Post by Roy on Feb 23, 2013 20:17:21 GMT
Council Tax Banding
The following examples illustrate circumstances where boats used wholly
as living accommodation may or may not be regarded as part of the
hereditament together with the mooring, and therefore to be included in
the Council Tax banding valuation.
Make sure you are in "example 3" (Hi-lighted in maroon type)
If you want to avoid paying council tax.
Example 1
A couple lives in a purpose-built houseboat comprising a timber-clad
building on a pontoon. They pay rent for a mooring on the river bank
with its own anchor points, access way, water supply and drainage
connections. The houseboat has been moored in that location for several
years, although it is moved every 2 or 3 years to carry out maintenance
to the pontoon.
The mooring is a separate hereditament because it is occupied
exclusively by one boat for a period of more than 12 months. The mooring
is also domestic property by virtue of s.66(4) because it is occupied by
a boat which is someone's sole or main residence. Although a chattel,
the houseboat can be regarded as enjoyed with the land with such
permanence as to enhance its value, and should be included in the
valuation for banding purposes.
Example 2
A family lives in a barge which has been converted to provide living
accommodation. They pay rent to the riparian owner for a mooring on a
river bank with its own water supply and sewage connection. During the
year, the barge moves away at weekends and holidays of more than 2-4
weeks duration leaving the mooring vacant until its return.
The mooring is a separate hereditament because it is used exclusively by
one boat during the year. When the barge is present, the mooring is
domestic property by virtue of s.66(4) because it is occupied by a boat
which is someone's sole or main residence. When the barge is absent, the
mooring is domestic property by virtue of s.66(5) because it appears
when next in use the mooring will be domestic. However, the barge is
insufficiently permanent to be regarded as part of the hereditament, and
the mooring only should be valued to determine the appropriate band.
Example 3
A man lives on a motor cruiser with living accommodation on board. He
rents a berth in a marina comprising a finger pontoon at right angles to
the bank with water supply and sewage pump-out. The marina operator
controls access to the site and reserves a continual right to move the
boat from its mooring. When the boat is absent, as it frequently is for
weekends and holidays, and even though the boat owner pays rent
continuously in order to reserve a berth at the site, the marina
operator allows other boats to use the mooring.
Although the mooring is virtually in permanent use and affords
self-containment to any boat with living accommodation, the cruiser
owner's occupation of the mooring is non-exclusive and insufficiently
permanent for him to be liable for Council Tax. The marina operator is
in paramount occupation of the mooring for the purposes of his business
of running a marina. If the other boats which use the mooring are also
someone's sole or main residence, only the mooring would be domestic
property and subject to banding. The boat itself would not be included
in the valuation.
If the other boats which use the mooring are not someone's sole or main
residence or there is no way of knowing what their use would be, the
mooring will be non-domestic. If there are two or more such moorings in
the marina, all the moorings and land under the control of the marina
operator should be treated as one hereditament by virtue of the Multiple
Moorings Regulations. The marina operator will be in permanent occupation.
[/b]
Example 4
A couple live on a narrow boat as their sole or main residence. They pay
a mooring fee to the British Waterways Board for one of several moorings
along the towing path and a licence fee to be on the canal. They share a
water tap with the other boats, but the nearest sewage disposal facility
is some distance away. Periodically, they move the boat to dispose of
sewage; and every few years the boat is taken into dry dock for
essential maintenance. British Waterways Board reserves a continual
right to allocate a different mooring, for example, in order to
accommodate boats of different length at the site, but in practice the
boat returns to the same mooring, which is not used by other boats in
its absence It has a postal address and post is delivered direct to the boat.
The mooring is domestic property by virtue of s.66(4) and sufficiently
defined as to form a separate hereditament. The boat is moored with a
sufficient degree of permanence as to be enjoyed with the mooring and
therefore should be regarded as part of the hereditament and be included
in the valuation for banding purposes.
If however the separate moorings along the canal bank are not easily
identified, either in the agreement with BWB or on the ground, and can
vary each time a boat is moored, as the boat always returns to a
different position, then the hereditament will comprise of the whole
length of moorings along that part of the canal, and the rateable
occupier will be the BWB. The boat will not form part of the
hereditament because it lacks sufficient permanence to be enjoyed with the land.
If the moorings are solely occupied by boats which are the sole or
residence of an individual, then there will be a single Council Tax
banding of all the moorings. However, should pleasure boats also use the
moorings, the moorings should be treated as a composite hereditament. In
many cases a common sense view will need to be taken of the extent of
the domestic and non-domestic parts, and regulation 7(1) of the Council
Tax (Situation and Valuation of Dwellings) Regulations 1992 requires a
band to be ascribed which reflects the value which would reasonably
attributed to the domestic use. The distribution between domestic and
non domestic use will therefore reflect how the market would view the
use of the hereditament, if it were made available with vacant
possession. The actual use of the moorings at compilation date, or a
notional distribution based on the prevailing pattern of use along
moorings in that locality can be adopted.
Where a single composite hereditament is appropriate, the non domestic
part in this example will be included in the Central List assessment for
BWB, and a single Council Tax band will be entered in the valuation list
for the residential moorings.
