Council Tax information letters released in December 2020

posted on 16 December 2020, updated on 16 December 2020

The government has released two council tax information letters this month - one including the details of the Breathing Space scheme, and the other introducing a council tax calculation fund deficit spreading tool.

5/2020: Council Tax information letter – 8 December 2020

This letter to all local authorities in England reminds them of the new statutory Breathing Space scheme, introducing the breathing space moratorium and mental health crisis moratorium. With the exception of the provisions referred to in paragraphs (3) to (7), of the regulations these will come into force on 4 May 2021.

The scheme aims to help people in problem debt to better manage their finances, seek professional debt advice and reach sustainable solutions. This letter reminds authorities of the upcoming scheme, what their new obligations will be, and outlines the next steps to ensure that they receive notifications from the Insolvency Service.

Please note that these regulations are relevant to both England and Wales.

You can read the full report here.

6/2020: Council Tax information letter - 15 December 2020

This council tax information letter introduces a council tax calculation fund deficit spreading tool, to help authorities undertake the calculations required by the Local Authorities (Collection Fund: Surplus and Deficit) (Coronavirus) (England) Regulations 2020. 

 The letter indicated that further materials would be provided to assist billing authorities in making the calculations required by the regulations. The department is now able to share a council tax deficit spreading calculation tool and guidance notes for use by billing authorities when estimating their collect fund surpluses and deficits on 15 January 2021.

You can read the full report here.

 

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