Local Government Finance Act 1988

Charges E+W

1 The charges. E+W

In accordance with this Part, each charging authority shall have rights and duties in respect of the following community charges—

(a) personal community charges,

(b) standard community charges, and

(c) collective community charges.

2 Persons subject to personal community charge. E+W

(1) A person is subject to a charging authority’s personal community charge on any day if—

(a) he is an individual who is aged 18 or over on the day,

(b) he has his sole or main residence in the area of the authority at any time on the day, and

(c) he is not an exempt individual on the day.

[F1 (1A) But a person cannot be subject to a charging authority’s personal community charge on a day which falls before 1 December 1989.]

(2) Schedule 1 below shall have effect to determine whether a person is for the purposes of this section an exempt individual on a particular day.

(3) In deciding whether a person has his sole or main residence in an area, the fact that he does not live in a building is irrelevant.

(4) If a person’s sole or main residence at a particular time consists of premises, and the premises are situated in the areas of two or more authorities, he shall be treated as having his sole or main residence in the area in which the greater or greatest part of the premises is situated.

[F2 (5) Subsection (5A) below applies in the case of a person if—

(a) he is undertaking a full-time course of education, and

(b) for at least some of the time while undertaking the course he is, or proposes to be, resident in England and Wales for the purpose of making attendances in term time in connection with the course.

(5A) On a day on which he is undertaking the course he shall be treated as having his sole or main residence in—

(a) the place where he is resident at any time on the day for the purpose of making attendances in term time in connection with the course;

(b) if he is not resident in a place for that purpose at any time on the day, the place where he was last resident for that purpose;

(c) if he is not resident in a place for that purpose at any time on the day, and he has not been resident in a place for that purpose, the place where he would be taken to have his sole or main residence if this subsection did not apply to him.]

(6) A person detained in legal custody (other than an individual for the time being exempt) is not to be treated as having his sole or main residence in the place where he is detained.

Textual Amendments

F1 S. 2(1A) inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 2(1)(2)

F2 S. 2(5)(5A) substituted for s. 2(5) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 2(3)

3 Persons subject to standard community charge. E+W

(1) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a freehold interest in the whole of a building, and the following conditions are fulfilled as regards the building throughout the day—

(a) it is situated in the authority’s area,

(b) it is not the sole or main residence of an individual (construing sole or main residence in accordance with section 2 above),

(c) it is domestic property,

(d) it is not designated for the purposes of collective community charges of the authority,

(e) it is not divided into self-contained parts, and

(f) it is not subject (as a whole) to a single relevant leasehold interest.

(2) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a relevant leasehold interest in the whole of a building, and the following conditions are fulfilled as regards the building throughout the day—

(a) the conditions mentioned in subsection (1)(a) to (e) above, and

(b) the condition that it is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.

(3) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a freehold interest in the whole of a self-contained part of a building, and the following conditions are fulfilled as regards the part throughout the day—

(a) the conditions mentioned in subsection (1)(a) to (d) above, and

(b) the condition that it is not subject (as a whole) to a single relevant leasehold interest.

(4) A person is subject to a charging authority’s standard community charge on any day if he has at any time on the day a relevant leasehold interest in the whole of a self-contained part of a building, and the following conditions are fulfilled as regards the part throughout the day—

(a) the conditions mentioned in subsection (1)(a) to (d) above, and

(b) the condition that it is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.

(5 )F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (6) Notwithstanding anything in subsections (1) to (5) above, a person cannot be subject to a charging authority’s standard community charge on a day which falls before 1 December 1989.]

Textual Amendments

F3 S. 3(5) repealed (retrospectively) by Caravans (Standard Community Charge and Rating) Act 1991 (c. 2), s. 1(1)(3)

F4 S. 3(6) inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 3

4 Section 3: interpretation. E+W

(1) This section applies for the purposes of section 3 above.

(2) “Interest” means a legal estate.

(3) A relevant leasehold interest is an interest under a lease or underlease which was granted for a term of 6 months or more and conferred the right to exclusive possession throughout the term.

(4) [F5 Subject to subsections (5) and (5B) below,] a building or self-contained part of a building is domestic property if it is used wholly for the purposes of living accommodation.

[F6 (5) A building or self-contained part of a building is not domestic property if it is wholly or mainly used in the course of a business for the provision of short-stay accommodation, that is to say accommodation—

(a) which is provided for short periods to individuals whose sole or main residence is elsewhere, and

(b) which is not self-contained self-catering accommodation provided commercially.

[F7 (5A) Subsection (5) above does not apply if—

(a) it is intended that within the year beginning with the end of the day in relation to which the question is being considered, short-stay accommodation will be not be provided within the building or part for more than six persons simultaneously; and

(b) the person intending to provide such accommodation will have his sole or main residence within the building or part throughout any period when such accommodation is to be provided.]

