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Local Government Finance Act 2012

Current text a fecha 2012-10-31

Non-domestic rating

Local retention of non-domestic rates

1

(59A) Schedule 7B (local retention of non-domestic rates) has effect.

(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.

Revenue support grant

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Additional grant

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General GLA grant

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(1) The Secretary of State may pay a grant (to be called “general GLA grant”) to the Authority for a financial year.

Local retention of non-domestic rates: further amendments

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Definition of domestic property

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(2BC) For the purposes of subsection (2B) the relevant person is— (a) where the building or self-contained part is not subject as a whole to a relevant leasehold interest, the person having the freehold interest in the whole of the building or self-contained part; and (b) in any other case, any person having a relevant leasehold interest in the building or self-contained part which is not subject (as a whole) to a single relevant leasehold interest inferior to that interest.

Payments to and from authorities

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Provision of information about non-domestic rates

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(gf) that the payee must publish prescribed information in the prescribed manner,

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Council tax

Council tax reduction schemes: review

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Council tax reduction schemes

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(13A) (1) The amount of council tax which a person is liable to pay in respect of any chargeable dwelling and any day (as determined in accordance with sections 10 to 13)— (a) in the case of a dwelling situated in the area of a billing authority in England, is to be reduced to the extent, if any, required by the authority’s council tax reduction scheme (see subsection (2)); (b) in the case of a dwelling situated in the area of a billing authority in Wales, is to be reduced to the extent, if any, required by any council tax reduction scheme made under regulations under subsection (4) that applies to that dwelling; (c) in any case, may be reduced to such extent (or, if the amount has been reduced under paragraph (a) or (b), such further extent) as the billing authority for the area in which the dwelling is situated thinks fit. (2) Each billing authority in England must make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings situated in its area, by— (a) persons whom the authority considers to be in financial need, or (b) persons in classes consisting of persons whom the authority considers to be, in general, in financial need. (3) Schedule 1A (which contains provisions about schemes under subsection (2)) has effect. (4) The Welsh Ministers may by regulations— (a) require a person or body specified in the regulations to make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings to which the scheme applies, by persons to whom the scheme applies, (b) impose requirements on that person or body regarding the matters which must be included in that scheme, and (c) make other provision for and in connection with such schemes. (5) Schedule 1B (which contains further provisions about regulations under subsection (4) and about schemes under those regulations) has effect. (6) The power under subsection (1)(c) includes power to reduce an amount to nil. (7) The power under subsection (1)(c) may be exercised in relation to particular cases or by determining a class of case in which liability is to be reduced to an extent provided by the determination. (8) No regulations under subsection (4) are to be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the National Assembly for Wales. (9) In this Part “council tax reduction scheme” means a scheme under subsection (2) or regulations under subsection (4).

Power to determine further discounts for certain dwellings

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(4A) For any financial year for which a class of dwellings is prescribed for the purposes of this subsection, a billing authority in England may by determination provide— (a) in relation to all dwellings of that class in its area, or (b) in relation to such description of dwellings of that class as it may specify in the determination, that the discount under section 11(2)(a) shall not apply or shall be such percentage (which may be 100) as it may so specify. (4B) Where a class of dwellings is prescribed for the purposes of subsection (4A) by reference to the period of time for which a condition is met, a billing authority may not, under paragraph (b) of that subsection, specify a description of dwellings of that class by reference (wholly or partly) to a shorter such period.

Power to set higher amount for long-term empty dwellings

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(11B) (1) For any financial year, a billing authority in England may by determination provide in relation to its area, or such part of its area as it may specify in the determination, that if on any day a dwelling is a long-term empty dwelling— (a) the discount under section 11(2)(a) shall not apply, and (b) the amount of council tax payable in respect of that dwelling and that day shall be increased by such percentage of not more than 50 as it may so specify. (2) The Secretary of State may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under this section. (3) A class of dwellings may be prescribed under subsection (2) by reference to such factors as the Secretary of State thinks fit and may, in particular, be prescribed by reference to— (a) the physical characteristics of, or other matters relating to, dwellings; (b) the circumstances of, or other matters relating to, any person who is liable to the amount of council tax concerned. (4) Where a determination under this section has effect in relation to a class of dwellings— (a) the billing authority may not make a determination under section 11A(3), (4) or (4A) in relation to that class, and (b) any determination that has been made under section 11A(3), (4) or (4A) ceases to have effect in relation to that class. (5) A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year. (6) A billing authority which makes a determination under this section must publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination. (7) Failure to comply with subsection (6) does not affect the validity of a determination. (8) For the purposes of this section, a dwelling is a “long-term empty dwelling” on any day if for a continuous period of at least 2 years ending with that day— (a) it has been unoccupied, and (b) it has been substantially unfurnished. (9) In determining whether a dwelling is a long-term empty dwelling, no account is to be taken of any one or more periods of not more than 6 weeks during which either of the conditions in subsection (8)(a) and (b) is not met (or neither of them is met). (10) The Secretary of State may by regulations substitute a different period, of not less than 6 weeks, for the period which is for the time being specified in subsection (9).

(4C) Subsections (3), (4) and (4A) are subject to section 11B(4).

