Council Tax legality

Council Tax is a tax paid to your local council for the delivery of local services. It usually applies to all domestic properties, whether owned or rented.

We have a duty to collect Council Tax, which was introduced by the Local Government Finance Act 1992 with effect from 1 April 1993. Your liability for Council Tax does not require consent or the existence of a contractual relationship with your local authority.

The Freeman of the Land movement and similar groups commonly believe that they are only bound by the contracts and laws that they have consented to. Contract law and alleged rights under common law are not the same as legislation relating to the billing and collection of Council Tax.

If you don’t pay your Council Tax on time, we will take legal action to collect the tax you owe. This could lead to committal proceedings, or even a prison sentence.

We will always try to resolve debt problems at the earliest opportunity. This means telling people as soon as they have missed their first instalment and provide time for benefits and debt advice through referral to advice agencies. We would also encourage our customers to seek any entitlement to Council Tax support, Housing Benefit or credits and allowances from central government via the Department of Work and Pensions and HMRC.

If you are unable to meet your monthly instalments in full, we would recommend that you pay what you can afford to help reduce the balance. You must contact us immediately if you receive a court summons, so that we can discuss an affordable payment arrangement with you.

Legislation

The legislation that covers Council Tax is available on the government website:

•    Local Government Finance Act 1992
•    Council Tax (Administration and Enforcement) Regulations 1992
•    Council Tax (Demand Notices) (England) Regulations 2011

Local billing authorities have been collecting council tax in England since 1 April 1993, in line with the above legislation. There is no case law citing this legislation is unlawful.

Acts of Parliaments are Statutes set out the law. If you have questions regarding other Acts of Parliament or laws, these should be directed to a legal professional, not the council.

Here are the most common questions and statements we receive about the legality of Council Tax:

Please provide evidence that I am lawfully obliged to pay Council Tax

There is a process for determining the order of liability under Section 6-9 of the Local Government Finance Act 1992. 

Council Tax is a statutory charge and therefore not contractual.

Please provide evidence that I have agreed to pay Council Tax and provide me with the lawful contract I have with you, with both of our signatures

Some residents consider that Council Tax is a contract and requires a legal contract and signatures indicating an agreement. As mentioned above, Council Tax is a statutory charge, and a contract is not required. 

Therefore, any reference to the Companies Act, Contracts Act, Bills of Exchange Act or other acts regarding companies or contracts is irrelevant to your council tax liability.

Please provide evidence that you have the lawful and contractual authority to use the legal fictional name of “XXX” for the purposes of making money.

Council tax is charged and is payable by whoever the liable party is, which is determined under the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992. 

Whether a name is legal or fictional is irrelevant for the purposes of Council Tax.

Provide confirmation the debt exists lawfully

The issue of a Council Tax Demand Notice (the bill) creates the debt. A signature or agreement from a resident is not necessary for Council Tax, it is a tax, not a contract. 

Provide a bill that complies with the Bills of Exchange Act 1882

Council Tax bills are issued in accordance with the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992.

I’m a Freeman of the Land and I am not liable to pay Council Tax

Considering yourself to be a Freeman of the Land does not mean you can choose which laws you adhere to and which law you can choose to ignore.

Provide documents containing a wet ink signature

A signature is not necessary for the billing and collection of Council Tax. A wet ink signature is not mandatory on a court summons. 

The Magistrates Courts (Amendment) Rules 2019 removed the requirement for a signature on a Court summons. Previous case law has clarified that the use of a rubber stamp or an electronic signature are both valid for the purpose of the court signing a summons.

I won’t accept correspondence that isn’t signed, agreed with or I haven’t got a contract with

Anyone who ignores Council Tax communications or withholds their payment, will have recovery action taken against them. As explained, there is no requirement for your consent, agreement, or a contract to be liable for Council Tax.

The summons isn’t legal because it wasn’t issued by the Court

It is the responsibility of the person applying for a summons to serve it on the respondent. This is in accordance with the Magistrates Court Rules 1981. There is no agreement between the courts and Local Authorities to do this, as it is the legal duty of the Local Authority. Therefore, the summons is issued by the court, but printed on their behalf, and posted by the Local Authority.

I want a copy of the liability order

The prescribed format for a liability order was deleted in England by SI 2003/2211 with effect from 1 October 2003 - The Council Tax (Administration and Enforcement) (Amendment) (No. 2) (England) Regulations 2003.

The Magistrates Court, who award the liability orders, publish a list of the names and addresses of those council tax payers against whom an order was granted, together with the amount they owe. The granting of a liability order is a legal process and not an actual document, as such, it cannot be evidenced in the form of a document.

North Yorkshire Council will however provide the debtor with details of the court hearing, Council Tax liability details, amount payable, court costs and how to make payment.

You do not have my consent to share my data with an enforcement agent (previously known as bailiffs)

We will share information with debt management agents to proceed with the collection of revenues, in accordance with The Council Tax (Administration and Enforcement) Regulations 1992.

Please provide evidence that you have my consent to hold my data

Under Regulation 8 of the Data Protection Act 2018, we do not require your consent to process data that is necessary for the performance of a task carried out in the public interest or in the exercise of the controller’s official function conferred by an enactment or rule of law.

Please state if you are a company or a corporation

North Yorkshire Council is a local authority within the public sector and as such, it is not a company or a corporation.