PART 1 General

Citation, commencement and application

1.–(1)� These Regulations may be cited as the Council Tax (Demand Notices) (England) Regulations 2009 and come into force on 30th December 2009.

(2)� These Regulations apply in relation to a notice which–

(a) relates to a year beginning on or after 1st April 2010, and

(b) is served by an English billing authority or such an authority´s authorised person.

(3)� The Council Tax and Non-Domestic Rating (Demand Notices) (England) Regulations 2003(2) have no effect in relation to a notice mentioned in paragraph (2).

Interpretation

2.–(1)� In these Regulations–

"the Act" means the Local Government Finance Act 1992;

"the 1999 Act" means the Greater London Authority Act 1999(3);

"the 2004 Act" means the Fire and Rescue Services Act 2004(4)

"the Administration Regulations" means the Council Tax (Administration and Enforcement) Regulations 1992(5);

"authorised person", in relation to a billing authority, means a person authorised in accordance with the Local Authorities (Contracting Out of Tax Billing, Collection and Enforcement Functions) Order 1996(6) to exercise functions on the authority´s behalf in relation to the administration of council tax;

"baseline document" means the document "Baseline year for authorities required to publish efficiency information on and with council tax demand notices" dated 2nd December 2009 which is published on the Department´s website(7) and of which a copy has been deposited at the Department´s principal office(8);

"budget requirement" means–

"constituent body" has the same meaning as in section 85(3) of the 1999 Act(9) (calculation of component and consolidated budgets);

"the Department" means the Department for Communities and Local Government;

"efficiency authority", in relation to a billing authority´s area and a year, means–

which has power to issue a precept to the billing authority for that year;

"efficiency document" means–

"fire and rescue authority" means–

"fire and rescue functions" means the functions specified or referred to in Part 2 of the 2004 Act (functions of fire and rescue authorities);

"GLA" means the Greater London Authority;

"Integrated Transport Authority" means–

"levying body" means–

"multi-function authority" means any efficiency authority which exercises fire and rescue functions but is not a fire and rescue authority;

"notice" means a council tax demand notice within the meaning of Part 5 of the Administration Regulations (billing);

"police authority" means a police authority established under section 3 of the Police Act 1996(14) (establishment of police authorities);

"preceding year", in relation to a notice, means the year before the relevant year;

"relevant local precepting authority" means a relevant precepting authority which is a local precepting authority;

"relevant precepting authority", in relation to a billing authority and a year, means a precepting authority which issues a precept to the billing authority for the year, but does not include–

"relevant year", in relation to a notice, means the year to which the demand for payment made by the notice relates.

(2)� In these Regulations–

(a) any reference to a precept includes a reference to a substitute precept,

(b) any reference to a levy includes a reference to a substitute levy,

(c) any reference to the council tax base for an authority´s area is a reference to the council tax base for that area as calculated in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 1992(15), and

(d) any reference to a year is a reference to a financial year.

Definition of "gross expenditure"

3.–(1)� Subject to paragraph (3), the gross expenditure of an authority for a year is the aggregate of the items which are–

(a) attributable to the services administered by the authority during the year, and

(b) charged to a revenue account for that year.

(2)� The items mentioned in sub-paragraph (1)–

(a) must be calculated using the estimates which were used to calculate–

(i) the budget requirement, or

(ii) the levy,

of the authority for the year; but

(b) must not include any–

(i) allowances for contingencies, or

(ii) contributions to financial reserves.

(3)� The gross expenditure of the GLA for a year is the aggregate of the amounts of gross expenditure calculated for each constituent body for that year.

(4)� In this regulation, "authority" includes a levying body and a constituent body.

Definition of "cumulative efficiency savings" and "cumulative estimated efficiency savings"

4.–(1)� Subject to paragraph (3) and regulation 5, an efficiency authority´s cumulative efficiency savings for a financial year are–

(a) if the year before the financial year is the baseline year, the authority´s aggregate savings for the financial year; or

(b) where paragraph (a) does not apply, the aggregate of–

(i) the authority´s aggregate savings for the financial year,

(ii) the authority´s aggregate savings for the year after the baseline year ("the post-baseline year"), and

(iii) the authority´s aggregate savings for any year which is before the year mentioned in sub-paragraph (i) and after the post-baseline year.

