Section 5 – Exemption and Relief Appeals (Regulations 116, 116A, 116B and Schedule 1, Paragraph 9)
The Valuation Office for Agency's (VOA) technical manual for Community Infrastructure Levy (CIL).
5.1 General
These appeals may relate to either:
a. Regulation 116 - Disputes over a collecting authority’s valuation of an interest in land that qualifies for charitable relief (see paragraphs 2.7 and 3.11 above). When only part of the chargeable development qualifies for charitable relief the CIL liability has to be apportioned between the qualifying and non-qualifying land based on an apportionment of the charge in accordance with the apportionment formula in regulation 34 (see paragraph 4.4 above).
b. Regulation 116A - Disputes over a decision by a collecting authority that a residential annexe does not qualify for exemption because it is not wholly within the curtilage of the main dwelling (see paragraph 2.9 above).
c. Regulation 116B - Disputes over a decision by a collecting authority on the amount of the exemption allowed for self-build housing (see paragraph 2.10 above).
d. Schedule 1, paragraph 9 – Disputes over the amount of ‘notional relief’ when calculating the chargeable amount when a pre-CIL planning permission is amended
Charitable Relief Appeals (Regulation 116 Appeals)
5.2 Claims for Charitable Relief
Under regulation 47 a person who wishes to benefit from charitable relief must submit a claim for charitable relief to the collecting authority and where there is more than one material interest in the relevant land, they must submit an ‘apportionment assessment’. Where a claim is accompanied by an apportionment assessment the collecting authority may either accept the claimant’s assessment or substitute its own assessment. As soon as practicable after receiving a valid claim, the collecting authority must then notify the claimant in writing of its decision on the claim and the reasons for the decision and where relief is granted, the amount of relief granted.
It should be noted that appeals made under regulation 116 only involve determining any dispute over the value of the qualifying interest. If the charity, or liable person, wish to challenge the collecting authority’s calculation of the chargeable amount then they must make a separate appeal against this under regulation 114. These cases therefore only involve determining disputes over the value of the interest that qualifies for charitable relief.
5.3 Apportionment Assessment
An ‘apportionment assessment’ is defined in regulation 41(1) as an assessment (carried out in accordance with regulation 34) of how liability to pay CIL in respect of the chargeable development should be apportioned between each material interest in the relevant land. The apportionment formula contained in regulation 34 is set out in paragraph 4.4 above. Paragraphs (1), (2), (4) and (5) of regulation 34 apply for the purposes of apportioning liability in order to claim for charitable relief.
5.4 Appeals
Regulation 116 gives an interested person the right to appeal against the collecting authority’s decision on the amount of charitable relief granted only on the ground that the collecting authority has incorrectly determined the value of the interest in land in respect of which the claim was allowed. Details of who can appeal and the time limits for making an appeal are set out in Section 6 of this Manual. Regulation 116(4) provides that where an appeal is allowed the appointed person may amend the amount of charitable relief granted to the appellant.
5.5 Possible Issues in Appeals
The responsibility of the appointed person is to amend the charitable relief only if the collecting authority has incorrectly determined the value of the interest in land in respect of which the claim was allowed. The appointed person cannot consider appeals on the grounds that the collecting authority have refused to grant relief or have incorrectly determined the value of other interests used in the statutory apportionment formula. These appeals could therefore involve any of the issues that may arise in regulation 115 cases (see paragraph 4.8 above) in so far as they relate to the valuation of the interest in land respect of which the claim was allowed. This may include:-
- the definition of market value
- the facts relating to the details of the completed property
- the facts relating to the qualifying interest to be valued
- the appropriate valuation method
- the comparable evidence in support of the collecting authority’s valuation
- the comparable evidence in support of the appellant’s valuation
5.6 Examples
Examples to illustrate some of the issues that may arise in Regulation 116 cases are included in Appendix 3.
