Commentary on Sections Part 2 – Council Tax Section 17 – Calculation of tax for different valuation bands
84.This section amends section 5 of the Local Government Finance Act 1992 (“the 1992 Act”) by inserting new subsections (4B) and (4C). Section 5 makes provision for the amounts of council tax payable in relation to a dwelling to be set by reference to council tax bands, relative to proportions assigned to each band (in Wales) by subsection (1A). Sections 36 and 47 of the 1992 Act provide that the amount payable for each band is to be calculated by applying a formula including the relevant proportion for that band, as divided by “D”.
85.Before the amendment, the meaning of the letter “D” in both formulae is fixed as the proportion for Band D.
86.After the amendment, new subsection (4B) gives the Welsh Ministers a power to change the valuation band referred to in the meaning given to “D” by sections 36 and 47. New subsection (4B) also restates, for the Welsh Ministers, the existing powers under subsection (4) to substitute another proportion in relation subsection (1A), and to other valuation bands in relation to subsection (3) (which contains the list of valuation bands for dwellings in Wales). And new subsection (4C) repeats, for new subsection (4B), the equivalent clarification, in respect of subsection (4)(b), in subsection (4A).