LOCAL TAXATION CASE LAW - AN UPDATE GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV

Transcription

1 LOCAL TAXATION CASE LAW - AN UPDATE GARY L WATSON IRRV (HONS) DEPUTY CHIEF EXECUTIVE IRRV

2 OUTLINE OF PRESENTATION Judicial System Appeal Routes - Council Tax - Non- DomesIc Rate Case Stated Judicial Reiew Analysis of Cases (May 2013 Webinar) - Council Tax - Non- DomesIc Rate Analysis of Cases (December 2013 Webinar) - Council Tax - Non- DomesIc Rate Contact Details

3 JUDICIAL SYSTEM Court of JusIce of European CommuniIes Supreme Court Court of Appeal Crown Court County Court High Court Upper Tribunal (Lands Chamber) Magistrate s Magistrate s Court ValuaIon Court ValuaIon Tribunal Tribunal

4 APPEAL ROUTES (COUNCIL TAX) ValuaIon - ValuaIon Tribunal Liability Reliefs - ValuaIon Tribunal - ExempIons * ValuaIon Tribunal - Discounts * ValuaIon Tribunal - ReducIons Recoery * ValuaIon Tribunal - High Court (Case Stated) - High Court (Judicial Reiew) - Magistrates Court

5 APPEAL ROUTES (NON- DOMESTIC RATE) ValuaIon - ValuaIon Tribunal Liability Reliefs - ExempIons * ValuaIon Tribunal - OccupaIon * High Court (Case Stated) - Unoccupied Rate * High Court (Case Stated) * ValuaIon Tribunal - TransiIon * High Court (Case Stated) * ValuaIon Tribunal

6 APPEAL ROUTES (NON- DOMESTIC RATE) Reliefs - Small Business * High Court (Case Stated) - ChariIes, Kindred OrganisaIons & CASC S * High Court (Case Stated) * High Court (Judicial Reiew) - Rural Areas * High Court (Case Stated) * High Court (Judicial Reiew) - Part- Occupied * High Court (Judicial Reiew) - Hardship & Discounts * High Court (Judicial Reiew)

7 APPEAL ROUTES (NON- DOMESTIC RATE) Recoery - High Court (Case Stated) - High Court (Judicial Reiew) - Magistrates Court

8 CASE STATED JUDICIAL REVIEW Case Stated - DefiniIon - SecIon 111 Magistrates Court Act 1980 and Magistrates Court Rules When used - Procedure - 21 day rule - Further right of appeal - Reference to Local TaxaIon * LegislaIon * Case Law

9 CASE STATED JUDICIAL REVIEW Judicial Reiew - DefiniIon - Supreme Court Act When used - Procedure - 3 month rule - Further right of appeal - Reference to Local TaxaIon * LegislaIon * Case Law

10 ANALYSIS OF CASES (MAY 2013 WEBINAR) (COUNCIL TAX) ValuaIon - R (On the applicaion of a LisIng Officer) Callear (2012) Liability - MacAbram Camden LBC (2012) Reliefs - ExempIons - Edem Basingstoke & Deane BC (2012) - Daid James Vaughan South Oxfordshire DC (2012)

11 ANALYSIS OF CASES (MAY 2013 WEBINAR) (NON- DOMESTIC RATE) Liability - Occupied Rate - Makro ProperIes Ltd Nuneaton & Bedworth BC (2012) Liability - Unoccupied Rate - Porter (VO) Trustees of Gladman SIPPS (2011) - PrudenIal Assurance Company Ltd. A ValuaIon Officer (2011) - Friends Life Company Ltd Alexander (VO) and HunIngdonshire DC (2012) - Cosmopolitan Bellshill and Another North Lanarkshire C (2012) - Moffeb Commissioner of ValuaIon for Northern Ireland (2012) - English CiIes Fund (General Partners) Ltd & Standard Life Assurance Ltd Grace (VO) and Lierpool CC (2012)

