Part 6 Exemptions – Part A - Property Used for Disabled Persons

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Valuation Office Agency

January 11

09:30 2024

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When considering any case for exemption in respect of property used for disabled persons, there are two key aspects that need to be taken into account:

The Hereditament, and the facts that surround it

and

The Law, and how it relates to those facts associated with the hereditament.

To take the hereditament point first, any particular case will turn on its own individual facts. Indeed, without a knowledge of them, it is simply not possible to decide one way or the other about any likely exemption. The breadth and range of the salient facts necessary to determine a disabled exemption case, together with the time it can take to establish them, should not be underestimated. Accordingly, it can never be too soon to engage with the occupier in an effort to discover what those facts are. A brief sketch of the various matters that will need to be resolved in a disabled exemption case are set out in Appendix: 6.

Once the facts have been established, one may start to consider the law.

The legislative provisions for Disabled Persons Exemption are set out in paragraph 16 of Schedule 5 to the Local Government Finance Act 1988 [LGFA 1988].

The original paragraph 16 provisions have been amended by:

The Care Act 2014 and Children and Families Act 2014 (Consequential Amendments) Order 2015 [SI 2015 No. 914]. With effect from 1 April 2015, the original meaning of disabled person, previously set out in paragraphs 16(2) and 16(3) has been replaced with a definition derived from the Equality Act 2010 in a new paragraph 16(1A). This change only relates to England.
The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016. With effect from 6 April 2016, regulation 52 replaces the original definition of disabled person with a definition derived from the Social Services and Well-being (Wales) Act 2014. This change only relates to Wales.
The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016, again in regulation 52, also replaces the original definition of Welfare services for disabled persons in paragraph 16(4) with two new definitions, applicable to England or Wales, as appropriate.

These changes to paragraph 16 Schedule 5 LGFA 1988 apply with effect from 1 April 2015 [England] / 6 April 2016 [Wales] and this Section reflects the current VOA approach to them.

However, in the event that:

these amended definitions become a contentious issue, or
the Material Day for a particular paragraph 16 exemption case is before 1 April 2015 [England] / 6 April 2016 [Wales]

caseworkers must seek advice from the Technical Adviser immediately.

The Law

Paragraph 16 reads as follows:

16 (1) A hereditament is exempt to the extent that it consists of property used wholly for any of the following purposes -

the provision of facilities for training, or keeping suitably occupied, persons who are disabled or who are or have been suffering from illness

the provision of welfare services for disabled persons

the provision of facilities under section 15 of the Disabled Persons (Employment) Act 1944

the provision of a workshop or of other facilities under section 3(1) of the Disabled Persons (Employment) Act 1958

(1A) For the purposes of this paragraph in its application to hereditaments in England, a person is disabled if he has a disability within the meaning given by section 6 of the Equality Act 2010.

(2) For the purposes of this paragraph in its application to hereditaments in Wales, a person is disabled if he is disabled within the meaning of section 3 of the Social Services and Well-being (Wales) Act 2014.

(3) Illness has the meaning given by section 275 of the National Health Service Act 2006.

(4) Welfare services for disabled persons means services or facilities (by whomsoever provided) -

of a kind which a local authority in England had power to provide under section 29 of the National Assistance Act 1948 before it ceased to apply to local authorities in England

of a kind which a local authority in Wales has power to provide, or arrange to provide, to an adult in the exercise of its functions under sections 35 or 36 of the Social Services and Well-being (Wales) Act 2014

To summarise, the revised paragraph 16 Schedule 5 LGFA 1988 provisions, as they apply from April 2015 (England)/April 2016 (Wales), are as follows:

Paragraph 16(1), in sub-paragraphs (a)-(d), sets out exemption provisions for property wholly used for any of four specific purposes [the purposive use]
Paragraph 16(1A) defines the term disabled person for application in England
Paragraph 16(2) defines the term disabled person for application in Wales
Paragraph 16(3) defines the term illness as it relates to paragraph 16(1)(a)
Paragraph (4) defines the phrase welfare services for disabled persons

In practice, these definitions are complex and their application requires the consideration of detailed criteria that varies depending upon the type of exemption being sought. The specific requirements are determined by individual tests set within the wording of paragraph 16.

The Legislative Tests

In common with the other exempting provisions of Schedule 5, the specific wording of paragraph 16 sets a series of tests that must be satisfied before an exemption can be granted. Such tests are set by either specific wording or reference to other legislation.

This annotation of the paragraph 16 wording shows those tests:

16 (1) A hereditament is exempt to the extent that [TEST 1] it consists of property used wholly [TEST 2] for any of the following purposes -

the provision of facilities for training, or keeping suitably occupied [TEST 4], persons who are disabled [TEST 3a] or who are or have been suffering from illness [TEST 3b];

the provision of welfare services for disabled persons [see TEST 7].

the provision of facilities under section 15 of the Disabled Persons (Employment) Act 1944 [TEST 5];

the provision of a workshop or of other facilities under section 3(1) of the Disabled Persons (Employment) Act 1958 [TEST 6].

(1A) For the purposes of this paragraph in its application to hereditaments in England, a person is disabled if he has a disability within the meaning given by section 6 of the Equality Act 2010 [TEST 3a].

(2) For the purposes of this paragraph in its application to hereditaments in Wales, a person is disabled if he is disabled within the meaning of section 3 of the Social Services and Well-being (Wales) Act 2014 [TEST 3a].

(3) Illness has the meaning given by section 275 of the National Health Service Act 2006. [TEST 3b]

(4) Welfare services for disabled persons [TEST 7] means services or facilities (by whomsoever provided) -

of a kind which a local authority in England had power to provide under section 29 of the National Assistance Act 1948 before it ceased to apply to local authorities in England

of a kind which a local authority in Wales has power to provide, or arrange to provide, to an adult in the exercise of its functions under sections 35 or 36 of the Social Services and Well-being (Wales) Act 2014

Test 1: to

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