Challenges to the legality of council tax

Council tax is a Statutory Tax payable by occupiers and property owners. Islington Council is responsible for billing and collecting council tax.

Council tax is not a direct charge for individual services provided to residents and is therefore not adjusted to reflect the level or types of services used by each taxpayer. 

The amount of council tax collected from each taxpayer is paid into a central fund which allows the Council to fund the provision of vital services to local residents, benefiting the whole community.

Laws which require council tax payment

Your liability is determined by the following legislation: 

• The Local Government Act 1972 
• The Local Government Finance Act 1992 (Part 1, Chapter 1, Sections 6-9) 
• Council tax (Administration and Enforcement) Regulations 1992
• Council tax (Demand Notices) (England) Regulations 2011 

This legislation covers the liability to pay, billing and recovery of council tax. The legislation can be viewed at: Legislation.gov.uk

How we spend council tax

Council budgets and spending information are available on our website. Read our funding and spending section. 

Further information about council tax in Islington can be found on our council tax section.

What happens if you don't pay council tax 

Anyone who withholds payment of their council tax will be subject to recovery and enforcement proceedings being taken against them. 

We would recommend that you seek legal advice (at your own expense) before using arguments such as Freeman of the Land as a defence against the payment of council tax. 

In 2015, an individual claiming to be a Freeman of the Land attempted to argue he was not liable to pay council tax on the grounds that a contract was required and that he had not consented to it. The individual was sentenced to 40 days in prison by Manchester Magistrates Court (Manchester City Council v McKenzie [2015]). 

About the Freeman on the Land movement 

The Freeman on the Land movement believe that they are exempt from paying council tax, since they believe that they are only bound by statute laws and contracts that they have consented to. 

However, they are incorrect. Being a Freeman on the Land does not mean that a person is able to choose which laws they adhere to. A person’s liability to pay council tax does not require your consent or a contractual relationship with the Council. 

Frequently asked questions

There are a number of misleading articles on the internet which question the legality of council tax. Below we have addressed some of the frequently asked questions related to the legality of council tax collection and how these monies are spent.

Can you provide a signed copy of my contract with you that requires me to pay (with both of our signatures)? 

Council tax was created by statute, and a contract is not required. Therefore, your liability to pay council tax is not dependent on and does not require your consent or a contractual relationship with the Council. As it is a tax collected by the council as a public authority under legislation, references to the Companies Act, Contracts Act, Bills of Exchange Act, or other acts about companies or contracts are not relevant. The levy and recovery of council tax does not require an exchange of contracts or an individual agreement. 

Can you provide confirmation that the debt exists lawfully? 

The issue of a council tax Demand Notice (the bill) creates the debt. A signature or agreement from a resident is not necessary for council tax liability; it is a tax, not a contract. 

Can you provide documents containing a wet ink signature? 

A wet ink signature is not mandatory for the billing of council tax or a court summons. Case law has clarified that rubber stamps or electronic signatures are valid. 

Can you provide evidence that you have the lawful and contractual authority to use the legal fictional name of "XXX" for the purposes of making money? 

Whether a name is legal or fictional is irrelevant for the purposes of council tax. Council tax is charged and is payable by whoever the liable party is, which is determined by reference to the Local Government Finance Act 1992 and council tax (Administration and Enforcement) Regulations 1992. The Local Government Finance Act 1992 is statute, created by a democratically elected Parliament of the United Kingdom which has received the assent of the Crown and subsequent statutory regulations, sets out Islington’s rights to demand council tax to fund services and who is liable to pay. 

Can you provide a true bill that complies with the Bills of Exchange Act 1882? 

The council must and does comply with the requirements of the Local Government Finance Act 1992 and council tax (Administration and Enforcement) Regulations 1992. These are the only items of legislation relevant to the propriety of a council tax demand.  

Can I seek legal advice for a fraud claim if a Liability Order is granted without my presence, consent and opportunity to bring all of the above to my attention?

Disputes about the granting of a Liability Order should be addressed with the Magistrates’ Court. You need to explain why you believe Islington Council has not followed the correct process and apply for your liability order to be set aside. 

What should I do if I only accept legitimate communication through a recognised official service following universal postal union convention rules? 

Ignoring council tax communications is not advisable. Islington Council will take action to recover arrears. For more information, read our page on Non-payment of council tax.

How do I get a liability order where one is granted? 

After a Magistrates’ Court Hearing, a full list of granted Liability Orders is produced. This list contains the names, addresses, and owed amounts. Both the council and the Magistrates’ Court retain electronic copies of this list. 

Can you provide evidence of where I have given my consent authorising Islington Council to hold my data? 

The council does not need consent to process data necessary for the performance of a public task or legal function. This is outlined in Article 6 (c) and (e) of the UK GDPR legislation. 

Which companies does Islington Council share my personal data with?

The council shares liability order details with debt collection agents to recover monies owed. Personal data may also be shared to detect or prevent fraud. More information about data sharing can be found on our privacy notice webpage.

Are you a company or a corporation? 

London Borough of Islington is a local authority within the public sector and does not have a company number for that reason. 

Can you send me your VAT details/provide a VAT invoice?

Council tax falls outside the scope of VAT. So, no VAT invoice is required.