— (i) is subject to a discount of a particular amount, or (ii) is not subject to any increase; and

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— (i) is not in fact subject to any discount, or is subject to a discount of a smaller amount, or (ii) is in fact subject to an increase (whether or not the person is aware of the amount of the increase),

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(7) In this paragraph, “increase” means an increase under section 11B(1)(b) (higher amount of tax for empty dwellings).

Mortgagee in possession to be liable for council tax

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(ea) in the case of a dwelling situated in the area of a billing authority in England, the person is a mortgagee in possession of the owner’s interest in the dwelling; or

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Regulations about powers to require information, offences and penalties

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(14A) (1) The appropriate authority may by regulations provide for the exercise, for prescribed council tax purposes, of— (a) powers to require the provision of information; (b) powers to require a person to enter into arrangements under which access is permitted to the person’s electronic records. (2) The appropriate authority may by regulations make provision about arrangements for access to electronic records for prescribed council tax purposes where the arrangements are entered into otherwise than under a requirement of the kind mentioned in subsection (1)(b). (3) The appropriate authority may by regulations— (a) make provision about the persons by whom powers conferred by regulations under this section may be exercised; (b) make provision about the persons by whom arrangements under regulations under this section may be made; (c) in particular, make provision for the authorisation by billing authorities of persons to exercise those powers or make those arrangements. (4) The provision that may be made by regulations under this section includes, in particular, provision equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the appropriate authority thinks fit. (5) For the purposes of subsection (4), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”— (a) section 109A(8) of the Social Security Administration Act 1992 (application of section 109B of that Act to the Crown); (b) section 109B of that Act (powers to require information); (c) section 110A of that Act (authorisations by local authorities to exercise powers of investigation); (d) section 110AA of that Act (power of local authority to require electronic access to information); (e) section 121DA of that Act (interpretation of Part 6 of that Act); (f) section 191 of that Act (interpretation of that Act). (6) This section does not affect the operation of Schedule 2 (administration of council tax). (7) In this section “council tax purposes” means purposes relating to a person’s liability to pay council tax. (14B) (1) The appropriate authority may by regulations provide for the creation of offences that may be committed by a person in prescribed circumstances— (a) by intentionally delaying or obstructing a person in the exercise of a power conferred by regulations under section 14A(1); (b) by refusing or failing to comply with any requirement under regulations under section 14A(1)(b) or with the requirements of any arrangements entered into in accordance with such regulations; (c) by refusing or failing, when required to do so by or under this Act or by or under regulations made under this Act, to provide any information or document in connection with a person’s liability to pay council tax; (d) by making a false statement or representation in connection with such liability; (e) by providing, or causing or allowing to be provided, in connection with such liability, a document or information which is false; (f) by failing to notify, or causing or allowing a person to fail to notify, a matter that is relevant to such liability (including in particular any matter that is required to be notified by or under this Act or by or under regulations made under this Act). (2) Regulations under subsection (1)(a), (b) or (c)— (a) must provide for an offence under the regulations to be triable only summarily; (b) may not provide for such an offence to be punishable with a fine exceeding level 3 on the standard scale. (3) Regulations under subsection (1)(a), (b) or (c)— (a) may provide, in a case where a person is convicted of an offence under the regulations and the act or omission constituting the offence continues after the conviction, for the person to be guilty of a further offence and liable on summary conviction to a daily fine; (b) may not provide for the daily fine to exceed £40. (4) Regulations under subsection (1)(d), (e) or (f) that create an offence that may only be committed by a person acting dishonestly— (a) must provide for the offence to be triable summarily or on indictment; (b) may not provide for the offence to be punishable on summary conviction with imprisonment for a term exceeding 12 months or with a fine exceeding the statutory maximum; (c) may not provide for the offence to be punishable on conviction on indictment with imprisonment for a term exceeding 7 years (and may provide for the offence to be punishable on conviction on indictment with a fine). (5) Regulations under this section that create an offence within subsection (4) that may be committed before the date that section 154(1) of the Criminal Justice Act 2003 comes into force may not provide for such an offence committed before that date to be punishable on summary conviction with imprisonment for a term exceeding 6 months. (6) Regulations under subsection (1)(d), (e) or (f) that create an offence that may be committed by a person acting otherwise than dishonestly— (a) must provide for the offence to be triable only summarily; (b) may not provide for the offence to be punishable with imprisonment for a term exceeding 51 weeks or with a fine exceeding level 5 on the standard scale. (7) Regulations under this section that create an offence within subsection (6) that may be committed before the date that section 281(5) of the Criminal Justice Act 2003 comes into force may not provide for such an offence committed before that date to be punishable with imprisonment for a term exceeding 3 months. (8) The appropriate authority may by regulations make provision— (a) about defences to an offence under regulations under this section; (b) about the commission by a body corporate of such an offence; (c) about the conduct of proceedings for such an offence; (d) about the time limits for bringing such proceedings; (e) about the determination of issues arising in such proceedings; (f) about other matters of procedure and evidence in relation to such offences. (9) The provision that may be made by regulations under this section includes, in particular, provision equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the appropriate authority thinks fit. (10) For the purposes of subsection (9), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”— (a) section 111 of the Social Security Administration Act 1992 (offences relating to powers under that Act); (b) section 111A of that Act (dishonest representations for obtaining benefit etc); (c) section 112 of that Act (false representations for obtaining benefit etc.); (d) section 115 of that Act (offences by bodies corporate); (e) section 116 of that Act (legal proceedings); (f) section 121DA of that Act (interpretation of Part 6 of that Act); (g) section 191 of that Act (interpretation of that Act). (14C) (1) The appropriate authority may by regulations make provision for the imposition of a penalty by a billing authority on a person where in prescribed circumstances— (a) that person’s act or omission results or could result in the amount of council tax that a person (“P”) is liable to pay being reduced or subject to a discount, and (b) P is not or will not be entitled to that reduction or discount. (2) The appropriate authority may by regulations make provision for the imposition of a penalty by a billing authority on a person where in prescribed circumstances— (a) that person’s act or omission results or could result in a dwelling in respect of which a person (“P”) would otherwise be liable to pay council tax being treated as an exempt dwelling for a period, and (b) the dwelling is not or will not be an exempt dwelling for all or part of that period. (3) Regulations under this section must— (a) make provision with the effect that a penalty may only be imposed on a person where the person agrees to the imposition of the penalty as an alternative to criminal proceedings being taken against the person in respect of the act or omission to which the penalty relates, (b) make provision with the effect that a penalty may only be imposed on a person where the person has not been charged with an offence in respect of the act or omission to which the penalty relates, or (c) make provision within paragraph (a) and (b). (4) Where— (a) regulations under this section specify a sum as a penalty (or a minimum or maximum penalty), and (b) it appears to the Treasury that there has been a change in the value of money since those regulations were made or (as the case may be) the last occasion when an order under this subsection was made, the Treasury may by order substitute for that sum such other sum as appears to them to be justified by the change. (5) An order under subsection (4) does not apply in relation to any act done or omission which began before the date on which the order comes into force. (6) This section does not affect the operation of paragraph 1 of Schedule 3 (penalties). (7) The provision that may be made by regulations under this section includes, in particular, provision equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the appropriate authority thinks fit. (8) For the purposes of subsection (7), each of the following is a “relevant enactment”— (a) section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution); (b) section 115B of that Act (penalty as alternative to prosecution: colluding employers etc); (c) section 115C of that Act (penalties in respect of incorrect statements etc); (d) section 115D of that Act (penalties in respect of failures to disclose information); (e) section 121DA of that Act (interpretation of Part 6 of that Act); (f) section 191 of that Act (interpretation of that Act). (9) The reference in subsection (8)— (a) to section 115C or 115D of the Social Security Administration Act 1992 is to that section without the repeals in it contained in Part 1 of Schedule 14 to the Welfare Reform Act 2012; (b) to any other provision of that Act is to the provision as it had effect on the day on which the Local Government Finance Act 2012 was passed. (14D) (1) In sections 14A to 14C— - “the appropriate authority” means— the Secretary of State, in relation to England, and the Welsh Ministers, in relation to Wales; - “prescribed”, in relation to regulations made by the Welsh Ministers, means prescribed by such regulations. (2) A statutory instrument containing regulations made by the Secretary of State under any of sections 14A to 14C may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (3) A statutory instrument containing regulations made by the Welsh Ministers under any of sections 14A to 14C may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.

