the forgotten ingredient of rateable occupation
TRANSCRIPT
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient of rateable occupation
Cain Ormondroyd IRRV (Hons) Barrister, Francis Taylor Building
@CainOrm
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
Rateable occupation
• Actual • Beneficial • Exclusive • …
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
Rateable occupation
• Actual • Beneficial • Exclusive • Permanent or non-transient
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient?
(1) Context of the cases: liability vs rateability
(2) What is permanence? What
factors are relevant? (3) Permanence as the
forgotten ingredient
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
Rateability/liability
The orthodox view “The concept of the hereditament for rating purposes is inextricably bound up with the concept of rateable occupation” Ryde at [C113] The challenge Sedley LJ in Vtesse Networks Ltd v Bradford (VO) [2006] EWCA Civ 1339 at [40]
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
What is permanence? (1)
• Not about duration alone – there is no ‘rule of thumb’ that 12 months is required (Robert McAlpine v Payne [1969] RA 368 overruled by Dick Hampton v Lewis [1975] RA 269) • Nature of occupation also relevant (Roskill LJ in Dick Hampton considered “the period of occupation as of vastly less importance than its quality and consequences”)
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What is permanence? (2)
• Predicted length of occupation 2 cases on parking spaces: Renore Ltd v Hounslow LBC [1970] RA 567 “the expectation must have been that the ratepayers would continue in possession of these three spaces indefinitely” (at p574)) West Yorkshire MCC v Miller (VO) [1984] RA 65 “no long term arrangements to continue [the occupation] year by year” (p71).
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
What is permanence? (3)
• The nature of the agreement Two cases about the same fairground operator Liverpool Corporation v Huyton-with-Roby Urban District Council (1964) 10 RRC 256: lease for a fortnight a year, therefore too transient. Hall v Darwen Corporation (1958) 2 RRC 329: longer term agreement may have contributed to a finding of permanence.
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
What is permanence? (4)
• The nature of the thing occupied?
“It is I think clear that for permanent buildings there is no fixed period: theoretically at any rate occupation of a house or a shop for even a day could attract rateability. But the authorities I think show clearly that different considerations apply to temporary structures…”
Michael Rowe QC in Sir Robert McAlpine
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
What is permanence? (4)
• The nature of the thing occupied?
“It is I think clear that for permanent buildings there is no fixed period: theoretically at any rate occupation of a house or a shop for even a day could attract rateability. But the authorities I think show clearly that different considerations apply to temporary structures”
Michael Rowe QC in Sir Robert McAlpine
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
What is permanence? (4)
• The nature of the thing occupied?
“It is I think clear that for permanent buildings there is no fixed period: theoretically at any rate occupation of a house or a shop for even a day could attract rateability. But the authorities I think show clearly that different considerations apply to temporary structures”
Michael Rowe QC in Sir Robert McAlpine
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
Summary: what is permanence?
Relevant factors: • The length of the occupation; • The nature of the occupation – intensive or passive/insubstantial? • The circumstances of the occupation – intention to continue? • The agreement under which occupation took place – long term or intermittent? • The nature of the thing being occupied – permanent building?
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
A different view…
“the word ‘permanence’ appears to signify continuous, as opposed to intermittent, physical possession of the soil; it does not signify that an occupation, in order to be rateable, must be for a long term”
Ryde at [C1113]
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin)
• MPL leases warehouse to MSSWL; lease ends
• MSSWL stores 16 pallets of paperwork (0.2% floospace);
• Pallets removed after 43 days; • Period of occupation intentional and
repeated; • No written agreement between MPL
and MSSWL.
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on
Intensive/substan%al
Inten%on to con%nue
Long term agreement
Permanent building
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al
Inten%on to con%nue
Long term agreement
Permanent building
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al û
Inten%on to con%nue
Long term agreement
Permanent building
![Page 18: The forgotten ingredient of rateable occupation](https://reader031.vdocuments.us/reader031/viewer/2022012516/6190a89826d74410d7453068/html5/thumbnails/18.jpg)
Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al û
Inten%on to con%nue û
Long term agreement
Permanent building
![Page 19: The forgotten ingredient of rateable occupation](https://reader031.vdocuments.us/reader031/viewer/2022012516/6190a89826d74410d7453068/html5/thumbnails/19.jpg)
Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al û
Inten%on to con%nue û
Long term agreement û
Permanent building
![Page 20: The forgotten ingredient of rateable occupation](https://reader031.vdocuments.us/reader031/viewer/2022012516/6190a89826d74410d7453068/html5/thumbnails/20.jpg)
Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Makro Properties v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al û
Inten%on to con%nue û
Long term agreement û
Permanent building ü
![Page 21: The forgotten ingredient of rateable occupation](https://reader031.vdocuments.us/reader031/viewer/2022012516/6190a89826d74410d7453068/html5/thumbnails/21.jpg)
Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Sunderland v Stirling Investments [2013] EWHC 1413 (Admin)
• Empty warehouse used by CMML for Bluetooth box;
• The box 95 × 65 × 30 mm, battery 350 x 240 mm, aerial draped out of a window;
• Present for exactly six weeks; • CMML lease for 43 days.
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
Sunderland v Stirling Investments [2013] EWHC 1413 (Admin) Permanence?
Factor Present?
Dura%on ?
Intensive/substan%al û
Inten%on to con%nue û
Long term agreement û
Permanent building ü
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Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]
The forgotten ingredient
The VOA view… A site in an empty property will form a separate hereditament if it fulfils the criteria necessary to become a separately rateable hereditament. It is a common characteristic that sites are occupied for short, or transient, periods. When occupation exceeds 12 months the site becomes a separately rateable hereditament to the “host” property. The site is a new hereditament and should not be a split from the host hereditament.
Rating Manual, Section 862: Wifi/Bluetooth Sites in Buildings: Practice Note 2010
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