(6) This section does not affect the operation of Schedule 2 (administration
of council tax).

(7) In this section “council tax purposes” means purposes relating to a
person’s liability to pay council tax.

14B 5Regulations about offences

(1) The appropriate authority may by regulations provide for the creation
of offences that may be committed by a person in prescribed
circumstances—

(a) by intentionally delaying or obstructing a person in the exercise
10of a power conferred by regulations under section 14A(1);

(b) by refusing or failing to comply with any requirement under
regulations under section 14A(1)(b) or with the requirements of
any arrangements entered into in accordance with such
regulations;

(c) 15by refusing or failing, when required to do so by or under this
Act or by or under regulations made under this Act, to provide
any information or document in connection with a person’s
liability to pay council tax;

(d) by making a false statement or representation in connection
20with such liability;

(e) by providing, or causing or allowing to be provided, in
connection with such liability, a document or information
which is false;

(f) by failing to notify, or causing or allowing a person to fail to
25notify, a matter that is relevant to such liability (including in
particular any matter that is required to be notified by or under
this Act or by or under regulations made under this Act).

(2) Regulations under subsection (1)(a), (b) or (c)—

(a) must provide for an offence under the regulations to be triable
30only summarily;

(b) may not provide for such an offence to be punishable with a fine
exceeding level 3 on the standard scale.

(3) Regulations under subsection (1)(a), (b) or (c)—

(a) may provide, in a case where a person is convicted of an offence
35under the regulations and the act or omission constituting the
offence continues after the conviction, for the person to be guilty
of a further offence and liable on summary conviction to a daily
fine;

(b) may not provide for the daily fine to exceed £40.

(4) 40Regulations under subsection (1)(d), (e) or (f) that create an offence that
may only be committed by a person acting dishonestly—

(a) must provide for the offence to be triable summarily or on
indictment;

(b) may not provide for the offence to be punishable on summary
45conviction with imprisonment for a term exceeding 12 months
or with a fine exceeding the statutory maximum;

(c) may not provide for the offence to be punishable on conviction
on indictment with imprisonment for a term exceeding 7 years

(and may provide for the offence to be punishable on conviction
on indictment with a fine).

(5) Regulations under this section which create an offence within
subsection (4) that may be committed before the date that section 154(1)
5of the Criminal Justice Act 2003 comes into force may not provide for
such an offence committed before that date to be punishable on
summary conviction with imprisonment for a term exceeding 6
months.

(6) Regulations under subsection (1)(d), (e) or (f) that create an offence that
10may be committed by a person acting otherwise than dishonestly—

(a) must provide for the offence to be triable only summarily;

(b) may not provide for the offence to be punishable with
imprisonment for a term exceeding 51 weeks or with a fine
exceeding level 5 on the standard scale.

(7) 15Regulations under this section which create an offence within
subsection (6) that may be committed before the date that section 281(5)
of the Criminal Justice Act 2003 comes into force may not provide for
such an offence committed before that date to be punishable with
imprisonment for a term exceeding 3 months.

(8) 20The appropriate authority may by regulations make provision—

(a) about defences to an offence under regulations under this
section;

(b) about the commission by a body corporate of such an offence;

(c) about the conduct of proceedings for such an offence;

(d) 25about the time limits for bringing such proceedings;

(e) about the determination of issues arising in such proceedings;

(f) about other matters of procedure and evidence in relation to
such offences.

(9) The provision that may be made by regulations under this section
30includes, in particular, provision equivalent to—

(a) provision made by a relevant enactment, or

(b) provision that is capable of being made under a relevant
enactment,

with such modifications as the appropriate authority thinks fit

(10) 35For the purposes of subsection (9), each of the following enactments as
it had effect on the day on which the Local Government Finance Act
2012 was passed is a “relevant enactment”—

(a) section 111 of the Social Security Administration Act 1992
(offences relating to powers under that Act);

(b) 40section 111A of that Act (dishonest representations for
obtaining benefit etc);

(c) section 112 of that Act (false representations for obtaining
benefit etc.);

(d) section 115 of that Act (offences by bodies corporate);

(e) 45section 116 of that Act (legal proceedings);

(f) section 121DA of that Act (interpretation of Part 6 of that Act);

(g) section 191 of that Act (interpretation of that Act).

