PART 4 continued CHAPTER 2 continued
Contents page 1-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-139 140-149 150-159 Last page
Localism BillPage 50
(a)
the income which it estimates will accrue to it in the year and
which it will credit to a revenue account, other than a BID
Revenue Account, for the year in accordance with proper
practices,
(b)
5any amounts which it estimates will be transferred in the year
from its collection fund to its general fund in accordance with
section 97(3) of the 1988 Act,
(c)
any amounts which it estimates will be transferred from its
collection fund to its general fund pursuant to a direction under
10section 98(4) of the 1988 Act and will be credited to a revenue
account for the year, and
(d)
the amount of the financial reserves which the authority
estimates it will use in order to provide for the items mentioned
in subsection (2)(a), (b) and (e) above.
(4)
15If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.
(5)
In making the calculation under subsection (2) above the authority
20must ignore payments which must be met from its collection fund
under section 90(2) of the 1988 Act or from a trust fund.
(6)
In estimating under subsection (2)(a) above the authority must take into
account—
(a)
the amount of any expenditure which it estimates it will incur
25in the year in making any repayments of grants or other sums
paid to it by the Secretary of State, and
(b)
the amount of any precept issued to it for the year by a local
precepting authority and the amount of any levy or special levy
issued to it for the year.
(7)
30But (except as provided by regulations under section 41 above or
regulations under section 74 or 75 of the 1988 Act) the authority must
not anticipate a precept, levy or special levy not issued.
(8)
For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—
(a)
35that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available—
(i)
40sums which will be payable for the year into its general
fund and in respect of which amounts will be credited to
a revenue account for the year in accordance with
proper practices, and
(ii)
sums which will be transferred as regards the year from
45its collection fund to its general fund, and
(b)
that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
charged to a revenue account for that or any other year in
50accordance with proper practices.
Localism BillPage 51
(9)
In making the calculation under subsection (3) above the authority
must ignore—
(a)
payments which must be made into its collection fund under
section 90(1) of the 1988 Act or to a trust fund, and
(b)
5subject to paragraphs (b) and (c) of subsection (3) above, sums
which have been or are to be transferred from its collection fund
to its general fund.
(10)
The Secretary of State may by regulations do either or both of the
following—
(a)
10alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);
(b)
alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
15subsections (5) to (9) above, or any of them, or by adding other
provisions, or by a combination of those methods).
(11)
Calculations to be made in relation to a particular financial year under
this section must be made before 11th March in the preceding financial
year, but they are not invalid merely because they are made on or after
20that date.
(12)
This section is subject to section 52ZS below (which requires a direction
to a billing authority that the referendum provisions in Chapter 4ZA
are not to apply to the authority for a financial year to state the amount
of the authority’s council tax requirement for the year).
(13)
25In this section “BID Revenue Account” has the same meaning as in Part
4 of the Local Government Act 2003.
31B Calculation of basic amount of tax by authorities in England
(1)
In relation to each financial year a billing authority in England must
calculate the basic amount of its council tax by applying the formula—
30

where—
-
R is the amount calculated (or last calculated) by the authority
under section 31A(4) above as its council tax requirement for
the year; -
35T is the amount which is calculated by the authority as its council
tax base for the year and, where one or more major precepting
authorities have power to issue precepts to it, is notified by it to
those authorities (“the major precepting authorities concerned”)
within the prescribed period.
(2)
40Where the aggregate calculated (or last calculated) by the authority for
the year under subsection (2) of section 31A above does not exceed that
so calculated under subsection (3) of that section, the amount for item
R in subsection (1) above is to be nil.
(3)
The Secretary of State must make regulations containing rules for
45making for any year the calculation required by item T in subsection (1)
above; and a billing authority must make the calculation for any year in
Localism BillPage 52
accordance with the rules for the time being effective (as regards the
year) under the regulations.
(4)
Regulations prescribing a period for the purposes of item T in
subsection (1) above may provide that, in any case where a billing
5authority fails to notify its calculation to the major precepting
authorities concerned within that period, that item must be determined
in the prescribed manner by such authority or authorities as may be
prescribed.
(5)
The Secretary of State may by regulations do either or both of the
10following—
(a)
alter the constituents of any calculation to be made under
subsection (1) above (whether by adding, deleting or amending
items);
(b)
provide for rules governing the making of any calculation
15under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”
63 Council tax calculations by major precepting authorities in England
Before section 43 of the Local Government Finance Act 1992 insert—
“42A 20Calculation of council tax requirement by authorities in England
(1)
In relation to each financial year a major precepting authority in
England must make the calculations required by this section.
