Procedures when changing a Council Tax band: FOI release

Information requested

Details on the rules and procedures for issuing a new Council Tax bill following a retrospective change to a property’s Council Tax band, particularly in cases where a property is rebanded to a higher band.

Specifically, I am seeking the following information:

1. Are there any time limits on the period where a new Council Tax bill can be issued following a higher re-banding? For example, can the local authority seek recovery for arrears resulting from higher re-banding if the effective date of re-banding is e.g. 5, 10 or 20 years ago?

2. Are there any rules or guidance on the issuance of arrears following a change into a higher band?

3. Does a bill payer have any right to challenge arrears arising from their property being re-banded into a higher band?

4. Are there any publicly available sources which speak to this topic?

Response

The Scottish Government seeks to provide requested information whenever possible. We are unable to provide you with some of the information you have requested because the Scottish Government does not hold this data. Therefore, under section 17(1) of FOISA, we are unable to provide you with the information because we do not hold that information.

To respond to your request I have offered substantive explanations pertaining to each element under the relevant headings below.

Rules, guidance and publicly available information

The administration and collection of Council Tax is matter for each local authority, this includes the interpretation of all Council Tax legislation.

The Scottish Government does not issue guidance to local authorities on how to manage Council Tax accounts which are in arrears. Consequently, we do not hold this information, and this is a formal notice under section 17(1) of FOISA that the Scottish Government does not have some of the information you have requested.

Public information on the management of Council Tax arrears, including their backdating, is for individual local authorities to provide where they see fit. However, the following general information may be of assistance in relation to each of your enquiries.

Potential limits on backdating periods.

The date from which a change to a Council Tax band (as decided upon by a Scottish Assessor) is treated as being brought into effect is set out in Regulations 18 and 19 of the Council Tax (Alteration of Lists and Appeals) (Scotland) Regulations 1993.

Any Council Tax banding decision made by a Scottish Assessor, which is intended as a correction to a previous banding decision, is treated as coming into effect on the same date as the previous banding decision was made.

Alterations to a Council Tax band can also occur as a result of a material increase in the value of a property. For example, this might be as a consequence of extension works These are treated as coming into effect on the day on which the property in question is subsequently sold.

The relevant Scottish Assessor has responsibility for informing the relevant local authority, and at least one taxpayer at the affected property, of the change within six weeks of the decision being made.

Billing and Arrears

Regarding billing and collection of arrears, each local authority is duty bound by the Local Government Finance Act 1992 to administer, calculate and collect the Council Tax liabilities of properties in their area.

In relation to the amendment of the Council Tax band where a liable person is responsible for paying Council Tax instalments in a particular financial year, a local authority is responsible for adjusting existing instalments appropriately. This may include choosing to include sums which relate to a prior period. These obligations are set out Paragraph 6, Schedule 1 of The Council Tax (Administration and Enforcement) (Scotland) Regulations 1992, although a local authority is free to reach a separate payment arrangement with the taxpayer where mutually agreeable terms can be reached.

If payments are not made then authorities can recover the debt by diligence, under an ordinary court action warrant or a summary warrant. The point at which debt prescribes negatively (expires) is determined by the Prescription and Limitation (Scotland) Act 1973. The interpretation of the legislation in relation to the effect of a summary warrant on negative prescription is a matter for the local authority.

Right of appeal

Anyone who wishes to contest the calculation of their Council Tax liability with their local authority may appeal to the Local Tax Chamber of the Scottish Courts & Tribunal Service. To do this they must first serve a written notice on their local authority setting out the matter and the grounds of their dissatisfaction. The local authority should provide a written response within two months. If, following that response the matter is not resolved, the complainant may appeal to the Local Tax Chamber.

Appeal of Council Tax banding is also possible where a liable party disagrees with the alteration of the Council Tax band allocated to a property by a local Assessor by lodging a formal appeal known as a "proposal". The submission of proposals to the Assessor may be subject to certain time limits under some circumstances and some of these are set out on the Scottish Assessors Association web site at https://www.saa.gov.uk/council-tax/council-tax-proposals/.

Once an Assessor has made a determination in respect of a proposal, should the property owner or liable resident be dissatisfied, appeal may be possible to the Local Tax Chamber. More information on the Local Tax Chamber and how to appeal can be found at the following link Home: Local Taxation Chamber.

You may wish to request further information in relation to your queries from local authorities who administer the Council Tax system, and from Scottish Assessors who are responsible for valuation.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.