Property No 3 - "Riot " Damage No 2 - Amelioration of Hardship..?

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.]