UK Act of Parliament 1988 United Kingdom

Local Government Finance Act 1988

View on legislation.gov.uk Ask Guv about this Act

At a glance

Enforced by

What's here

40 compliance obligations, 7 practical guides across 2 topics · 12 journeys

Penalty landscape

2 of 40 obligations carry a criminal penalty. 3 carry different penalties and 35 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

Any Person 9
Occupier 2

Plus 29 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Step-by-step journeys using this legislation

Walkthroughs that take you from a real business situation to compliance.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

2 guides

Business rates in Wales: relief schemes and how to claim

Claim Improvement Relief for business premises in Wales

Supporting — topic alignment

4 guides

Challenging your business rates and revaluation

Mentioned in related content

1 guides

Leave your business premises

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 749 other Acts (top 5 shown)

Human Medicines Regulations 2012 2012 110 duties
Licensing Act 2003 2003 105 duties
Merchant Shipping Act 1995 1995 97 duties
Road Traffic Act 1988 1988 95 duties
Air Navigation Order 2016 2016 86 duties

Occupiers also bound by 101 other Acts (top 5 shown)

Regulatory Reform (Fire Safety) Order 2005 (England/Wales comparison) 2005 23 duties
Fire Safety (Scotland) Regulations 2006 2006 21 duties
Avian Influenza and Influenza of Avian Origin in Mammals (England) (No. 2) Order 2006 2006 15 duties
Nitrate Pollution Prevention Regulations 2015 2015 13 duties
Highways Act 1980 1980 12 duties

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part I

s.001

The charges.

Other duties (1) — Crown / regulator

Charging authority must manage and collect local community charges Local authority

s.006

Community charges register.

Other duties (1) — Crown / regulator

Local authorities must compile and maintain a community charges register Local authority

s.009

Liability to contribute.

Collect community charge contributions from residents Any Person

s.015

Collective community charge.

Pay collective community charge and manage resident contributions Any Person

s.018

Discharge of liability.

Pay your business rates and local tax liabilities Any Person

s.022

Administration and penalties.

Fail to provide information for business rates or council tax Any Person

s.026

Community charges registration officer.

Other duties (1) — Crown / regulator

Charging authority must appoint and resource a registration officer Local authority

s.026

Registration officer: information.

Other duties (1) — Crown / regulator

Registration officer must provide non-personal information to the Secretary of State Local authority

Browse 25 other sections in this Part — procedural / definitional / commencement

s.002

Persons subject to personal community charge.

s.003

Persons subject to standard community charge.

s.004

Section 3: interpretation.

s.005

Persons subject to collective community charge.

s.007

Persons subject to charges: miscellaneous.

s.008

Registers: miscellaneous.

s.010

Contributions: interpretation of formula.

s.011

Contributions: further provisions.

s.012

Personal community charge.

s.013

Relief for students.

s.013

Reduced liability.

s.014

Standard community charge.

s.016

Joint and several liability: spouses.

s.017

Joint and several liability: management arrangements.

s.019

Co-owners.

s.020

Contributions in aid.

s.021

Standard community charge: special cases.

s.023

Appeals.

s.024

Appeals: preliminary steps.

s.025

Death.

s.027

Default powers as to registers.

s.028

Default powers as to resources.

s.029

Rights of electoral registration officers.

s.030

Students.

s.031

Interpretation.

Part II

s.039

Information.

Other duties (1) — Crown / regulator

Local authorities must publish notice of council tax or rates amounts Local authority

Browse 11 other sections in this Part — procedural / definitional / commencement

s.032

Amount for personal community charges.

s.033

Setting of different amounts.

s.034

Power to set substituted amounts.

s.035

Duty to set substituted amounts.

s.035

Section 35: interpretation.

s.035

Substitutions: maximum amounts.

s.035

Multiple substitutions.

s.036

Substituted amounts: supplementary.

s.037

Power to anticipate precept.

s.038

Anticipated precepts: supplementary.

s.040

Standard community charge multipliers.

Part III — Non-Domestic Rating

s.042

Preparation and maintenance of lists.

Other duties (1) — Crown / regulator

Local authorities must maintain and publish rural settlement lists Local authority

s.043

Occupied hereditaments liability and reliefs.

