Local Government Finance Act 1982

3 Substituted rates and precepts. E+W

(1) Subject to subsection (2) below—

(a) a rating authority may make a rate for a financial year in substitution for a rate previously made by it for that year; and

(b) a precepting authority may issue a precept in respect of a financial year in substitution for a precept previously issued by it in respect of that year.

(2) The estimated product of a substituted rate or precept shall not exceed the estimated product of the rate or precept for which it is substituted (the “original” rate or precept); and for the purposes of this subsection the product of a substituted rate or precept shall be estimated by reference to the same gross rateable value as the product of the original rate or precept.

(3) Section 12(6) of the M1 General Rate Act 1967 (which requires a precept to be issued or notified before the beginning of a financial year) shall not apply to a precept issued by virtue of subsection (1)(b) above.

(4) Where a precept is substituted by virtue of this section any authority which has made a rate by reference to the original precept—

(a) shall under subsection (1)(a) above make a substituted rate by reference to the substituted precept; and

(b) shall be entitled to recover from the precepting authority—

(i) its administrative expenses in making repayments and allowing credits under subsections (5) and (6) below in respect of the original rate; and

(ii) any increase attributable to paragraph (a) above in its rate collection expenses for the financial year;

and in relation to the substituted rate made pursuant to paragraph (a) above the estimated product of the original rate shall for the purposes of subsection (2) above be treated as reduced by the difference (if any) between the estimated products of the original and the substituted precepts.

(5) Where a rate or precept is substituted by virtue of this section any sum paid to the rating or precepting authority in respect of the original rate or precept (including any sum paid by way of an instalment or other part payment) shall—

(a) to the extent to which it would have been payable if the original rate or precept had corresponded to the substituted rate or precept, be treated as paid in respect of the substituted rate or precept; and

(b) as to any excess, be repaid if the ratepayer by whom that sum was paid or, as the case may be, the authority to which the precept was issued so requires.

(6) Where repayment of any amount is not required under subsection (5)(b) above that amount shall, as the rating or precepting authority may determine, either be repaid or—

(a) in the case of an amount paid in respect of a rate, be credited against any subsequent liability of the ratepayer for rates in respect of the hereditament in question;

(b) in the case of an amount paid in respect of a precept, be credited against any subsequent liability of the authority to which the precept was issued in respect of precepts issued to it by the precepting authority.

(7) Where a person as tenant or licensee of any premises—

(a) is liable to make payments (whether as part of his rent or otherwise) which vary or may vary according to the rates chargeable in respect of those premises; or

(b) is entitled to make deductions from his rent in respect of those rates,

he shall, where a rate affecting those premises is substituted by virtue of this section, be entitled to recover or, as the case may be, liable to make good so much of any payment or deduction as he would not have been liable or entitled to make if the original rate had corresponded to the substituted rate; and any sum which he is entitled to recover as aforesaid may, without prejudice to any other method of recovery, be deducted by him from any rent payable by him to the person by whom that sum was received.

(8) This section applies whether or not the original rate or precept was validly made or issued but shall not be construed as authorising the substitution of a rate or precept for one made or issued after the passing of this Act in contravention of section 1 or 2 above.

[F1 (9) Where the original rate or precept has been quashed because it is insufficient to meet the expenditure required to be taken into account under section 2 or 11 of the said Act of 1967, subsection (2) above shall not prevent a substituted rate or precept being made or issued which is sufficient to meet that expenditure.

(10) Where, whether by virtue of this section or otherwise, a precept is issued to a rating authority after it has made a rate for the financial year to which the precept relates, subsection (2) above shall not prevent a substituted rate being made by the authority for giving effect to the precept; and a rating authority which makes a substituted rate by virtue of this subsection shall be entitled to recover from the precepting authority in question any increase in its administrative or rate collection expenses which is attributable to that rate.]

Textual Amendments

F1 S. 3(9)(10) inserted by Rates Act 1984 (c. 33, SIF 103:1), s. 16(1), Sch. 1 para. 24

Modifications etc. (not altering text)

C1 S. 3(4): For the words “any authority” there is substituted “or section 8 of the Local Government Finance Act 1987, any authority to which the duty in section 8(1) of that Act does not apply and” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11, Sch. 4 paras. 6(1)(2), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.

C2 S. 3(4)–(6) applied by Norfolk and Suffolk Broads Act 1988 (c. 4, SIF 81:1), ss. 14(12), 23(2), 27(2)

C3 S. 3(5): After the words “this section” there is inserted the words “or section 8 of the Local Government Finance Act 1987” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11(1), Sch. 4 paras. 6(1)(3), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.

C4 S. 3(7): After the words “this section” there is inserted the words “or section 8 of the Local Government Finance Act 1987” by Local Government Finance Act 1987 (c. 6, SIF 81:1), s. 11(1), Sch. 4 paras. 6(1)(3), 12(1). By para. 12(1) it is provided that the amendment shall have effect only in relation to rates for, and precepts in respect of, the financial year beginning in 1987.

Marginal Citations

M1 1967 c. 9.