Council tax - should I go to Valuation Tribunal or sue the council?

[ste]

Hello,

I'm hoping that someone here can help a newbie! :-)

We have been trying to sell a house for over a year now and have been paying the normal council tax by direct debit. In February 2014 the council informed us that they were applying a Long Term Empty premium of 50% and that this amount was being backdated to the start of the financial year in April 2013.

If they had notified us of this premium in April 2013 then we would have rented the house to tenants whilst looking for a buyer but since we have only just been notified of the levy that is no longer an option.

The Local Government Finance Act 2012 section 12 (2) clearly states that ‘a billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year’.

Am I unsure whether to fight my case with the Valuation Tribunal or go straight to small claims court?

Does anyone have any advice?

Thanks in advance.

[enquirer]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

The council notified you in February 2014 (that is to say, in financial year 2013-14), that they intend to apply a 50% surcharge for the years 2014-15 and 2013-14.

The Local Government Finance Act 2012 s.12(2) inserts into the LGFA 1992 the following new section:

s.11B
(5) "A billing authority may make a determination varying or revoking a determination under this section for a financial year, but only before the beginning of the year".

(6) "A billing authority which makes a determination under this section must publish a notice of it in at least one newspaper circulating in its area and do so before the end of the period of 21 days beginning with the date of the determination".

(7) "Failure to comply with subsection (6) does not affect the validity of a determination".

See here for original:
http://www.legislation.gov.uk/ukpga/2012/17/section/12

Reading the above, it seems to me that ...

To apply a surcharge for 2014-15 requires that they made the decision before April 2014. This they appear to have done.

To apply a surcharge for 2013-14 requires that they made the decision before April 2013. Whether they did so is unknown.

Although technically required in (6) to notify the public of their decision, (7) means - in reality - that they don't have to tell anyone at all. So, failure to notify you will not invalidate their decision.

It seems to me that you will not escape the surcharge for 2014-15. Whether you can do so for 2013-14 will depend on whether or not they can prove that they made the decision within the required timeframe.

My bet is that they didn't, and the council is trying it on. I would be inclined to file an FOI request, requiring them to produce all documents related to the 2013-14 surcharge decision. Do not let them know that the information will be used in a challenge.

Have you received any correspondence, either from the Council, or from a company acting on its behalf, regarding letting the property to them?

[ste]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

Hi Enquirer,

Thanks for the reply.

I haven't received any correspondence from the Council except for an updated Council Tax demand received this February for the 2013/2014 tax year showing the Long Term Empty Premium.

So, from what you are saying, they should have decided before April 2013 that they would be applying the Long Term Empty Premium to all applicable properties for it to be valid. They should also have placed a newspaper advert to this effect notifying the public of this decision but if they didn't this doesn't mean that they can't still apply the premium.

The FOI request then is to try and obtain internal emails or memos to prove the date when they actually decided to apply this Premium. If it wasn't before April 2013 then the Premium can't be legally enforced for 2013/2014 - is my understanding correct?

Thanks

[enquirer]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

That is my interpretation, at least.

If in doubt, consult a solicitor who offers a free initial consultation. You might need to take a printout of the legislation along, as it's a niche thing and I suspect that they may not be too familiar with it.

Looking again at the legislation, I note that the above section may not have come into force until 1 April 2013.
http://www.legislation.gov.uk/ukpga/...tes/division/6

It is possible that this may make worthless any Council 'decision' taken prior to that date. This would be worth querying.

[enquirer]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

The surcharge is intended to force the owner to sell, or to rent the property to the council (or some company in which the council or councillors have a financial interest), following which it would be filled up the the usual types so beloved of councils - drug addicts, criminals &c.

There is also legislation in place permitting councils to seize unoccupied properties, so this may also be a preliminary stage to that. There were a few cases some years ago, but bad publicity led Eric Pickles to curb their powers, following which councils backed off. Even so, the possibility remains.

Less seriously, speaking to a friend in a similar position, we wondered what would happen if they were to tell the council that they intended to solve the problem of the empty property by demolishing it. The press would of course be notified, and a statement issued to the effect that this course of action had been prompted by council greed.

[ste]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

Hi Enquirer,

Thanks again for your replies.

The council have since replied to my letter stating that determination was made in January 2013 although I haven't sent any FOI requests yet.

Looking again at the legislation, I note that the above section may not have come into force until 1 April 2013.
http://www.legislation.gov.uk/ukpga/...tes/division/6

I thought this was an interesting point that you raised. However, the way that I read this link was that most of the provisions contained in the Act will have effect for the financial year beginning on 1 April 2013 but that they actually come into force on Royal Assent (I believe this was 1st Nov 2012) which means the council can make the determination before 1st April 2013.

The really frustrating part is that they are using the Act purely to raise revenues rather than to work with owners to get homes back into habitation.


Thanks

[enquirer]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

The council have since replied to my letter stating that determination was made in January 2013 although I haven't sent any FOI requests yet.

As they are now claiming to have made the determination within the required timeframe, it will be interesting to see whether or not this is confirmed by your FOI request. There should be no end of documents to back up their story, if what they say is true.

You might find whatdotheyknow.com useful.

The really frustrating part is that they are using the Act purely to raise revenues rather than to work with owners to get homes back into habitation.

In the short term, revenue generation. In the long term, seizure.

[ScotsLawyer]

Re: Council tax - should I go to Valuation Tribunal or sue the council?

Hello,

I am sorry to hear of your difficulties. In answer to your original question, you should follow the internal Council appeal procedures and, if this does not produce satisfactory resolution, the dispute would b determined in the Valuation Appeal Tribunal.