Capital Taxation - L1&L2

Question 1

What is the main piece of Council Tax legislation?

Answer 1

The Local Government Finance Act 1992

Question 2

What did the Local Government Finance At 1992 introduce?

Answer 2

• The council tax bands and ranges
• the definition of a dwelling
• definition of material increase and material decrease

Question 3

What is the definition of a dwelling?

Answer 3

Statutory definition - “any lands and heritages which consists of one or more dwelling houses with any garden, yard, garage, outhouse or pertinent belonging to and occupied with such dwelling or dwelling houses.
SAA definition - “any kind of house or flat, including caravans, occupied as a main residence”

Question 4

What are the Council Tax bands and ranges?

Answer 4

Band A - Up to £27,000
Band B - Between £27,001 and £35,000
Band C - Between £35,001 and £45,000
Band D - Between £45,001 and £58,000
Band E - Between £58,001 and £80,000
Band F - Between £80,001 and £106,000
Band G - Between £106,001 and £212,000
Band H - Over £212,000

Question 5

What is the definition of ‘material increase’?

Answer 5

Any increase which is caused (in whole or in part) by any building, engineering or other operation carried out in relation to the dwelling, whether or not constituting development for which planning permission is required.

Question 6

What is the definition of ‘material reduction’?

Answer 6

any reduction which is caused (in whole or in part) by the demolition of any part of the dwelling, any change in the physical state of the dwelling’s locality or any adaptation of the dwelling to make it suitable for use by a physically disabled person.

Question 7

Where could you find the valuation assumptions the Assessor has to consider?

Answer 7

The Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992.

Question 8

What are the statutory valuation assumptions?

Answer 8

1. The sale was with vacant possession
2. The dwelling was sold free from any heritable security
3. The size and layout of the dwelling, and the physical state of its locality were the same as that as at the time when the valuation os made.
4. That the dwelling was in a reasonable state of repair
5. That any common parts are in a reasonable state of repair
6. Where the dwelling contains fixtures that are deigned to make the dwelling suitable for use by a physically disabled person and add value to the dwelling, that the fixtures were not included in the value
7. The use of the dwelling would be permanently restricted to use as a private dwelling
8. That the dwelling had no development value other that that attributable to “permitted development”

Question 9

What is the main piece of legislation governing the alteration of the Council Tax List?

Answer 9

The Council Tax (Alteration of Lists and Appeals) (Scotland) Regulations 1993

Question 10

When can the alteration of a valuation band be made?

Answer 10

1. There has been a material increase in the value of the dwelling and it has been subsequently sold.
   2.There has been a material reduction in the value of the dwelling.
   3.Assessor is satisfied a different valuation band should have been determined him.
   4.Assessor is satisfied that the band shown in the list is not that determined by him as so applicable.
   5.Assessor has added, amended or deleted an apportionment note related to any lands and heritages included in the valuation roll.
2. There has been a successful proposal/appeal under the Act against the valuation band.

Question 11

If there has been a material reduction, when is it that a band cannot be altered?

Answer 11

Where the reduction is caused wholly by the demolition of any part of the dwelling and the works are connected with further buildings works to either maintain or increase market value.

Question 12

In what circumstances can a person make a proposal at any time?

Answer 12

• to show with effect from a particular date a dwelling which is not/was not shown in the list
• delete with effect from a particular date a dwelling which is/was shown on the list.
  -change with effect from a particular date a dwelling which is/was shown on the list.

Question 13

When the list was first made up what date was the last date from which a proposal to change the band could be made?

Answer 13

30th November 1993.

Question 14

After 30th November 1993 when can a valid proposal be made?

Answer 14

1. Proposal is made within six months of only/last notice in respect of alteration to the list or when alteration takes effect.
2. Proposal made by a person who has within the last six months first become the taxpayer.
3. The proposal is made within six months of a relevant decision.

Question 15

What Information needs to be included in a valid proposal?

Answer 15

-Made in Writing
-Name and address of proposer
-Identify dwelling the proposal relates to
-How the list should be altered and from what date
- Reason why list should be altered
- If part of proposal - state the relevant decision

Question 16

How long does the Assessor have to acknowledge a proposal?

