This chapter addresses the questions of who is liable and how much they are liable to pay. It focuses on challenging decisions of a billing authority in relation to council tax. Liability to pay council tax accrues on a daily basis. LGFA 1992 provides a power to prescribe situations in which the owner will automatically be liable, irrespective of the normal hierarchy of liability. The two key concepts for understanding the hierarchy of liability are accordingly 'resident' and 'owner'. In addition to the requirement to make council tax reduction schemes, and the various powers to determine what discount shall apply to various classes of dwelling, there is also a power to grant further or additional discretionary relief. LGFA 1992 contains provision regarding the setting of amounts of council tax for different bands of dwelling, and the addition of precept on behalf of other authorities. In certain prescribed cases, ordinary liability to council tax is reduced.