12 ANALYSIS OF CASES (MAY 2013 WEBINAR) (NON- DOMESTIC RATE) Reliefs - ChariIes, Kindred OrganisaIons & CASSC s - R (On the applicaion of AugusIne Housing Trust) Grays Magistrate s Court (2012) - Preston CC Oyston Angel Charity (2012) - Kenya Aid Programme Sheffield CC (2012) Recoery - Tower Hamlets LBC Rahman (2012)

13 ANALYSIS OF CASES (DECEMBER 2013 WEBINAR) (COUNCIL TAX) ValuaIon - Northrop Reees (LO) (2013) Liability - Naz Redbridge LBC (2013) Reliefs - ExempIons - Vaughan South Oxfordshire DC (2013) Reliefs - Discounts - Smith Nogngham CC (2013) Reliefs - ReducIons - Arca Carlisle CC (2013) Recoery - R (On the ApplicaIon of Waghorn) Staines Magistrates Court (2013)

14 ANALYSIS OF CASES (DECEMBER 2013 WEBINAR) (NON- DOMESTIC RATE) ValuaIon - MEPC Birchwood Park Estates Grace (VO) (2013) - Esso Petroleum Co Ltd Walker (VO) (2013) Liability Occupied Rate - Enfield LBC Hutchinson 3G UK Ltd (2013) Liability - Unoccupied Rate - Sunderland CC SIrling Inestment ProperIes LLP (2013) - Pall Mall Inestments Ltd Leeds CC (2013) Reliefs - ChariIes, Kindred OrganisaIons & CASSC s - Public Safety Charitable Trust Milton Keynes C; Same South Cambridgeshire DC; Cheshire East and Chester BC Public Safety Charitable Trust (2013) Recoery - R (On the ApplicaIon of North East Lincolnshire DC) Grimsby and Cleethorpes Magistrates Court and Southergate ProperIes Ltd (2013) - Chowdhury Westminster CC (2013) - Patel Camden LBC (2013)

15 COUNCIL TAX (VALUATION) Northrop Reees (LisIng Officer) 17 th April 2013 Court of Appeal (Hughes and Paben LJJ and Sir Alan Ward) Summary This was an appeal to the Court of Appeal from a decision of the High Court that (i) in determining that a floaing essel should be deleted from the aluaion list, the ValuaIon Tribunal for England erred in law, and (ii) the facts were not in dispute and no reasonable tribunal properly direcing itself could hae come to any other conclusion but that the motor essel was correctly entered in the aluaion list, and therefore the entry must be restored

16 Northrop Reees (LisIng Officer) LegislaIon - SecIons 64 and 66 Local Goernment Finance Act Council Tax (Chargeable Dwellings) Order 1992 (S.I.1992/549) Key Facts - The ValuaIon Tribunal determined the essel (known as the Cannis, moored off Chienor Business Park) should be deleted from the aluaion list as no rateable hereditament existed because the occupaion did not hae a sufficient degree of permanence - On appeal, the High Court held the entry must be restored to the aluaion list because the essel Decision remained in posiion for a lible more than two years and such period was consistent only with the conclusion that the length of the occupaion was not too transient and was sufficiently permanent - The appeal by Mr Northrop was dismissed - It was held the High Court was correct in determining the floaing essel was entered in the aluaion list for the reasons detailed aboe

17 COUNCIL TAX (LIABILITY) Naz Redbridge LBC 19 th April 2013 Queen s Bench Diision AdministraIon Court (Daid Holgate QC signg as a Deputy High Court Judge) Summary This was an appeal to the High Court from a decision of the ValuaIon Tribunal for England dismissing the appellant s appeal against a decision of the billing authority that the appellant was liable to pay Council Tax in respect of a dwelling for the period 14 th February 2007 to 7 th March 2010

18 Naz Redbridge LBC LegislaIon - SecIons 6, 8 and 16 Local Goernment Finance Act Council Tax (Liability for Owners) RegulaIons 1992 (S.I.1992/551) - ValuaIon Tribunal for England (Council Tax and RaIng Appeals) (Procedure) RegulaIons 2009 (S.I.2009/2269) Key Facts - The appellant was the freeholder owner of the house at 132, Kingston Road, Ilford, Essex and was held liable as for the Council Tax as it was deemed the dwelling was a house in muliple occupaion - In dismissing the appeal, the ValuaIon Tribunal decided the eidence of the billing authority was more persuasie and carried the greater weight Decision - The appeal by Mrs Naz was allowed, the decision of the ValuaIon Tribunal quashed and remibed back for reconsideraion - It was held Ime should be allowed for the appellant to present their case because there was a clear error of law on the part of the tribunal

