Local Government Finance Act 1988 (c. 41)

(The document as of February, 2008)

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(a) as regards a hereditament or hereditaments the chargeable amount for a chargeable day falls to be determined under section 43, 45 or 54 above, and

(b) the day falls within the relevant period concerned.

(3) The provisions are that--

(a) the chargeable amount shall be such as is found in accordance with prescribed rules, and

(b) sections 43(4) to (6) and 44 above, sections 45(4) to (6) and 46 above, or section 54(4) to (7) above (as the case may be) shall not apply.

(4) A chargeable amount found in accordance with rules prescribed under this section may be the same as or different from what it would be apart from the regulations.

(5) Rules prescribed under this section may be framed by reference to such factors as the Secretary of State thinks fit.

(6) Without prejudice to section 143(1) below, regulations under this section relating to a relevant period may contain different provision for different relevant financial years.

(7) Without prejudice to section 143(1) below, regulations under this section may contain different provision in relation to locally listed hereditaments whose rateable value exceeds, and those whose rateable value does not exceed, a prescribed figure; and a locally listed hereditament is a hereditament for the time being shown in a local non-domestic rating list.

(8) Regulations under this section in their application to a particular relevant period shall not be effective unless they come into force before 1 January immediately preceding the period; but this is without prejudice to the power to amend or revoke.

(9) In making regulations under this section the Secretary of State shall have regard to the object of securing (so far as practicable) that the aggregate amount payable to him and all charging authorities by way of non-domestic rates as regards a particular financial year is the same as it would in his opinion be likely to be apart from the regulations.

(10) For the purposes of this section--

(a) a relevant period is a period of five years beginning on any 1 April (other than 1 April 1990) on which lists must be compiled;

(b) a relevant financial year, as regards regulations relating to a relevant period, is a financial year falling within the period.

59 Contributions in aid

(1) Where a hereditament would be subject to the provisions of this Part but for the rules as to Crown exemption, and a contribution in aid of non-domestic rating is made in respect of the hereditament, the contribution shall be paid to the charging authority in whose area the hereditament is situated.

(2) But the Secretary of State may make regulations requiring such a contribution to be paid to him if it is made in respect of a hereditament falling within a prescribed description.

60 Pooling

Schedule 8 below (which provides for the keeping of non-domestic rating accounts, and for sums to be paid to and by the Secretary of State) shall have effect.

61 Valuation officers

(1) The Commissioners of Inland Revenue shall appoint--

(a) a valuation officer for each charging authority, and

(b) the central valuation officer.

(2) The remuneration of, and any expenses incurred by, valuation officers in carrying out their functions under this Part (including the remuneration and expenses of persons, whether or not in the service of the Crown, employed to assist them) shall be paid out of money provided by Parliament.

62 Administration

Schedule 9 below (which contains provisions about administration, including collection and recovery) shall have effect.

63 Death

(1) The Secretary of State may make such regulations as he sees fit to deal with any case where a person dies and at any time before his death he was (or is alleged to have been) subject to a non-domestic rate.

(2) Nothing in the following provisions of this section shall prejudice the generality of subsection (1) above.

(3) The regulations may provide that where before his death a sum has become payable by the deceased but has not been paid his executor or administrator shall be liable to pay the sum and may deduct out of the assets and effects of the deceased any payments made (or to be made).

(4) The regulations may provide that where before his death a sum in excess of his liability has been paid (whether the excess arises because of his death or otherwise) and has not been repaid or credited his executor or administrator shall be entitled to the sum.

(5) The regulations may provide for the recovery of any sum which is payable under the regulations and is not paid.

(6) The regulations may provide that proceedings (whether by way of appeal under regulations under section 55 above or otherwise) may be instituted, continued or withdrawn by the deceased's executor or administrator.

Interpretation

64 Hereditaments

(1) A hereditament is anything which, by virtue of the definition of hereditament in section 115(1) of the 1967 Act, would have been a hereditament for the purposes of that Act had this Act not been passed.

(2) In addition, a right is a hereditament if it is a right to use any land for the purpose of exhibiting advertisements and--

(a) the right is let out or reserved to any person other than the occupier of the land, or

(b) where the land is not occupied for any other purpose, the right is let out or reserved to any person other than the owner of the land.

(3) The Secretary of State may make regulations providing that in prescribed cases--

(a) anything which would (apart from the regulations) be one hereditament shall be treated as more than one hereditament;

(b) anything which would (apart from the regulations) be more than one hereditament shall be treated as one hereditament.

