Local government finance circular 6/2024: council tax on second and long-term unoccupied homes guidance

10. Accounting

Accounting for reduced discount should be on an income and expenditure basis. Any payments to RSLs or other organisations/individuals should be treated as General Fund expenditure in accordance with proper accounting practice.

A sum equal to the additional income collected but not yet spent by the local authority or paid to RSLs or other organisations/individuals should form part of the annual accounts. Any sum not represented by a year-end creditor or provision will be required to be held as an earmarked reserve in the General Fund. All accounting entries relating to the additional income collected but not yet spent by the local authority or paid to RSLs or other organisations/individuals should be in accordance with proper accounting practice.

Where reduced discount money has not been spent, it should accrue interest from the start of the financial year following the year of collection. Interest should accrue at the same rate applied to other savings held by local authorities.