19 COUNCIL TAX (RELIEFS - EXEMPTIONS) Vaughan South Oxfordshire DC 6 th June 2013 Queen s Bench Diision AdministraIe Court (Judge Mckenna signg as a Deputy High Court Judge) Summary This was an appeal to the High Court from a decision of the ValuaIon Tribunal for England that a property was unoccupied from the 19 th Noember 2009 to the 17 th February 2011

20 Vaughan South Oxfordshire DC LegislaIon - SecIons 4, 6, 11 and 16 Local Goernment Finance Act Council Tax (Discount Disregards) RegulaIons 1992 (S.I.1992/548) - Council Tax (Exempt Dwellings) RegulaIons 1992 (S.I.1992/558) - ValuaIon Tribunal for England (Council Tax and RaIng Appeals) (Procedure) RegulaIons 2009 Key Facts (S.I.2009/2269) - The appellant argued the property known as 70 Grays Road, Henley- On- Thames was occupied, it was his sole or main residence and a single person discount should be awarded; the billing authority argued the dwelling was unoccupied - In dismissing the appeal, the ValuaIon Tribunal concluded the dwelling was indeed unoccupied; a Decision decision that had been arried at preiously - The appeal by Mr Vaughan was dismissed - It was held the tribunal had acted appropriately and applied the correct tests

21 COUNCIL TAX (RELIEFS - DISCOUNTS) Smith Nogngham CC 21 st August 2013 ValuaIon Tribunal for England (Professor Graham Zellick QC, President) Summary This was an appeal to the ValuaIon Tribunal by Mr Smith that haing established he was enitled to a single person discount, it should then be backdated for each of the six financial years ending in March 2011

22 LegislaIon - SecIon 9 LimitaIon Act 1980 Smith Nogngham CC - SecIons 11 and 16 Local Goernment Finance Act Council Tax (Discount Disregards) RegulaIons 1992 (S.I.1992/548) - Council Tax (AdministraIon and Enforcement) RegulaIons 1992 (S.I.1992/613) - ValuaIon Tribunal for England (Council Tax and RaIng Appeals) (Procedure) RegulaIons 2009 Key Facts (S.I.2009/2269) - The appellant was granted a single person discount from 3 rd April 2013 in respect of his property in Nogngham once his daughter became aware he was not in receipt of the relief; howeer, the billing authority refused to backdate the relief - It was argued that haing awarded the discount, it should be backdated six years Decision - The appeal by Mr Smith was allowed - It was held the billing authority should backdate the discount for six years

23 COUNCIL TAX (RELIEFS - REDUCTIONS) Arca Carlisle CC 20 th March 2013 ValuaIon Tribunal for England (Professor Graham Zellick QC, President) Summary This was an appeal to the ValuaIon Tribunal by Arca that haing established she was enitled to a disabled reducion, it should be backdated for each of the six financial years ending in March 2011

24 LegislaIon - SecIon 9 LimitaIon Act 1980 Arca Carlisle CC - SecIons 13 and 16 Local Goernment Finance Act Council Tax (ReducIon for DisabiliIes) RegulaIons 1992 (S.I.1992/554) - Council Tax (AdministraIon and Enforcement) RegulaIons 1992 (S.I.1992/613) - ValuaIon Tribunal for England (Council Tax and RaIng Appeals) (Procedure) RegulaIons 2009 Key Facts (S.I.2009/2269) - The appellant was granted a disabled reducion from 1 st April 2011 on her property in Carlisle; howeer, the billing authority refused to backdate the relief - It was argued that haing awarded the reducion, it should be backdated six years Decision - The appeal by Mrs Arca was allowed - It was held the billing authority should backdate the reducion for six years