(2) The authority must calculate the aggregate of—
(a)
the expenditure the authority estimates it will incur in the year
25in performing its functions and will charge to a revenue account
for the year in accordance with proper practices,
(b)
such allowance as the authority estimates will be appropriate
for contingencies in relation to amounts to be charged or
credited to a revenue account for a year in accordance with
30proper practices,
(c)
the financial reserves which the authority estimates it will be
appropriate to raise in the year for meeting its estimated future
expenditure, and
(d)
such financial reserves as are sufficient to meet so much of the
35amount estimated by the authority to be a revenue account
deficit for any earlier financial year as has not already been
provided for.
(3) The authority must calculate the aggregate of—
(a)
the income which it estimates will accrue to it in the year and
40which it will credit to a revenue account for the year in
accordance with proper practices, other than income which it
estimates will accrue to it in respect of any precept issued by it,
and
(b)
the amount of the financial reserves which the authority
45estimates that it will use in order to provide for the items
mentioned in paragraphs (a) and (b) of subsection (2) above.
Localism BillPage 53
(4)
If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
council tax requirement for the year.
(5)
5In making the calculation under subsection (2) above the authority
must ignore payments which must be met from a trust fund.
(6)
In estimating under subsection (2)(a) above an authority must take into
account—
(a)
the amount of any expenditure which it estimates it will incur
10in the year in making any repayments of grants or other sums
paid to it by the Secretary of State, and
(b)
in the case of an authority which is a county council, the amount
of any levy issued to it for the year.
(7)
But (except as provided by regulations under section 74 of the 1988 Act)
15the authority must not anticipate a levy not issued.
(8)
For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—
(a)
that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
20account for the year in accordance with proper practices and
will have to defray in the year before the following sums are
sufficiently available—
(i) sums which will be payable to it for the year, and
(ii)
sums in respect of which amounts will be credited to a
25revenue account for the year in accordance with proper
practices, and
(b)
that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
30charged to a revenue account for that or any other year in
accordance with proper practices.
(9)
In making the calculation under subsection (3) above the authority
must ignore payments which must be made into a trust fund.
(10)
In estimating under subsection (3)(a) above the authority must take into
35account the sums which the authority estimates will be paid to it in the
year by billing authorities in accordance with regulations under section
99(3) of the 1988 Act.
(11)
The Secretary of State may by regulations do one or both of the
following—
(a)
40alter the constituents of any calculation to be made under
subsection (2) or (3) above (whether by adding, deleting or
amending items);
(b)
alter the rules governing the making of any calculation under
subsection (2) or (3) above (whether by deleting or amending
45subsections (5) to (10) above, or any of them, or by adding other
provisions, or by a combination of those methods).
(12)
This section is subject to section 52ZT below (which requires a direction
to a major precepting authority that the referendum provisions in
Localism BillPage 54
Chapter 4ZA are not to apply to the authority for a financial year to
state the amount of the authority’s council tax requirement for the
year).
42B Calculation of basic amount of tax by authorities in England
(1)
5In relation to each financial year a major precepting authority in
England must calculate the basic amount of its council tax by applying
the formula—

where—
-
10R is the amount calculated (or last calculated) by the authority
under section 42A(4) above as its council tax requirement for
the year; -
T is the aggregate of the amounts which are calculated by the
billing authorities to which the authority issues precepts (“the
15billing authorities concerned”) as their council tax bases for the
year for their areas, or (as the case may require) for the parts of
their areas falling within the authority’s area, and are notified
by them to the authority within the prescribed period.
(2)
Where the aggregate calculated (or last calculated) by the authority for
20the year under subsection (2) of section 42A above does not exceed that
so calculated under subsection (3) of that section, the amount for item
R in subsection (1) above is to be nil.
(3)
The Secretary of State must make regulations containing rules for
making for any year the calculation required by item T in subsection (1)
25above; and the billing authorities concerned must make the calculations
for any year in accordance with the rules for the time being effective (as
regards the year) under the regulations.
(4)
Regulations prescribing a period for the purposes of item T in
subsection (1) above may provide that, in any case where a billing
30authority fails to notify its calculation to the precepting authority
concerned within that period, that item must be determined in the
prescribed manner by such authority or authorities as may be
prescribed.
(5)
The Secretary of State may by regulations do either or both of the
35following—
(a)
alter the constituents of any calculation to be made under
subsection (1) above (whether by adding, deleting or amending
items);
(b)
provide for rules governing the making of any calculation
40under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”
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64 Calculation of council tax requirement by the Greater London Authority
(1)
Section 85 of the Greater London Authority Act 1999 (calculation of component
and consolidated budget requirements) is amended as follows.
(2) In the section heading for “budget” substitute “council tax”.
(3) 5In subsection (1) for “43” substitute “42A”.
(4) In subsection (4)—
(a)
in paragraph (a) for the words from “, other than” to “the 1988 Act”
substitute “in accordance with proper practices”, and
(b) in paragraph (b)—
(i)
10for “expenditure to be charged” substitute “amounts to be
charged or credited”, and
(ii) after “for the year” insert “in accordance with proper practices”.
