5.1 Identifying the hereditament
5.1.1 The hereditament will usually comprise the beach hut and its site.
5.1.2 Generally, each privately owned or occupied beach hut comprises a separate hereditament if the occupation is not transient e.g. an annual licence or longer interest. The description in the rating list will beBeach hut and premises.
5.1.3 Where a local authority or other landlord retains paramount control over two or more contiguous beach huts then they should be assessed together as a single hereditament. ie this will be the weekly or daily lettings. These are to be treated as multiple units. Description beach huts (number) and premises
5.2 Licence fees - used as evidence of value
Street v Mountford (1985) 274 EG 821 HL
5.2.1 Determined that the distinction between a licence and a lease or any other tenancy depends on the truth of the relationship between the parties involved, not the label which they choose to put upon it. In other words it does not matter if a lease or licence exists it is the length of the agreement that is important as to its rateability.
5.2.2 Licences that do not on the face of it appear to give rise to exclusive occupation of land should be considered alongside the facts as they present themselves on the ground. In other words, paramount control and the practical outworking of the licence should be explored, to confirm if exercise of the right effectively achieves rateable occupation of the land over which it is exercised.
ie the fact that the premises is held on a licence and not a lease is not relevant.
5.3 Seasonal use
Southend on sea v Wren 1900 64 JP 7
5.3.1 Whilst the property may only be used for part of the year eg a seasonal use, the agreement is for 12 months, as per the hypothetical tenancy, and therefore the rent paid reflects the fact that for part of the year the hypothetical tenant does not make use of the property.
5.3.2 So no adjustment is to be made re the annual licence that the hut may only be occupied for part of the year. ie the site rent reflects the seasonality of the unit.
5.4 Domestic / non-domestic borderline
5.4.1 Having correctly identified the unit of assessment, the non-domestic / domestic borderline has to be considered.
5.4.2 Domestic
5.4.3 Domestic Property is defined in s.66(1)(a) and (b) Local Government Finance Act 1988 (LGFA 1988) ie S66 definition of domestic property.
(1)Subject to subsections (2) (2b) and (2e) below, the property is domestic if
a)It is used wholly for the purpose of living accommodation
b)It is a yard, garden outhouse or other appurtenance belonging to or enjoyed with property falling within para (a) above
c)It is a private garage which either has a floor area of 25sqm or less or is used wholly or mainly for the accommodation of a private motor vehicle or
d)It is private storage premises used wholly or mainly for the storage of articles of domestic use
5.4.4 1. Property is domestic if it is used wholly for purposes living accommodation or alternatively is an other appurtenance.
5.4.5 Use for domestic purposes (even for part of the year) should be considered at the material day.
5.4.6 In Lewis v Christchurch Borough Council 1996 RA229 the High Court found that the beach huts (including the site) formed separate hereditaments and refuted the suggestion that the hut was removable or that the huts should be assessed as one unit of assessment. On the facts in this case the huts were found to be Domestic Property as they were used wholly for the purposes of living accommodation.
5.4.7 Where a beach hut is wholly used for the purposes of living accommodation in that it provides sleeping and other facilities for living, with or without mains services, it will be treated as a cabin or chalet used as a holiday home and hence Domestic Property, falling to be assessed for Council Tax with a corresponding entry in the Council Tax List. Should VOs have difficulty in deciding whether the facilities provided fall within
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