Finance (Local Property Tax) Act 2012 section 19

Local adjustment factor

Section 19 defines two key terms — "basic rate" and "local adjustment factor" — used in connection with the power of local authorities to vary the standard local property tax rates in their areas.

• The "basic rate" refers to each of the standard percentage rates and fixed amounts of local property tax set out in section 17 of the Act, which determine how much LPT is payable on a residential property.
• The "local adjustment factor" is the percentage, specified by resolution of a local authority's elected members under section 20, by which the basic rate is to be varied upwards or downwards.
• Local authorities may increase or decrease the basic LPT rate applying to residential properties within their administrative area by up to 15 per cent.
• The provisions enabling local adjustment came into operation on 1 July 2013 and were subsequently amended in 2013 and 2021.