UK Act of Parliament 1988 United Kingdom

Local Government Finance Act 1988

What this means for your business

9 obligations
3 penalties
3 can imprison
7 guides
Applies to
United Kingdom
On this page
9 compliance obligations, 7 practical guides across 2 topics
Read full text on legislation.gov.uk

What you must do

9 compliance obligations under this legislation — 3 can result in imprisonment.

Payments and fees 6

Pay any liability under sections 12‑17 as required

If your business incurs a liability under sections 12 to 17 of the Local Government Finance Act (for example, a rate or local charge), you must settle that amount by making the payment(s) prescribed in the regulations. In practice this means arranging the payment in the manner set out in Schedule 2 and keeping proof that you have done so.

Any Person s.18 Local Authority When a liability arises under sections 12‑17 of the Act

Pay business rates if you use an artificial avoidance arrangement

If your business in Wales tries to dodge non‑domestic (business) rates by using an artificial scheme on a central rating list, the Welsh Ministers will still treat you as liable. You must pay the rates that would have been due for each chargeable day as if the scheme never existed.

Trader/Business s.63J Local Authority If you have entered an artificial non‑domestic rating avoidance arrangement involving a …

Pay non‑domestic business rates when listed

If your business’s name appears on the central non‑domestic rating list for any day of a financial year, you must calculate the rate for each day you’re listed, add them up and pay the total to the appropriate national authority. The payment must be made in the manner set out by the regulations.

Any Person s.54 Local Authority Your name is shown on the central non‑domestic rating list for any …

Pay non‑domestic rates for occupied business premises

If your business occupies any part of a commercial property that appears on the local non‑domestic rating list, you must pay council rates for every day you are in occupation. The amount is worked out daily according to the statutory schedule and must be paid to the billing authority that issued the list.

Occupier s.43 Local Authority When you occupy all or part of a hereditament that is shown …

Pay non‑domestic rates on unoccupied premises

If you own a non‑domestic property that is empty, appears on the local rating list and is in a class that the national authority says attracts rates, you must pay the council the calculated non‑domestic rates for each day it is unoccupied. The amount is worked out by the council’s schedule and must be paid to the billing authority.

Any Person s.45 Local Authority Your whole non‑domestic property is unoccupied on any day in the financial …

Pay the collective community charge to your local authority

If your business (or you personally) appears on the local authority’s register as liable for the collective community charge, you must pay the charge for that financial year. The payable amount is the total charge you’re assessed (Amount A) reduced by the statutory discount (currently 5% unless a different rate is prescribed).

Any Person s.15 Local Authority Being entered on the authority’s register as liable for the collective community …

Offences and prohibitions 3

Make false statements in small business rate relief application

3 months imprisonment

If you apply for small‑business rate relief and knowingly give a false material statement – or act recklessly and give a false material statement – you commit a criminal offence. On conviction you can be jailed for up to three months, fined up to £1,000, or both. The case will be dealt with in the magistrates’ court.

Any Person Schedule 4ZA Local Authority

Provide false information to a valuation officer

3 months imprisonment

If you receive a notice from a valuation officer asking for information and you deliberately or recklessly give a statement that is materially false, you commit an offence. On conviction in the Magistrates' Court you can be sentenced to up to three months in prison, fined up to £1,000, or both.

Occupier Schedule 9 Local Authority

Unauthorised onward disclosure of Revenue & Customs information

2 years imprisonment

If you share Revenue or Customs information that you have received (or allow anyone to deduce a person's identity from it) without a qualifying purpose, consent, court order or other legal authority, you commit a criminal offence. On conviction you can be sentenced to up to two years in prison, an unlimited fine, or both. The offence can be tried either in a magistrates’ court or in the Crown Court, depending on the seriousness of the case.

Any Person s.63B Local Authority

Penalties for non-compliance

3 penalties under this legislation. 3 can result in imprisonment. 1 carry an unlimited fine.

Prison risk

Unauthorised onward disclosure of Revenue & Customs information

Unlimited fine and/or 2 years imprisonment

Either way s.63B Penalises: Unauthorised onward disclosure of Revenue & Customs information
Prison risk

Make false statements in small business rate relief application

Fine up to £1,000 and/or 3 months imprisonment

Summary only Schedule 4ZA Penalises: Make false statements in small business rate relief …
Prison risk

Provide false information to a valuation officer

Fine up to £1,000 and/or 3 months imprisonment

Summary only Schedule 9 Penalises: Provide false information to a valuation officer

Practical guidance

Our guides explain how to comply with the requirements above.