14C Regulations about penalties

(1) The appropriate authority may by regulations make provision for the
imposition of a penalty by a billing authority on a person where in
prescribed circumstances—

(a) 5that person’s act or omission results or could result in the
amount of council tax that a person (“P”) is liable to pay being
reduced or subject to a discount, and

(b) P is not or will not be entitled to that reduction or discount.

(2) The appropriate authority may by regulations make provision for the
10imposition of a penalty by a billing authority on a person where in
prescribed circumstances—

(a) that person’s act or omission results or could result in a
dwelling in respect of which a person (“P”) would otherwise be
liable to pay council tax being treated as an exempt dwelling for
15a period, and

(b) the dwelling is not or will not be an exempt dwelling for all or
part of that period.

(3) Regulations under this section must—

(a) make provision with the effect that a penalty may only be
20imposed on a person where the person agrees to the imposition
of the penalty as an alternative to criminal proceedings being
taken against the person in respect of the act or omission to
which the penalty relates,

(b) make provision with the effect that a penalty may only be
25imposed on a person where the person has not been charged
with an offence in respect of the act or omission to which the
penalty relates, or

(c) make provision within paragraph (a) and (b).

(4) This section does not affect the operation of Schedule 3 (penalties).

(5) 30The provision that may be made by regulations under this section
includes, in particular, provision equivalent to—

(a) provision made by a relevant enactment, or

(b) provision that is capable of being made under a relevant
enactment,

35with such modifications as the appropriate authority thinks fit.

(6) For the purposes of subsection (5), each of the following is a “relevant
enactment”—

(a) section 115A of the Social Security Administration Act 1992
(penalty as alternative to prosecution);

(b) 40section 115B of that Act (penalty as alternative to prosecution:
colluding employers etc);

(c) section 115C of that Act (penalties in respect of incorrect
statements etc);

(d) section 115D of that Act (penalties in respect of failures to
45disclose information);

(e) section 121DA of that Act (interpretation of Part 6 of that Act);

(f) section 191 of that Act (interpretation of that Act).

(7) The reference in subsection (6)—

(a) to section 115C or 115D of the Social Security Administration
Act 1992 is to that section without the repeals in it contained in
Part 1 of Schedule 14 to the Welfare Reform Act 2012;

(b) to any other provision of that Act is to the provision as it had
5effect on the day on which the Local Government Finance Act
2012 was passed.

14D Sections 14A to 14C: supplementary

(1) In sections 14A to 14C—

• “the appropriate authority” means—

  (a)

  10the Secretary of State, in relation to England, and

  (b)

  the Welsh Ministers, in relation to Wales;

• “prescribed”, in relation to regulations made by the Welsh
  Ministers, means prescribed by such regulations.

(2) A statutory instrument containing regulations made by the Secretary of
15State under any of sections 14A to 14C may not be made unless a draft
of the instrument has been laid before and approved by a resolution of
each House of Parliament.

(3) A statutory instrument containing regulations made by the Welsh
Ministers under any of sections 14A to 14C may not be made unless a
20draft of the instrument has been laid before and approved by a
resolution of the National Assembly for Wales.”

(3) In section 113(3) (application of negative procedure to orders and regulations
under the Act), after “except in the case of regulations under section” insert
“14A, 14B, 14C or”.

14 25Provision of information about council tax

(1) In Schedule 2 to the LGFA 1992, paragraph 2 (collection of council tax) is
amended as follows.

(2) After sub-paragraph (4)(i) (but before the word “and” following that
paragraph) insert—

“(ia) 30that the authority must publish prescribed information in the
prescribed manner;”.

(3) In sub-paragraph (4)(j), after “when it serves a notice” insert “or on the request
of the person”.

Information sharing

15 35Power for HMRC to supply information for purposes of council tax

(1) Schedule 2 to the LGFA 1992 (administration) is amended as follows.

(2) After paragraph 15 insert—

“15A (1) A Revenue and Customs official may supply information which is
held by the Revenue and Customs in connection with a function of
40the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
paragraph—

(a) a billing authority in England;

(b) a person authorised to exercise any function of such an
5authority relating to council tax;

(c) a person providing services to such an authority relating to
council tax.

