PART 4EQUALISATION OF COUNCIL TAX

CHAPTER 1INTERPRETATION

Interpretation12

1

In this Part—

  • “appropriate authority”, in relation to a reorganised area, means—

    1. a

      the relevant authority during the relevant period, or

    2. b

      the single-tier council on and after the reorganisation date;

  • “basic amount of council tax”, in relation to a part of an appropriate authority’s area and a financial year, means the amount of that authority’s council tax which will be payable for that year in respect of a dwelling which—

    1. a

      is situated in that part, and

    2. b

      is listed in valuation band D;

  • “the Council Tax Base Regulations” means the Local Authorities (Calculation of Council Tax Base) Regulations 199211;

  • “dwelling” has the same meaning as in section 3 (meaning of “dwelling”) of the 1992 Act;

  • “preceding year council tax”, in relation to a predecessor area, means the amount calculated under section 33(1) (basic amount of council tax) of the 1992 Act for the area for the preceding year12;

  • “predecessor area”, in relation to a reorganised area, means any district which is abolished by or in consequence of an order;

  • “principal area”, in relation to a reorganised area, means—

    1. a

      in relation to the first year, the predecessor area which had the highest preceding year council tax,

    2. b

      in relation to any financial year after the first year—

      1. i

        the area referred to in paragraph (a), and

      2. ii

        any other predecessor area for which the appropriate authority’s basic amount of council tax for an earlier financial year was calculated—

        1. aa

          under regulation 20(2)(a),

        2. bb

          under regulation 21 in such a way that the basic amount of council tax for the area is more than the higher amount by an amount equal to the aggregate of the special items that relate to the area, or

        3. cc

          under regulation 22 in such a way that the amount calculated by applying the formula in paragraph (6) of that regulation is equal to the higher amount;

  • “special item” means an item mentioned in section 35(1) (special items for the purpose of section 34) of the 1992 Act; and

  • “uniform amount of council tax”, in relation to a reorganised area and a financial year, means the amount calculated for the area and the year under section 33(1) of the 1992 Act as modified by paragraph 2 of Schedule 2 to these Regulations.

2

The reference in the definition of “basic amount of council tax” in paragraph (1) to a dwelling listed in valuation band D is a reference to a dwelling to which that valuation band is shown as applicable in the appropriate authority’s valuation list.

3

Any calculation of a council tax base by an appropriate authority under this Part for any part of its area must be made in accordance with the Council Tax Base Regulations as modified by paragraphs 11 to 13 of Schedule 2 to these Regulations.

Definition of “higher amount”13

1

In this Part, “higher amount”, in relation to a reorganised area and a financial year, means—

a

if no special items relate to any part of the principal area, the basic amount of council tax calculated for the principal area and the year under regulation 17;

b

if one or more special items relate to the whole of the principal area, the basic amount of council tax calculated for the principal area and the year under regulation 17 less the aggregate of those special items;

c

if one or more special items relate to a part only of the principal area, the amount calculated for the year by applying the formula in paragraph (2).

2

The formula is—

(A−B)Cmath

where—

  • A is the aggregate of the amounts calculated by applying the formula in paragraph (3);

  • B is the aggregate of the special items which relate to the principal area; and

  • C is the amount calculated by the authority as its council tax base for the principal area.

3

The formula is—

D×Emath

where—

  • D is the basic amount of council tax calculated by the authority under regulation 18 for each part of the principal area; and

  • E is the amount calculated by the authority as its council tax base for that part.

Definition of “lower amount”14

1

In this Part, “lower amount”, in relation to a predecessor area other than the principal area or a part of that area and a financial year (“the relevant year”), means the amount calculated by applying the formula—

HA−Fmath

where—

  • HA is the higher amount for the relevant year and the reorganised area of which the predecessor area is a part, and

  • F is the amount calculated by applying the formula in paragraph (2).

2

The formula is—

G−Hmath

where—

  • G is—

    1. a

      if the relevant year is the first year, the preceding year council tax for the principal area,

    2. b

      if the relevant year is any financial year after the first year, the higher amount for the financial year preceding the relevant year; and

  • H is—

    1. a

      if the relevant year is the first year, the preceding year council tax for the predecessor area,

    2. b

      if the relevant year is any financial year after the first year, the relevant amount for the predecessor area or the part of that area for the financial year preceding the relevant year.

3

In the definition of item H in paragraph (2), “relevant amount” means—

a

if no special items relate to any part of the predecessor area, the basic amount of council tax calculated under regulation 20,

b

if one or more special items relate to the whole of the predecessor area, the basic amount of council tax calculated under regulation 21 less the aggregate of those special items,

c

if one or more special items relate to a part only of the predecessor area—

i

for any part of the predecessor area to which no special items relate, the basic amount of council tax calculated under regulation 22(2)(a), or

ii

for any part of that area to which one or more special items relate, the basic amount of council tax calculated under regulation 22(2)(b) less the aggregate of those special items.