The Community Charges and Non-Domestic Rating (Demand Notices)(England) Regulations 1992

• Citation: S.I. 1992/208
• Sections: 37

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Community Charges and Non-Domestic Rating (Demand Notices) (England) Regulations 1992 and shall come into force on 15th February 1992.

(2) In these Regulations—

“ the Act ” means the Local Government Finance Act 1988;

“appropriate levying body” in relation to an English charging authority means a passenger transport authority, the Broads Authority or the National Rivers Authority, insofar as the authority has power to issue a levy to the charging authority, or has power to issue a levy to a county council having power to issue a precept to the charging authority;

“charging authority” does not include a special authority;

“community charge demand notice” means a demand notice within the meaning of Part III of the Community Charges (Administration and Enforcement) Regulations 1989 which is issued by an English charging authority (including such a notice issued pursuant to the Community Charges (Co-owners) Regulations 1990 );

“the distribution report” means the report entitled the Revenue Support Grant Distribution Report (England) made on 20th December 1989 by the Secretary of State for the Environment under section 80 of the Act, as amended by the Revenue Support Grant Distribution (Amendment) Report (England) made by him on 16th (Amendment) ( No. 2) Report (England) made by him on 20th January 1992;

“rate demand notice” means a demand notice within the meaning of Part II of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989 which is issued by an English charging authority (including such a notice issued pursuant to Part II of the Non-Domestic Rating (Collection and Enforcement) (Miscellaneous Provisions) Regulations 1990 ( joint owners and occupiers));

“the relevant charge” in relation to a notice and a charging authority means the amount set by the authority under section 32, 34 or 35 of the Act which is applicable to the notice, or which would be so applicable but for any provision of regulations made under section 13A of the Act ;

“the special grant report” means the report made on 22nd January 1992 by the Secretary of State for Education and Science and the Secretary of State for the Environment under section 146 of the Local Government and Housing Act 1989 ;

“specific grants” means grants or subsidies which fall to be credited to revenue account and which are paid out of monies provided by Parliament, other than grants or subsidies which fall to be paid into a collection fund under section 90(1) of the Act; and

“the 1992 financial year ” means the chargeable financial year beginning on 1st April 1992.

Section 2 Application of the Regulations

These Regulations apply in relation to community charge demand notices and rate demand notices issued with respect to the 1992 financial year.

Section 3 Form and content of demand notices, etc.

(1) A community charge demand notice shall—

(a) where it relates to a personal community charge and the amount demanded under it is not calculated by reference to section 13 of the Act, be in the form specified as (and accordingly contain the matters specified in) form A in Part I of Schedule 1;

(b) where it relates to a personal community charge and the amount demanded under it is calculated by reference to section 13 of the Act, be in the form specified as (and accordingly contain the matters specified in) form B in that Part;

(c) where it relates to a standard community charge, be in the form specified as (and accordingly contain the matters specified in) form C in that Part;

(d) where it relates to a collective community charge, be in the form specified as (and accordingly contain the matters specified in) form D in that Part.

(2) Part II of Schedule 1 (calculation and identification of certain matters to be contained in community charge demand notice) and Part III of that Schedule (interpretation, etc.) shall have effect for the purposes of Part I of that Schedule.

(3) A rate demand notice shall contain the matters mentioned in Schedule 2.

(4) Subject to paragraph (5), an English charging authority must when it serves a community charge demand notice supply to the person on whom the notice is served the information mentioned in Part I of Schedule 3, and must when it serves a rate demand notice supply to the person on whom the notice is served the information mentioned in Part II of that Schedule; and Part III of that Schedule (interpretation, etc.) shall have effect for the purposes of those Parts I and II.

(5) Paragraph (4) does not apply when a community charge demand notice or a rate demand notice is served after 31st March 1993.

(6) Nothing in this regulation requires a notice to be given on a single sheet of paper, but if more than one sheet is used, the sheets shall be issued together, whether or not attached, so as to comprise one notice.

Section 4 Invalid notices

(1) Where—

(a) a community charge demand notice is invalid because it does not comply with the applicable provisions of regulation 3,

(b) the failure so to comply was due to a mistake, and

(c) the amounts required to be paid under the notice were demanded in accordance with Part III of the Community Charges (Administration and Enforcement) Regulations 1989,

the requirement to pay those amounts shall apply as if the notice were valid.

(2) Where a requirement to pay an amount under an invalid notice subsists by virtue of paragraph (1), the charging authority shall as soon as practicable after the mistake is discovered issue to the chargeable person concerned a document in the form which the notice would have taken (and containing the matters it would have contained) if it had complied with all relevant provisions of regulation 3.