(2)� Subject to paragraph (3) and regulation 5, an efficiency authority´s estimated cumulative efficiency savings for a financial year are the authority´s cumulative efficiency savings for the year, but calculated using estimates prepared for the financial year by the authority.

(3)� If required by the efficiency document any amount calculated under paragraph (1) or paragraph (2) must be adjusted to take account of inflation.

(4)� For the purposes of paragraph (1)–

(a) the baseline year, in relation to an efficiency authority and a financial year, is the year identified as such in the baseline document; and

(b) an authority´s aggregate savings for a year are the aggregate of the authority´s efficiency savings in relation to the services administered by it during that year.

(5)� For the purposes of paragraph (4)(b), an authority´s efficiency savings in relation to a service administered by it during a year are the amount of any value for money or efficiency gains calculated for the service and the year in accordance with the efficiency document.

Local government restructuring: efficiency authorities and efficiency information

5.–(1)� This regulation applies to an efficiency authority in respect of a financial year if–

(a) the authority–

(i) is established by a relevant event at the beginning of the financial year, or

(ii) has been established by a relevant event which occurred before that year; and

(b) the baseline document does not identify the authority as an efficiency authority.

(2)� Subject to paragraph (4), the efficiency authority´s cumulative efficiency savings for a financial year are–

(a) if the financial year is any year before the establishment year, the aggregate of the cumulative efficiency savings of each predecessor authority to the extent that those savings are relevant to the area of the efficiency authority; or

(b) if the financial year is the establishment year or a year after that year, the aggregate of–

(i) the amount mentioned in sub-paragraph (a),

(ii) the authority´s aggregate savings for the financial year, and

(iii) the authority´s aggregate savings for any year which is before the year mentioned in sub-paragraph (ii) and after the pre-establishment year.

(3)� Subject to paragraph (4), the efficiency authority´s estimated cumulative efficiency savings for a financial year are the authority´s cumulative efficiency savings for the year, but calculated using estimates prepared for the financial year by (as the case may be)–

(a) the authority, or

(b) each predecessor authority.

(4)� If required by the efficiency document any amount calculated under paragraph (2) or paragraph (3) must be adjusted to take account of inflation.

(5)� In this regulation–

"establishment year" means the year in which the efficiency authority is established;

"predecessor authority" means an authority which ceases to exist in consequence of the relevant event which established the efficiency authority;

"pre-establishment year" means the year before the establishment year; and

"relevant event" means the coming into force of any of the following–

(6)� Paragraphs (4)(b) and (5) of regulation 4 apply for the purposes of paragraph (2) of this regulation as they apply for the purposes of paragraph (1) of that regulation.

PART 2 Content of demand notices and the supply of information

Content of demand notices

6.–(1)� Subject to regulation 11(3), a notice must contain the matters specified in Part 2 of Schedule 1.

(2)� But a notice which is served on a person–

(a) after the end of the relevant year, and

(b) at the same time as a notice relating to another year not then ended,

need not contain the matters specified in paragraph 26 of Schedule 1.

Information supplied with demand notices

7.–(1)� Subject to regulation 11(3), when a billing authority serves a notice on a person it must supply that person with the information specified in Part 2 of Schedule 2.

(2)� Paragraph (1) does not apply when a notice is served after the end of the relevant year.

Invalid notices

8.–(1)� If–

(a) as a consequence of a mistake a notice does not contain a matter specified in Schedule 1 ("the relevant matter"), but

(b) the amount required to be paid under the notice is demanded in accordance with Part 5 of the Administration Regulations (billing),

the requirement to pay that amount is valid.

(2)� Where paragraph (1)(a) applies, as soon as practicable after the mistake is discovered the billing authority must serve a statement of the relevant matter on the person on whom the notice was served.

Supply of information by precepting authorities

9.–(1)� When a relevant precepting authority issues a precept to a billing authority for a year–

(a) it must supply the information in paragraph (2) to the billing authority; and

(b) if it is a major precepting authority, it must also supply the information in paragraph (3).

