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22 December 2005 - Council Tax Information Letter
The following content has been provided by the Office of the Deputy Prime Minister and has been addressed to all Local Authorities. A copy of this and past newsletters can be found at http://www.local.odpm.gov.uk/finance/ctax/ctil.htm
"Class G Exemption and Planning Restrictions Preventing Occupancy
On Wednesday 21 December, we published a consultation paper which seeks views on a proposed amendment to Class G of the Council Tax (Exempt Dwellings) Order 1992. The amendment would clarify that an unoccupied dwelling in England is exempt from council tax where a planning condition prevents occupancy. The consultation paper can be found on the ODPM website at the following link: www.odpm.gov.uk/lg/consult
Please send paper responses to David McDonald at the address below or e-mail responses to: counciltax.consultations@odpm.gsi.gov.uk.
The consultation period closes on 17 March 2006.
Increase in Magistrates' Court Fees
As many of you will be aware, fees charged by magistrates' courts are set to rise sharply from 10 January 2006. The cost of applying for a liability order for council tax will rise from 70p to £3.
The Department for Constitutional Affairs’ consultation document can be found at: http://www.dca.gov.uk/consult/civilfam/civilfam.htm
The relevant statutory instrument (SI2005/3444), laid on 20 December, should be available very shortly on the Office of Public Sector Information website at: http://www.opsi.gov.uk/stat-draft.htm
Demand Notice Regulations
To confirm, we are envisaging no change to the demand notice regulations for Council Tax for the March 2006 billing round. A minor change to the non-domestic rates demand notice regulations is being made to highlight the ending of rate relief for former agricultural premises in the explanatory notes. More details can be found in Business Rates Information Circular 6/2005 which can be found at: http://www.local.odpm.gov.uk/finance/busrats1.htm
Subsidy Element Payments
We've been asked whether billing authorities may retain in their general fund the 40% subsidy element payment that the Department for Work and Pensions makes to the authority when adjustments for previous eligible overpayments of council tax benefit are made. The Collection Fund Directions require that where council tax benefit has been granted, transfers to the collection fund should be made where 'the benefit takes the form of a reduction in the amounts liable to be paid to the authority…'
Since the subsidy element of eligible overpayments does not relate to any reduction in the liability of council taxpayers, we believe it may be retained in the billing authority's general fund.
Council Tax and Bereavement
Earlier this year the Cabinet Office published a report ‘Making a Difference - Bereavement’ which was aimed at easing the administrative burdens faced by bereaved people. The report can be found at: http://www.cabinetoffice.gov.uk/regulation/publicservices/projects/mad/inde.asp
The report contained a recommendation that the Office of the Deputy Prime Minister and the Local Government Association should, in consultation with Cruse Bereavement Care, publicise and distribute to local authorities a best practice standard template for letters about council tax sent to people who have been bereaved.
We have met the LGA and Cruse and believe that the letters used by Hull City Council, which cover a range of possible scenarios, provide good examples that other billing authorities may wish to refer to.
Copies of the letters can be obtained by e-mailing Hull City Council at ctax@hullcc.gov.uk.
The LGA is writing to authorities to publicise these further. We would like to thank the LGA and Hull City Council for their help.
Relief for the Indebted - An Alternative to Bankruptcy
The summary of responses to this consultation, which we highlighted in CTIL 3/2005, and the Insolvency Service's response can be found at: http://www.insolvency.gov.uk/whatsnew/whatsnew.htm.
Putting the proposals into practice is of course subject to Parliamentary time being found and legislation passed. The intention however is that, if certain criteria are met, individuals will be able to apply for a debt relief order, providing relief from enforcement of debts for twelve months and their discharge thereafter, rather than making a debtor's petition for bankruptcy. It is proposed that debt relief orders will only be available to those with gross liabilities of less than £15,000, gross assets of less than £300 (excluding domestic items and those relating to employment) and surplus income of less than £50 per month. Homeowners will therefore be excluded.
Staff Change
Ronnie Gasper leaves the ODPM council tax policy team on 23 December to go and work in Internal Audit. His replacement, Mary Richardson, joins us on 16 January, from the Gypsy and Traveller Unit.
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