(3) Where—

(a) a rate demand notice is invalid because it does not comply with regulation 3(3),

(b) the failure so to comply was due to a mistake, and

(c) the amounts required to be paid under the notice were demanded in accordance with Part II of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989,

the requirement to pay those amounts shall apply as if the notice were valid.

(4) Where a requirement to pay an amount under an invalid notice subsists by virtue of paragraph (3), the charging authority shall as soon as practicable after the mistake is discovered issue to the ratepayer concerned a statement of the matters that were not contained in the notice and which should have been so contained.

Section 5 Supply of information by precepting authorities

(1) In order that English charging authorities may fulfil their obligations under regulation 3, every English precepting authority shall, subject to paragraphs (3) to (6), when it issues a precept to a charging authority for the 1992 financial year, supply the charging authority with the information specified in paragraph (2).

(2) The information is information, as regards the precepting authority and the precept concerned, as to—

(a) the estimates mentioned in paragraphs 1, 9, 10 and 11 of Part I of Schedule 3;

(b) the matters mentioned in paragraphs 3, 7 and 8 of that Part; and

(c) the name of every appropriate levying body which has issued a levy to it that was taken into account in calculating the amount of the precept, together with the amount of the levy and information as to whether any of it was not treated as special expenses of the authority.

(3) Information need not be supplied by a precepting authority with respect to the estimates mentioned in paragraphs 1, 9 and 11 of Part I of Schedule 3 insofar as that information would (by virtue of paragraph 3 of Part III of that Schedule) be repetitive of information given as regards a precept issued for the preceding financial year.

(4) Information need not be supplied when a substitute precept is issued to a charging authority if it is not one which would require the charging authority to set a substitute amount under section 35 of the Act; but if in such a case the charging authority subsequently notifies the precepting authority that it has set or proposes to set an amount for its personal community charges by reference to the substitute precept, the precepting authority shall (subject to paragraphs (3), (5) and (6)) supply that information as regards the substitute precept as soon as practicable after that notification is given.

(5) Information need not be supplied by a precepting authority as regards the issue of a substitute precept for the 1992 financial year insofar as it would be repetitive of information given in respect of the preceding financial year on the occasion of the issue of the earlier precept for the 1992 financial year.

(6) Information need not be supplied by a precepting authority if, by virtue of the proviso to the definition of “relevant precepting authority” in paragraph 6 of Part III of Schedule 3, it would not fall to be supplied by the charging authority when it serves a demand notice.

Section 6 Supply of information by the Secretary of State

In order that an English charging authority may fulfil its obligations under regulation 3, the Secretary of State shall, as soon as practicable after he has made the calculation of revenue support grant for the 1992 financial year for the charging authority under section 82 of the Act, supply the authority with information as to the amount of—

(a) the community charge for standard spending mentioned in paragraph 2 of Part II of Schedule 1; and

(b) the standard spending assessment per head mentioned in paragraphs 3, 4 and 5 of that Part for the charging authority, and for each appropriate precepting authority.

Section 7 Supply of information by levying bodies

(1) In order that an English charging authority may fulfil its obligations under regulation 3, subject to paragraphs (6) and (8) every appropriate levying body shall, when it first issues a levy to an English county council or an English charging authority for the 1992 financial year, supply the charging authorities to which the county council concerned has power to issue a precept and in whose areas the body carries out functions, or (as the case may be) the charging authority to which the levy is issued, with the information specified in paragraph (5).

(2) In order that an English charging authority may fulfil the obligations mentioned in paragraph (1), subject to paragraphs (6) and (8) an appropriate levying body shall, after it has first issued a levy to an English county council for the 1992 financial year, supply any charging authority to which paragraph (1) does not apply, but which notifies the body that it has set or proposes to set an amount for its personal community charges by reference to the levy, with the information specified in paragraph (5).

(3) In order that an English charging authority may fulfil the obligations mentioned in paragraph (1), subject to paragraphs (6) to (8) an appropriate levying body shall, after it has issued a substitute levy for the 1992 financial year, supply any charging authority which notifies the body that it has set or proposes to set an amount for its personal community charges by reference to the substitute levy, with the information specified in paragraph (5).

(4) Information shall be supplied under paragraph (2) or (3) as soon as practicable after the notification is given.

(5) The information is information, as regards the appropriate levying body and the levy concerned, as to—

(a) the estimates mentioned in paragraphs 2, 9, 10 and 11 of Part I of Schedule 3; and

(b) the matters mentioned in paragraphs 3 and 7 of that Part.

