The Council Tax (Administration and Enforcement) (Scotland) Regulations 1992

Lump sum payments

24.—(1) A levying authority may, subject to the conditions set out in paragraph (2), accept an amount payable in a single lump sum in such cases as they may determine and in satisfaction of any liability of a liable person under a demand notice to which paragraph (1) of regulation 20 applies to pay the estimated amount, being a lump sum which is of an amount determined by the authority and less than the estimated amount.

(2) The conditions are that—

(a) the determinations under paragraph (1) as to the cases where a lump sum will be accepted and as to the basis of calculation of the amount of the sum in those cases must be made by the authority on or before the day on which they first set an amount for the relevant year under section 93(1) of the Act;

(b) under those determinations persons liable to pay the same number of instalments in the relevant year must be treated alike, and so that in particular the proportion that the amount of the single lump sum to be accepted from a liable person bears to the estimated amount payable by him must be the same as that applicable to all other liable persons liable to pay the same number of instalments in the relevant year; and

(c) for a lump sum to be accepted under those determinations as they have effect in any case—

(i) at least two instalments must fall to be paid under the demand notice concerned in accordance with Part I of Schedule 1 or any agreement under paragraph (4) of regulation 21; and

(ii) the single lump sum payment must be made on or before the day on which the first instalment falls due under the notice.

(3) A determination under paragraph (1) may be revoked at any time, and if revoked may (but only on or before the day mentioned in sub-paragraph (a) of paragraph (2)) be replaced by a fresh determination.

(4) If the chargeable amount proves to be greater than the estimated amount, an additional sum equal to the difference between the two, proportionately reduced in accordance with paragraph (9), shall, on the service by the levying authority on the liable person of a notice stating the chargeable amount, be due from him to the authority on the expiry of such period (being not less than 14 days) after the day of issue of the notice as is specified in it.

(5) If the chargeable amount proves to be less than the estimated amount, the levying authority shall notify the liable person in writing of the chargeable amount; and any overpayment of the chargeable amount (proportionately reduced in accordance with paragraph (9)) shall, to the extent that it exceeds any other outstanding liability of that person to the levying authority in respect of council tax or the council water charge—

(a) be repaid to him if he so requires; or

(b) in any other case (as the levying authority determine) either be repaid to him or be credited against any subsequent liability of his to make a payment in respect of any council tax or council water charge to the authority.

(6) If any assumption by reference to which the estimated amount was calculated is shown to be false before the chargeable amount is capable of final determination for the purposes of paragraphs (4) and (5), the levying authority may, and if so required by the liable person shall, make a calculation of the appropriate amount with a view to adjusting that person’s liability in respect of the estimated amount and (as appropriate) to—

(a) requiring an interim payment from the liable person (proportionately reduced in accordance with paragraph (9)) if the appropriate amount is greater than the estimated amount, or

(b) making an interim repayment to the liable person (proportionately reduced in accordance with paragraph (9)) if the appropriate amount is less than the amount of the estimated amount paid.

(7) The appropriate amount for the purposes of paragraph (6) is the amount which would be required to be paid under a demand notice if such a notice were issued with respect to the relevant year on the day that the notice under paragraph (8) is issued; and more than one calculation of the appropriate amount and interim adjustment may be made under paragraph (6) according to the circumstances.

(8) On calculating the appropriate amount the levying authority shall notify the liable person in writing of it; and a payment required under sub-paragraph (a) of paragraph (6) shall be due from the liable person to the levying authority on the expiry of such period (being not less than 14 days) after the day of issue of the notice as is specified in it.

(9) The proportion by reference to which a payment or repayment (or sum to be credited) under paragraph (4), (5) or (6) is to be reduced is to be the proportion determined under sub-paragraph (b) of paragraph (2) in respect of the lump sum concerned in that case; but in determining whether there has been an overpayment of the chargeable amount or appropriate amount (and the amount of any sum to be repaid or credited before reduction as aforementioned) one payment of the lump sum shall be treated as a payment of the estimated amount in full, and any other proportionately reduced payment or repayment already made shall be treated as not having been so reduced.

(10) In this regulation—

• “the appropriate amount” has the meaning given in paragraph (7); and

• “the estimated amount” means the amount last estimated under paragraph (2) of regulation 20 for the purposes of a demand notice or any subsequent notice given under paragraph 6(3)(b) of Schedule 1 prior to the payment of the single lump sum mentioned in paragraph (1) above; save that if in any case an interim adjustment has been made under paragraph (6), in relation to the next payment, repayment or interim adjustment in that case under this regulation (if any) it means (except in paragraph (9)) the appropriate amount by reference to which the previous interim adjustment was so made.