(3) Information supplied under this paragraph may be used for another
prescribed purpose relating to council tax.

(4) 10Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
council tax (whether or not that is a purpose for which it was
supplied).

(5) In this paragraph—

• 15“Revenue and Customs official”,

• “the Revenue and Customs”, and

• “function of the Revenue and Customs”,

have the same meaning as in section 18 of the Commissioners for
Revenue and Customs Act 2005.

15B (1) 20A Revenue and Customs official may supply information which is
held by the Revenue and Customs in connection with a function of
the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
25paragraph—

(a) a billing authority in Wales;

(b) a person authorised to exercise any function of such an
authority relating to council tax;

(c) a person providing services to such an authority relating to
30council tax.

(3) Information supplied under this paragraph may be used for another
prescribed purpose relating to council tax.

(4) Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
35council tax (whether or not that is a purpose for which it was
supplied).

(5) In this paragraph—

• “Revenue and Customs official”, “the Revenue and Customs”
  and “function of the Revenue and Customs” have the same
  40meaning as in section 18 of the Commissioners for Revenue
  and Customs Act 2005;

• “prescribed” means prescribed by regulations made by the
  Welsh Ministers.

(6) Regulations under this paragraph must not be made except with the
45consent of the Commissioners for Her Majesty’s Revenue and
Customs.

(7) A statutory instrument containing regulations under this paragraph
is subject to annulment in pursuance of a resolution of the National
Assembly for Wales.

15C (1) A Revenue and Customs official may supply information which is
5held by the Revenue and Customs in connection with a function of
the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
paragraph—

(a) 10a local authority;

(b) a person authorised to exercise any function of such an
authority relating to council tax;

(c) a person providing services to such an authority relating to
council tax.

(3) 15Information supplied under this paragraph may be used for another
prescribed purpose relating to council tax.

(4) Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
council tax (whether or not that is a purpose for which it was
20supplied).

(5) In this paragraph—

• “Revenue and Customs official”, “the Revenue and Customs”
  and “function of the Revenue and Customs” have the same
  meaning as in section 18 of the Commissioners for Revenue
  25and Customs Act 2005;

• “prescribed” means prescribed by regulations made by the
  Scottish Ministers.

(6) Regulations under this paragraph must not be made except with the
consent of the Commissioners for Her Majesty’s Revenue and
30Customs.

(7) Regulations under this paragraph—

(a) are subject to the negative procedure; and

(b) may make—

(i) different provision for different purposes, including
35different provision for different areas or for different
authorities, and

(ii) such incidental, consequential, transitional or
supplementary provision as the Scottish Ministers
think necessary or expedient.

15D (1) 40A person to whom sub-paragraph (2) applies is guilty of an offence
if the person discloses without lawful authority any information—

(a) which comes to the person by virtue of paragraph 15A, 15B
or 15C, and

(b) which relates to a particular person.

(2) 45This sub-paragraph applies to—

(a) a qualifying person for the purpose of paragraph 15A, 15B or
15C;

(b) a person who is or has been a director, member of the
committee of management, manager, secretary or other
similar officer of a person within paragraph (a);

(c) a person who is or has been an employee of such a person.

(3) 5A person guilty of an offence under this paragraph is liable—

(a) on conviction on indictment, to imprisonment for a term not
exceeding 2 years or a fine, or both;

(b) on summary conviction, to imprisonment for a term not
exceeding 12 months or a fine not exceeding the statutory
10maximum, or both.

(4) It is not an offence under this paragraph—

(a) to disclose information in the form of a summary or collection
of information so framed as not to enable information
relating to any particular person to be identified from it;

(b) 15to disclose information which has previously been disclosed
to the public with lawful authority.

(5) It is a defence for a person (“D”) charged with an offence under this
paragraph to prove that at the time of the alleged offence—

(a) D believed that D was making the disclosure in question with
20lawful authority and had no reasonable cause to believe
otherwise, or

(b) D believed that the information in question had previously
been disclosed to the public with lawful authority and had no
reasonable cause to believe otherwise.

(6) 25For the purposes of this paragraph, “lawful authority” has the
meaning given by section 123 of the Social Security Administration
Act 1992.