(6) Information need not be supplied by an appropriate levying body with respect to the estimates mentioned in paragraph 2, 9 and 11 of Part I of Schedule 3 insofar as that information would (by virtue of paragraph 3 of Part III of that Schedule) be repetitive of information given as regards a levy issued for the preceding financial year.

(7) Information need not be supplied by an appropriate levying body as regards a substitute levy for the 1992 financial year insofar as it would be repetitive of information given in respect of the preceding financial year on the occasion of the issue of the earlier levy for the 1992 financial year.

(8) Information need not be supplied by an appropriate levying body if, by virtue of the proviso to the definition of “relevant levying body” in paragraph 6 of Part III of Schedule 3, it would not fall to be supplied by the charging authority when it serves a demand notice.

(9) The circumstances in which the personal community charge of a charging authority is to be treated as set by reference to a levy for the purposes of paragraphs (2) and (3) include the setting of the charge by reference to an amount included in a precept, where the amount is attributable to a levy.

Section 1

A statement of the address and description of each hereditament to which the notice relates (“relevant hereditament”).

Section 2

A statement of the rateable value shown for each relevant hereditament in the local non-domestic rating list.

Section 3

A statement of the non-domestic rating multiplier applicable for the 1992 financial year.

Section 4

A statement of the days (if any) on which, for the purposes of calculating the payments required to be made under the notice, it was understood or assumed that the conditions mentioned in section 45(1) of the Act were or would be fulfilled in relation to any relevant hereditament, and a statement that as regards those days the chargeable amount is one half of that which it would be if the ratepayer were in occupation of the hereditament.

Section 5

A statement of the days (if any) on which, for the purposes of calculating the payments required to be made under the notice, it was understood or assumed that—

(a) the chargeable amount would fall to be calculated under section 43(5) or 45(5) of the Act,

(b) the chargeable amount would fall to be calculated under section 43(4) or (5) or 45(4) or (5) of the Act as modified by paragraph 9 of Schedule 7A to the Act , or by regulation 3 of the Non-Domestic Rating (Transitional Period) Regulations 1990 ,

(c) the chargeable amount would fall to be calculated by reference to section 44(2) and (2A) of the Act as substituted by section 44A(7) or (9) of the Act , or

(d) rules under section 47(1)(a) or 58(3)(a) of the Act would apply;

together with a statement of the manner in which the chargeable amount for those days was calculated and of the amount by which the aggregate amount demanded under the notice is reduced or increased as compared with the amount which would have been demanded if section 43(4), without modification, and (so far as is relevant) section 44(2), without substitution, or (as the case may be) section 45(4), without modification, applied to the calculation of the chargeable amount for those days.

Section 6

Explanatory notes in the following terms—

EXPLANATORY NOTES

Non-Domestic Rates The non-domestic rates collected by charging authorities (district and London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly) are paid into a central pool and re-distributed to all charging authorities in proportion to the number of community chargepayers in their area. Your authority’s share of re-distributed rate income, together with income from its community chargepayers, revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by your authority and other local authorities in your area.

Rateable Value

The rateable value of non-domestic property, which is fixed in most cases by the Inland Revenue valuation officer, represents the annual open market rental value of the property at 1st April 1988. The values of all property in respect of which rates are paid to your authority are shown in the local rating list, a copy of which may be inspected at name and address of local valuation office and name and address of charging authority .

The valuation officer may alter the value if he believes that the circumstances of the property have changed. The ratepayer (and certain others who have an interest in the property) may also in certain circumstances propose a change in value. If in any case the ratepayer and the valuation officer do not agree, the matter will be referred as an appeal to the Valuation and Community Charge Tribunal. Information about the circumstances in which a change in a rateable value may be proposed and how such a proposal may be made is available from the valuation office shown above.

National Non-Domestic Rating Multiplier

The national non-domestic rating multiplier is the rate in the pound by which, outside the City of London where special arrangements apply, the rateable value is multiplied to produce the annual rate bill for a property. It is set annually by the Government and cannot, by law, rise by more than the amount of the increase in the retail prices index.

Transitional Arrangements

For some properties, transitional arrangements will continue to phase in the effect of the change to the new non-domestic rating system introduced in 1990. Where appropriate, these arrangements will operate until 1994/95 and may be extended to later years. There are limits on the percentage by which bills may increase or decrease each year. There are special rules dealing with changes in rateable value and the merger or splitting of existing properties. Further information about transitional arrangements may be obtained from name of charging authority.