(1A) A person (“P”) may appeal to a valuation tribunal if aggrieved by the imposition on P of a penalty under regulations under section 14C, unless P agreed to the imposition of the penalty as an alternative to criminal proceedings being taken against P in respect of the act or omission to which the penalty relates.

(4) Where a penalty is imposed on a person (“P”) under regulations under section 14C, and P alleges that there is no power in the case concerned to impose a penalty of the amount imposed, P may appeal to a valuation tribunal under this sub-paragraph against the imposition.

Calculation of billing authority’s council tax base

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(5) Regulations under subsection (4) that apply to billing authorities in England may contain different rules for the purposes of calculating item TP in relation to different kinds of special item.

(5A) Regulations under subsection (4) that apply to authorities in England may contain different rules for the purposes of calculating item TP in relation to different kinds of special item. (5B) Regulations under subsection (4) that make provision by virtue of subsection (5A) may make consequential amendments to this Act.

Provision of information about council tax

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(ia) that the authority must publish prescribed information in the prescribed manner;

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Information sharing

Power for HMRC to supply information for purposes of council tax

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(15A) (1) A Revenue and Customs official may supply information which is held by the Revenue and Customs in connection with a function of the Revenue and Customs to a qualifying person for prescribed purposes relating to council tax. (2) The following are qualifying persons for the purpose of this paragraph— (a) a billing authority in England; (b) a person authorised to exercise any function of such an authority relating to council tax; (c) a person providing services to such an authority relating to council tax. (3) Information supplied under this paragraph may be used for another prescribed purpose relating to council tax. (4) Information supplied under this paragraph may be supplied to another qualifying person for a prescribed purpose relating to council tax (whether or not that is a purpose for which it was supplied). (5) In this paragraph— - “Revenue and Customs official”, - “the Revenue and Customs”, and - “function of the Revenue and Customs”, have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005. (15B) (1) A Revenue and Customs official may supply information which is held by the Revenue and Customs in connection with a function of the Revenue and Customs to a qualifying person for prescribed purposes relating to council tax. (2) The following are qualifying persons for the purpose of this paragraph— (a) a billing authority in Wales; (b) a person authorised to exercise any function of such an authority relating to council tax; (c) a person providing services to such an authority relating to council tax. (3) Information supplied under this paragraph may be used for another prescribed purpose relating to council tax. (4) Information supplied under this paragraph may be supplied to another qualifying person for a prescribed purpose relating to council tax (whether or not that is a purpose for which it was supplied). (5) In this paragraph— - “Revenue and Customs official”, “the Revenue and Customs” and “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005; - “prescribed” means prescribed by regulations made by the Welsh Ministers. (6) Regulations under this paragraph must not be made except with the consent of the Commissioners for Her Majesty’s Revenue and Customs. (7) A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the National Assembly for Wales. (15C) (1) A Revenue and Customs official may supply information which is held by the Revenue and Customs in connection with a function of the Revenue and Customs to a qualifying person for prescribed purposes relating to council tax. (2) The following are qualifying persons for the purpose of this paragraph— (a) a local authority; (b) a person authorised to exercise any function of such an authority relating to council tax; (c) a person providing services to such an authority relating to council tax. (3) Information supplied under this paragraph may be used for another prescribed purpose relating to council tax. (4) Information supplied under this paragraph may be supplied to another qualifying person for a prescribed purpose relating to council tax (whether or not that is a purpose for which it was supplied). (5) In this paragraph— - “Revenue and Customs official”, “the Revenue and Customs” and “function of the Revenue and Customs” have the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005; - “prescribed” means prescribed by regulations made by the Scottish Ministers. (6) Regulations under this paragraph must not be made except with the consent of the Commissioners for Her Majesty’s Revenue and Customs. (7) Regulations under this paragraph— (a) are subject to the negative procedure; and (b) may make— (i) different provision for different purposes, including different provision for different areas or for different authorities, and (ii) such incidental, consequential, transitional or supplementary provision as the Scottish Ministers think necessary or expedient. (15D) (1) A person to whom sub-paragraph (2) applies is guilty of an offence if the person discloses without lawful authority any information— (a) which comes to the person by virtue of paragraph 15A, 15B or 15C, and (b) which relates to a particular person. (2) This sub-paragraph applies to— (a) a qualifying person for the purpose of paragraph 15A, 15B or 15C; (b) a person who is or has been a director, member of the committee of management, manager, secretary or other similar officer of a person within paragraph (a); (c) a person who is or has been an employee of such a person. (3) A person guilty of an offence under this paragraph is liable— (a) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both; (b) on summary conviction, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both. (4) It is not an offence under this paragraph— (a) to disclose information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be identified from it; (b) to disclose information which has previously been disclosed to the public with lawful authority. (5) It is a defence for a person (“D”) charged with an offence under this paragraph to prove that at the time of the alleged offence— (a) D believed that D was making the disclosure in question with lawful authority and had no reasonable cause to believe otherwise, or (b) D believed that the information in question had previously been disclosed to the public with lawful authority and had no reasonable cause to believe otherwise. (6) For the purposes of this paragraph, “lawful authority” has the meaning given by section 123 of the Social Security Administration Act 1992. (7) In relation to an offence under this paragraph committed in England and Wales before the commencement of section 154(1) of the Criminal Justice Act 2003 (increase in maximum term that may be imposed on summary conviction of offence triable either way) the reference in sub-paragraph (3)(b) to 12 months is to be taken as a reference to 6 months.

(1A) Information may be prescribed under sub-paragraph (1)(d) by reference to— (a) how the person concerned came to be in possession or control of the information; (b) the purpose for which it is requested by the authority.

(1A) Information may be prescribed under sub-paragraph (1)(d) by reference to— (a) how the person concerned came to be in possession or control of the information; (b) the purpose for which it is requested by the authority.

(3) Information may be prescribed under sub-paragraph (2)(c) by reference to— (a) how the first-mentioned authority obtained the information; (b) the purpose for which the first-mentioned authority believes that the information would be useful to the other authority.

(iv) paragraph 15A or 15B of Schedule 2 to the 1992 Act or regulations under that Schedule;

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Power for HMRC to supply information for purposes of rates in Northern Ireland

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General

Interpretation

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In this Act—

Power to make transitional, consequential etc provision

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Financial provisions

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There is to be paid out of money provided by Parliament—

Extent and short title

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SCHEDULE 1

After Schedule 7A to the LGFA 1988 insert—

SCHEDULE 2

1

Chapter 2 of Part 5 of the LGFA 1988 (revenue support grant: England) is amended as follows.

2

(1) The Secretary of State may pay a grant (to be called revenue support grant) in accordance with this Chapter for a chargeable financial year— (a) to receiving authorities, (b) to specified bodies, or (c) to both.

(aa) whether the Secretary of State proposes to pay grant to receiving authorities,

,

(ba) whether the Secretary of State proposes to pay grant to specified bodies,

, and

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4
5

(A1) This section applies if— (a) in accordance with sections 78 and 78A above a determination as regards revenue support grant has been made for a financial year and specified in a report which has been laid before the House of Commons, (b) the determination provides for grant to be paid to receiving authorities, and (c) the report is approved by resolution of the House of Commons.

6

In section 84A(1) (power of Secretary of State to make amending reports after local government finance report made), after “local government finance report” insert “that contains a determination under section 78 above”.