(5B) A building or self-contained part of a building is not domestic property if—

(a) the relevant person intends that, in the year beginning with the end of the day in relation to which the question is being considered, the whole of the building or self-contained part will be available for letting commercially, as self-catering accommodation, for [F8 short] periods totalling 140 days or more; and

(b) on that day his interest in the building or part is such as to enable him so to let it for such periods.

(5C) For the purposes of subsection (5B) above the relevant person is—

(a) where the property in question is a building and is not subject as a whole to a relevant leasehold interest, the person having the freehold interest in the whole of the building; and

(b) in any other case, any person having a relevant leasehold interest in the building or self-contained part which is not subject (as a whole) to a single relevant leasehold interest inferior to his interest.]

(6) In construing subsections (4) and (5) above, anything not in use shall be treated as domestic property if it appears that when next in use it will be domestic property.

[F9 (6A) In this section—

• “business” includes—

(a) any activity carried on by a body of persons, whether corporate or unincorporate, and

(b) any activity carried on by an institution or other organisation established for charitable purposes only or any persons administering a trust established for charitable purposes only; and

“commercially” means on a commercial basis, and with a view to the realisation of profits.]

(7) The Secretary of State may by order amend, or substitute another definition for, any definition of domestic property for the time being effective for the purposes of section 3 above.

(8) A self-contained part of a building is a part of a building used, or suitable for use, as a separate dwelling.

F10 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) Where a building is situated in the areas of two or more authorities, it and each part of it shall be treated as situated in the area in which the greater or greatest part of the building is situated; F12 . . ..

Textual Amendments

F5 Words inserted by S.I. 1990/162, art. 2(2)

F6 S. 4(5)–(5C) substituted for s. 4(5) by S.I. 1990/162, art. 2(3)

F7 S. 4(5A) substituted (1. 4. 1991) by S.I. 1991/474, art. 2(1)

F8 Word in s. 4(5B)(a) inserted (1. 4. 1991) by S.I. 1991/474, art. 2(2)

F9 S. 4(6A) inserted by S.I. 1990/162, art. 2(4)

F10 S. 4(9) repealed (retrospectively) by Caravans (Standard Community Charge and Rating) Act 1991 (c. 2), s. 1(1)(3)

F11 S. 4(10) repealed (retrospectively) by Caravans (Standard Community Charge and Rating) Act 1991 (c. 2), s. 1(1)(3)

F12 Words at the end of s. 4(11) repealed (retrospectively) by Caravans (Standard Community Charge and Rating) Act 1991 (c. 2), s. 1(1)(3)

5 Persons subject to collective community charge. E+W

(1) A person is subject to a charging authority’s collective community charge on any day if—

(a) he has on the day a qualifying interest in a dwelling situated in the authority’s area, and

(b) on the day the dwelling is a designated dwelling.

[F13 (1A) But a person cannot be subject to a charging authority’s collective community charge on a day which falls before 1 December 1989.]

(2) For the purposes of this Part a dwelling is a designated dwelling on a particular day if it is a building, or part of a building, which on the day concerned is designated under this section.

(3) The registration officer may designate all or part of a building for the purposes of a charging authority’s collective community charges if at the time of designation—

(a) the building is situated in the authority’s area,

(b) in his opinion the building or part is used wholly or mainly as the sole or main residence of individuals most or all of whom reside there for short periods and are not undertaking full-time courses of education,

(c) in his opinion it would probably be difficult to maintain the register in respect of, and collect payments in respect of personal community charges from, individuals who would be subject to such charges of the authority if the designation were not made, and

(d) the building does not fall within a description prescribed for the purposes of this paragraph by regulations made by the Secretary of State.

(4) A registration officer who has designated a building or part may revoke the designation if at the time of revocation the conditions for designation in subsection (3) above are no longer satisfied.

(5) A designation under this section shall take effect at the end of the period of 7 days beginning with the day on which it is made, and shall cease to have effect at the end of the day (if any) on which it is revoked.

(6) A person has a qualifying interest in a designated dwelling on a particular day if at any time on the day—

(a) he has a freehold interest in the whole dwelling and it is not subject (as a whole) to a single leasehold interest, or

(b) he has an interest in the whole dwelling under a lease or underlease and it is not subject (as a whole) to a single inferior leasehold interest.

(7) “Interest” means a legal estate.

(8) Where a building is situated in the areas of two or more authorities, it and each part of it (whether or not designated) shall be treated as situated in the area in which the greater or greatest part of the building is situated.

Textual Amendments

F13 S. 5(1A) inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 139, Sch. 5 para. 4