Local Government Finance Act 1992

Part I — Council Tax: England and Wales

Chapter I — Main provisions

Preliminary

Non-domestic rating, grants and funds.

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

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

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

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

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

Liability to tax determined on a daily basis

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

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

• (a) whether any property is a chargeable dwelling;

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

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

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

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

Chargeable dwellings

Meaning of “dwelling”

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

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

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

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

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

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

• (3) A hereditament which—

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

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

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

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

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

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

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

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

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

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

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

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

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

Dwellings chargeable to council tax

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

• (2) In this Chapter—

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

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

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

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

• (a) the physical characteristics of dwellings;

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

Different amounts for dwellings in different valuation bands

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

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

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

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

Range of values	Valuation band
Values not exceeding £40,000	A
Values exceeding £40,000 but not exceeding £52,000	B
Values exceeding £52,000 but not exceeding £68,000	C
Values exceeding £68,000 but not exceeding £88,000	D
Values exceeding £88,000 but not exceeding £120,000	E
Values exceeding £120,000 but not exceeding £160,000	F
Values exceeding £160,000 but not exceeding £320,000	G
Values exceeding £320,000	H

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

Range of values	Valuation band
Values not exceeding £44,000	A
Values exceeding £44,000 but not exceeding £65,000	B
Values exceeding £65,000 but not exceeding £91,000	C
Values exceeding £91,000 but not exceeding £123,000	D
Values exceeding £123,000 but not exceeding £162,000	E
Values exceeding £162,000 but not exceeding £223,000	F
Values exceeding £223,000 but not exceeding £324,000	G
Values exceeding £324,000 but not exceeding £424,000	H
Values exceeding £424,000	I

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

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

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

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

• (4B) The Welsh Ministers, in relation to Wales, may by order, as regards financial years beginning on or after such date as is specified in the order—

• (a) amend subsection (1A), so as to substitute another proportion for that which is for the time being effective for the purposes of subsection (1) above;

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

• (c) substitute another valuation band for that referred to in the meaning given to “D” in the formula in section 36(1);

• (d) substitute another valuation band for that referred to in the meaning given to “D” in the formula in section 47(1).

• (4C) The power under subsection (4B)(b) above includes power to make provision for a different number of valuation bands from those which are for the time being effective for the purposes of subsection (3) above.

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

• (5A) No order under subsection (4B) may be made unless a draft of the order has been laid before, and approved by a resolution of, Senedd Cymru.

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

Liability to tax

Persons liable to pay council tax

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

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

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

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

• (c) he is both such a resident and a statutory , secure or introductory tenantof the whole or any part of the dwelling;

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

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

• (e) he is such a resident; or

• (f) he is the owner of the dwelling.

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

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

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

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

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

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

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

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

• (4C) For the purposes of subsection (4), a person mentioned in subsection (3) falls to be disregarded if—

• (a) in relation to a chargeable dwelling in England, the person falls to be disregarded for the purposes of discount by virtue of paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act;

• (b) in relation to a chargeable dwelling in Wales, the person—

• (i) falls to be disregarded for the purposes of discount by virtue of regulations made under section 11E(5), and

• (ii) is also prescribed by the Welsh Ministers in regulations made under this paragraph as falling to be disregarded for the purposes of subsection (4).

• (4D) A statutory instrument containing regulations made under subsection (4C)(b)(ii) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, Senedd Cymru.

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

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

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

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

• (6) In this section—

Liability in respect of caravans and boats

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

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

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

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

• (5) Subsections (4) and (4A) of section 6 above shall apply for the purposes of subsection (4) above as they apply for the purposes of subsection (3) of that section.

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

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

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

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

Liability in prescribed cases

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

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

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

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

• (5) Subsections (4) and (4A) of section 6 above shall apply for the purposes of subsection (4) above as they apply for the purposes of subsection (3) of that section.

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

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

Liability of spouses

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• (1) Where—

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

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

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

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