Pay business rates on occupied commercial property Occupier

s.045

Unoccupied hereditaments: liability and reliefs.

Pay business rates on unoccupied commercial property Any Person

s.054

Central rating: liability and reliefs.

Pay non-domestic rates if listed on a central rating list Any Person

s.061

Valuation officers.

Other duties (1) — Crown / regulator

Commissioners of Inland Revenue must appoint valuation officers Crown / Minister / Government department

s.063

Restrictions on onward disclosure of Revenue and Customs information

2 years imprisonment

Unlawfully share tax or valuation data Any Person

s.063

Liability to non-domestic rating: local lists

Other duties (1) — Crown / regulator

Local authorities must ignore artificial schemes to avoid business rates Local authority

s.063

Liability to non-domestic rating: central lists

Other duties (1) — Crown / regulator

Welsh Ministers must disregard tax avoidance in business rates calculations Crown / Minister / Government department

s.063

Liability to non-domestic rating: notification

Other duties (1) — Crown / regulator

Local authorities must notify persons of business rates liability and reviews Local authority

Browse 48 other sections in this Part — procedural / definitional / commencement

s.041

Local rating lists :England.

s.041

Local non-domestic rating lists for Welsh billing authorities.

s.041

Local rating lists: Wales

s.042

Contents of local lists.

s.042

Rural settlement list.

s.044

Occupied hereditaments: supplementary.

s.044

Partly occupied hereditaments.

s.045

Unoccupied hereditaments: zero-rating

s.046

Unoccupied hereditaments: supplementary.

s.046

Unoccupied hereditaments: new buildings.

s.047

Discretionary relief.

s.048

Discretionary relief: supplementary.

s.048

Discretionary relief: functions of Mayoral development corporations

s.049

Reduction or remission of liability.

s.049

Cancellation of backdated liabilities for days in years 2005 to 2010

s.050

Joint owners or occupiers.

s.051

Exemption.

s.052

Central rating lists for England.

s.052

Central rating lists for Wales

s.053

Contents of central lists.

s.054

Postponement of compilation of Welsh lists for 2015 onwards

s.054

Power to amend revaluation year: Wales

s.054

Relief for telecommunications infrastructure

s.055

Alteration of lists.

s.056

Valuation and multipliers.

s.057

Special provision for 1990-95.

s.057

Transitional provision for 2005 onwards: England

s.058

Special provision for 1995 onwards.

s.059

Contributions in aid.

s.059

Local retention of non-domestic rates

s.060

Pooling.

s.062

Administration.

s.062

Recovery by taking control of goods

s.063

Death.

s.063

Disclosure of Revenue and Customs information

s.063

Freedom of information

s.063

Disclosure of valuation information to Northern Ireland rating officials

s.063

Artificial non-domestic rating avoidance arrangements: introduction

s.063

Meaning of “advantage”

s.063

Meaning of “artificial”

s.063

Appeals to valuation tribunal

s.063

Penalties

s.064

Hereditaments.

s.065

Owners and occupiers.

s.065

Crown property.

s.066

Domestic property.

s.066

Unoccupied hereditaments: change of state of property to be disregarded

s.067

Interpretation: other provisions.

Part IV — Precepts and Levies

Browse 10 other sections in this Part — procedural / definitional / commencement

s.068

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s.069

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s.070

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s.071

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s.072

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s.073

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s.074

Levies.

s.074

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s.075

Special levies.

s.075

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Part V — Grants

s.078

Requirement to specify determination in local government finance report.

Other duties (1) — Crown / regulator

Secretary of State must specify grant distribution in finance reports Crown / Minister / Government department

s.079

Effect of report’s approval.

Other duties (1) — Crown / regulator

Secretary of State must pay revenue support grants to local authorities Crown / Minister / Government department

s.083

Payment of sums.