Unoccupied Property Rating

Non-domestic properties which are unoccupied may be liable to empty property rates. Rates are charged at 50% of the full rate bill or of the transitional bill where the transitional arrangements apply. Liability begins after the property has been empty for 3 months. Certain types of property, such as factories and warehouses, are exempt from empty property rates.

Charitable and Discretionary Relief

Charities are entitled to relief from rates on any non-domestic property which is wholly or mainly used for charitable purposes. Relief is given at 80% of the full rate bill or of the transitional bill where the transitional arrangements apply. Charging authorities have discretion to remit all or part of the remaining 20% of a charity’s billon such property.

Authorities also have discretion to remit all or part of any ratebill in respect of property occupied by certain bodies not established or conducted for profit.

Section 1

The estimate of the charging authority and of each relevant precepting authority of its gross expenditure and of its net expenditure for the 1992 financial year and the preceding year for each class of service administered by the authority, and if the authority concerned administers more than one such class of service, a statement of the aggregate of its gross expenditure and the aggregate of its net expenditure for all the classes administered by it.

Section 1

The information mentioned in paragraphs 1 to 11 of Part I above.

Section 1

For the purposes of paragraphs 1 and 2 of Part I—

(a) the gross expenditure of an authority or body in respect of a service for a year is the sum of all items of the authority charged to revenue account for the year attributable to the service, but does not include allowances for contingencies or contributions to financial reserves,

(b) the net expenditure of an authority or body in respect of a service for a year is the residue of its gross expenditure in respect of the service for the year after deduction of specific grants, fees, charges and other income attributable to the service and credited to revenue account (but not reserves applied to the funding of the service), and

(c) the classes of service by reference to which estimates of gross and net expenditure are to be given under paragraph 1 of that Part are as follows—

(i) education;

(ii) social services;

(iii) highways;

(iv) police;

(v) fire;

(vi) planning and economic development;

(vii) recreation and tourism;

(viii) environmental health;

(ix) refuse collection and disposal;

(x) housing;

(xi) other services.

Section 2

The estimate of each relevant levying body of the aggregate of its gross expenditure and the aggregate of its net expenditure for the 1992 financial year and the preceding year for the services administered by it.

Section 2

estimates for the 1992 financial year to be supplied pursuant to paragraphs 1, 2, 9, 10 and 11 of Part I when the charging authority serves a notice are estimates to be made by the authority at (or as soon as practicable after) the time of, or made for the purposes of, its calculations under section 95(2) or (3) of the Act, or (as the case may be) supplied by the relevant precepting authority or relevant levying body concerned at the time of the issue of or in connection with its precept or levy, being its calculations, or the precept or levy, by reference to which the charging authority set the relevant charge.

Section 3

The amount allowed by the charging authority, and by each relevant precepting authority and relevant levying body, for contingencies and contributions to or from financial reserves in the making by it of the calculations under section 95(2) and (3) of the Act for the 1992 financial year or in calculating the amount of its precept or levy for that year (as the case may be).

Section 3

The estimates for the preceding year to be supplied pursuant to paragraphs 1, 2, 9 and 11 of Part I when the charging authority serves a notice are estimates made by the authority at (or as soon as practicable after) the time of, or made for the purposes of, its calculations under section 95(2) or (3) of the Act, or (as the case may be) supplied by the relevant precepting authority or relevant levying body concerned at the time of the issue of or in connection with its precept or levy, being its calculations, or the precept or levy, by reference to which the charging authority last set an amount under section 32, 34 or 35 of the Act for that preceding year.

Section 4

The amount calculated by the charging authority for the 1992 financial year under section 95(4) of the Act, and the amount of the precept or levy for that year of each relevant precepting authority and relevant levying body.

Section 4

The calculation and precept mentioned in paragraphs 3, 4 and 8 of Part I and the levy mentioned in paragraphs 3 and 4 of that Part in connection with which information is to be supplied when a charging authority serves a notice is the calculation, precept or levy (as the case may be) of the authority or body concerned by reference to which the charging authority set the relevant charge.

Section 5

A breakdown of how the relevant charge was arrived at, made by reference to—

(a) the amounts mentioned in paragraph 4 above;

(b) the amounts the charging authority estimates will be raised for the 1992 financial year from those liable to pay personal, standard and collective community charges of the authority;

(c) the amount of revenue support grant payable to the charging authority with respect to that year;

(d) the amount notified to the charging authority under paragraph 9(8)of Schedule 8 to the Act; and

(e) such other amounts as are mentioned in paragraphs 6 to 8 of Part II of Schedule 1 (but without dividing any amount by the relevant population of the area of the charging authority).