(4) A hereditament is a relevant hereditament if it consists of property of any of the following descriptions--

(a) lands;

(b) coal mines;

(c) mines of any other description, other than a mine of which the royalty or dues are for the time being wholly reserved in kind;

(d) any right of sporting (that is, any right of fowling, of shooting, of taking or killing game or rabbits, or of fishing) when severed from the occupation of the land on which the right is exercisable;

(e) any right which is a hereditament by virtue of subsection (2) above.

(5) Subsection (6) below applies in the case of a hereditament provided and maintained by an authority mentioned in subsection (7) below for purposes connected with the administration of justice, police purposes or other Crown purposes.

(6) Any rules as to Crown exemption which would have applied apart from this subsection shall not--

(a) detract from any duty to show the hereditament in a local or central non-domestic rating list,

(b) prevent a person being subject to a non-domestic rate as regards the hereditament under section 43, 45 or 54 above, or

(7) The authorities are--

(a) a county council,

(b) a district council,

(d) the Common Council,

(e) a metropolitan county police authority, and

(f) the Northumbria Police Authority.

(8) A hereditament is non-domestic if either--

(a) it consists entirely of property which is not domestic, or

(b) it is a composite hereditament.

(9) A hereditament is composite if part only of it consists of domestic property.

(10) A hereditament shall be treated as wholly or mainly used for charitable purposes at any time if at the time it is wholly or mainly used for the sale of goods donated to a charity and the proceeds of sale of the goods (after any deduction of expenses) are applied for the purposes of a charity.

(11) In subsection (2) above "land" includes a wall or other part of a building and a sign, hoarding, frame, post or other structure erected or to be erected on land.

65 Owners and occupiers

(1) The owner of a hereditament or land is the person entitled to possession of it.

(2) Whether a hereditament or land is occupied, and who is the occupier, shall be determined by reference to the rules which would have applied for the purposes of the 1967 Act had this Act not been passed (ignoring any express statutory rules such as those in sections 24 and 46A of that Act).

(3) Subsections (1) and (2) above shall have effect subject to subsections (4) to (9) below.

(4) Regulations under section 64(3) above may include rules for ascertaining--

(a) whether the different hereditaments or the one hereditament (as the case may be) shall be treated as occupied or unoccupied;

(b) who shall be treated as the owner or occupier of the different hereditaments or the one hereditament (as the case may be).

(5) A hereditament which is not in use shall be treated as unoccupied if (apart from this subsection) it would be treated as occupied by reason only of there being kept in or on the hereditament plant, machinery or equipment--

(a) which was used in or on the hereditament when it was last in use, or

(b) which is intended for use in or on the hereditament.

(6) A hereditament shall be treated as unoccupied if (apart from this subsection) it would be treated as occupied by reason only of--

(a) the use of it for the holding of public meetings in furtherance of a person's candidature at a parliamentary or local government election, or

(b) if it is a house, the use of a room in it by a returning officer for the purpose of taking the poll in a parliamentary or local government election.

(7) In subsection (6) above "returning officer" shall be construed in accordance with section 24 or 35 of the [1983 c. 2.] Representation of the People Act 1983 (as the case may be).

(8) A right which is a hereditament by virtue of section 64(2) above shall be treated as occupied by the person for the time being entitled to the right.

(9) A right of sporting shall be treated as occupied by the owner of the right, whether or not it is let; and "owner" here means the person who is entitled to receive rent (if the right is let) or to exercise the right to let (if the right is not let).

66 Domestic property

(1) Property is domestic if--

(a) it is used wholly for the purposes of living accommodation,

(b) it is a yard, garden, outhouse or other appurtenance belonging to or enjoyed with property falling within paragraph (a) above,

(d) it is private storage premises used wholly or mainly for the storage of articles of domestic use.

(2) But property is not domestic property if it is wholly or mainly used in the course of a business for the provision to individuals whose sole or main residence is elsewhere of accommodation for short periods together with domestic or other services or other benefits or facilities.

(3) A pitch for a caravan is domestic property if one or both of the following conditions is fulfilled--

(a) it is part of a site which is a protected site;

(b) it is occupied by a caravan which is the sole or main residence of an individual (construing sole or main residence in accordance with section 2 above).

(4) A mooring is domestic property if it is occupied by a boat which is the sole or main residence of an individual (construing sole or main residence in accordance with section 2 above).

(5) Property not in use is domestic if it appears that when next in use it will be domestic.

(6) In applying subsection (5) above no assumption may be made that a site which is not a protected site will become one.

(7) Whether anything is a caravan shall be construed in accordance with Part I of the [1960 c. 62.] Caravan Sites and Control of Development Act 1960.

(8) Whether a site is a protected site shall be construed in accordance with Part I of the [1968 c. 52.] Caravan Sites Act 1968.