Other duties (1) — Crown / regulator

Secretary of State must pay funding sums to local authorities Crown / Minister / Government department

s.084

Revenue support grant: Wales

Other duties (1) — Crown / regulator

Welsh Ministers must pay revenue support grants to local authorities Crown / Minister / Government department

s.084

Determination of grant

Other duties (1) — Crown / regulator

Welsh Ministers must determine and consult on local government grants Crown / Minister / Government department

s.084

Local government finance reports

Other duties (1) — Crown / regulator

Welsh Ministers must publish and distribute local government finance reports Crown / Minister / Government department

s.084

Effect of report’s approval

Other duties (1) — Crown / regulator

Welsh Ministers must pay revenue support grants to local authorities Crown / Minister / Government department

s.084

calculation of grant payable to receiving authorities

Other duties (1) — Crown / regulator

Welsh Ministers must calculate and notify councils of revenue support grants Crown / Minister / Government department

s.084

Payment of grant to receiving authorities

Other duties (1) — Crown / regulator

Welsh Ministers must pay revenue support grants and manage adjustments Crown / Minister / Government department

s.084

Recalculation of grant following amending report

Other duties (1) — Crown / regulator

Welsh Ministers must recalculate revenue support grants for local authorities Crown / Minister / Government department

s.084

Payment of grant following amending report

Other duties (1) — Crown / regulator

Welsh Ministers must pay or reclaim grant differences to local authorities Crown / Minister / Government department

s.086

Additional grant: Wales

Other duties (1) — Crown / regulator

Welsh Ministers must notify local authorities of additional grant funding Crown / Minister / Government department

s.086

Effect of additional grant report’s approval: Wales

Other duties (1) — Crown / regulator

Welsh Ministers must pay and distribute additional grants to local authorities Crown / Minister / Government department

Browse 22 other sections in this Part — procedural / definitional / commencement

s.076

Interpretation.

s.077

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s.077

Application of Chapter 2

s.078

Revenue support grant.

s.080

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s.081

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s.082

Calculation of sums payable.

s.084

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s.084

Amending reports.

s.084

Calculation of sums payable under amending reports.

s.084

Payment of sums under amending reports.

s.084

Application of Chapter 3

s.084

Amending reports

s.084

Information deadlines

s.084

Application of this Chapter etc

s.085

Additional grant.

s.086

Effect of report’s approval.

s.087

Transport grants.

s.088

Transport grants: supplementary.

s.088

Council tax grants.

s.088

Special grants.

s.088

Special grants: Wales

Part VI — Funds

s.093

The City fund.

Other duties (1) — Crown / regulator

Common Council must establish and manage the City fund Local authority

Browse 11 other sections in this Part — procedural / definitional / commencement

s.089

Collection funds.

s.089

Principal councils in Wales.

s.090

Payments to and from collection funds.

s.091

General funds.

s.092

General funds: supplementary.

s.094

The City: further provisions.

s.095

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s.096

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s.097

Principal transfers between funds.

s.098

Other transfers between funds.

s.099

Regulations about funds.

Part VII

s.107

Substituted calculations and precepts.

Other duties (1) — Crown / regulator

Local authorities must re-calculate tax limits if notified of errors or changes Local authority

s.109

Other financial requirements.

Other duties (1) — Crown / regulator

Secretary of State may impose financial requirements on local authorities Crown / Minister / Government department

Browse 9 other sections in this Part — procedural / definitional / commencement

s.100

Power to designate authorities.

s.101

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s.102

Designation of authorities.

s.103

Transitional years: special provisions.

s.104

Challenge of maximum amount.

s.105

Acceptance of maximum amount.

s.106

No challenge or acceptance.

s.108

Failure to substitute.

s.110

Information.

Part VIII — Financial Administration

s.111

Interpretation.

Amended 27 times

s.112

Financial administration as to certain authorities.

Amended 7 times

s.113

Qualifications of responsible officer.

Amended 7 times

s.114

Functions of responsible officer as regards reports.

Amended 28 times

Other duties (1) — Crown / regulator

Local Authority Chief Finance Officer must report unlawful spending or deficits Local authority

s.114

Functions of responsible officer as regards reports—local authorities operating executive arrangements

Amended 28 times

Other duties (1) — Crown / regulator

Council finance officers must report and stop unlawful local spending Local authority

s.115

Authority’s duties as regards reports.

Amended 26 times

s.115

Duties of Mayor of London and London Assembly as regards reports.

Amended 26 times

s.115

Duties of executive as regards reports

Amended 26 times

s.116

Information about consideration of reports etc.

Amended 12 times

Part IX — Existing Rates, Precepts and Grants

s.117

Rates and precepts: abolition.