Sections and provisions

238 classified provisions from this legislation.

35 Duties 5 Offences and penalties 73 Powers 21 Definitions 26 Exemptions

Duties 35

  • s.1 The charges. charging authority
  • s.6 Community charges register.
  • s.9 Liability to contribute.
  • s.15 Collective community charge.
  • s.18 Discharge of liability. provision of sections 12
  • s.26A Registration officer: information.
  • s.26 Community charges registration officer.
  • s.39 Information.
  • s.42B Preparation and maintenance of lists.
  • s.43 Occupied hereditaments liability and reliefs. such amount
  • s.45 Unoccupied hereditaments: liability and reliefs. such amount
  • s.54 Central rating: liability and reliefs. such amount
  • s.61 Valuation officers.
  • s.63I Liability to non-domestic rating: local lists
  • s.63J Liability to non-domestic rating: central lists
  • s.63K Liability to non-domestic rating: notification
  • s.78A Requirement to specify determination in local government finance report.
  • s.79 Effect of report’s approval. amount falling
  • s.83 Payment of sums.
  • s.84G Local government finance reports of the receiving authorities
  • ... and 15 more duties

Offences and penalties 5

  • s.22 Administration and penalties.
  • s.63B Restrictions on onward disclosure of Revenue and Customs information
  • s.63M Penalties
  • Schedule 4ZA Occupied hereditaments: chargeable amount
  • Schedule 9 Non-Domestic Rating: Administration

Powers 73

  • Schedule 3 Imposition by authority
  • Schedule 4 Introduction
  • s.4 Section 3: interpretation.
  • s.10 Contributions: interpretation of formula.
  • s.12 Personal community charge.
  • s.13 Relief for students.
  • s.13A Reduced liability.
  • s.14 Standard community charge.
  • s.19 Co-owners.
  • s.25 Death.
  • s.27 Default powers as to registers.
  • s.28 Default powers as to resources.
  • s.29 Rights of electoral registration officers.
  • s.30 Students.
  • s.31 Interpretation.
  • s.32 Amount for personal community charges.
  • s.33 Setting of different amounts.
  • s.34 Power to set substituted amounts.
  • s.40 Standard community charge multipliers.
  • s.48A Discretionary relief: functions of Mayoral development corporations
  • ... and 53 more powers

Definitions 21

  • s.2 Persons subject to personal community charge.
  • s.5 Persons subject to collective community charge. Interest
  • s.16 Joint and several liability: spouses. the chargeable period
  • s.17 Joint and several liability: management arrangements. the chargeable period
  • s.35C Multiple substitutions.
  • s.35A Section 35: interpretation.
  • s.36 Substituted amounts: supplementary.
  • s.63G Meaning of “advantage” an advantage
  • s.63F Artificial non-domestic rating avoidance arrangements: introduction
  • s.63H Meaning of “artificial” enactments relating to non-domestic rating
  • s.67 Interpretation: other provisions. class
  • s.76 Interpretation. The Assembly
  • s.88 Transport grants: supplementary.
  • s.116 Information about consideration of reports etc.
  • s.123 Rating amendments: miscellaneous. the 1967 Act valuation list
  • s.144 Interpretation: authorities.
  • s.145 Interpretation: financial years etc.
  • s.146 Interpretation: other provisions.
  • Schedule 5A Central rating: chargeable amount English central rating list Qualifying improvement works
  • Schedule 7 Non-Domestic Rating: Multipliers Revaluation year
  • ... and 1 more definitions

Exemptions 26

  • Schedule 5 Non-Domestic Rating: Exemption
  • s.21 Standard community charge: special cases.
  • s.23 Appeals.
  • s.35 Duty to set substituted amounts.
  • s.35B Substitutions: maximum amounts.
  • s.37 Power to anticipate precept.
  • s.42 Contents of local lists.
  • s.42A Rural settlement list.
  • s.44A Partly occupied hereditaments.
  • s.47 Discretionary relief.
  • s.48 Discretionary relief: supplementary.
  • s.50 Joint owners or occupiers.
  • s.51 Exemption.
  • s.59 Contributions in aid.
  • s.63C Freedom of information
  • s.65 Owners and occupiers.
  • s.66 Domestic property.
  • s.89A Principal councils in Wales.
  • s.89 Collection funds.
  • s.91 General funds.
  • ... and 6 more exemptions