(9) The Secretary of State may by order amend, or substitute another definition for, any definition of domestic property for the time being effective for the purposes of this Part.

67 Interpretation: other provisions

(1) Unless the context otherwise requires, references to lists are to local and central non-domestic rating lists.

(2) Unless the context otherwise requires, references to valuation officers are to valuation officers for charging authorities and the central valuation officer.

(3) A right or other property is a hereditament on a particular day if (and only if) it is a hereditament immediately before the day ends.

(4) A hereditament is relevant, non-domestic, composite, unoccupied or wholly or partly occupied on a particular day if (and only if) it is relevant, non-domestic, composite, unoccupied or wholly or partly occupied (as the case may be) immediately before the day ends.

(5) For the purpose of deciding the extent (if any) to which a hereditament consists of domestic property on a particular day, or is exempt from local non-domestic rating on a particular day, the state of affairs existing immediately before the day ends shall be treated as having existed throughout the day.

(6) A person is the owner, or in occupation of all or part, of a hereditament on a particular day if (and only if) he is its owner or in such occupation (as the case may be) immediately before the day ends.

(7) A relevant provision applies on a particular day if (and only if) it applies immediately before the day ends; and for this purpose relevant provisions are sections 43(6), 45(6) and 47(2) above.

(8) For the purpose of deciding what is shown in a list for a particular day the state of the list as it has effect immediately before the day ends shall be treated as having been its state throughout the day; and "effect" here includes any effect which is retrospective by virtue of an alteration of the list.

(9) A hereditament shall be treated as shown in a central non-domestic rating list for a day if on the day it falls within a class of hereditament shown for the day in the list; and for this purpose a hereditament falls within a class on a particular day if (and only if) it falls within the class immediately before the day ends.

(10) A charity is an institution or other organisation established for charitable purposes only or any persons administering a trust established for charitable purposes only.

(11) The [1967 c. 9.] 1967 Act is the General Rate Act 1967.

(12) Nothing in a private or local Act passed before this Act shall have the effect that a hereditament is exempt as regards non-domestic rating, or prevent a person being subject to a non-domestic rate, or prevent a person being designated or a description of hereditament being prescribed under section 53 above.

(13) This section and sections 64 to 66 above apply for the purposes of this Part.

Part IV Precepts and Levies

Precepts

68 Precepts to be issued

(1) For each chargeable financial year, a precepting authority shall issue a precept or precepts in accordance with this section.

(2) A precept must be issued before 11 March in the financial year preceding that for which it is issued, but is not invalid merely because it is issued on or after that date.

(3) The precepting authority must secure (so far as practicable) that the total amount yielded by precepts issued by it for a financial year is sufficient to provide for the items mentioned in subsection (4) below, to the extent that they are not to be provided for by other means.

(4) The items are--

(a) the expenditure the authority estimates it will incur in the year in performing its functions in the year (including an allowance for contingencies),

(b) the payments it estimates it will make in the year in defraying outstanding expenditure incurred in any earlier financial year,

(c) the expenditure it estimates it will incur and will have to meet in the next financial year before amounts to be yielded in respect of precepts for that year become sufficiently available, and

(d) the amount it estimates it will pay in the year into a fund or funds it has established under paragraph 16 of Schedule 13 to the [1972 c. 70.] Local Government Act 1972.

(5) In estimating under subsection (4)(a) above a precepting authority which is a county council shall take into account the amount of any levy issued to it for the year but (except as provided by regulations under section 74 below) shall not anticipate a levy not issued.

69 Precepted authorities

(1) A precept may only be issued to an appropriate charging authority.

(2) If the whole or part of a charging authority's area falls within a precepting authority's area, it is an appropriate charging authority in relation to the precepting authority to the extent of the area which so falls.

(3) A precepting authority must secure that such of its general expenses as are to be met by precepts are borne by its appropriate charging authorities (if more than one) in proportion.

(4) A precepting authority must secure that such of its special expenses as are to be met by precepts are borne by the appropriate charging authority to whose area or part the expenses concerned relate or by all such charging authorities (if more than one) in proportion.

(5) Proportions under subsection (3) above shall be determined by reference to the relevant population of each charging authority's area or (as the case may be) the part which falls within the precepting authority's area.

(6) Proportions under subsection (4) above shall be determined by reference to the relevant population of each area or part to which the expenses concerned relate.

(7) The relevant population in relation to an area or part shall be calculated by--

(a) taking the number of those members of the population of the area or part who fall within such description as is specified in regulations made by the Secretary of State, and

(b) making such adjustments (if any) by way of addition or subtraction (or both) as are specified in, or calculated in a manner specified in, the regulations.