(7) In relation to an offence under this paragraph committed in England
and Wales before the commencement of section 154(1) of the
30Criminal Justice Act 2003 (increase in maximum term that may be
imposed on summary conviction of offence triable either way) the
reference in sub-paragraph (3)(b) to 12 months is to be taken as a
reference to 6 months.”

(3) In paragraph 11 (supply of information to authorities: England and Wales),
35after sub-paragraph (1) insert—

“(1A) Information may be prescribed under sub-paragraph (1)(d) by
reference to—

(a) how the person concerned came to be in possession or control
of the information;

(b) 40the purpose for which it is requested by the authority.”

(4) In paragraph 12 (supply of information to authorities: Scotland), after sub-
paragraph (1) insert—

“(1A) Information may be prescribed under sub-paragraph (1)(d) by
reference to—

(a) 45how the person concerned came to be in possession or control
of the information;

(b) the purpose for which it is requested by the authority.”

(5) In paragraph 16 (supply of information by authorities), after sub-paragraph (2)
insert—

“(3) Information may be prescribed under sub-paragraph (2)(c) by
reference to—

(a) 5how the first-mentioned authority obtained the information;

(b) the purpose for which the first-mentioned authority believes
that the information would be useful to the other authority.”

(6) This section comes into force at the end of the period of 2 months beginning
with the day on which this Act is passed.

10General

16 Interpretation

In this Act—

• “financial year” means a period of 12 months beginning with 1 April;

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

• 15“the LGFA 1992” means the Local Government Finance Act 1992.

17 Power to make transitional, consequential etc provision

(1) The Secretary of State may by order made by statutory instrument make such
transitory or transitional provision, or savings, as the Secretary of State
considers appropriate in connection with the coming into force of any
20provision of this Act.

(2) The Secretary of State may by order made by statutory instrument make such
consequential provision (including provision amending, repealing or revoking
any legislation passed or made before, or in the same Session as, this Act) as the
Secretary of State considers appropriate in connection with any provision of
25this Act.

(3) A statutory instrument containing an order under subsection (2) that amends
or repeals an Act may not be made unless a draft of the instrument has been
laid before, and approved by a resolution of, each House of Parliament.

(4) Any other statutory instrument containing an order under subsection (2) is
30subject to annulment in pursuance of a resolution of either House of
Parliament.

(5) The powers under subsections (1) and (2) include power to make different
provision for different cases or descriptions of case, including different
provision for different areas or different authorities.

18 35Financial provisions

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

(a) any expenditure incurred by the Secretary of State in consequence of
this Act, and

(b) any increase attributable to this Act in the sums payable under any
40other Act out of money so provided.

19 Extent and short title

(1) This Act extends to England and Wales only, subject to subsection (2).

(2) Sections 15 and 17 extend also to Scotland.

(3) This Act may be cited as the Local Government Finance Act 2012.

SCHEDULES

Section 1

SCHEDULE 1 Local retention of non-domestic rates

After Schedule 7A to the LGFA 1988 insert—

Section 59A

“Schedule 7B 5Local retention of non-domestic rates

Part 1 Main non-domestic rating accounts

Main non-domestic rating accounts

1 (1) The Secretary of State must, for each year, keep an account, to be
10called a “main non-domestic rating account”.

(2) Each such account must be kept in accordance with the provisions
of this Schedule that apply to a main non-domestic rating account.

(3) The Secretary of State—

(a) must keep each such account in such form as the Treasury
15may direct, and

(b) must, at such time as the Treasury may direct, send copies
of each such account to the Comptroller and Auditor
General.

(4) The Comptroller and Auditor General—

(a) 20must examine, certify and report on any account of which
copies are sent to the Comptroller and Auditor General
under sub-paragraph (3), and

(b) must arrange for copies of the account and of the
Comptroller and Auditor General’s report on it to be laid
25before each House of Parliament.

Credits and debits

2 (1) For each year the following are to be credited (as items of account)
to the main non-domestic rating account kept for the year—

(a) amounts received by the Secretary of State in the year
30under section 54 (central rating: liability),

(b) amounts received by the Secretary of State in the year
under section 59 (contributions in aid),