Ctax/capital taxation Flashcards
What legislation allows for Council Tax?
Local Government Finance Act 1992
Can you name some of the regulations surrounding Council Tax?
Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992, Council Tax (Contents of Valuation Lists) (Scotland) Regulations 1992, Council Tax (Dwellings) (Scotland) Regulations 1992, Council Tax (Dwellings and Part Residential Subjects) (Scotland) Regulations 1992, Council Tax (Alterations of Lists and Appeals) (Scotland) Regulations 1993, Council Tax (Dwellings) (Scotland) Regulations 1993, Council Tax (Reduction of Liability) (Scotland) Regulations 1994, Council Tax (Dwellings) (Scotland) Regulations 1997
What are the regulations for valuing a house?
Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992
What are the statutory assumptions when valuing a house?
Vacant possession, Free from any heritable security, Size, layout and physical state of locality is same as at 91, It is in reasonable repair, Parts in common are in reasonable repair, Fixtures not included – disability and upgrade, Restricted to use as a private dwelling, No development value
What regulations state which dwellings are rateable?
Council Tax (Dwelling houses and part Residential Subjects (Scotland) Regulations 1992
Which dwellings are included?
B&B that are main residence of a person – less than 6 person accommodation, Student halls, Barracks, Communal residential establishments, School boarding accommodation
Which dwellings are excluded?
Hostels, nursing homes, private hospitals or residential care homes, Huts sheds and bothies, Self-catering holiday accommodation, Women’s refuges
What are the regulations regarding altering the List?
Council Tax (Alteration of Lists and Appeals) (Scotland) Regulations 1993
When can a dwelling be altered on the list?
Material increase following a sale, Material reduction in the value of the dwelling, There has been a successful appeal, Dwelling has been demolished
When can CT proposals be made?
When the banding has been altered by the Assessor – 6 months, When the valuation list has been altered to include a new entry– 6 months, When the valuation list has been altered to delete an existing entry – 6 months, When someone becomes a taxpayer – 6 months, Where a change has occurred to the apportionment note of a property - anytime, Where a relevant appeal decision has been made – 6 months, Where there has been a material increase or decrease – anytime
Case Law: Rea V Assessor for Strathclyde 1995
Refers to statutory assumptions in valuing for council tax purposes, particularly the size, layout and physical state of locality per reg 2(2) of the C Tax (Valuation of Dwellings) (S) Regs 1992. Held that assumption 2(2)(c) failed to apply, therefore improvements (such as DG/CH) that occurred between 1/4/91 - 1/4/93, and that had not altered size and layout cannot be taken into account in banding.
Case Law: Assessor for Lothian v Heriot-Watt University 1998
C Tax (Dwellings and Part Residential Subjects) (S) 1992 - relating to student accommodation and their use for commercial activity outwith term time. Predominant use does not change, therefore subjects are still a dwelling.
Case Law: Assessor for HWIVJB v Macleod 2000
Also known as Portnalong case. No grounds for exclusion from Valuation List on the grounds of being unsuitable for occupation / Uninhabitable.
Case Law: Anderson v Assessor for Orkney & Shetland VJB 2019
Seachest Case. The Court were clear that regulation 5(5) does not time bar an appeal based on a subsequent material reduction in value. Original appeal on grounds of dwelling having suffered damage from water ingress. But this was not correct grounds, as property not worth repairing due to wider drainage issues in the locality which are outwith the control of the taxpayer. The appellant had to establish, there had been a reduction in the value of the Seachest, it was material and sufficient to amend the banding from E to D & it was caused by a change in the physical state of the locality. None of this was determined and the appeal was dismissed.
Case Law: McLaughlin V Assessor for Lothian 2020
This property is part of the Silverfields development, part of which is subject to a planning obligation that 11 of the 49 units are to be affordable units. Marketed for a year and one day to an eligible purchaser at 80% market value. If not sold in that time period, offered to any purchaser at full market value. Property entered into Band D and appellant made proposal it should be in Band C. VAC agreed with the appellant and placed this in Band C, citing that the golden share condition should be considered. Referred to Court of Session. Decision made that the committee misunderstood the statutory hypothesis in the 1992 regulations in that ‘the value of any dwelling shall be taken to be the amount which the dwelling might reasonably have been expected to realise if it had been sold in the open market by a willing seller on 1st April 1991’. The restrictions on the sale of the property were transitory, however even if they remained in place the evidence put forward by the Assessor’s witness was this was appropriate banding. Appeal upheld and property valued at Band D.
What is the purpose of the Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992?
These Regulations define the properties which are dwellings for Council Tax purposes and sets out the basis of valuation of dwellings for the purposes of valuation lists. The value of any dwelling is to be taken to be the amount which, given various assumptions, it might reasonably have been expected to realise if it had been sold in the open market by a willing seller on 1st April 1991.
What is the purpose of the Council Tax (Dwellings) (Scotland) Regulations 1992?
These regulations provide that certain private garages, carports and car parking stances and certain private storage premises are to constitute “dwellings” for the purposes of Council Tax in Scotland.
What are the effective dates for alterations in the Valuation List?
Additions:- either the day on which the dwelling came into existence or 1st April 1993, whichever is the later. Deletions:- either the day on which the property ceased to exist or 1st April 1993, whichever is the later. Corrections – the day on which the dwelling was first shown on the list. Alteration arising to correct an inaccuracy resulting from an earlier alteration – the day of the earlier alteration. Increase followed by sale – the day of the sale. Reductions (non-proposal) – the first day of the financial year the alteration is made or the operative date, whichever is later. Reductions (proposal) – the first day of the financial year the proposal is made or the operative date, whichever is later.
