COUNCIL TAX
PRECEPTS

 


 
 
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Levying authorities set precepts which are the sums of money to be raised from council tax in their localities. The money is used to finance the net expenditure of the authority and represents its budget requirement after income from government grants and national non domestic rates have been deducted. The money is collected by billing authorities and paid over to levying (Precepting) authorities.  The term “precept” is derived from the Latin præcipe which means command and when it is used in the context of local finance it represents a legally binding instruction to collect a stipulated sum of council tax. Precepting authorities are those entitled to instruct billing authorities to collect council tax for them. Precepts are the amounts of council tax that every billing and Precepting authority requires in order to finance the services that they provide. Precepting authorities include some county councils, the Greater London Authority, parish councils, passenger transport executives, police and fire authorities, and civil parishes. Each authority sets a sum of money to be raised (precept) from households in the locality. This amount is divided by the number of band D equivalent properties in the local authority area and the resulting sum is the tax to be paid on a band D home. The rates for the council tax bands have a fixed ratio to each other and therefore the amounts payable for the remaining bands can be calculated from the band D rate. Council tax bills show Precepts as separate items.

 

 


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