Local Government (Rating) Act 2002

42 Recovery of additional rates in certain cases

(1)

Despite section 41(4), a local authority may recover additional rates from a ratepayer if—

(a)

there has been a change in any matter affecting the liability of the ratepayer to pay rates; and

(b)

the ratepayer has failed to notify the local authority of a change in circumstances in accordance with sections 31 to 33 or any other enactment, or did not do so within the required time; and

(c)

as a result, the local authority has not collected the full amount of rates to which it was entitled for the rating unit.

(2)

The amount of the additional rates recovered under subsection (1) must be calculated in accordance with the following formula:

a − b

where—

a

is the rates that would have been assessed on the rating unit if the notice had been given on time

b

is the rates that were actually assessed on the rating unit from that time.

(3)

The local authority may add interest to the amount calculated under subsection (2) at a rate per annum fixed by the local authority, except that the interest rate, when fixed, must not exceed the rate charged to the local authority by its bank for its day-to-day cash account.

(4)

This section applies to the interest as if it were a penalty imposed under section 58.