
A group of Anthony Collins Solicitors (ACS) experts from across our various client sectors have gazed into their crystal ball and given us a view on how 2021 is looking.
Background
As a result of the abolition in 2012 of Class A and Class C exemptions, charities which wish to secure relief from the payment for council tax during any period when their property is unoccupied must now apply for Class B exemption.
A2Dominion Housing Group Ltd and Notting Hill Housing Trust appealed of the decisions of London Borough of Hammersmith and Fulham, the Royal Borough of Kensington & Chelsea and the London Borough of Ealing not to grant Class B exemption pursuant to Council Tax (Exempt Dwellings) Order 2012.
Class B exemption applies to:
“[(i)]a dwelling owned by a [(ii)]body established for charitable purposes only, [(iii)]which is unoccupied and has been so for a period of less than 6 months and [(iv)] was last occupied in furtherance of the objects of the charity.”
The Valuation Tribunal’s Judgment
These appeals were heard together by Professor Graham Zellick QC, the President of the Valuation Tribunal. In his Judgment he made the following conclusions/comments:
The Valuation Tribunal concluded that the appellants “fulfilled all the requirements for Class B exemption and they were wrongly denied the exemption”. As a result the decisions by the Councils concerned to reject Class B exemptions were quashed and the Valuation Tribunal ordered the Councils to repay any money paid in council tax for the properties concerned.
Our View
In times where Councils budgets are being cut and pressure is being placed on Council Officers to increase revenue from the collection of Council Tax, it is unsurprising that Councils welcomed the abolition of the Class A and C exemptions and now seem reluctant to grant Class B exemption to housing providers.
This recent Judgment from the Valuation Tribunal provides valuable guidance as to how Councils should be approaching Class B exemption. Whilst the value of an individual property’s Class B exemption may be relatively small, void properties are inevitable and numerous and as such the cost to housing providers of failed Class B exemption applications is very significant.
If you would like to discuss how your organisation currently deals with Class B exemption application or related issues, please contact Cynyr Rhys on 0121 214 3619 or cynyr.rhys@anthonycollins.com
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