Amended 4 times

s.126

Variation of multipliers in supplementary reports.

Amended 2 times

Browse 9 other sections in this Part — procedural / definitional / commencement

s.118

Rates: power to abolish or modify.

s.119

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s.120

Refund of overpayments.

s.121

Valuation according to tone of list.

s.122

Rating of statutory water undertakings.

s.123

Rating amendments: miscellaneous.

s.124

Rate support grant: abolition.

s.125

Transport grants: abolition.

s.127

London Regional Transport grants: amendment.

Part X — Scotland

s.128

Levying of rates.

Amended 1 time

Browse 1 other section in this Part — procedural / definitional / commencement

s.129

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Part XI — Miscellaneous and General

s.138

Judicial review.

Amended 4 times

s.139

Functions to be discharged only by authority.

Amended 1 time

s.139

Information.

Amended 1 time

s.140

Separate administration in England and Wales.

Amended 9 times

s.141

Payments to and from authorities.

Amended 12 times

s.141

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Amended 12 times

s.141

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Amended 12 times

s.143

Orders and regulations.

Amended 47 times

s.143

Orders and regulations of the Welsh Ministers

Amended 47 times

s.144

Interpretation: authorities.

Amended 3 times

Browse 16 other sections in this Part — procedural / definitional / commencement

s.130

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s.133

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s.134

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s.135

Social security.

s.136

Tribunals.

s.137

Amendments.

s.142

Saving for remedies.

s.145

Interpretation: financial years etc.

s.145

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s.146

Interpretation: other provisions.

s.147

Power to make supplementary provision.

s.148

Finance.

s.149

Repeals.

s.150

Commencement: Scotland.

s.151

Extent.

s.152

Citation.

Schedules

s.sch004za

Occupied hereditaments: chargeable amount

3 months imprisonment

Provide false information in a small business rate relief application Any Person

s.sch008

Non-Domestic Rating: Pooling

Other duties (1) — Crown / regulator

Calculate and pay non-domestic rating contributions to Welsh Ministers Local authority

s.sch009

Non-Domestic Rating: Administration

3 months imprisonment

Provide false or reckless information about business premises Occupier

s.sch011

Tribunals

Agree in writing if referring a tax or rating dispute to arbitration Any Person

Browse 16 other Schedules — structural / supplementary

s.003

Imposition by authority

s.004

Introduction

s.005

Non-Domestic Rating: Exemption

s.012

Amendments

s.013

Repeals

s.sch001

Persons in detention

s.sch002

Introduction

s.sch004a

Non-Domestic Rating: New Buildings (Completion Days)

s.sch004zb

Unoccupied hereditaments: chargeable amount

s.sch005a

Central rating: chargeable amount

s.sch006

Non-Domestic Rating: Valuation

s.sch007

Non-Domestic Rating: Multipliers

s.sch007a

Non-Domestic Rating: 1990-95

s.sch007b

Local retention of non-domestic rates

s.sch010

Competition test: functions and agreements relating to buses

s.sch012a

Population of area

Read the full Act on legislation.gov.uk

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

Amended guidance on the late night levy (opens in a new tab) Publication
Check your rateable value (VOA) (opens in a new tab) Detailed Guidance
Improvement Relief (Business Wales) (opens in a new tab) Detailed Guidance
RLH Rates Relief 2026-27 (Business Wales) (opens in a new tab) Detailed Guidance
Non-Domestic Rates - Small Business Rates Relief (Business Wales) (opens in a new tab) Detailed Guidance
Non-domestic rates - GOV.WALES (opens in a new tab) Detailed Guidance
Charitable rate relief (opens in a new tab) Detailed Guidance
Empty property rate relief (opens in a new tab) Detailed Guidance
Retail, Hospitality and Leisure Relief (England) (opens in a new tab) Detailed Guidance
Business trading rules (Scotland) (opens in a new tab) Detailed Guidance
... and 6 more

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

Local Authority

Primary

Local Authority (Environmental Health / Licensing / Planning)

Local councils enforce food safety (via Environmental Health Officers), issue alcohol licences, grant planning permission, and regulate certain business activities at local …

VOA

Valuation Office Agency

Executive agency of HMRC. Provides property valuations for council tax and business rates. Maintains the rating list used to calculate business rates. …