Exemption for Residential Annexes Appeals (Regulation 116A Appeals)
5.7 Claim for Exemption
Under regulation 42B a person who wishes to benefit from the exemption for residential annexes must submit a claim for relief to the collecting authority with all the required details. As soon as practicable after receiving a valid claim, the collecting authority must notify the claimant of the exemption granted or the amount of relief granted (if only part of the development is exempt).
5.8 Appeals
Regulation 116A gives an interested person the right to appeal against the collecting authority’s decision on the amount of exemption given for a residential annex but only on the ground that the collecting authority has incorrectly determined that the development is not wholly within the curtilage of the main dwelling. Details of who can appeal and the time limits for making an appeal are the same as for regulation 116 cases and are set out in Section 6 of this Manual. Regulation 116A(4) provides that where an appeal is allowed the appointed person may amend the amount of exemption for residential annexes granted to the appellant.
5.9 Possible Issues in Appeals
The responsibility of the appointed person is to amend the amount of exemption only if the collecting authority has incorrectly determined that the residential annex does not qualify for exemption because it is not wholly within the curtilage of the main dwelling. Whether or not a particular building is within the curtilage of the main house is therefore the only issue that will arise in these cases.
Whether or not the residential annex is within the curtilage of the main house is a matter of fact and degree. The building must be geographically close to the main house and be an integral part of it but the necessary proximity required will vary in each case. Each case must therefore be decided on the particular facts.
It is not the responsibility of the appointed person to decide any other matters such as whether or not the person occupies the dwelling as their sole residence or whether the residential annex comprises ‘one new dwelling’ under regulation 42A(2)(b).
Exemption for Self-Build Housing Appeals (Regulation 116B Appeals)
5.10 Claim for Exemption
Under regulation 54A a person who wishes to benefit from the exemption for self-build housing must submit a claim for relief to the collecting authority with all the required details. As soon as practicable after receiving a valid claim, the collecting authority must notify the claimant of the exemption granted or the amount of relief granted (if only part of the development is exempt).
5.11 Appeals
Regulation 116B gives an interested person the right to appeal against the collecting authority’s decision on the amount of exemption given for self-build housing only on the ground that the collecting authority has incorrectly determined the value of the exemption allowed. There is no right of appeal against the collecting authority’s decision not to grant relief. Details of who can appeal and the time limits for making an appeal are the same as for regulation 116 cases and are set out in Section 6 of this Manual. Regulation 116A(4) provides that where an appeal is allowed the appointed person may amend the amount of exemption for self-build housing granted to the appellant.
5.12 Possible Issues in Appeals
The responsibility of the appointed person is to amend the amount of exemption only if the collecting authority has incorrectly determined the amount of the exemption allowed. These appeals could therefore involve any of the issues that may arise in regulation 114 cases (see paragraph 3.14 above). The only additional issue that may arise in these cases is if the development includes ‘self-build communal development’. If there is qualifying self-build communal development the amount of exemption for that part of the development must be calculated by applying the formula contained in regulation 54A(6) (see paragraph 2.10 above).
It is not the responsibility of the appointed person to decide if the development qualifies as ‘self-build housing’ or ‘self-build communal development’.
‘Notional Relief’ Appeals (Schedule 1, Paragraph 9 Appeals)
5.13 Calculation of Notional Relief
When calculating the chargeable amount under Schedule 1, Part 4, when a pre-CIL planning permission is amended it may be necessary for the collecting authority to calculate the ‘notional relief’ applicable to the pre-CIL permission.
5.14 Appeals Under Schedule 1, paragraph 9, an interested person who is aggrieved at the decision of a collecting authority to grant notional relief under paragraph 7(5) (when calculating the chargeable amount for a CIL liable planning permission that amends a pre-CIL permission) may appeal on the ground that the collecting authority has incorrectly determined the value of the notional relief allowed.
Schedule 1, paragraph 3, provides that where an appeal is allowed the appointed person may amend the amount of any notional relief granted to the appellant.
5.15 Possible Issues in Appeals
The responsibility of the appointed person is to amend the amount of notional relief only if the collecting authority has incorrectly determined the value of the notional relief allowed.