Can a Council Tax demand be issued before a referendum ?

By | February 6, 2017

Council Tax demand notice

As at least one Local Authority has looked at setting a Council Tax charge which will be deemed excessive and require a referendum. A common question is whether or not a Demand Notice can be issued before the referendum takes place.

When is a referendum required ?

A referendum is needed where a Local Authority sets an amount which is found to be excessive.

Can the Demand Notice be issued before the referendum ?

Legislation allows a Local Authority to issue a Council Tax Demand Notice prior to a referendum being held. The Local Authority has two options – issue Demand Notices showing a lower, non-excessive, charge or issue Demand Notices showing the higher, excessive, charge.

Until the result of the referendum is known the Council Tax Demand Notice which has been issued remains in force as it would in any other year.

What happens if the referendum fails ?

If the Local Authority had issued Demand Notices showing the lower, non-excessive, charge then no change is needed. If they had issued Demand Notices showing the higher, excessive, charge they must keep the existing Demand Notices and not collect the excess amount or they must issue a revised Council Tax Demand Notice for the lower amount. Any adjustment to the Council Tax charge will be re-calculated for the entire year.

What happens if the referendum passes?

If the Local Authority had issued Demand Notices showing the higher, excessive, charge then no change is needed. If they had issued Demand Notices showing the showing the lower, non-excessive, charge they will issue a revised Council Tax Demand Notice for the higher amount. Any adjustment to the Council Tax charge will be re-calculated for the entire year.

Need expert Council Tax help or assistance ?

This article is solely the view of LGFA92, the Council Tax agents and experts, based on our interpretation of legislation. Your local authority is free to dispute this view. A binding decision may require the intervention of a valuation tribunal.

Contact us today. Email us at info@lgfa92.co.uk, Call us on 0191 6451118 or try the chat box below.

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