Other local authority activities: miscellaneous (F to M): guardian receivership
In certain circumstances the Court of Protection (COP) can decide that an individual is no longer able to look after their own affairs. The Court may appoint a deputy, or deputies, to exercise a guardianship role so that the individual can, as far as possible, live an independent life. Under the provisions of the Mental Capacity Act 2005 the COP may appoint a local authority official as a deputy to look after the financial interests of the individual.
In acting as deputy the local authority official is bound to carry out their duties in accordance with the Act and the accompanying Code of Practice. The COP may order that they charge a fee for their services, in which case the fees are outside of the scope of VAT. Where a local government official is appointed to undertake the role the local authority is not engaging in any business activity for VAT purposes.