SCHEDULE 3

Part 1 — Amendments to Schedule 8 to the LGFA 1988 etc

LGFA 1988

1

In section 60 of the LGFA 1988 (non-domestic rating: pooling), for “Secretary of State” substitute “Welsh Ministers”.

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Schedule 8 to the LGFA 1988 (non-domestic rating: pooling) is amended as follows.

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4
5

In paragraph 3(1) (end of year calculations), for “Secretary of State” substitute “Welsh Ministers”.

6

Before paragraph 4 (and after the heading to Part 2 of Schedule 8 but before the heading to that paragraph) insert—

(3A) Any reference in this Part of this Schedule to a billing authority is a reference to a billing authority in Wales.

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8
9
10

— (a) any billing authority in Wales, or (b) any major precepting authority in Wales.

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12

In paragraph 9A (application of Part 3 to years where two local government finance reports prepared for Wales), in sub-paragraphs (1)(a) and (3)(a) omit “in relation to Wales”.

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Non-Domestic Rating Act 1992 (c. 46)

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The Non-Domestic Rating Act 1992 is amended as follows.

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21

In section 5 (which modifies Schedule 8 to the LGFA 1988, and which applies to the financial year beginning in 1995 and subsequent financial years by virtue of section 3 of the Non-Domestic Rating Act 1994), in the paragraph (d) set out in subsection (1)(b), for “him” in both places substitute “them”.

Consequential revocation and repeal

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In consequence of the amendments made by this Part of this Schedule—

Part 2 — Other amendments

LGFA 1988

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The LGFA 1988 is amended as follows.

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(d) sums received by the authority under any of the following provisions of Schedule 7B (local retention of non-domestic rates) that are of a kind specified by the Secretary of State as falling to be paid into a billing authority’s collection fund— (i) paragraph 14(2) (payments by Secretary of State following local government finance report); (ii) paragraph 14(9) or (10) (payments by Secretary of State following revised calculation); (iii) paragraph 17(7) or (8) (payments by Secretary of State following amending report), (da) sums received by the authority— (i) under provision made by regulations under paragraph 7 of Schedule 7B (regulations about administration of payments in respect of the central share), (ii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments), (iii) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share), (iv) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments), (v) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or (vi) under provision made by regulations under paragraph 42 of that Schedule (payments by Secretary of State following estimates of amounts relating to designated areas or classes), and

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(c) payments to be made by the authority under any of the following provisions of Schedule 7B that are of a kind specified by the Secretary of State as falling to be met from a billing authority’s collection fund— (i) paragraph 14(1) (payments to Secretary of State following local government finance report); (ii) paragraph 14(6) or (7) (payments to Secretary of State following revised calculation); (iii) paragraph 17(4) or (5) (payments to Secretary of State following amending report), (ca) payments made by the authority— (i) under paragraph 6, or under provision made by regulations under paragraph 7, of Schedule 7B (payments in respect of the central share), (ii) under provision made by regulations under paragraph 9 of that Schedule (payments by billing authorities to major precepting authorities), (iii) under provision made by regulations under paragraph 10 of that Schedule (administration of payments by billing authorities to major precepting authorities) by virtue of sub-paragraph (2)(e) or (f) of that paragraph (reconciliation payments), (iv) under provision made by regulations under paragraph 11 of that Schedule (regulations about payments by billing authorities to major precepting authorities out of deductions from the central share), (v) under provision made by regulations under paragraph 33 of that Schedule (transitional protection payments), (vi) under provision made by regulations under paragraph 39 or 40 of that Schedule (designation of areas or classes of hereditament) by virtue of paragraph 41 of that Schedule (payments by billing authorities to relevant authorities), or (vii) under provision made by regulations under paragraph 42 of that Schedule (payments to Secretary of State following estimates of amounts relating to designated areas or classes),

.

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(2A) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its collection fund to its general fund such amounts as may be specified in or determined in accordance with the regulations by reference to— (a) sums received by the authority in respect of non-domestic rates under this Act, and (b) sums received by the authority under or by virtue of Schedule 7B (local retention of non-domestic rates) and required to be paid into its collection fund by virtue of provision made by or under section 90(1)(d) or (da). (2B) The Secretary of State may by regulations make provision requiring a billing authority to transfer from its general fund to its collection fund such amounts as may be specified in or determined in accordance with the regulations by reference to sums received by the authority in respect of non-domestic rates under this Act.

26

(3C) In subsection (3) “relevant authority” means— (a) a major precepting authority, or (b) the Secretary of State. (3D) Regulations under subsection (3) may make separate provision in relation to council tax and non-domestic rates, with the effect that— (a) more than one estimate is to be made by a billing authority of whether there is a deficit or surplus in its collection fund for a financial year and, if so, of the amount of the deficit or surplus, (b) each estimate takes into account different amounts to be paid into or met from that fund, and (c) each estimate has different consequences as to the payments to be made, or other functions to be exercised, by the billing authority, major precepting authorities or the Secretary of State.

27

In section 140(2) (separate administration of Parts 3 and 4 in England and Wales)—

28
29

In section 144(2) (definition of “billing authority” etc), at the end insert “; 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.”

LGFA 1992

30

In Schedule 13 to the LGFA 1992 (minor and consequential amendments) omit paragraph 78(2).