(5) In subsection (5) for paragraph (a) substitute—
“(a)
the income which the Authority estimates will accrue to or for
15the body in the year and which will be credited to a revenue
account for the year in accordance with proper practices, other
than income which the Authority estimates will accrue in
respect of any precept issued by it;”.
(6) In subsection (6)(b) for “budget” substitute “council tax”.
(7) 20In subsection (7) for “budget” substitute “council tax”.
(8) In subsection (8) for “budget” in both places substitute “council tax”.
(9) Omit subsection (9).
(10)
Section 86 of that Act (provisions supplemental to section 85) is amended as
follows.
(11) 25After subsection (1) insert—
“(1A)
In making any calculation under subsection (4) of section 85 above the
Authority shall ignore payments which must be met from a trust fund.
(1B) In estimating under subsection (4)(a) of section 85 above—
(a)
in the case of any functional body, the Authority shall take into
30account the amount of any expenditure which it estimates will
be incurred in the year in respect of the body under section 43(1)
of the Local Government Act 2003 or in paying any BID levy for
which the body is liable, and
(b)
in the case of the Mayor, the Authority shall take into account
35the amount of any expenditure which it estimates will be
incurred in the year in respect of the Authority under section
43(1) of the Local Government Act 2003 or in paying any BID
levy for which the Authority is liable.”
(12) After subsection (2A) insert—
“(2B)
40In estimating under subsection (4)(a) of section 85 above in the case of
the Mayor, the Authority shall take into account the amount of any
expenditure which the Authority estimates it will incur in the year in
pursuance of regulations under section 99(3) of the Local Government
Finance Act 1988.”
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(13) After subsection (4) insert—
“(4A)
In making any calculation under subsection (5) of section 85 above, the
Authority must ignore payments which must be made into a trust fund.
(4B)
In estimating under subsection (5)(a) of section 85 above in the case of
5the Mayor, the Authority shall take into account—
(a)
the amounts which the Authority estimates will be paid to it in
the year by billing authorities in accordance with regulations
under section 99(3) of the Local Government Finance Act 1988,
and
(b)
10the amount of any expenditure which it estimates will be
incurred in the year by the Authority in making any
repayments of grants or other sums paid to the Authority by the
Secretary of State.
(4C)
In estimating under subsection (5)(a) of section 85 above in the case of
15a functional body, the Authority shall take into account the amount of
any expenditure which it estimates will be incurred in the year in
making by or in respect of the body any repayments of grants or other
sums paid to or for the body by the Secretary of State.
(4D)
In estimating under subsection (5)(a) of section 85 above in the case of
20the Mayor’s Office for Policing and Crime, the Authority must use such
amounts as may be prescribed by the Secretary of State as the sums that
are payable to the Mayor’s Office for Policing and Crime in respect of
the following items—
(a) redistributed non-domestic rates,
(b) 25revenue support grant,
(c) general GLA grant, and
(d) additional grant.
(4E)
In subsection (4D) above, “prescribed” means specified in, or
determined in accordance with, either—
(a) 30the appropriate report or determination, or
(b) regulations made by the Secretary of State,
as the Secretary of State may determine in the case of any particular
item and any particular financial year or years.
(4F)
In subsection (4E) above, “the appropriate report or determination”
35means—
(a)
in the case of an item specified in paragraph (a) or (b) of
subsection (4D) above, the local government finance report for
the financial year in question,
(b)
in the case of the item specified in paragraph (c) of that
40subsection, the determination under section 100 below for the
financial year in question, and
(c)
in the case of the item specified in paragraph (d) of that
subsection, the report under section 85 of the Local Government
Finance Act 1988 relating to that item.”
(14) 45In subsection (5)(b) for “(4)” substitute “(4F)”.
(15) Omit subsection (6).
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65 Calculation of basic amount of tax by the Greater London Authority
(1)
Section 88 of the Greater London Authority Act 1999 (calculation of basic
amount of tax) is amended as follows.
(2) In subsection (1) for “44” substitute “42B”.
(3) 5For subsection (2) substitute—
“(2)
In relation to each financial year the Authority shall calculate the basic
amount of its council tax by applying the formula—

where—
-
10R is the amount calculated (or last calculated) by the Authority
under section 85(8) above as its consolidated council tax
requirement for the year; -
A is the amount of the special item;
-
T is the aggregate of the amounts which are calculated by the
15billing authorities to which the Authority issues precepts (“the
billing authorities concerned”) as their council tax bases for the
year for their areas and are notified by them to the Authority
within the prescribed period.”
(4) Omit subsections (3) to (5).
(5) 20In subsection (8) for paragraph (b) substitute—
“(b)
provide for rules governing the making of any calculation
under that subsection (whether by adding provisions to, or
deleting or amending provisions of, this section, or by a
combination of those methods).”