25 COUNCIL TAX (RECOVERY) R (On the ApplicaIon of Waghorn) Staines Magistrates Court 23 rd April 2013 Queen s Bench Diision AdministraIe Court (Clie Lewis QC signg as a Deputy High Court Judge) Summary This was an applicaion for an order that a magistrates court state a case for the opinion of the High Court in respect of a finding of culpable neglect to pay Council Tax

26 R (On the ApplicaIon of Waghorn) Staines Magistrates Court LegislaIon - Schedule 9 Local Goernment Finance Act Council Tax (AdministraIon and Enforcement) RegulaIons 1992 (S.I.1992/613) Key Facts - The magistrates court found that the failure to pay was due to the culpable neglect of Dr Waghorn and issued a warrant for the commitment to prison for three month which was suspended on the basis he pay 100 per month - Dr Waghorn requested that the magistrates court state a case claiming a breach of human rights, there was no culpable neglect and that the liability order was wrong in that he should be awarded council tax benefit Decision - The request by Dr Waghorn was dismissed - It was held the such a request was friolous in the sense of being hopeless or misconceied

27 NON- DOMESTIC RATE (VALUATION) MEPC Birchwood Park Estates Grace (VO) 28 th May 2013 ValuaIon Tribunal for England (Professor Graham Zellick QC, President) Summary This was an appeal to the ValuaIon Tribunal for England from a decision by the aluaion officer that proposals made by the ratepayers in March 2010 to delete entries in the 2005 raing list, were inalid

28 MEPC Birchwood Park Estates Grace (VO) LegislaIon - SecIon 41, 42, 46A and Schedule 4A Local Goernment Finance Act Non- DomesIc RaIng (AlteraIon of Lists and Appeals) (England) RegulaIons 2009 (S.I.2009/2268) Key Facts - The raing list contained entries relaing to two buildings at 303 and 304 Bridgewater Place, Warrington that were entered as a result of compleion noices which it is accepted were inalid - Some parts of the buildings became occupied and adjustments were made to the raing list; the unoccupied parts remained in the raing list - The ratepayers then made proposals in March 2010 which the aluaion officer deemed inalid as Decision they did not specify the required informaion - The appeal by MEPC Birchwood Park Estates was allowed - It was held informaion proided by the ratepayer on the proposals was sufficient for the aluaion officer to determine what the interested person was seeking

29 NON- DOMESTIC RATE (VALUATION) Esso Petroleum Company Ltd. Walker (VO) 10 th June 2013 Upper Tribunal (Lands Chamber) (Judge Daid Mole QC and N J Rose FRICS) Summary This was an appeal to the Upper Tribunal (Lands Chamber) from a decision of the ValuaIon Tribunal for England dismissing appeals against the aluaion officer s rejecion of proposals to split in to two the raing assessment in the 2005 raing list of the Maidstone Motorway Serice Area

30 Esso Petroleum Company Ltd. Walker (VO) LegislaIon - SecIons 43, 44 and 64 Local Goernment Finance Act 1988 Key Facts - The appellant appealed against a decision of the ValuaIon Tribunal for England dismissing appeals against the aluaion officer s rejecion of two proposals to split the raing assessment of the Maidstone Motorway Serice Area; the key issue being whether the petrol filling staion element of the motorway serice area should be assessed as a separate hereditament - It was the aluaion officers argument that Roadchef were in occupaion of both the serice staion and the remainder of the serice staion; Esso argued they were in occupaion of the serice staion Decision - The appeal by Esso Petroleum Company Ltd was allowed - It was held the petrol filling staion was capable of separate occupaion (in this case, Esso were regarded as the paramount occupier) and the petrol filling staion was indeed a separate hereditament

31 NON- DOMESTIC RATE (LIABILITY OCCUPIED RATE) Enfield LBC Hutchinson 3G UK Ltd. 10 th June 2013 Tobenham Magistrates Court (District Judge McPhee) Summary This was an applicaion by the billing authority for liability orders in respect of Non- DomesIc Rate on decommissioned telecommunicaions hereditaments