Audit Commission Act 1998 (c. 18)

31

In section 28(1) of the Audit Commission Act 1998 (certification of claims, returns etc)—

Local Government Act 2003 (c. 26)

32

The Local Government Act 2003 is amended as follows.

33

In section 70 (local retention of rates) omit subsections (4) to (6).

34

In Schedule 7 (minor and consequential amendments) omit paragraph 22(a).

SCHEDULE 4

Part 1 — Schedules to be inserted into the LGFA 1992

1

After Schedule 1 to the LGFA 1992 insert—

SCHEDULE 1A (1) In this Schedule— (a) “scheme” means council tax reduction scheme under section 13A(2), and (b) in relation to a scheme, “the authority” means the billing authority which made the scheme or is under a duty to make it. (2) (1) A scheme must state the classes of person who are to be entitled to a reduction under the scheme. (2) The classes may be determined by reference to, in particular— (a) the income of any person liable to pay council tax to the authority in respect of a dwelling; (b) the capital of any such person; (c) the income and capital of any other person who is a resident of the dwelling; (d) the number of dependants of any person within paragraph (a) or (c); (e) whether the person has made an application for the reduction. (3) A scheme must set out the reduction to which persons in each class are to be entitled; and different reductions may be set out for different classes. (4) A reduction may be— (a) a discount calculated as a percentage of the amount which would be payable apart from the scheme, (b) a discount of an amount set out in the scheme or to be calculated in accordance with the scheme, (c) expressed as an amount of council tax to be paid (lower than the amount which would be payable apart from the scheme) which is set out in the scheme or is to be calculated in accordance with it, or (d) the whole amount of council tax (so that the amount payable is nil). (5) A scheme must state the procedure by which a person may apply for a reduction under the scheme. (6) A scheme must state the procedure by which a person can make an appeal under section 16 against any decision of the authority which affects— (a) the person’s entitlement to a reduction under the scheme, or (b) the amount of any reduction to which the person is entitled. (7) A scheme must state the procedure by which a person can apply to the authority for a reduction under section 13A(1)(c). (8) The Secretary of State may by regulations prescribe other requirements for schemes. (9) Regulations under sub-paragraph (8) may in particular— (a) require other matters to be included in a scheme; (b) prescribe classes of person which must or must not be included in a scheme; (c) prescribe reductions, including minimum or maximum reductions, which must be applicable to persons in prescribed classes; (d) prescribe requirements which must be met by the procedure mentioned in sub-paragraph (5). (10) Regulations under sub-paragraph (8) may in particular set out provision to be included in a scheme that is equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the Secretary of State thinks fit. (11) Subject to compliance with regulations under sub-paragraph (8), a scheme may make provision that is equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the authority thinks fit. (12) For the purposes of sub-paragraphs (10) and (11), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”— (a) sections 131 to 133 of the Social Security Contributions and Benefits Act 1992 (council tax benefit); (b) sections 134 to 137 of that Act (general provisions about income-related benefits) so far as applying in relation to council tax benefit; (c) section 1 of the Social Security Administration Act 1992 (entitlement to benefit dependent on claim) so far as applying in relation to council tax benefit; (d) section 6 of that Act (regulations about council tax benefit administration); (e) sections 32 to 34 of the Welfare Reform Act 2007 (benefit for persons taking up employment) so far as applying in relation to council tax benefit. (3) (1) Before making a scheme, the authority must (in the following order)— (a) consult any major precepting authority which has power to issue a precept to it, (b) publish a draft scheme in such manner as it thinks fit, and (c) consult such other persons as it considers are likely to have an interest in the operation of the scheme. (2) The fact that this paragraph was not in force when any step described in sub-paragraph (1) was taken is to be disregarded in determining whether there has been compliance with that sub-paragraph. (3) Having made a scheme, the authority must publish it in such manner as the authority thinks fit. (4) The Secretary of State may make regulations about the procedure for preparing a scheme. (5) Regulations under sub-paragraph (4) may in particular— (a) require the authority to produce documents of a particular description in connection with the preparation of a scheme; (b) include requirements as to the form and content of documents produced in connection with the preparation of a scheme; (c) include requirements (in addition to sub-paragraphs (1)(b) and (3)) about the manner in which such documents must be published; (d) require the authority to make copies of such documents available for inspection by members of the public, or to supply copies of such documents to them; (e) include provision about the making of reasonable charges for the supply of copies of such documents to members of the public. (4) (1) The Secretary of State must by regulations prescribe a scheme (“the default scheme”) for the purposes of this paragraph. (2) The first financial year to which the default scheme relates must be the year beginning with 1 April 2013 (or such other year as is specified in section 10(4) of the Local Government Finance Act 2012). (3) The default scheme must comply with the requirements of— (a) paragraph 2(1) to (7), and (b) any regulations under paragraph 2(8). (4) The default scheme may in particular make provision that is equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the Secretary of State thinks fit. (5) For the purposes of sub-paragraph (4), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”— (a) sections 131 to 133 of the Social Security Contributions and Benefits Act 1992 (council tax benefit); (b) sections 134 to 137 of that Act (general provisions about income-related benefits) so far as applying in relation to council tax benefit; (c) section 1 of the Social Security Administration Act 1992 (entitlement to benefit dependent on