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DISCRETIONARY COUNCIL TAX PAYMENTS - SECTION 13A
As many LAs are no longer backdating CTS or have various other local restrictions advisors would do well to inform themselves of the Section 13A facility for ALL LAs to give a discretionary award to cover Council Tax liability. The LA in which I work, after much gentle [ and not quite so gentle ] pressure has now started to make these awards. The system is similar to the DHP scheme and in fact some LAs seem to have a combined claim for HB and CT but those enlightened Authorities are few and fare between and most need to be dragged kicking and screaming to make a Section 13 A payment.
It is well worth the effort though, for example my LA wrote off 2 whole years Council Tax debt this week for one of my clients using section 13A
section 13A of the Local Government Finance Act I believe isn’t it? Just to clarify
Also worth knowing that there is a right to appeal to the VT against the refusal of a discretionary reduction under s13A(1)(c). This is in effect a backdoor appeal against perverse lacunae in the local CTR scheme, meaning you don’t have to have recourse to judicial review.
There is growing VT caselaw on this area; SC & CW v East Riding of Yorkshire Council [VTE 2014] being the main case. The then President of VT made this particular point:
A factor which cannot have any relevance for the Tribunal is an overall budget
created by the authority for the totality of discretionary applications in a given
year so that any application will be considered in relation to the available
budget and once that sum is exhausted no further applications can be granted.
I do not see how in law this can be a cash-limited exercise. The merits of an
appeal cannot be affected by the existence of any such budget. A “budget” is
in any event a somewhat artificial concept in view of the fact that the authority
is forgoing income and not spending existing funds.
Note that application must be made for a discretionary payment before the VT can formally consider the matter but there is no real time limit to do so.
Also worth knowing that there is a right to appeal to the VT against the refusal of a discretionary reduction under s13A(1)(c). This is in effect a backdoor appeal against perverse lacunae in the local CTR scheme, meaning you don’t have to have recourse to judicial review.
I cant find s13A(1)(c) Local Government Finance Act 1992 on legislation.gov.uk - its not been updated even on the latest version. Does anyone have an updated link?
Could I just clarify, this discretionary reduction:
1. It is different from Council Tax Reduction/Support?
2. It is different from Council Tax Discretionary Relief?
Where do I find case law relating to the exercise of this discretion and appeal rights?
as far as I know its still live, most councils should have a policy on it, google the act and it should come up,
This is the s13A that was substituted in 2012 - the 1992 Act on legislation.gov.uk hasn’t had this updated yet
I cant find s13A(1)(c) Local Government Finance Act 1992 on legislation.gov.uk - its not been updated even on the latest version. Does anyone have an updated link?
Could I just clarify, this discretionary reduction:
1. It is different from Council Tax Reduction/Support?
2. It is different from Council Tax Discretionary Relief?Where do I find case law relating to the exercise of this discretion and appeal rights?
Revised sec.13A(1)(c) is here https://www.legislation.gov.uk/ukpga/2012/17/section/10
Wonderful thanks Paul.
The link answers my question 1 that it is different to Council Tax Reduction/Support.
As a learning point for me - how did you find the amendment, the process?
And thanks Daphne too!
Sorry meant to say that.
Could I just clarify, this discretionary reduction:
1. It is different from Council Tax Reduction/Support?
2. It is different from Council Tax Discretionary Relief?
1. Yes
2. No
Wonderful thanks Paul.
The link answers my question 1 that it is different to Council Tax Reduction/Support.As a learning point for me - how did you find the amendment, the process?
It’s a bit hit or miss.
Searched Google for “Local Government Finance Act 1992”, happily top result was this https://www.legislation.gov.uk/ukpga/1992/14/contents which was Latest available under the “What version” button on LHS.
Click through to s.13A and at top of that section, it has heading “Changes to legislation”, click on “View outstanding changes” button to bring up drop-down menu.
Click on “Changes and effects yet to be applied to” and in this case, only option is “s. 13A substituted by 2012 c. 17 s. 10(1)” with hyperlink through to link I posted above.
I did it the same way ;) It feels like countdown when we explain how we did the maths question…
I would sugest don’t worry too much about getting bogged down with legislation, just keep your eyes open for potential clienst , anyone can apply YOU DON ‘T NED TO BE RECEIVING ANY OTHER BENEFITS. most councils hate it and will try every trick to avoid paying in case it sets a precedent but you can appeal to a VT if they refuse and I strongly suggest you do so if you have good cases.