I have a client who has overpaid there council tax 2002-2003 by £400.00.This was queried at the time. Before any money is returned they have asked that both my client and his partner provide information as to where they were living from 1988 onwards and they are unsure of dates,times and address and other liabilty. Can the council withhold this money?

Cannot think why the Local Authority are withholding monies. However the interesting issues here are "why the Local Authority is asking for information going back to 1988" which is 15 years after the event

A certain amount of checking that a sum that size is properly due might, I guess, be expected. Where CT Benefit has been paid it is usual in my authority for the revenues people to get the benefits people to double-check the accuracy of the benefit assessments before paying out refunds. Asking people to account for their movements over 20 years (esp. if the refund only concerns 1 year) looks ridiculously OTT to me on just a bare reading of the facts as presented.

The council might be looking to track any outstanding liability for unpaid council tax back to 1993 and for any unpaid poll tax back to 1989 (Scotland) and it is entirely legitimate for it to do so. However, following the decision in Kerr, the LA should not put the entire onus on your client to provide the information but must collaborate with him. For instance, the LA could be able to get some information from the electoral roll far more easily than he can and if so should do so.

If there are unpaid taxes your client needs to be vigilant. Some LA’s did not get liability orders for unpaid poll tax by the time it was abolished in 1993 and were too swamped with the administration and enforcement of the new council tax to bother with the poll tax after that date. Thus they had until April 1999 to do so under the Limitation Act 1980.

The LA might still try to get a liability order, for either unpaid poll tax or council tax, more than 6 years after the liability accrued. If this happens your client would need to attend court to invoke a Limitation Act defence.