Answer 16

14 days beginning on the date of receipt

Question 17

What kind of Invalid Proposals are there?

Answer 17

• Out of time
• Lack of title
• Lack of information

Question 18

How long does the Assessor have to respond with a decision to an invalid proposal?

Answer 18

Six weeks

Question 19

How long does a proposer have to appeal this decision to First-Tier Tribunal for Scotland if they have reviewed a decision that the proposal is invalid?

Answer 19

28 days after assessors service of notice.

Question 20

How long does the proposer have if there is missing information required (invalid)?

Answer 20

28 days

Question 21

How long does the assessor have to alter the list if he believes a proposal is well-founded?

Answer 21

Six weeks

Question 22

What is the effective date for adding a property onto the list?

Answer 22

Either:
- First day the dwelling came into existence
- 1st April 1993 (whichever is later)

Question 23

What is the effective date for deleting a property from the list?

Answer 23

Either:
- The day the property ceased to be a dwelling
- 1st April 1993 (whichever is later)

Question 24

What is the effective date for any corrections?

Answer 24

The date the dwelling was first entered onto the List

Question 25

What is the effective date for a material increase?

Answer 25

first date of sale subsequent to the material increase

Question 26

What is the effective date for a material decrease?

Answer 26

Either:
- first day of financial year in which the alteration is made
- the operative date (whichever is later)

Question 27

What is the effective date for the addition/amendment/deletion of apportionment?

Answer 27

The same date that there was a change to the valuation roll.

Question 28

How long before a hearing at the First-tier must the Assessor submit nay supporting documents?

Answer 28

14

Question 29

The Tribunal will notify the parties of a hearing no less than how many days?

Answer 29

31

Question 30

When can the parties appeal to the Upper Tribunal for Scotland?

Answer 30

• Only on a point of law and within 30 days that decision was sent to them

Question 31

What piece of legislation outlines the above?

Answer 31

First Tier Tribunal for Scotland Local Taxation Chamber (Rules of Procedure) Regulations 2022

Question 32

What does the First Tier Tribunal for Scotland (Transfer of Functions of Valuation Appeals Committees) Regulations 2023 do?

Answer 32

Transfers the appeals system to the Local Taxation Chamber from the old VAC system

Question 33

Where do you find information on Completion Notices?

Answer 33

Schedule 6 of the Local Government Finance (Scotland) Act 1992

Question 34

What are the two type of Completion Notices?

Answer 34

1. The erection of a building has been completed.
2. Work remaining to be done on a building is such that it can be expected to be completed within three months.

Question 35

When can a Completion Notice be deemed withdrawn?

Answer 35

1. If individual agrees with the date on the notice, the building will be deemed complete that day, and the notice will be withdrawn.
2. Assessor can withdraw the notice by a subsequent notice.

Question 36

When can the Assessor serve a notice to Withdraw the Completion Notice?

Answer 36

1. At any time before an appeal is brought before the completion notice
2. With the agreement of that person, at any time thereafter and before the appeal is determined.

Question 37

How long does a person have to appeal a Completion Notice?

Answer 37

21 Days beginning with date of notice
- only against the grounds that the dwelling has not been/cannot be expected to be completed by the date specified within the notice.

Question 38

What happens if the completion notice served is not withdrawn and there is no appeal brought forward?

Answer 38

The erection of the building is deemed completed by date specified in the notice

Question 39

What happens if an appeal is lodged and isn’t abandoned or settled?

Answer 39

The completion of the building shall be deemed by the First-tier Tribunal for Scotland.

Question 40

What are the key points in the Assessor for Tayside VJB V VAC case?

Answer 40

• VAC erred in allowing an appeal by homeowner against assessors refusal to delete her property from the CT list on basis it was temporarily incapable of being lived in while repair/alt works were being carried out and it ceased to be a dwelling house.
• At no point did the property lose the physical characteristics of a dwelling house.
• Court of Session allowed appeal on basis the committee allowed the appeal on the basis that mere incapacity to be lived in was sufficient for a dwelling to cease to be as much.