(2)� The information mentioned in paragraph (1)(a) is–

(a) the authority´s gross expenditure for–

(i) the year, and

(ii) the year before that year;

(b) the authority´s budget requirement for–

(i) the year, and

(ii) the year before that year;

(c) the authority´s reasons for any difference between–

(i) the amounts mentioned in sub-paragraphs (a)(i) and (b)(i), and

(ii) the amounts mentioned in sub-paragraphs (a)(ii) and (b)(ii); and

(d) the authority´s opinion as mentioned in paragraph 7 of Schedule 2.

(3)� The information mentioned in paragraph (1)(b) is–

(a) the amount (if any) taken into account under section 43(2)(a) of the Act (calculation of budget requirement) for any levy, and

(b) the name of each levying body which has issued a levy to the authority for the year.

(4)� Paragraph (5) applies if a relevant local precepting authority issues a substitute precept to a billing authority.

(5)� Paragraph (1) does not apply to the precepting authority, but if the billing authority makes substitute calculations under section 37 of the Act (substitute calculations) the billing authority may notify the precepting authority that it must supply the information mentioned in paragraph (2) to the billing authority.

(6)� Where a relevant precepting authority–

(a) issues a substitute precept to a billing authority, or

(b) is notified by a billing authority under paragraph (5),

the authority is not required to supply to the billing authority any information which it has already supplied to that authority.

Supply of information by levying bodies

10.–(1)� When a levying body issues a levy for a year it must supply the information in paragraph (2) to each relevant billing authority.

(2)� The information is–

(a) the body´s gross expenditure for–

(i) the year, and

(ii) the year before that year;

(b) the amount of its levy–

(i) for the year, and

(ii) for the year before that year if a levy was issued; and

(c) the body´s reasons for any difference between–

(i) the amounts mentioned in sub-paragraphs (a)(i) and (b)(i), and

(ii) the amounts mentioned in sub-paragraph (a)(ii) and (b)(ii).

(3)� Where a levying body issues a substitute levy, the body is not required to supply to a billing authority any information which it has already supplied to that authority.

(4)� In this regulation, "relevant billing authority", in relation to a levying body and a year, means–

(a) if the body issues a levy to a billing authority for the year, that authority; and

(b) if the body issues a levy to a major precepting authority for the year, any billing authority to which the precepting authority has power to issue a precept for that year.

Supply of information by the Secretary of State

11.–(1)� No later than 31st December before each financial year, the Secretary of State must supply to each billing authority relevant information in relation to that year.

(2)� If the Secretary of State fails to comply with paragraph (1) as regards an authority, a year and a matter–

(a) regulation 6(1), to the extent that it relates to paragraph 23 of Schedule 1, and

(b) regulation 7(1), to the extent that it relates to paragraph 8 of Schedule 2,

do not apply in relation to the authority, the year and the matter.

(3)� In this regulation "relevant information", in a relation to a billing authority and a year, means each of the matters in–

(a) paragraph 23 of Schedule 1, and

(b) paragraph 8 of Schedule 2,

insofar as those matters concern an authority other than the billing authority.

Regulation 6(1)

SCHEDULE 1 Matters to be contained in demand notices

PART 1 Interpretation

Interpretation

1.� � In this Schedule–

"applicable band" means the relevant valuation band which applies to the dwelling for the relevant year;

"dwelling" means the dwelling to which the notice relates;

"following year" means the year after the relevant year;

"relevant amounts" means the amounts and precepts mentioned in paragraphs 7 to 9;

"relevant function" means any function exercised in relation to the area in which the dwelling is situated by–

but does not include a function which is exercised by an authority by reason only of arrangements made between that authority and another authority; and

"relevant valuation band", in relation to a dwelling, means the valuation band shown as applicable to the dwelling in the billing authority´s valuation list compiled under section 22 (compilation and maintenance of lists) or 22B(17) (compilation and maintenance of new lists) of the Act.

(2)� Unless otherwise stated, a matter specified in this Schedule is specified for–

(a) the relevant year; and

(b) where relevant to the matter–

(i) the applicable band, and

(ii) the category of dwellings which includes the dwelling.

PART 2 Matters to be contained in demand notices

General matters

2.� � The name (if any) of the person to whom the notice is issued.

