat which is designed or adapted for human habitation.

SCHEDULE 2

Introduction

1

The Secretary of State may make regulations containing such provision as he sees fit in relation to—

• (a) the collection of amounts persons are liable to pay in respect of community charges;