(8) A precept may be issued to the same authority in respect of both general and special expenses of the precepting authority.

(9) A precept must state--

(a) whether it or any portion of it is issued in respect of general expenses,

(b) whether it or any portion of it is issued in respect of special expenses, and

(c) whether it or any portion of it is applicable to all or part of the area of the authority to which it is issued and, in the case of a part, what part.

70 General and special expenses

(1) This section applies for the purposes of section 69 above.

(2) All the expenses of a county council are its general expenses except that--

(a) if it is the police authority for part only of its area its expenses as police authority are special expenses provided a resolution of the council to that effect is in force,

(b) provided a resolution of the council to the following effect is in force, its expenses needed to meet a levy issued to it are its special expenses or (if the resolution relates to some only of those expenses) those to which the resolution relates are its special expenses, and

(c) if it is a Welsh county council whose library area consists of part of its administrative area, its expenses in exercising its functions as library authority in its library area are its special expenses.

(3) Expenses which are special by virtue of a resolution under subsection (2)(a) above relate to the part of the council's area for which it is the police authority.

(4) Expenses which are special by virtue of a resolution under subsection (2)(b) above relate to the part of the council's area in which the levying body carries out functions.

(5) Expenses which are special by virtue of subsection (2)(c) above relate to the part of the council's administrative area which consists of its library area.

(6) All the expenses of each of the following are its general expenses--

(a) a metropolitan county police authority,

(b) the Northumbria Police Authority,

(d) the London Fire and Civil Defence Authority.

(7) All the expenses of the Receiver for the Metropolitan Police District are his general expenses, except that his expenses relating to the metropolitan police courts and the probation system in the metropolitan police court area are his special expenses.

(8) Expenses which are special by virtue of subsection (7) above relate to the metropolitan police court area.

(9) All the expenses of the sub-treasurer of the Inner Temple are his general expenses, and all the expenses of the under-treasurer of the Middle Temple are his general expenses.

(10) All the expenses of a parish or community council, the chairman of a parish meeting or charter trustees are general expenses.

(11) "Library area" shall be construed in accordance with the [1964 c. 75.] Public Libraries and Museums Act 1964.

71 Substituted precepts

(1) An authority which has issued a precept or precepts for a financial year (originally or by way of substitute) may issue a precept or precepts in substitution.

(2) Any precept issued in substitution must be issued in accordance with sections 68 to 70 above, ignoring section 68(2) for this purpose.

(3) No precept may be issued in substitution if its amount would be greater than the amount of that for which it is substituted, except as provided by subsection (4) below.

(4) The amount of any precept issued in substitution may be greater than the amount of that for which it is substituted (the old precept) if the old precept has been quashed because of a failure to fulfil section 68(3) or 69(3) or (4) above.

(5) Where an authority issues a precept in substitution (a new precept) anything paid to it by reference to the precept for which it is substituted (the old precept) shall be treated as paid by reference to the new precept.

(6) But if the amount of the old precept exceeds that of the new precept, the following shall apply as regards anything paid if it would not have been paid had the amount of the old precept been the same as that of the new precept--

(a) it shall be repaid if the charging authority by whom it was paid so requires;

(b) in any other case it shall (as the precepting authority determines) either be repaid or be credited against any subsequent liability of the charging authority in respect of any precept of the precepting authority.

72 Statement as to payment of precept

(1) A precept (whether original or by way of substitute) must state--

(a) whether the authority to which it is issued needs to pay anything in respect of the amount of the precept, and

(b) if it does, what it needs to pay to the issuing authority.

(2) The Secretary of State may make regulations providing that prescribed matters are, and other prescribed matters are not, to be taken into account by an authority in preparing a statement under this section.

(3) The matters which may be prescribed include the effects of sections 37(5) and 71(5) and (6) above and of regulations under section 99 below.

73 Information

(1) If the Secretary of State so requires by regulations, a charging authority shall supply prescribed information within a prescribed period to any precepting authority which has power to issue a precept to the charging authority.

(2) Where regulations under Schedule 2 or 9 below impose a duty on a charging authority to supply information to any person, they may also require any appropriate precepting authority to supply the charging authority with prescribed information if the Secretary of State considers it to be information the charging authority needs in order to fulfil its duty.

(3) For the purposes of subsection (2) above an authority is an appropriate precepting authority in relation to a charging authority if it has power to issue a precept to the charging authority.

74 Levies

(1) In this section "levying body" means any body which--

(a) is established by or under an Act,

(b) apart from section 117 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, combined police authority, combined fire authority, magistrates' courts committee or probation committee.

