§ Mr. FoulkesTo ask the Chancellor of the Exchequer what prior information he was given about the appeal by the Inland Revenue on the separate assessment for council tax purposes of annexes of houses set aside for elderly relatives; if the appeal was undertaken with his approval; what action he proposes to take as a result; and if he will make a statement. [30021]
§ Mr. Nelson[holding answer 22 June 1995]: Officials of the Valuation Office Agency briefed me on this issue earlier in the year. It is for the VOA and its legal advisers to consider whether to appeal to the High Court in council tax cases and the chief executive decided to do so in these cases.
The Government will study the full text of the judgment as soon as it is available, in order to decide what action may be necessary. Our current understanding is that it affects only a small number of cases where there is an unresolved dispute as to whether a property contains one dwelling or more than one dwelling for council tax purposes. The ruling, as we understand it pending full examination of the transcript, does not mean that thousands of families caring for elderly relatives are likely to face additional back-dated council tax bills. The High Court has not said that either annexes generally or the particular annexes which were the subject of these cases are liable to separate council tax. It has merely said that 550W the valuation tribunals concerned took irrelevant factors into account in taking their decisions and has remitted the cases to the tribunals for reconsideration.
The Government do not believe, and the judgment does not appear to suggest, that families should be penalised for sharing their home with an elderly relative or relatives.