Local Taxation

Question 1

Takeaway from Garton v Hunter(VO) [1969]

Answer 1

We admit all relevant evidence. The goodness of badness of it goes to weight, and not to admissibility.

Question 2

We admit all relevant evidence. The goodness or badness of it does down to weight, and not admissibility.

Answer 2

Garton v. Hunter (VO)[1969]
Court of Appeal

Question 3

R v Paddington Valuation Officer, ex parte Peachy Property Corporation Ltd [1965]
CoA

Answer 3

(Hypothetical rent) On the hypothesis that both landlord and tenant are reasonable people, the LL not being extortionate, the tenant not being under pressure.

Question 4

The three hypothetical elements prescribed by schedule 6 (2)(1) of LGFA 88

Answer 4

• Rent
• Landlord
• Tenant

Question 5

What does Lotus and Delta provide?

Answer 5

Guidance on the usefulness of the different types of evidence - 6 provisions.

Always have a clear focus on the statutory valuation hypothesis

Question 6

Case law for rental approach and evidence weight?

Answer 6

Lotus and Delta Ltd v Culverwell (VO)[1976]

Question 7

The 6 propositions of Lotus & Delta

Answer 7

1. Actual rent is the starting point.
2. The closer the rent to the statutory requirements the better it is.
3. Similar properties with rental evidence should also be considered.
4. Assessment of other properties - tone of the list.
5. In light of all the evidence, opinion can be formed.
6. Where no rents available of comparable properties, review of other assessments may be helpful but it would clearly be more difficult to reject evidence of the actual rent.

Question 8

Takeaway from Garton v Hunter[1969]
CoA

Answer 8

We admit all relevant evidence, the goodness or badness goes to weight.

Question 9

What are business rates?

Answer 9

Tax levied on occupation of hereditaments measured by their rental value.

Question 10

Case law for the 4 tenants of rateable occupation?

Answer 10

JLS v KAAC [not 69]

John Lang & Son Ltd v Kingswood Area Assessment Committee [1949]
CoA

Question 11

Statutory definition of ‘hereditament’

Answer 11

s.115(1) of General Rate Act 1967
referred to in s.64(1) of LGFA 88

Question 12

Definition of ‘hereditament’

Answer 12

‘Property which may become liable to a rate, being a unit of such property which is, or would fall to be, shown as a separate item in the valuation list’.

Question 13

Leading case for establishing a hereditament?

Answer 13

Woolway (Appellant) v Mazars (Respondent) [2015]
UKSC

Question 14

Which acts were passed to reverse Woolway v Mazars [2015]?

Answer 14

• The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 - England
• The Non-Domestic Rating (Property in Common Occupation)(Wales) Regulations 2022 - Wales

Question 15

When did The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 come into force?

Answer 15

Royal Assent: 1st November 2018.

Question 16

When did The Non-Domestic Rating (Property in Common Occupation)(Wales) Regulations 2022 come into force?

Answer 16

1st April 2023

Question 17

s.42(b) of LGFA 88

Answer 17

(entry in rating list) ‘it is a relevant non domestic hereditament’

Question 18

Ingredients of a rateable hereditament?

Answer 18

Be capable of clear Definition;
Have a single rateable Occupier;
Single Use
Form a single Geographical unit

Question 19

CCA Appeal Fees

Answer 19

[England]
£150 - small proposer
£300 - any other proposer

Question 20

What is the rating hypothesis?

Answer 20

Assumes the existence of a hypothetical tenant, willing to enter into negotiations for a tenancy and, if there is no evidence to the contrary, the rent agreed for that tenancy can be assessed by reference to “general demand”, evidence by the occupation of other similar properties.

Question 21

Name the pertinent laws and regulations for Landlord and tenant

Answer 21

• The Landlord & Tenant Act 1954 (part 2)
• The Landlord & Tenant Act 1927
• The Regulatory Reform (Business Tenancies)(England & Wales) Order 2003
• The Code for Leasing Premises, 1st Edition RICS Professional Statement, Feb 2020

Question 22

What does the LTA54 apply to?

Answer 22

“Any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and so are occupied for the purposes of business carried on by him for those and other purposes”

Question 23

What does a tenancy not include under the LTA54?

Answer 23

• licence
• tenancy at will

Question 23

Lease v licence

Answer 23

Lease
* Tenant has exclusive permission of a defined area of land
* For a fixed period (or series of periods)
* Usually in consideration of a permium or periodical payments (rent not strictly required)
Licence
* Simple permission for a licencee to do something on a licensors property so that the permission given prevents the permitted act from being a trespass
* A licence is a personal right

Question 24

What does Part 2 of the Landlord and Tenant Act 1954 relate to?

Answer 24

Tenants security of tenure and renewal rights.

Question 25

Rent quarter days (L&T)

Answer 25

1. 25/03
2. 24/06
3. 29/09
4. 25/12

Question 26

Rent quarter days (LA)

Answer 26

1. 01/01
2. 01/04
3. 01/07
4. 01/10

Question 27

Important notices in part 2 of LTA1954

Answer 27

• S.24 - ‘continuation of tenancies to which pt2 applies and grant of new tenancies’ - interim rent.
• S.25 - ‘termination of a tenancy by the landlord’ - aka the landlords s.25 notice.
• S.26 - ‘tenants request for a new tenancy’ - aka the tenant’s s.26 request.
• S.27 - ‘termination by tenant of tenancy for fixed term’ - aka the notice of discontinuance.
• S.28 - ‘renewal of tenancies by agreement’.

Question 28

What are the statutory grounds under s.30(1) of the LTA 1954 for (LL) opposing a lease renewal?

Answer 28

Fault based grounds
a. Failure to maintain or repair
b. Persistent delay in paying rent
c. Substantial tenant breaches
Non-fault based grounds
d. Offer or alternative accomodation
e. Uneconomic sub-tenancies
f. Redevelopment/demolition
g. Owner occupation

Question 29

Key cases relating to repair?

Answer 29

Monk v Newbigin** - three questions to ask prior to reducing assessment to nominal amount, on grounds of disrepair
**Jackson v Canary Wharf - where properties are incapable of beneficial occupation, entry deleted.
Aviva Investors v Bunyan - soft strip out does not prevent property being capable of beneficial occupation.
Colour Weddings v Roberts - distinction between scheme of redevelopment and works within repairing assumption
Restaurant Group v Formela-Osborne - reiterates monk decision between disrepair and development works & incapable of beneficial occupation

Question 30

Rateable occupation: Actual…

Answer 30

…must be physically present (intention to occupy not enough)
Southend-on-Sea Corpn v White - seaside shop

Question 31

Rateable occupation: beneficial…

Answer 31

…must benefit occupier (doesn’t have to be monetary)
R v London School Board - test is not profit but whether someone is willing to pay a rent for it

Question 32

Rateable occupation: Exclusive…

Answer 32

…only one rateable occupier for a particular purpose.
Westminister City Council v Southern Railway Company Ltd - exclusive occupation goes to person with paramount control of use of premises.

Question 33

Rateable occupation: Transience…

t

Answer 33

…must be a degree of perminance - intensity of use and change of land over period.
* London City Council v Wilkins - builders huts on school site for 18 months not too transient - must be sufficient degree of perminance
* McAlpine (Sir Robert) v Payne - sep.assessed sheds in situ between 6-7 months held not to be rateable. Period less than 12 months not rateable
* Dick Hampton (Earth Moving) v Lewis - borrow pits occupied for less than 12 months were held to be rateable as landscape perminantly changed