(2) Whereas a levying body has (by virtue of section 117 below) no such power under the Act concerned in respect of a chargeable financial year, the Secretary of State may make regulations conferring on each levying body power to issue to the council concerned and in accordance with the regulations a levy (to be so called) in respect of any chargeable financial year.

(3) The regulations may include provision--

(a) as to when levies are to be issued;

(b) imposing a maximum limit on levies;

(d) conferring a power to issue levies by way of substitute for others;

(e) as to the payment (in instalments or otherwise) of amounts in respect of which levies are issued;

(f) conferring a right to interest on anything unpaid.

(4) The regulations may include provision--

(a) that a county council issuing a precept or precepts under this Act (originally or by way of substitute) may anticipate a levy;

(b) that a charging authority making calculations under section 95 below (originally or by way of substitute) may anticipate a levy;

(d) as to the treatment of any levy actually issued.

(5) The regulations may include--

(a) provision equivalent to anything in section 37 above or in sections 68 to 72 above (subject to such modifications as the Secretary of State thinks fit);

(b) provision amending or adapting any provision of this Act in consequence of any provision included under subsection (4) above.

(6) In this section "Act" includes a private or local Act.

75 Special levies

(1) This section applies as regards any body--

(a) which has no power to levy a rate by virtue of regulations under section 118 below, or

(b) whose power to levy a rate is modified by regulations under that section.

(2) The Secretary of State may make regulations conferring on any such body power to issue in respect of prescribed chargeable financial years and in accordance with the regulations--

(a) a special levy (to be so called) to such charging authority as is prescribed as regards the body concerned, or

(b) special levies (to be so called) to such charging authorities as are prescribed as regards the body concerned.

(3) The regulations may include provision as to the body's expenditure, or the proportion of its expenditure, which may be met from the proceeds of a special levy or special levies.

(4) The regulations may include provision_

(a) as to when special levies are to be issued;

(b) imposing a maximum limit on special levies;

(d) conferring a power to issue special levies by way of substitute for others;

(e) as to the payment (in instalments or otherwise) of amounts in respect of which special levies are issued;

(f) conferring a right to interest on anything unpaid.

(5) The regulations may include provision requiring a charging authority to treat as special expenses any expenses needed to meet a special levy issued to it.

(6) The regulations may include provision--

(a) that a charging authority making calculations under section 95 below (originally or by way of substitute) may anticipate a special levy;

(b) as to the treatment as special expenses of amounts so anticipated;

(7) The regulations may include--

(a) provision equivalent to anything in section 37 above or in sections 68 to 72 above (subject to such modifications as the Secretary of State thinks fit);

(b) provision amending or adapting any provision of this Act in consequence of any provision included under subsection (6) above.

Part V Grants

Introduction

76 Interpretation

(1) This section applies for the purposes of this Part.

(2) Each of the following is a receiving authority--

(a) a charging authority, and

(b) in the application of this Part to Wales, a county council.

(3) Each of the following is a notifiable authority (and is accordingly entitled to receive certain information and copies of certain documents as provided in this Part)--

(a) a charging authority,

(b) a county council,

(d) the Northumbria Police Authority,

(e) a metropolitan county fire and civil defence authority,

(f) the London Fire and Civil Defence Authority, and

(g) the Receiver for the Metropolitan Police District.

(4) A specified body is any body which provides services for local authorities and is specified in regulations made by the Secretary of State under this subsection; but a body is not a specified body as regards a financial year unless the regulations specifying it are in force before the year begins.

(5) Before exercising the power to make regulations under subsection (4) above the Secretary of State shall consult such representatives of local government as appear to him to be appropriate.

(6) Any regulations made under section 2(7) of the [1974 c. 7.] Local Government Act 1974 or section 56(9) of the [1980 c. 65.] Local Government, Planning and Land Act 1980 shall have effect for the purposes of subsection (4) above as if they had been made under it.

77 Information

(1) The Secretary of State may serve on a charging authority or precepting authority a notice requiring it to supply to him such information as is specified in the notice and required by him for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part.

(2) The authority shall supply the information required if it is in its possession or control, and shall 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 subsection (2) above the Secretary of State may assume the information required to be such as he sees fit if he informs the authority concerned of his intention to make the assumption; and in such a case he may decide in accordance with the assumption whether to exercise his powers, and how to perform his functions, under this Part.

(4) In deciding whether to exercise his powers, and how to perform his functions, under this Part the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other Act.

(5) This section shall have effect before 1 April 1990 as if after "precepting authority" in subsection (1) there were inserted "or the Inner London Education Authority".

Revenue support grant

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