claim) so far as applying in relation to council tax benefit; (d) section 6 of that Act (regulations about council tax benefit administration); (e) sections 32 to 34 of the Welfare Reform Act 2007 (benefit for persons taking up employment) so far as applying in relation to council tax benefit. (6) The default scheme is to take effect, in respect of dwellings situated in the area of a billing authority, if the authority fails to make a scheme on or before 31 January 2013 (or such other date as is specified in section 10(4) of the Local Government Finance Act 2012). (7) If the default scheme takes effect in the area of a billing authority, this Part applies to the default scheme as if it had been made by the authority. (5) (1) For each financial year, each billing authority must consider whether to revise its scheme or to replace it with another scheme. (2) The authority must make any revision to its scheme, or any replacement scheme, no later than 31 January in the financial year preceding that for which the revision or replacement scheme is to have effect. (3) The Secretary of State may by order amend sub-paragraph (2) by substituting a different date. (4) If any revision to a scheme, or any replacement scheme, has the effect of reducing or removing a reduction to which any class of persons is entitled, the revision or replacement must include such transitional provision relating to that reduction or removal as the authority thinks fit. (5) Paragraph 3 applies to an authority when revising a scheme as it applies to an authority when making a scheme. (6) References in this Part to a scheme include a replacement scheme. (6) (1) In this paragraph “scheme authority” means, in relation to a scheme and a year— (a) the billing authority which made the scheme, and (b) any major precepting authority with power to issue a precept to that billing authority in relation to that year. (2) Two or more scheme authorities may make arrangements which are to have effect if, as a result of the operation of the scheme— (a) there is a deficit in the billing authority’s collection fund for that year, or (b) the billing authority estimates that there will be such a deficit. (3) Arrangements under this paragraph may include— (a) the making of payments by one scheme authority to another scheme authority; (b) the variation of any payment or instalment of a payment which is required to be made under regulations under section 99 of the 1988 Act (regulations about funds) that make provision in relation to council tax. (7) (1) The Secretary of State may serve on a billing authority in England a notice requiring it to supply to the Secretary of State such information as is specified in the notice and required by the Secretary of State for the purpose of exercising, or of deciding whether to exercise, any function relating to schemes. (2) The authority must supply the information required if it is in its possession or control, and must do so in such form and manner and at such time as the Secretary of State specifies in the notice. (3) If an authority fails to comply with sub-paragraph (2), the Secretary of State may exercise the function on the basis of such assumptions and estimates as the Secretary of State thinks fit. (4) In exercising, or deciding whether to exercise, any function relating to schemes, the Secretary of State may also take into account any other available information, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act. (8) In exercising any function relating to schemes, a billing authority must have regard to any guidance issued by the Secretary of State. (9) (1) The Secretary of State may by regulations make such transitional provision regarding the commencement of schemes as the Secretary of State thinks fit. (2) Such provision may include, in particular, provision for and in connection with treating a person who is or was in receipt of council tax benefit, or who makes or has made a claim for that benefit, as having made an application for a reduction under a scheme. SCHEDULE 1B (1) In this Schedule— (a) “the regulations” means regulations under section 13A(4); (b) “scheme” means council tax reduction scheme under the regulations; (c) “specified” means specified in the regulations; (d) “specified authority” means a person or body required by the regulations to make a scheme (and, in relation to a particular scheme, means the authority which made the scheme or is under a duty to make it). (2) (1) The regulations may— (a) prescribe, for each scheme that is to be made, the dwellings to which that scheme is to apply; (b) require each scheme to state the dwellings to which it is to apply. (2) The regulations may prescribe— (a) the date by which each scheme is to be made, and (b) the first financial year to which it must relate. (3) (1) The regulations may prescribe— (a) classes of person who are to be entitled to a reduction under schemes; (b) classes of person who must not be entitled to a reduction under schemes. (2) The regulations may— (a) allow specified authorities to determine (subject to regulations under sub-paragraph (1)) classes of person who are to be entitled to a reduction under schemes, or (b) provide that specified authorities may not determine such classes. (3) The regulations may require each scheme to state the classes of person (prescribed under sub-paragraph (1)(a) or determined under sub-paragraph (2)(a)) who are to be entitled to a reduction under the scheme. (4) Any class of person prescribed under sub-paragraph (1)(a) may be determined by reference to, in particular, the matters listed in sub-paragraph (7). (5) The regulations may require any class of person determined under sub-paragraph (2)(a) to be determined by reference to specified matters (which may include those listed in sub-paragraph (7)). (6) If the regulations do not require a class of person to be determined as mentioned in sub-paragraph (5), the specified authority may determine that class by reference to, in particular, the matters listed in sub-paragraph (7). (7) Those matters are— (a) whether the Welsh Ministers consider, or the specified authority considers, any person to be in financial need; (b) the income of any person liable to pay council tax in respect of any dwelling to which a scheme is to apply; (c) the capital of any such person; (d) whether any such person is in receipt of any specified benefit; (e) the income and capital of any other person who is a resident of the dwelling, or whether any such person is in receipt of any specified benefit; (f) the