32 Enfield LBC Hutchinson 3G UK Ltd. LegislaIon - SecIons 43, 44, 45, 46, 64 and 65 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) - Non- DomesIc RaIng (Unoccupied Property) (England) RegulaIons 2008 (S.I.2008/386) Key Facts - The billing authority applied for liability orders in respect of unpaid Non- DomesIc Rate (and costs) on four hereditaments in Enfield haing determined the appellant to be liable as the occupier or as owner, when unoccupied - It was the appellants argument that the hereditaments should be treated as unoccupied and because they were not releant non- domesic hereditaments, unoccupied rate would not arise Decision - The complaints must be dismissed - It was held the hereditaments (which consisted of land, cabinets and a mast) were not occupied and that no unoccupied rate was due as they were not releant non- domesic hereditaments

33 NON- DOMESTIC RATE (LIABILITY UNOCCUPIED RATE) Sunderland CC SIrling Inestment ProperIes LLP 10 th June 2013 Queen s Bench Diision (Wilkie J) Summary This was a case stated on appeal by the billing authority from a decision of a magistrate s court dismissing the billing authority s complaint in which it sought a liability order against the respondent in respect of non- payment of Non- DomesIc Rate for the period 2 nd July 2011 to 31 st March 2012

34 Sunderland CC SIrling Inestment ProperIes LLP LegislaIon - SecIons 43, 44, 45, 46, 64 and 65 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) - Non- DomesIc RaIng (Unoccupied Property) (England) RegulaIons 2008 (S.I.2008/386) Key Facts - The billing authority applied for liability orders in respect of unpaid Unoccupied Rate (and costs) on a hereditament known as Unit G7, Phoenix Towers Business Park, Sunderland - Preiously, the hereditament had been used from the 20 th May 2011 to 1 st July 2011 (42 days) for the purpose of transmigng blue tooth messages; occupied rate had been paid for this period - The magistrates court concluded a six month exempion should hae applied from the 2 nd July 2011 Decision - The appeal must be dismissed - It was held the hereditament had been occupied for more than six weeks and as a consequence, a six month exempion should apply

35 NON- DOMESTIC RATE (LIABILITY UNOCCUPIED RATE) Pall Mall Inestments Ltd Leeds CC 13 th August 2013 Queen s Bench Diision AdministraIe Court (Judge Roger Kaye QC signg as a Judge of the High Court) Summary This was an applicaion for judicial reiew of a refusal by Leeds City Council to grant an exempion of Non- DomesIc Rate and a decision of the Leeds Magistrates Court refusing to issue a liability order for non- payment of the rates

36 Pall Mall Inestments Ltd Leeds CC LegislaIon - SecIons 43, 44, 45, 46, 64 and 65 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) - Non- DomesIc RaIng (Unoccupied Property) (England) RegulaIons 2008 (S.I.2008/386) Key Facts - The billing authority applied for liability orders in respect of unpaid Unoccupied Rate (and costs) on a hereditament known as Unit 6, Phoenix Way, City Industrial Park, Bradford, BD4 8JB - It was the ratepayers argument that the hereditament should be exempt from unoccupied rate as occupaion was prohibited by law - The magistrates court concluded the hereditament was not exempt; primarily because no Decision eidence had been proided to support the claim the hereditament should be exempt - The applicaion for judicial reiew was dismissed - It was held no eidence had been proided to support a case for exempion and that the correct course of acion was by way of case stated; not judicial reiew

37 NON- DOMESTIC RATE (RELIEFS CHARITIES ETC.) Public Safety Charitable Trust Milton Keynes C Same South Cambridgeshire DC Cheshire West and Chester BC Public Safety Charitable Trust 14 th May 2013 Queen s Bench Diision (Sales J) Summary These were appeals to the High Court by a charity from two decisions of magistrates courts that they were not enitled to mandatory rate relief (thereby issuing liability orders against the charity for the non- payment of rates) and by a council from a decision of a magistrates court that the charity was enitled to mandatory rate relief (thereby refusing to issue liability orders)

