ct-man-pn9

Previous PageSection ContentsNext Page

Practice Note 9: Cross Boundary Dwellings

1.0 General

Part II of The Council Tax (Situation and Valuation of Dwellings) Regulations 1992 as amended by The Council Tax (Situation and Valuation of Dwellings) (Amendment) Regulations 1994 contains rules for treating a dwelling which falls within the area of more than one Billing Authority. It also contains rules for ascertaining the particular part of a billing authority's area within which a dwelling is to be treated as situated.

Examples are shown in Appendix 1

2.0 Dwellings within the area of more than one Billing Authority (Regulation 3)

2.1 Where a dwelling falls within the area of two or more billing authorities it is to be treated as situated in the billing authority in which the greater part of the dwelling is located. This is calculated on the sizes of the relative parts of the actual "structure" i.e. building (see paragraph 4 below). The proportion of the plot in each billing authority is irrelevant. See Appendix 1, Example 1.

2.2 Where a dwelling is part of a 'single property', i.e. where disaggregation provisions apply (see CTM:PN5), which falls within the area of two or more billing authorities it shall be treated as situated in the billing authority in which the greater part of the property is located. So even if the annex is situated wholly within a single billing authority if the greater part of the “main” house is in the other billing authority both will be treated as being in that area. See Appendix 1, Example 2.

2.3.1 Where a dwelling is a composite hereditament, or part of a “single property” which is a composite hereditament, each dwelling shall be treated as situated in the area in which the composite hereditament is situated for non-domestic rating purposes (see RM: 4:2 s10). See Appendix 1, Example 3.

2.3.2 In a case where a composite hereditament is wholly exempt from non-domestic rating (e.g. majority of farms) each dwelling shall be treated as situated in the area in which the part of the hereditament having a domestic use of greater value than any other part is situated (for the valuation of domestic see CTM:PN 2).

2.3.3 Where a dwelling or composite dwelling falls to be disaggregated, all the disaggregated dwellings will be treated as situated within the billing authority area in which the 'single property' is treated as being situated. This will be the case even where a physically distinct unit, say a farmworker's cottage, forming part of a composite is itself actually situated within a different BA area from that in which the whole composite is treated as being situated.

3.0 Dwellings in more than one part of a Billing Authority's area (Regulation 4)

Where a dwelling falls within two or more parts of a billing authority's area, it should be treated as being situated in the part in which the greater or greatest part of the dwelling is situated (see 4 below).

Where a dwelling is part of a single property which falls within two or more parts of a billing authority's area, it shall be treated as being situated in the part which the greater or greatest part of the single property is situated (see 4 below).

(NB.A single property means any dwelling which, but for aggregation/disaggregation, would have been a single dwelling).

4.0 Rules for ascertaining situation of dwellings (Regulation 5)

4.1 In determining the “greater or greatest part” of a dwelling or single property it is the superficial extent (size of the footprint) of the structure of the dwelling/single property which is being looked at. So the billing authority where the larger proportion of the structure of the dwelling/single property is situated will be that in which the dwelling/single property is classed as being located in. Appendix 1 sets out examples for clarification.

4.2 For this purpose "structure" does not include any structure which is not contiguous with the principal structure on the premises. See Appendix 1, Example 4.

4.3 Where the greater part of the “superficial extent” of a caravan, houseboat or other structure cannot be determined then:-

(i) where the dwelling falls within more than one billing authority it will be determined by agreement between the respective billing authorities.

(ii) where the dwelling falls in more than one part of a billing authority's area it will be determined by the authority itself.

5.0 Dwellings associated with formula-rated hereditaments

The regulations described above still operate in respect of dwellings associated with formula-rated hereditaments, but care must be exercised in deciding whether or not the dwelling forms part of a composite hereditament, and if so, the extent of that composite hereditament. The situation will always resemble that illustrated in Appendix 1, Example 3, but the treatment is less straightforward.

5.1 Central Rating List hereditaments. These are defined in the Central Rating List Regulations 1989 (SI 1989/2263). The Regulations treat the hereditaments of different ratepayers in different ways, but the important feature to remember is that domestic property is not included in any of the classes. The consequence of this is that in these circumstances any house or flat will not normally be part of a composite hereditament, even though it might at first appear that it is.

In Appendix 1, Example 3, if "W/S" were a power station in the occupation of National Power, and the house a caretaker's residence within the curtilage, then the house will not be composite with the power station but a wholly separate hereditament, ie dwelling, and accordingly be treated as falling within "Y".

Where a domestic property is composite with non-domestic property forming an excepted hereditament (ie part of a formula rated occupier's land which is not treated as coming within the formula hereditament) under the Regulations, for example living accommodation attached to a shop located within a British Waterways canal basin, then no difficulty should arise since the shop will be shown in a local rating list, but the composite hereditament will be only the shop and living accommodation, not the whole canal basin.

5.2 Formula assessed hereditaments in local rating lists

These will consist either of power stations assessed in accordance with the Electricity Generators (Rateable Values) Order 1989 (SI 1989/2474) (as amended) (i.e. occupied by anybody other than National Power plc, Powergen plc or Nuclear Electric plc), or of statutory docks and harbours assessed in accordance with the Docks and Harbours (Rateable Values) Order 1989 (SI 1989/2473).

In the case of power stations, there are no special provisions as to the extent of the hereditament, and the advice set out in paragraphs 1 to 4 should be followed exactly as for any other composite hereditament.

In the case of formula assessed docks, Reg 5 of the Non-Domestic Rating (Miscellaneous Provisions) (No 2) Regulations 1989 (SI 1989/2303) makes special provision both as to the extent of the dock hereditament and in which local rating list it is to be entered.

The Regulation takes each hereditament occupied by the dock undertaking (there may be many of them) and where it consists of both operational and non-operational land, divides the hereditament into two. The operational land (the "new hereditament") is taken into the cumulo, the remainder being entered separately in the local rating list. Any domestic property (e.g. a lock keeper's cottage) will always be part of the remainder. In applying the advice set out in paragraphs 1-4 above Listing Officers should only have regard to the location and value of the remainder, and not to any land comprised in the "new hereditament".

Previous PageSection ContentsNext Page