Section 5

The calculation, precept and levy mentioned in paragraph 6 of Part I in connection with which information is to be supplied when a charging authority serves a notice is the calculation, precept or levy (as the case may be) of the authority or body concerned by reference to which the charging authority last set an amount under section 32, 34 or 35 of the Act for the year preceding the 1992 financial year.

Section 6

The amount calculated by the charging authority for the year preceding the 1992 financial year under section 95(4) of the Act, and the amount of the precept or levy for that preceding year of each relevant precepting authority and relevant levying body.

Section 6

In Part I—

“relevant levying body” means an appropriate levying body which—

has issued a levy to the charging authority for the 1992 financial year all or part of which was taken into account when the authority set the relevant charge, or

has issued a levy to a county council for the 1992 financial year,where all or part of such of the precept of the council as is attributable to the levy was taken into account when the charging authority set the relevant charge,

provided that in paragraphs 3, 9 and 11 of that Part it does not include the Broads Authority or the National Rivers Authority; and

“relevant precepting authority” means a precepting authority which has issued a precept to the charging authority for the 1992 financial year all or part of which was taken into account when the charging authority set the relevant charge, provided that—

in paragraphs 3 and 7 to 11 of that Part it does not include a parish council, the chairman of a parish meeting or charter trustees; and

in paragraph 1 it does not include a parish council where the amount of that precept is not more than £100,000, or the chairman of a parish meeting or charter trustees.

Section 7

The extent to which, in the opinion of the charging authority, and of each relevant precepting authority and relevant levying body, any difference between the amount mentioned in paragraph 4 and the amount mentioned in paragraph 6 for the authority or body is attributable to—

(a) inflation,

(b) differences in the grants received or expected to be received with respect to the year,

(c) changes in the quantity or quality of services provided by the authority or body, and

(d) differences in the income received or expected to be received by way of fees and other charges for its services with respect to the year.

Section 7

The circumstances in which the relevant charge or an amount last set is to be treated as set by reference to a levy for the purposes of paragraphs 2, 3, 5 and 6 above include the setting of the charge or amount by reference to an amount included in a precept, where the amount so included is attributable to a levy.

Section 8

The amount allowed by the charging authority and by each relevant precepting authority for levies or special levies in the making of the calculation under section 95(2) of the Act for the 1992 financial year or in calculating the amount of its precept (as the case may be).

Section 8

For the purposes of Part II above, references in this Schedule to the relevant charge are references to the amount last set under section 32, 34 or 35 of the Act for the area of the charging authority or (as the case may be) for the part of its area within which the hereditament (or one of the hereditaments) in relation to which the notice is issued is situated, or within which the major part of that hereditament (or one of them) is situated; and notwithstanding regulation 5 of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989, a rate demand notice for the 1992 financial year shall not be served before an amount has been set by the charging authority under section 32 of the Act for that year.

Section 9

The estimate of the charging authority and of each relevant precepting authority and relevant levying body of the amount of its reserves at the end of the 1992 financial year and the preceding year.

Section 10

The estimate of the charging authority and of each relevant precepting authority and relevant levying body of its capital expenditure to be incurred in the 1992 financial year.

Section 11

The estimate of the charging authority and of each relevant precepting authority and relevant levying body of the average number of staff employed or to be employed by it with respect to the 1992 financial year and the year preceding that year (expressed in the case of part-time staff in full-time equivalents), and a general explanation by the authority or body concerned of the reason for any difference between the two.

Section 12

Where an amount is being recovered under the notice concerned in respect of a penalty but the person to whom the notice is issued has not previously been informed of the ground on which the penalty is imposed, a statement of that ground.

Section 13

Where the notice concerned is given in respect of a personal community charge, a general indication as to the circumstances in which an entitlement to community charge benefit may arise and as to how it may be claimed and the manner in which it is given, together with information (including an address and telephone number) as to the officer of the charging authority to whom enquiries concerning its availability may be directed.

Section 14

Where the notice concerned is given in respect of a personal community charge, a general indication as to the circumstances in which an entitlement may arise for the liability in respect of the charge to be found in accordance with rules prescribed under section 13A(2) of the Act, and as to how the entitlement may be claimed, together with information (including an address and telephone number) as to the officer of the charging authority to whom enquiries concerning the matter may be directed.

Section 15

Where the notice concerned is given in respect of a standard community charge, a description of every class specified by the charging authority under section 40(3) of the Act with respect to the 1992 financial year and the multiplier applicable to each such class.