(6)
25Section 89 of that Act (additional calculations: special item for part of Greater
London) is amended as follows.
(7) For subsection (4) substitute—
“(4)
For dwellings in any part of Greater London to which the special item
relates, the amount in respect of the special item is given by the
30formula—

where—
-
S2 is the amount of the special item;
-
TP2 is the aggregate of the amounts which are calculated by the
35billing authorities to which the Authority has power to issue
precepts as respects the special item (“the billing authorities
concerned”) as their council tax bases for the year for their areasLocalism BillPage 58
and are notified by them to the Authority within the prescribed
period.”
(8) Omit subsections (5) and (6).
(9) In subsection (9) for paragraph (b) substitute—
“(b)
provide for rules governing the making of any calculation
5under or by virtue of that subsection (whether by adding
provisions to, or deleting or amending provisions of, this
section, or by a combination of those methods).”
66 Council tax calculation by local precepting authorities in England
Before section 50 of the Local Government Finance Act 1992 insert—
“49A 10Calculation of council tax requirement by authorities in England
(1)
In relation to each financial year a local precepting authority in England
must make the calculations required by this section.
(2) The authority must calculate the aggregate of—
(a)
the expenditure the authority estimates it will incur in the year
15in performing its functions and will charge to a revenue account
for the year in accordance with proper practices,
(b)
such allowance as the authority estimates will be appropriate
for contingencies in relation to amounts to be charged or
credited to a revenue account for the year in accordance with
20proper practices,
(c)
the financial reserves which the authority estimates it will be
appropriate to raise in the year for meeting its estimated future
expenditure, and
(d)
such financial reserves as are sufficient to meet so much of the
25amount estimated by the authority to be a revenue account
deficit for any earlier financial year as has not already been
provided for.
(3) The authority must calculate the aggregate of—
(a)
the income which it estimates will accrue to it in the year and
30which it will credit to a revenue account for the year in
accordance with proper practices, other than income which it
estimates will accrue to it in respect of any precept issued by it,
and
(b)
the amount of the financial reserves which the authority
35estimates that it will use in order to provide for the items
mentioned in paragraphs (a) and (b) of subsection (2) above.
(4)
If the aggregate calculated under subsection (2) above exceeds that
calculated under subsection (3) above, the authority must calculate the
amount equal to the difference; and the amount so calculated is to be its
40council tax requirement for the year.
(5)
For the purposes of subsection (2)(c) above an authority’s estimated
future expenditure is—
(a)
that which the authority estimates it will incur in the financial
year following the year in question, will charge to a revenue
45account for the year in accordance with proper practices and
Localism BillPage 59
will have to defray in the year before the following sums are
sufficiently available, namely, sums—
(i) which will be payable to it for the year, and
(ii)
in respect of which amounts will be credited to a
5revenue account for the year in accordance with proper
practices, and
(b)
that which the authority estimates it will incur in the financial
year referred to in paragraph (a) above or any subsequent
financial year in performing its functions and which will be
10charged to a revenue account for that or any other year in
accordance with proper practices.
(6)
This section is subject to section 52ZV below (which requires a direction
to a local precepting authority that the referendum provisions in
Chapter 4ZA are not to apply to the authority for a financial year to
15state the amount of the authority’s council tax requirement for the
year).
49B Substitute calculations
(1)
A local precepting authority which has made calculations in
accordance with section 49A above in relation to a financial year
20(originally or by way of substitute) may make calculations in
substitution in relation to the year in accordance with that section.
(2)
None of the substitute calculations are to have any effect if the amount
calculated under section 49A(4) above would exceed that so calculated
in the previous calculations.
(3)
25Subsection (2) above does not apply if the previous calculation under
subsection (4) of section 49A above has been quashed because of a
failure to comply with that section in making the calculation.”
67 Council tax: minor and consequential amendments
Schedule 7 (council tax: minor and consequential amendments) has effect.
68 30Council tax revaluations in Wales
(1) The Local Government Finance Act 1992 is amended as follows.
(2)
In section 22B(3) (new Welsh valuation lists to be prepared on earlier of tenth
anniversary of compilation of previous list and 1 April in such year as may be
specified by the Welsh Ministers) for the words from “the earlier” to the end
35substitute “1 April in each year specified by order made by the Welsh
Ministers.”
(3)
In section 22B (compilation and maintenance of new valuation lists) after
subsection (11) insert—
“(12)
No order under subsection (3) may be made unless a draft of the
40statutory instrument containing it has been laid before, and approved
by a resolution of, the National Assembly for Wales.”
(4)
In section 113(1) and (2) (orders and regulations may make differential and
incidental etc provision) for “National Assembly for Wales” substitute “Welsh
Ministers”.