number of dependants of any person within paragraph (b) or (e); (g) whether the person has made an application for the reduction. (4) (1) The regulations may prescribe reductions, including minimum and maximum reductions, to which persons in each class (whether prescribed under paragraph 3(1)(a) or determined under paragraph 3(2)(a)) are to be entitled under schemes. (2) The regulations may— (a) allow specified authorities to determine (subject to regulations under sub-paragraph (1)) reductions to which persons in each class set out in the scheme are to be entitled, or (b) provide that specified authorities may not determine such reductions. (3) The regulations may require each scheme to set out the reductions (whether prescribed under sub-paragraph (1) or determined under sub-paragraph (2)(a)) to which persons in each class set out in the scheme are to be entitled. (4) Different reductions may be set out for different classes. (5) A reduction under a scheme may be— (a) a discount calculated as a percentage of the amount which would be payable apart from the scheme, (b) a discount of an amount set out in the scheme or to be calculated in accordance with the scheme, (c) expressed as an amount of council tax to be paid (lower than the amount which would be payable apart from the scheme) which is set out in the scheme or is to be calculated in accordance with it, or (d) the whole amount of council tax (so that the amount payable is nil). (5) (1) The regulations may require each scheme to state— (a) the procedure by which a person may apply for a reduction under the scheme; (b) the procedure by which a person can make an appeal under section 16 against any decision which affects the person’s entitlement to a reduction under the scheme or the amount of any reduction to which the person is entitled; (c) the procedure by which a person can apply to the relevant billing authority for a reduction under section 13A(1)(c). (2) In sub-paragraph (1)(c), the relevant billing authority for any dwelling to which the scheme applies is the billing authority in whose area the dwelling is situated. (3) The regulations may prescribe requirements which must be met by the procedure mentioned in sub-paragraph (1)(a) or (b). (6) (1) The regulations may— (a) require other matters to be included in schemes; (b) allow schemes to make provision that is equivalent to provision made by a relevant enactment, or provision that is capable of being made under a relevant enactment, with such modifications as specified authorities think fit; (c) prescribe the procedure which a specified authority must follow when making a scheme (including requirements regarding consultation and other steps to be taken before and after making the scheme); (d) require or allow functions conferred by the regulations to be exercised by specified authorities jointly with other authorities; (e) prescribe a default scheme which is to take effect, if a specified authority fails to make a scheme in accordance with the regulations, in respect of dwellings to which that scheme would have applied; (f) impose requirements on specified authorities relating to the review, revision or replacement of schemes; (g) enable specified authorities to make reasonable charges for the supply of copies of documents relating to schemes; (h) require specified authorities to provide to the Welsh Ministers information about schemes. (2) In particular, the regulations may under sub-paragraph (1)(a) set out provision to be included in schemes, and a default scheme prescribed under sub-paragraph (1)(e) may make provision, that is equivalent to— (a) provision made by a relevant enactment, or (b) provision that is capable of being made under a relevant enactment, with such modifications as the Welsh Ministers think fit. (3) For the purposes of sub-paragraphs (1)(b) and (2), each of the following enactments as it had effect on the day on which the Local Government Finance Act 2012 was passed is a “relevant enactment”— (a) sections 131 to 133 of the Social Security Contributions and Benefits Act 1992 (council tax benefit); (b) sections 134 to 137 of that Act (general provisions about income-related benefits) so far as applying in relation to council tax benefit; (c) section 1 of the Social Security Administration Act 1992 (entitlement to benefit dependent on claim) so far as applying in relation to council tax benefit; (d) section 6 of that Act (regulations about council tax benefit administration); (e) sections 32 to 34 of the Welfare Reform Act 2007 (benefit for persons taking up employment) so far as applying in relation to council tax benefit. (7) (1) The regulations may make such transitional provision regarding the commencement of schemes as the Welsh Ministers think fit. (2) Such provision may include, in particular, provision for and in connection with treating a person who is or was in receipt of council tax benefit, or who makes or has made a claim for that benefit, as having made an application for a reduction under a scheme. (8) In exercising any function relating to schemes, a specified authority must have regard to any guidance issued by the Welsh Ministers.

Part 2 — Other amendments

LGFA 1988

2

In Part 1 of Schedule 11 to the LGFA 1988 (the Valuation Tribunal for England), after paragraph A18 insert—

(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 (c) if the FTT member is not disqualified from being, or acting as, a member of the Tribunal. (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).

LGFA 1992

3

The LGFA 1992 is amended as follows.

4

In section 10(1) (basic amount payable), for “13” substitute “13A”.

5

(ba) a council tax reduction scheme, or any revision of such a scheme;

.

6

In section 67 (functions to be discharged only by authority), after subsection (2)(a) insert—

(aa) making or revising a council tax reduction scheme under section 13A(2);

.

7

(1) This paragraph applies where— (a) a billing authority in England or a specified authority (within the meaning of Schedule 1B) in Wales makes a council tax reduction scheme, or (b) a billing authority exercises the power under section 13A(1)(c) by determining a class of case in which liability is to be reduced.

Local Government Act 2003 (c. 26)

8

The Local Government Act 2003 is amended as follows.

9

Omit section 76 (insertion of section 13A of the LGFA 1992).

10

In section 105(2)(aa) (functions of the Valuation Tribunal Service: payments to members of the Valuation Tribunal for England), after “A14” insert “or A18A(8)”.