3.� � The date the notice is issued.

4.� � The period to which the notice relates.

5.� � The address of the dwelling.

6.� � The applicable band.

Amount of council tax

7.� � The amount set by the billing authority under section 30 of the Act(18) (amounts for different categories of dwellings).

8.� � Any precept issued to the billing authority by a major precepting authority under section 40(2)(a) of the Act(19) (issue of precepts by major precepting authorities).

9.� � The amount calculated by the billing authority under section 36 of the Act (calculation of tax for different valuation bands), or where paragraph 10 applies the following matters instead–

(a) the name of the local precepting authority;

(b) such amount of–

(i) the precept, or

(ii) the anticipated precept,

mentioned in paragraph 10 as is payable in respect of a dwelling in the applicable band and in the category of dwellings which includes the dwelling; and

(c) the amount calculated under section 36 of the Act less the amount mentioned in sub-paragraph (b).

10.� � This paragraph applies where–

(a) a local precepting authority has issued a precept to the billing authority under section 41 of the Act (issue of precepts by local precepting authorities), or

(b) the billing authority anticipates such a precept.

Comparisons with the preceding year

11.� � Subject to paragraph 12, the percentage change in each of the relevant amounts from the preceding year to the relevant year expressed to one decimal place.

12.� � Paragraph 13 applies instead of paragraph 11 where the authority exercising a relevant function as at 1st April in the relevant year is different from the authority that exercised that function as at 1st April in the preceding year.

13.� � Where this paragraph applies, the matters are–

(a) an explanation of why a different authority is exercising the function as at 1st April in the relevant year;

(b) the relevant amounts which were included in notices issued (whether by the billing authority or another billing authority) for–

(i) the preceding year, and

(ii) the relevant valuation band and the category of dwellings which at that time included the dwelling; and

(c) the percentage change in–

(i) the amount set under section 30 of the Act for the preceding year, and the relevant valuation band and the category of dwellings which at that time included the dwelling; and

(ii) the amount set under section 30 of the Act for the relevant year, the applicable band and the category of dwellings which include the dwelling;

expressed to one decimal place.

14.� � The matters in paragraph 13(a) and (b) may be included in the notice as a footnote to the matter in paragraph 13(c).

15.� � Where the relevant valuation band which applied to the dwelling for the preceding year is different from the applicable band, paragraphs 11 and 13(b) and (c) apply as if the applicable band applied for that year.

Discounts and reductions

16.� � The days (if any) when the amount payable under the notice was calculated by reference to–

(a) section 11 of the Act(20) (discounts),

(b) the Council Tax (Reductions for Disabilities) Regulations 1992(21),

(c) the Council Tax Benefit Regulations 2006(22),

(d) the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006(23),

(e) a determination made under section 11A of the Act(24) (discounts: special provision for England), or

(f) a reduction made under section 13A of the Act(25) (billing authority´s power to reduce amount of tax payable).

17.� � Where paragraph 16(a), (e) or (f) applies–

(a) the reasons for the discount or reduction and its amount;

(b) a statement that if at any time before the end of the following year the person to whom the notice is issued has reason to believe that the amount of council tax payable–

(i) is not subject to any discount or reduction, or

(ii) is subject to a discount or reduction of a smaller amount,

he must notify the billing authority of his belief within a period of 21 days beginning on the day on which he first had that belief; and

(c) a statement that if the person fails without reasonable excuse to comply with paragraph (b) the authority may impose on him the penalty which is specified in paragraph 1(2) of Schedule 3 to the Act.

18.� � Where paragraph 16(b), (c) or (d) applies, the reduction which is applicable.

Amount to be paid under the notice

19.� � Any amount credited against the amount of council tax which would otherwise be payable.

20.� � Any penalty or overpayment of council tax benefit that is being recovered under the notice.

21.� � Where–

(a) the notice requires the payment of an amount of council tax for any year before the relevant year, and

(b) the person to whom the notice is issued has not previously been issued with a notice requiring the payment of that amount,

a statement of the amount.

22.� � The amount required to be paid under the notice, the instalments or other payments required to be paid and the manner in which those payments may be made.

