1.1

The aim of carrying out this exercise on composite dwellings is to enhance or update the Property Details attached to dwellings where the information may be held on the corresponding composite non-domestic property record or core file, and to record the appropriate Value Significant Code (VSC) against the domestic Property Details.

As a result of this exercise LO reports must be raised to add missing composite indicators and/or to remove incorrectly placed composite indicators from the CT List entries.

1.2

The definition of a composite hereditament for Council Tax purposes is found in CT Manual Practice Note 2 s2. It states :

‘The definition of a composite hereditament is contained in S.64(9) of the Local Government Finance Act 1988. It provides that,
”A hereditament is composite if part only of it consists of domestic property".

(Hereditament is defined in S.64(1) of the Act by reference to S.115(1) of the General Rate Act 1967 whilst the definition of domestic property is contained in S.66 of the 1988 Act, as amended.)

Composite properties fall into two main categories, namely,
(a) those that include a non-domestic element which appear (or will appear) in the non-domestic rating list (the majority), and
(b) those that include a non-domestic element which is exempt from rating and for that reason do not appear in the non-domestic rating list (the minority).’

1.3

This IA should be read in conjunction with:-

IT IA 190105 - Value Significant Codes and Maintain Questionnaire Details

Council Tax Manual Practice Note 2 - The Valuation of Composite Hereditaments for Council Tax

Rating Manual Volume 4: Section 9 - Composite Hereditaments.

1.4

Spreadsheets of all Council Tax composite properties have been prepared for each Billing Authority (BA) and will be placed in each Group’s P drive under the folder path:
Council Tax Revaluation 2007/Composites.

For the purposes of this IA an example spreadsheet can be accessed using this link Composites_Example.xls

After first publication of this IA an error was identified in some of the spreadsheets that did not allow the input of any Value Significant Codes other than CH & CI. Group CTR2007 Team Leaders have been emailed remedial instructions. Team Leaders will identify individuals to undertake the remedial action.

1.5

Each spreadsheet contains a list of all dwellings in the CT List with a composite indicator and any NDR Assessment that shares the same postcode.

For example:
on the spreadsheet 105A Rockingham Road is a flat with a composite indicator in the CT List. This property is listed along with all the properties in the Rating List with the same postcode ie 95 to 153 Rockingham Road.

1.6

The spreadsheet comprises headed columns as follows:

• Column 1: DOE code of the BA.
• Column 2: Council Tax composite indicator (C = Composite N = Not composite)
• Column 3: Rating List composite indicator (C = Composite N = Not composite)
• Columns 4 to 10: Address details
• Columns 11 to 30: Property Attribute Data
• Column 31: Current Council Tax Band
• Columns 32 to 39 contain the details of any NDR assessments
• Columns 40 to 44 contain any data held by the Licensed Property Valuer
• Columns 45 and 46 are to be completed if a CT or a NDR report needs to be raised.

1.7

If there is an entry in Column 2 only (see row 12 in the example sheet) this means there is only a CT band for that address. If there is an entry in Column 3 only (see row 8 in the example sheet) this means there is only a NDR assessment for that address. Where there is an entry in both Columns 2 and 3 (see row 21) that address has both a CT band and a NDR assessment.

2.1

Every assessment with a ‘C’ in the CT composite column (column 2) needs to be checked for any missing attributes. In order to do this the appropriate corresponding NDR assessment needs to be identified.

The appropriate VSC and any additional property details found must be entered on the spreadsheet in columns 14-30 and a LO report raised if the composite indicator requires amendment.

The extra Property Details and the VSCs collected as a result of this exercise will be recorded on the central database by staff at the Data Capture Centres.

A list of the relevant VSCs is attached as Appendix 1.

2.2

Properties with a ‘C’ in both columns 2 and 3 will be simple to deal with because there are clearly corresponding CT and NDR addresses.

On the example spreadsheet Row 21 has a ‘C’ in both columns. The NDR Primary Description Code in column 35 show that that property is a shop, therefore the VSC will be ‘CS’.

If there are any missing dwelling details the NDR file must be interrogated and any attributes found must be entered in the appropriate columns 14 -30.

2.3

Properties that do not have a ‘C’ in both columns should be dealt with following the examples on the table attached at Appendix 2.

If a corresponding NDR assessment cannot be identified on the spreadsheet, for example where the non-domestic part is exempt and does not appear in the Rating List, then a search of the domestic office records should be carried out in order to collect any information that may assist with ascertaining the correct VSC. For example the précis sheets may indicate that the property is a farm worker’s cottage, in which case VSC ‘AW’ must be used.

If the VSC cannot be ascertained from office records ‘CN’ (Composite: Not Known) must be entered.

2.4

Where it is found that a domestic property is composite but there is no composite indicator recorded in the CT List, ‘Y’ must be recorded in column 45 ‘CT Report?’ on the spreadsheet for action by the Admin Team to correct the List.

Where a composite indicator exists against a property in the CT List and on investigation this is found to be incorrect, ‘Y’ must be recorded in column 45 ‘CT Report?’ on the spreadsheet for action by the Admin team to delete the indicator from the CT List.

Where it is found that the Rating List requires amendment either by the recording or deleting of a composite indicator, ‘Y’ must be recorded in column 46 ‘RL Report?’ for action by the NDR Admin Team.

The four Groups in London will need to liaise with SRU South when dealing with licensed premises prior to making any alteration to the CT List.

3.1

Once all properties with a ‘C’ in column 2 have been investigated and all VSCs have been entered onto the spreadsheet or a ‘Y’ has been entered in Col 45 ‘CT Report ?’, a LO report must be raised with Reason for Report Code CR06.

LO reports must be actioned from the desk and, after the composite indicator has been added or deleted, cleared using Notification Change Code CL26 ‘Correction of inaccuracy in the Council Tax List’. The revised entry will be included in the next Update Schedule and a LON generated for issue.

3.2

Where an amendment is required to the 2005 Rating List, a list of all properties with a ‘Y’ in column 46 ‘RL Report ?’ should be prepared and saved on the O Drive.

Action on receipt of the list of rating assessments requiring amendment will be the subject of a later IA.

3.3

On completion of this exercise, a confirmatory e-mail should be sent to .

The spreadsheets will then be removed from the P Drive and prepared for input by the Data Capture Centres.