Property background and use
Timber processing yard
You mentioned the property had historically been operated as a timber yard and was later refurbished by the client. What was the actual use of the property at the time of your instruction?
vacant; available; unoccupied
You stated that the site had operated as a timber processing yard in breach of its planning condition for over 10 years. Can you clarify the difference between its lawful use and its actual use?
Lawful use was storage for timber and machinery associated with timber processing but machinery not to be used on site.
Actual use was saw mill with timber being processed and machinery used.
What comparable evidence did you analyse to determine the guide price?
I considered recent sales of comparable properties in the area. Trading estates. I applied a unitary rate and adjusted for location and planning history.
What was the rateable value of the property?
£7,000. However, this had not been re-assessed since the property had been renovated. Business rates are calculated by multiplying the rateable value by the relevant multiplier
What would you have done differently next time?
I would have advised the client in the first instance that to take the property to the market with the restrictive planning condition would need a much reduced GP. OR to work to change the planning status
How did you check for conflicts of interest?
What legislation governs CLEUDs?
Section 191 of the Town and Country Planning Act 1991 (as amended)
How is a CLEUD application determined?
On material facts. The merits of the development are not issues that can be considered
The LPA is not entitled to consider the planning merits of a CLEUD application
The purpose of a CLED application is purely to establish that an existing use or development is lawful
Case Law referenced in the CLEUD application
Court of Appeal in Hughes v SoSETR and South Holland 2000, determined that an assessment of 4 criteria must be made to establish whether abandonment had occurred.
Whilst that case related to abandonment of a dwelling and its residential use the criteria are equally as applicable to the circumstances at The Timber Yard, namely:
i. The physical condition of the yard
ii. The length of time the Yard has not been used for the relevant commercial purposes
iii. Whether the Yard has been used for any other purposes and,
iv. The owners intentions
Elect to Tax?
VAT is charged on NEW COMMERCIAL PROPERTY at Standard rate
A seller can choose to opt to tax a property. If they do the sale becomes standard-rated. The seller may do this to recover VAT on development costs
RESIDENTIAL PROPERTY
EXISTING HOMES - exempt
NEW HOMES - Zero rated
BARE LAND
Usually exempt
TRANSFER OF A GOING CONCERN
No VAT is charged if property is sold as part of a letting business
