5.2 Common issues encountered with this class include:
- the domestic/ non- domestic borderline
- agricultural exemption
Taking each one in turn:
5.3 Domestic/ Non-Domestic borderline
The starting point when considering whether premises are domestic or non-domestic is the definition of domestic property contained in section 66(1) of the Local Government Finance Act 1988 [LGFA 88]. For Stables and Loose Boxes, the critical wording is:
66. Domestic property.
(1) Subject to subsections (2), (2B) and 2E below], property is domestic if -
(a) it is used wholly for the purposes of living accommodation
(b) it is a yard, garden, outhouseor other appurtenance belonging to or enjoyed with[emphasis added] property falling within paragraph (a) above,
Hence, to be considered domestic property, stabling needs to be both:
- appurtenant to, and
- either belonging to, or enjoyed with, living accommodation.
The following tests are designed to help determine whether a stable [or loose box] is an appurtenance:
Defined curtilage:
For a stabling to be an appurtenance, it must be within the defined curtilage of the dwelling. In the Concise Oxford Dictionary,curtilageis described as an area attached to a dwelling-house as part of its enclosure. Every case will have to be decided on its own merits, according to the relationship and layout of the various buildings within the boundaries of the dwelling apparent on the ground.
Factors to take into consideration will include planning consents and conditions; distance from main living accommodation; whether the stabling was originally constructed together with the dwelling and the degree of historic attachment.
Size and scale:
The scale of the stabling in relation to the dwelling should also be noted. Is it out of all proportion to the size and character of the living accommodation? For example, a mobile home with 20 stables would suggest the home is appurtenant to the stabling rather thanvice versa.
Close physical relationship:
For stabling to be considered belonging to or enjoyed with a dwelling, it must be close to it. Hence a stable block sited some distance from the dwelling will not satisfy this test.
Passing in the same conveyance:
From legal precedent, an appurtenance needs to have been capable of passing in a legal conveyance [a property transaction] of the dwelling without further words of identification or express mention.
This entire aspect is explored in more detail inRating Manual Section 2 Valuation Principles Part 5 Domestic and Non-Domestic borderline,and theCouncil Tax Manual: Practice Note 8: Domestic / Non-Domestic Borderline at paragraph 6 - Dwellings with Stables: Factors governing Appurtenance.
Overall, this is a complicated area of the law. Advice should always be sought from the CCT when dealing with a domestic/non-domestic borderline query.
5.4 Agricultural Exemption
Buildings
It was confirmed in the appeals ofHemens (VO) v Whitsbury Farm and Stud Ltd (1988 RA277HL)that horses and ponies, other than those used for farming the land or reared for food, are not livestock within the definition in Section 1(3) Rating Act 1971, now paragraph 8(5) of Schedule 5 to the Local Government Finance Act 1988 (LGFA 88).
This means that loose boxes stabling horses used for private purposes and ancillary buildings, such as tack rooms, feed storesand suchare not agricultural buildings and are therefore rateable.
However, there may be parts of the property which are used for an exempt purpose. An example being a hay barn used either to store a hay crop taken from the land occupied by the same person who has the private stables, or to store hay solely for livestock which are also kept by the same person who has the private stables. Exemption considerations should not be limited to a whole building but also to a separate part of a building that is solely used for an exempt purpose.
If there is property which is used wholly for exempt agricultural purposes at certain times of the year and wholly for non-exempt purposes at other times, provided all the parties are agreeable, there is no objection to valuers agreeing a level of assessment which reflects the pro
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