Your legal responsibility to pay council tax

What council tax is

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

We have a duty to collect council tax, which was introduced by the Local Government Finance Act 1992. Your liability for council tax does not require consent or the existence of a contractual relationship with us.

What happens if you don’t pay your council tax

We will always try to resolve council tax debt problems at the earliest opportunity with you. This means telling you as soon as you have missed your first instalment and providing time for benefits and debt advice - through referral to advice agencies.  

We would also encourage you 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 can’t pay 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. 

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 court proceedings, or even a prison sentence.  

Please visit our if you don't pay your council tax page for more information. 

Legislation for council tax

You can read the legislation that covers council tax 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 (including Rushmoor Borough Council) have been collecting council tax in England since 1 April 1993, in line with the above legislation.  

There is no case law saying this legislation is unlawful.  

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

Acts of parliament are statutes that set out the law. If you have questions about other acts of parliament or laws, these should be directed to a legal professional, not us at the council.

How we issue your council tax bill and the process

We sometimes receive specific questions about why you must pay council tax and the reasons for the processes we follow. We have explained them below.  

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.

How a council tax debt exists lawfully

We issue the council tax demand notice (the bill) under the Local Government Finance Act 1992 and the Council Tax (Administration and Enforcement) Regulations 1992. 

The issue of this 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.

Who must pay council tax 

There is a process for who has to pay council tax and 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. It does not need a legal contract or signatures indicating an agreement. 

Any reference to the Companies Act, Contracts Act, Bills of Exchange Act or other acts about companies or contracts is not relevant to you having to pay council tax. 

Wet ink signatures for the billing and collection of council tax 

A signature is not needed 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. 

Who serves a court summons

It is our responsibility, as we are applying for a summons, to serve it on the respondent. The Magistrates’ Courts Rules 1981 require us to do this. 

There is no agreement between the courts and us to do this, it is our legal duty. Therefore, the summons is issued by the court, but printed on their behalf, and posted by us. 

Liability orders in court 

A liability order is a legal process and not an actual document, as such, it cannot be evidenced in the form of a document. 

A magistrates court, who award the liability orders, publishes 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 format/template 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. 

We will instead provide the debtor with details of the court hearing, council tax liability details, amount payable, court costs and how to make payment. 

Consent to hold your personal data

We do not need your consent to use your personal information when this is necessary to carry out a task in the public interest or our legal duties as a council.

This is under Regulation 8 of the Data Protection Act 2018. 

Consent to share personal data with an enforcement agent (previously known as bailiffs)

We will share your information with debt management agents so they can collect the council tax you owe. The Council Tax (Administration and Enforcement) Regulations 1992 allows us to do this.