Local Government (Financial Provisions) Act, 1978

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Allowances by certain landlords to certain tenants.

5.—(1) Where—

(a) a dwelling other than a small dwelling is let, and

(b) an allowance is made under this Act in relation to the relevant hereditament by a rating authority, and

(c) before the 1st day of January, 1978, the landlord paid or allowed to the person who was the tenant a deduction or set-off against, or indemnified such person in respect of, the rates,

then for so long, but only for so long, as such person continues to be the tenant the landlord shall—

(d) in case such person was tenant of the dwelling immediately before the commencement of this section, on and from such commencement make to the tenant—

(i) where the dwelling comprises, the whole of the premises to which the allowance mentioned in paragraph (b) of this subsection is made,

(A) an allowance in relation to the specified local financial year equal to the sum obtained by dividing the amount of the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year by 365 and then multiplying the result by the number of days in the specified local financial year each of which is a day on which such person continued to be such tenant,

(B) an allowance in relation to any local financial year subsequent to the specified local financial year equal to the sum determined by the formula

where—

A is the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year, and

B is the number of days in the said subsequent local financial year each of which is a day on which such person continued to be such a tenant,

(ii) where the dwelling does not comprise the whole of such premises—

(A) an allowance in relation to the specified local financial year equal to such proportion of the sum referred to in subparagraphs (i) (A) of this paragraph as may be agreed between the landlord and the tenant or in default of such agreement such allowance (if any) as is appropriate having regard to subsection (4) (a) of this section,

(B) an allowance in relation to any local financial year subsequent to the specified local financial year equal to such portion of the sum referred to in subparagraphs (i) (B) of this paragraph as may be so agreed or in default of such agreement such allowance (if any) as is appropriate having regard to subsection (4) (b) of this section,

(e) in case such person was not tenant of the dwelling immediately before the commencement of this section but was tenant of the dwelling immediately before the 1st day of January, 1978, on and from the said 1st day of January make to the tenant—

(i) where the dwelling comprises the whole of the premises to which the allowance mentioned in paragraph (b) of this subsection is made, an allowance (if any) in relation to each local financial year subsequent to the specified local financial year equal to the sum determined by the formula

where—

A is the amount of the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year, and

B is the number of days in the local financial year as regards which the allowance under this Act is being made by a rating authority each of which is a day on which such person continued to be such tenant,

(ii) where the dwelling does not comprise the whole of such premises, an allowance in relation to any local financial year subsequent to the specified local financial year equal to such proportion of the sum determined in accordance with the formula contained in subparagraph (i) of this paragraph as may be agreed between the landlord and the tenant or in default of such agreement such allowance as is appropriate having regard to subsection (4) (c) of this section.

(2) (a) Where a dwelling is not separately valued under the Valuation Acts, the relevant rating authority may, on the application of the landlord or the tenant of the dwelling, for, and only for, the purposes of this section apportion to the dwelling such part as they consider appropriate of the rateable valuation (being that fixed as regards the specified local financial year) of the hereditament in which the dwelling is comprised; provided that at the time the application is made to the authority an allowance is allowable under this Act by a rating authority as regards the dwelling.

(b) (i) Where, under this section, a rating authority apportion to a dwelling part of a rateable valuation, the authority shall not later than seven days after the days on which the apportionment is made give to both the landlord and tenant concerned notice in writing of the apportionment.

(ii) A notice given under this paragraph by a rating authority shall include a statement of the provisions of subparagraph (iii) of this paragraph and subsection (3) of this section.

(iii) Where a landlord receives a notice given to him pursuant to the requirements of subparagraph (ii) of this paragraph, he shall, not later than ten days after receipt of the notice, give to each tenant of any dwelling of which the hereditament to which the apportioned valuation relates is partly comprised a copy of the notice.

(3) Where an apportionment is made under this section by a rating authority, the apportionment shall come into force—

(a) in case no appeal in respect thereof is taken under section 7 of this Act, upon the expiration of the period during which such an appeal may be taken,

(b) in case such an appeal is taken and the apportionment is confirmed, on the day next following the day on which the confirmation is made, or in case the appeal is withdrawn, on the expiration of the period mentioned in paragraph (a) of this subsection or on the day next following the day on which the appeal is withdrawn, whichever is the later.

(4) Where an apportionment for the purposes of this section, whether made under this section or on an appeal under section 7 of this Act, comes into force—

(a) for the purposes of subsection (1) (d) (ii) (A) of this section the allowance which is appropriate shall be the sum determined by the formula

where—

A is the apportioned valuation,

B is the rate in the pound for the specified local financial year, and

C is the number of days in the specified local financial year each of which is a day on which the tenant concerned continued to be such under the relevant tenancy,

(b) for the purposes of subsection (1) (d) (ii) (B) of this section the allowance which is appropriate shall be the sum determined by the formula

where—

A is the apportioned valuation,

B is the rate in the pound for the specified local financial year, and

C is the number of days in the local financial year as regards which the allowance under this Act is being made by a rating authority each of which is a day on which the tenant concerned continued to be such under the relevant tenancy,

(c) for the purposes of subsection (1) (e) (ii) of this section the allowance which is appropriate shall be the sum determined by the formula

where—

A is the apportioned valuation,

B is the rate in the pound for the specified local financial year, and

C is the number of days in the local financial year as regards which the allowance under this section is being made each of which is a day on which the tenant concerned continued to be such under the relevant tenancy.

(5) An allowance required by this section to be made by a landlord shall be a debt due and owing by the landlord to the tenant concerned, and in default of being made to such tenant by way of set-off or otherwise may be recovered by that tenant or by his personal representative as a simple contract debt in any court of competent jurisdiction.