38 Public Safety Charitable Trust Milton Keynes C Same South Cambridgeshire DC Cheshire West and Chester BC Public Safety Charitable Trust LegislaIon - SecIons 43, 44, 45, 46, 47, 64 and 65 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) - Non- DomesIc RaIng (Unoccupied Property) (England) RegulaIons 2008 (S.I.2008/386) Key Facts - These case referred to the same issue; that being the ratepayers would take leases of properies, place transmibers in them and then claim mandatory relief on the grounds they are a charity and were using the properies wholly or mainly for charitable purposes - The councils argued that whilst the charitable status of the ratepayer was accepted, they were not using the properies wholly or mainly for charitable purposes Decision - The applicaions by the billing authoriies were accepted - It was held that the transmibers took up minimal amount of space and as a consequence, it could be regarded as using the hereditament wholly or mainly for charitable purposes

39 NON- DOMESTIC RATE (RECOVERY) R (On the ApplicaIon of North East Lincolnshire DC) Grimsby and Cleethorpes Magistrates Court and Southergate ProperIes Ltd 18 th April 2013 Queen s Bench Diision AdministraIe Court (Supperstone J) Summary These were applicaions for judicial reiew and appeal by case stated relaing to decisions of a magistrates court refusing the council s applicaion for an adjournment and dismissing the council s applicaions for liability orders against the company

40 R (On the ApplicaIon of North East Lincolnshire DC) Grimsby and Cleethorpes Magistrates Court and Southergate ProperIes Ltd LegislaIon - Schedule 9 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) Key Facts - This case referred to the refusal of the magistrates court to grant liability orders for non- payment on Non- DomesIc Rate on a property in North Lincolnshire and to refuse the council s applicaion for an adjournment - It was the billing authority s argument that haing been made aware of informaion at the magistrates court, an adjournment should hae been granted Decision - The case should be remibed back to the magistrates court by consent; no order being made on the case stated or in the judicial reiew - It was held that there had been a breakdown in communicaion at the council (for this reason, no costs were awarded) and as both paries were in agreement to the case being remibed, that was the appropriate course of acion to follow

41 NON- DOMESTIC RATE (RECOVERY) Chowdhury Westminster CC 11 th June 2013 Queen s Bench Diisional Court (Aikens LJ and Wilkie J) Summary This was an appeal from a decision of the central London Magistrates Court that the court did not hae jurisdicion to hear the appellant s applicaion to set aside a liability order for non- payment of rates

42 Chowdhury Westminster CC LegislaIon - Schedule 9 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) Key Facts - This case referred to the serice of a summons at a place of business in Westminster; whether that be by hand or by post - It was the billing authority s argument that serice was correct whilst the magistrates court argued they had no jurisdicion to set aside the liability order haing issued it on 18 th August The ratepayer argued serice was not effected and the liability order should be set aside Decision - The case should be remibed back to the magistrates court for consideraion of the argument - It was held that if the summons had not been sered correctly, no liability order should hae been issued; as a consequence, it was appropriate for the magistrates court to consider the eidence and reach a decision on whether a liability order should indeed be issued

43 NON- DOMESTIC RATE (RECOVERY) Patel Camden LBC 19 th June 2013 Queen s Bench Diision AdministraIe Court (Silber J) Summary This was a case stated on appeal against a refusal of a magistrates court to make an order for costs against the billing authority when dismissing applicaions by the billing authority for liability orders against the appellant for Non- DomesIc Rate

44 Patel Camden LBC and Southergate ProperIes Ltd LegislaIon - SecIon 64 Magistrates Court Act Schedule 9 Local Goernment Finance Act Non- DomesIc RaIng (CollecIon and Enforcement) (Local Lists) RegulaIons 1989 (S.I.1989/1058) Key Facts - The billing authority applied for a liability order against Mr Patel which was refused; they also argued that liability orders issued against other companies in respect of Camden High Road, London should be set aside; again, this was refused - The ratepayer applied for costs against the billing authority which was refused Decision - The applicaion for costs should be refused - It was held the billing authority had acted honestly and reasonably in pursuing the applicaions for the liability order; as a consequence, costs should not be awarded

45 CONTACT DETAILS Gary L Watson IRRV (Hons) (Deputy Chief ExecuIe IRRV) Telephone: E- Mail: Gary.watson@irr.org.uk

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