Efficiency information

23.–(1)� In relation to each efficiency authority which is not a multi-function authority, the estimated cumulative efficiency savings for the preceding year.

(2)� The following matters in relation to each efficiency authority (if any) which is a multi-function authority–

(a) in relation to the authority´s fire and rescue functions, the estimated cumulative efficiency savings for the preceding year; and

(b) in relation to the authority´s functions other than its fire and rescue functions, the estimated cumulative efficiency savings for the preceding year

(3)� The aggregate of the amounts calculated by applying the following formula, that aggregate rounded to the nearest pound–

where–

A is–

for each efficiency authority; and

B is the council tax base for the efficiency authority´s area for the preceding year.

24.� � The information which must be included in relation to each of the matters in paragraph 23 is information which is–

(a) supplied to the authority by the Secretary of State in accordance with regulation 11, and

(b) identified as information which is relevant to the matter.

Contact details

25.� � A statement of the address and telephone number to which any enquiries may be directed.

Explanatory notes

26.� � Explanatory notes, which must include–

(a) a general indication of the principles relevant to the compilation of the billing authority´s valuation list;

(b) a general indication of the circumstances in which–

(i) a dwelling may be an exempt dwelling for the purposes of Part 1 of the Act (council tax: England and Wales),

(ii) an amount may be subject to a discount under section 11 (discounts) or under a determination made under section 11A (discounts: special provision for England) of the Act,

(iii) a person may be an eligible person for the purposes of the Council Tax (Reductions for Disabilities) Regulations 1992,

(iv) a person may be entitled to council tax benefit,

(v) a person may be eligible for a reduction under section 13A of the Act (billing authority´s power to reduce amount of tax payable);

(c) a statement of the procedures to be followed–

(i) by a person who wishes to dispute any matter shown in the billing authority´s valuation list in relation to the dwelling, or

(ii) by a person aggrieved as mentioned in section 16(1) of the Act (appeals: general).

Regulation 7(1)

SCHEDULE 2 Information to be supplied with demand notices

PART 1 Interpretation

Interpretation

1.–(1)� In this Schedule "relevant levying body", in relation to a billing authority, means a levying body which has issued a levy for the relevant year–

(a) to the billing authority, or

(b) to a relevant precepting authority.

(2)� In this Schedule, any reference to a "relevant precepting authority" does not include a reference to a parish council unless any part of the dwelling to which the notice relates is within the area of the parish council.

Definition of "relevant benchmark"

2.–(1)� In this Schedule, "relevant benchmark" means–

(a) in relation to an efficiency authority which is not a multi-function authority, the amount calculated by applying the formula in sub-paragraph (2), that amount rounded to the nearest pound; and

(b) in relation to an efficiency authority which is a multi-function authority, the two amounts calculated by applying the formula in sub-paragraph (3), each amount rounded to the nearest pound.

(2)� The formula is–

where–

C is–

D is–

(3)� The formula is–

where–

E is–

F is–

(4)� For the purposes of sub-paragraphs (2) and (3), the fire and rescue category is a category of authority which consists of–

(a) fire and rescue authorities, and

(b) multi-function authorities.

(5)� Subject to sub-paragraph (7), any reference in sub-paragraphs (2) and (3) to a category of authority which includes an efficiency authority is a reference to the category of authority in sub-paragraph (6) which includes that authority.

(6)� The categories are–

(a) non-metropolitan district councils in relation to any area for which there is a county council;

(b) county councils in relation to any area for which there is one or more district councils;

(c) non-metropolitan district councils in relation to any area for which there is not a county council and county councils in relation to any area for which there are no district councils;

(d) metropolitan district councils;

(e) London borough councils; and

(f) police authorities.

(7)� For the purposes of this paragraph, it must be assumed–

(a) that the category in sub-paragraph (6)(c) includes the Council of the Isles of Scilly; and

(b) that the category in sub-paragraph (6)(e) includes the Common Council of the City of London.

PART 2 Information to be supplied with demand notices

Amounts of gross expenditure

3.� � The gross expenditure of–

(a) the billing authority,

(b) each relevant precepting authority, and

(c) each relevant levying body,

for the relevant year and the preceding year.

