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England

Council tax arrears in a debt relief order

Council tax due for the remainder of the financial year is included in a DRO if the debtor has received a reminder notice. Otherwise, the amount due is calculated as a daily rate.

This content applies to England

When council tax falls due

Regulations and case law state that council tax liability is calculated as a daily amount.[1]

The council tax bill sent out by the local authority at the beginning of the tax year is an estimate of liability. It is contingent on the council tax payer remaining in the property for the full year.

Full amount due after reminder notice

The full amount of council tax for the remainder of the financial year falls due 14 days after the local authority issues a reminder notice.[2] The taxpayer loses their right to pay monthly if they receive a reminder notice.

Calculating the daily amount of council tax

The local authority might be willing to provide an exact figure for the amount of council tax due on a specified day. This is the same calculation they use when a taxpayer moves to a different address part way through the financial year.

How to calculate the amount due

The taxpayer's annual council tax bill provides the figures needed to calculate the amount due.

Divide the total amount due for the financial year by the number of days in the current financial year (usually 365). This provides the daily rate of council tax.

Then multiply that amount by the number of days that have passed since the financial year started (6 April).

Deduct payments the taxpayer has already paid towards the total.

Last updated: 20 May 2022

Footnotes

  • [1]

    s.2 Local Government Finance Act 1992; R (Mohammed) v Southwark LBC [2009] EWHC 311 (Admin).

  • [2]

    reg 23(3) Council Tax (Administration and Enforcement) Regulations 1992.