This post reflects on actions needed to give effect to the Coalition government's approach to dealing with hardship arising from the recent riots and civil commotion.
Hardship following the the loss, damage and destruction of property will be ameliorated by the actions of national and local government departments and agencies. Over the last few years they have swung into action to support those distressed by flooding: now it is the turn of those distressed by the recent riots and civil commotion.
Income Taxation: Businesses and individuals who have faced disruption and/or loss of records and other taxation-related documents will find that there will be a sympathetic understanding of requests for deferment of:
- submissions of returns; and,
- payments of income tax or corporation tax.
Council Tax and/or Business Rates: Local taxpayers should see a similar approach by their collection authority whereby payment of council tax or rates (and in some cases both) are likely to be deferred - particularly where buildings have been damaged. (Where a building has been destroyed the following should occur:
- payments should cease; and,
- where payments have been made in advance, remittance to the taxpayer should be speedily dealt with by the authorities.)
Hardship: In other circumstances, charging or rating authorities have powers to ameliorate the hardship of council tax payers or the ratepayers by foregoing the collection of the taxes due.
Assessment (Valuation) for Local Taxation
Where property has been destroyed or damaged by fire or other perils it may be entirely unuseable or only partly useable. The payer of council tax or business rates want to ensure that no unnecessary tax will be paid.
Early action by the officers of the Valuation Office Agency (VOA) might be expected to be put in hand to:
- remove from the valuation lists for council tax and/or business rates the entries for any completely destroyed buildings - at least until they are completely reinstated and re-occupied; and,
- where a damaged building has to be partly demolished, its speedy revaluation will ensure that adjustments (downwards) of any due payments of council tax and/or rates will not be unnecessaril;y higher than they should be (but see above about deferred payments).
Vacant Property Rates and Councxil tax: Hopefully, where re-occupation is delayed after reinstatement, any vacant property rates or council tax which may otherwise be due will be waived.
Small Business Premises: Where a business occupies small premises (with reference to the rateable value) the occupier may apply to the council for a reduction in the rates payable. Where a business has been disrupted, a ratepayer may find that they are:
- forced to move to smaller premises; or
- forced to reinstate a damaged large property as a smaller property.
In these circumstances the ratepayer may be eligible to small business premises rate relief - a claim should be made accordingly. [Please note : The Localism Bill has a clause providing that the ratepayer will receive the relief "automatically" - but this must await Royal Assent to the Bill.]
The reader is advised that the information in this post is based on the Prime Minister's recent statement and other published information - it is important that anyone needing help should contact their insurer or other advisers.
A person who has suffered damage to building or property or who has property stolen is likely to be indemnified in some way. Two possible ways are:
- indemnification under a policy of insurance; or
- compensation under the Riot (Damages) Act 1886.
Where insurance is paid the insurance principle of "subrogation" means that the insurance company will be able to recocover the insurance payments under the 1886 Act.
No Insurance Policy
Where an owner and/or occupier is not covered by an insurance policy it seems that the only recourse would be to make a claim for compensation to the local police authority under the Riot (Damages) Act 1886 procedures. Speedy action is of the essence.
Insurance Policy - No Valid Cover
In many standard insurance policies "riot and civil commotion" are not covered but may be covered as a "special peril". In all cases the insured should get it touch with their insurance company. Again the 1886 Act is likely to give effect to compensation by direct application.
Insurance Policy - Valid Cover
If the policy covers the loss, a claim will be considered by the insurance company under the policy. It is likely best to proceed on this basis but as noted above the subrogation will apply..
"Riot" Compensation
Here the 1886 Act is likely to apply and a claim should best be made to the police authority for the area in which the property is situated. The period of claim has been extended to 42 days but every endeavour needs to be made to act quickly.
Buildings owned by Bodies in the Public and Voluntary Sectors
The 1886 Act appears to apply to most kinds of urban buildings including churches, hospitals and other buildings owned by bodies in the voluntary and public sectors.
Burden of Compensation
Although the police are the "compensating authority" the burden of the compensation provisons will be borne by the payers of local taxes and/or the national taxpayers (to the extent that the Coalition government contributes.
Future
It may be that past calls for the remains of the Riot (Damages) Act 1886 to be repealed will be heeded. The Act is a shadow of the original but the effect is that indicated above. The issue is a fourfold question,namely:
- Should the government (taxpayers) bear the brunt of such losses?
- Should the insurance industry take up the challenge make the "special peril" a standard?
- Should the local community (local goverment tax payers) take the brunt?
- Should we all be self-insured?
At last the Localism Act 2011 is established in law? The links below describe how local authorities will be required to publish information about their own property - the description gives an aggregate of the open market values of all such property.
However, the 2011 Act provides for some local authorities to make a list of assets (land and buildings) which have "community value" (which is not be the same as "open market value"). I suppose that the list will certainly include assets deemed or nominated as community assets belonging to bodies and individuals who are not local authorities: but will the list include local authority property assets? No doubt the forthcoming regulations will tell us.
Whilst browsing I hit upon a DCLG site which gave a pretty map of the locality with all kind of coloured pointers. Hitting on the pointers I received some detailed information about the public property on each hit, such as a) name, b) address, c) postcode, d) organisation, e)contact, d) currency (date), e) area, f) use status, g) tenure, h) easting, i) northing, j) reference, and i) ID. Will future such lists indicate public property which has community value?
[Please Note: Wish I could show you but my viewing was (apparently) for my eyes only (or more complicated words than that)! Having signed the OSA I felt obliged to resist showing you the many boxes which state "Data Not Available". Nevertheless once it is fully developed it should prove a useful first pointer for residents and others of what is out there in the public domain. However, I am not allowed to copy it and there was hint that it may be shown for a limited time; even if it stays for ever, I may not be able to find it again! It has been an exciting half hour!!! Sad.]
http://www.24dash.com/news/housing/2011-08-05-Pickles-orders-councils-to-publish-assets?utm_source=24dash+newsletter+subscribers&utm_campaign=1c4848811f-UA-31909-1&utm_medium=email