Amounts of budget requirement

4.� � The budget requirement of–

(a) the billing authority, and

(b) each relevant precepting authority,

for the relevant year and the preceding year.

Statements concerning gross expenditure and budget requirement

5.� � The billing authority´s reasons for any difference between the amounts stated in accordance with–

(a) paragraphs 3(a) and 4(a), or

(b) paragraphs 3(b) and 4(b),

for the same year.

6.� � The billing authority´s opinion of the effect that–

(a) its budget requirement, and

(b) its gross expenditure,

has on the level of council tax set for the relevant year.

7.� � Each relevant precepting authority´s opinion of the effect that–

(a) its budget requirement, and

(b) its gross expenditure,

has on the level of its precept issued for the relevant year.

Efficiency information

8.–(1)� The following matters in relation to each efficiency authority which is not a multi-function authority–

(a) the estimated cumulative efficiency savings for the preceding year;

(b) the cumulative efficiency savings for the year before that year;

(c) the amount calculated by applying the formula in sub-paragraph (2), that amount rounded to the nearest pound; and

(d) the relevant benchmark.

(2)� The formula is–

where–

G is the matter mentioned in sub-paragraph (1)(a); and

H is the council tax base for the authority´s area for the preceding year.

(3)� The following matters in relation to each efficiency authority (if any) which is a multi-function authority–

(a) in relation to the authority´s fire and rescue functions–

(i) the estimated cumulative efficiency savings for the preceding year, and

(ii) the cumulative efficiency savings for the year before that year;

(b) in relation to the authority´s functions other than its fire and rescue functions–

(i) the estimated cumulative efficiency savings for the preceding year, and

(ii) the cumulative efficiency savings for the year before that year;

(c) the two amounts calculated by applying the formula in sub-paragraph (4), each amount rounded to the nearest pound; and

(d) the relevant benchmark.

(4)� The formula is–

where–

I is–

J is the council tax base for the efficiency authority´s area for the preceding year.

9.� � The information which must be supplied in relation to each of the matters in paragraph 8 is information which is–

(a) supplied to the authority by the Secretary of State in accordance with regulation 11, and

(b) identified as information which is relevant to the matter.

Penalties

10.� � Where–

(a) an amount is being recovered under the notice in respect of a penalty, but

(b) the person on whom the notice is served has not previously been informed of the ground on which the penalty is imposed,

a statement of that ground.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision about matters to be contained in, and information to be supplied with, council tax demand notices ("notices"). They apply in relation to a notice which relates to a financial year beginning on or after 1st April 2010 and which is served by an English billing authority.

Regulations 1 to 5 define certain terms which are used in the Regulations.

Regulation 6 and Schedule 1 specify the matters which must be contained in a notice. These include the dwelling to which the notice relates, the valuation band applicable to the dwelling and the amount of council tax payable in respect of the dwelling. A notice must also include comparisons with the preceding year and efficiency information concerning the billing authority and certain major precepting authorities.

Regulation 7 and Schedule 2 specify information which must be supplied with a notice when it is served. This information includes the gross expenditure and budget requirements of the billing authority and certain precepting authorities for the relevant year and the preceding year. Further efficiency information must also be supplied as well as a statement of the ground on which any penalty has been imposed.

Regulation 8 applies if as a consequence of a mistake a notice does not contain a matter specified in Schedule 1, but the amount required to be paid under the notice has been appropriately demanded. In these circumstances the requirement to pay the amount is valid, but the billing authority must rectify the mistake as soon as practicable by serving a statement on the person on whom the notice was served.

Regulations 9 and 10 require precepting authorities and levying bodies to supply information to billing authorities when issuing a precept or a levy. The information is necessary in order that billing authorities are able to meet their obligations under the Regulations.

In relation to each financial year, regulation 11 requires the Secretary of State to supply a billing authority with information no later than 31st December before the financial year. Again the information is necessary in order that the billing authority is able to meet its obligations under the Regulations. The information which must be supplied concerns the efficiency information which the billing authority will be required to include in, and supply with, its notices for the financial year. If the information is not supplied by the Secretary of State the relevant requirements of Schedule 1 and 2 do not apply to the billing authority.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.