Explanatory note

Schedules 2 and 4 to the Local Government Finance Act 1992 (“the 1992 Act”) confer on the Secretary of State various regulation-making powers in relation to the administration and enforcement of council tax. The principal regulations made under these powers are the Council Tax (Administration and Enforcement) Regulations 1992 (as amended) (“the principal regulations”).

Insofar as they relate to Wales, these powers were transferred to the National Assembly for Wales by the National Assembly for Wales (Transfer of Functions) Order 1999.

Part 6 of the Local Government Act 2003 (“the 2003 Act”) amended these powers, along with other provisions of the 1992 Act relating to the administration and enforcement of council tax.

As a consequence of the changes made by the 2003 Act, and in reliance on the powers in Schedule 2 and 4 to the 1992 Act, the National Assembly for Wales is making these Regulations to further amend the principal regulations.

Regulation 3 of these regulations inserts new definitions of “discount” and “exempt dwelling” into regulation 1(2) of the principal regulations. This change, along with the change made by regulation 4, gives effect to the intention behind paragraph 21 of Schedule 2 to the 1992 Act to ensure that dwellings which fall within a class for which an authority in Wales has determined under section 13A of the 1992 Act that the amount of council tax payable shall be reduced to nil or otherwise than to nil (as the case may be) are treated, respectively, as exempt dwellings or subject to a discount for the purposes of council tax administration. Section 13A of, and paragraph 21 of Schedule 2 to, the 1992 Act were inserted into the 1992 Act by section 76 of, and paragraph 53(3) of Schedule 7 to, the 2003 Act respectively.

Regulation 5(2) inserts a new regulation 36A into the principal regulations to allow a magistrates' court, on the application of a billing authority, to quash a council tax liability order, where the court is satisfied that the order should not have been made. Regulation 36A(3) allows an authority which makes an application to quash a liability order also to apply to the court for a further order against the same person where a lesser amount than the amount for which the original order was made has in the meantime become due. Regulation 36A(5) will allow the magistrates' court to substitute the amount in the original liability order for the lesser amount where it considers that a liability order for such a lesser amount could properly have been made. Regulation 36A(4) means that the requirements of paragraphs (2) to (5) of regulation 34 will also apply to an application for a substituted liability order. These provisions require a summons to be served on the debtor before such an order can be made. They also provide that, if the outstanding amount and the authority’s reasonable costs of the application are tendered before the application is heard, the application shall not be proceeded with.

Regulation 6 amends regulation 37 of the principal regulations to allow the sum in respect of which an attachment of earnings order is made to include, subject to certain limits, any costs incurred by the authority in an unsuccessful attempt to levy distress to secure the payment of an outstanding sum in respect of which a liability order was made. Regulation 37 is further amended to allow that sum also to include, subject to certain limits, any costs incurred by the authority in an abortive application for a warrant to commit the debtor to prison. An authority may only apply to the magistrates' court for a warrant to commit the debtor to prison under regulation 47 after an unsuccessful attempt to levy distress (where the person making the distress was unable to find any or sufficient goods of the debtor on which to levy the amount). As the magistrates' court must inquire as to the debtor’s means when considering whether to grant a warrant of commitment, the debtor’s means may only become apparent to the authority at this late stage, and instead of further pursuing the application for a warrant of commitment, the authority may decide to make an attachment of earnings order instead.

Regulation 7 amends regulation 50 of the principal regulations. Regulation 50 allows a charging order to be made over the premises in respect of which council tax remains unpaid. Only where more than £1000 is outstanding may a charging order be made. Previously it had to be shown that more than £1000 was outstanding under a single liability order. Regulation 7 amends regulation 50 so that authorities can combine amounts outstanding under separate liability orders (each of which is less than £1000) to enable them to apply for a charging order, provided the aggregate amount outstanding exceeds £1000.