***************
I hope the above is of help,
should you get confronted with a demand for
council tax from your local council.
The following examples illustrate circumstances where boats used wholly
as living accommodation may or may not be regarded as part of the
hereditament together with the mooring, and therefore to be included in
the Council Tax banding valuation.
Make sure you are in "example 3" (Hi-lighted in maroon type)
If you want to avoid paying council tax.
Example 1
A couple lives in a purpose-built houseboat comprising a timber-clad
building on a pontoon. They pay rent for a mooring on the river bank
with its own anchor points, access way, water supply and drainage
connections. The houseboat has been moored in that location for several
years, although it is moved every 2 or 3 years to carry out maintenance
to the pontoon.
The mooring is a separate hereditament because it is occupied
exclusively by one boat for a period of more than 12 months. The mooring
is also domestic property by virtue of s.66(4) because it is occupied by
a boat which is someone's sole or main residence. Although a chattel,
the houseboat can be regarded as enjoyed with the land with such
permanence as to enhance its value, and should be included in the
valuation for banding purposes.
Example 2
A family lives in a barge which has been converted to provide living
accommodation. They pay rent to the riparian owner for a mooring on a
river bank with its own water supply and sewage connection. During the
year, the barge moves away at weekends and holidays of more than 2-4
weeks duration leaving the mooring vacant until its return.
The mooring is a separate hereditament because it is used exclusively by
one boat during the year. When the barge is present, the mooring is
domestic property by virtue of s.66(4) because it is occupied by a boat
which is someone's sole or main residence. When the barge is absent, the
mooring is domestic property by virtue of s.66(5) because it appears
when next in use the mooring will be domestic. However, the barge is
insufficiently permanent to be regarded as part of the hereditament, and
the mooring only should be valued to determine the appropriate band.
Example 3
A man lives on a motor cruiser with living accommodation on board. He
rents a berth in a marina comprising a finger pontoon at right angles to
the bank with water supply and sewage pump-out. The marina operator
controls access to the site and reserves a continual right to move the
boat from its mooring. When the boat is absent, as it frequently is for
weekends and holidays, and even though the boat owner pays rent
continuously in order to reserve a berth at the site, the marina
operator allows other boats to use the mooring.
Although the mooring is virtually in permanent use and affords
self-containment to any boat with living accommodation, the cruiser
owner's occupation of the mooring is non-exclusive and insufficiently
permanent for him to be liable for Council Tax. The marina operator is
in paramount occupation of the mooring for the purposes of his business
of running a marina. If the other boats which use the mooring are also
someone's sole or main residence, only the mooring would be domestic
property and subject to banding. The boat itself would not be included
in the valuation.
If the other boats which use the mooring are not someone's sole or main
residence or there is no way of knowing what their use would be, the
mooring will be non-domestic. If there are two or more such moorings in
the marina, all the moorings and land under the control of the marina
operator should be treated as one hereditament by virtue of the Multiple
Moorings Regulations. The marina operator will be in permanent occupation.
[/b]
Example 4
A couple live on a narrow boat as their sole or main residence. They pay
a mooring fee to the British Waterways Board for one of several moorings
along the towing path and a licence fee to be on the canal. They share a
water tap with the other boats, but the nearest sewage disposal facility
is some distance away. Periodically, they move the boat to dispose of
sewage; and every few years the boat is taken into dry dock for
essential maintenance. British Waterways Board reserves a continual
right to allocate a different mooring, for example, in order to
accommodate boats of different length at the site, but in practice the
boat returns to the same mooring, which is not used by other boats in
its absence It has a postal address and post is delivered direct to the boat.
The mooring is domestic property by virtue of s.66(4) and sufficiently
defined as to form a separate hereditament. The boat is moored with a
sufficient degree of permanence as to be enjoyed with the mooring and
therefore should be regarded as part of the hereditament and be included
in the valuation for banding purposes.
If however the separate moorings along the canal bank are not easily
identified, either in the agreement with BWB or on the ground, and can
vary each time a boat is moored, as the boat always returns to a
different position, then the hereditament will comprise of the whole
length of moorings along that part of the canal, and the rateable
occupier will be the BWB. The boat will not form part of the
hereditament because it lacks sufficient permanence to be enjoyed with the land.
If the moorings are solely occupied by boats which are the sole or
residence of an individual, then there will be a single Council Tax
banding of all the moorings. However, should pleasure boats also use the
moorings, the moorings should be treated as a composite hereditament. In
many cases a common sense view will need to be taken of the extent of
the domestic and non-domestic parts, and regulation 7(1) of the Council
Tax (Situation and Valuation of Dwellings) Regulations 1992 requires a
band to be ascribed which reflects the value which would reasonably
attributed to the domestic use. The distribution between domestic and
non domestic use will therefore reflect how the market would view the
use of the hereditament, if it were made available with vacant
possession. The actual use of the moorings at compilation date, or a
notional distribution based on the prevailing pattern of use along
moorings in that locality can be adopted.
Where a single composite hereditament is appropriate, the non domestic
part in this example will be included in the Central List assessment for
BWB, and a single Council Tax band will be entered in the valuation list
for the residential moorings.
***************
I hope the above is of help,
should you get confronted with a demand for
council tax from your local council.