Can a new Law be retrospective?

[andregemini]

In the UK Budget of December 2007 it was announced that as from the 1st of April, empty industrial units in the UK will attract Council Tax. However the first six months of being empty will not. The South Northants Council now advises that the building was empty during the six months leading up to the legislation and as a result I have to pay the Tax. My understanding is that the Law can only be applied from the date it is legislated and cannot be retrospective. What is the answer.

[buildersmate]

Class C exemption of Council Tax applies to an empty and unfurnished property for up to 6 months since it became that way. This isn't new - it has always been that way since Council Tax was introduced.
Whilst the budget may have changed the rules for empty industrial buildings, I suspect (but I'm not sure) that the mentioning of the clause you mention was not part of the new Act, but was merely repeating what Class C says anyway. Unfortunately it didn't tell the whole story - namely that it applies from the time ut was first unoccupied.
This sounds like an interpretation thing - you could try appealing the decision.

[moomintroll1]

Were you claiming Empty Property Relief up until April?

The new law won't have affected your right to claim Relief up to that date, but it is perfectly acceptable for them to say that, as the property was empty for at least six months prior to April, there is no further entitlement to the Relief once the new rules come into effect.

If you have just bought the property, they are correct in denying you Relief if it was previously empty for more than six months.

[andregemini]

The law prior to the new Fiscal or Tax Year 2008, allowed empty, or not occupied Undustrial Buildings 100% relief.

So if the Law is only promulgated on the 1st of April 2008 for the Fiscal year 2008, surely it can only be applied as of that date?
In terms of the NEW Law, one is allowed six months of relief.

[buildersmate]

You don't need to convince us, but S Northants. Between us, we've explained what s Northants position probably is, and why. I suggest you put your point to them. Personally I think you will not win this one - the Class C exemption applies for 6 months from the date of being empty. Unless the recent rule change on empty business property relief said otherwise, I think S Northants are interpreting this within the law.

[moomintroll1]

The law isn't retrospective, though. It would only be retrospective if it affected the Relief you could claim before it came into effect, which it doesn't. What has changed is the rules which affect your entitlement to claim Relief from that date forward.

Your entitlement to Relief depends on circumstances which predate the change, that is true (i.e. the fact that it was empty), but this does not make the law retrospective.

The new rules say that you can only claim Empty Property Relief for the first six months a property is empty. If those first six months were before 1st April, there is therefore no further entitlement to Relief.

Sorry it's not the answer you were looking for, but as I see it, they are interpreting the rules correctly in this instance.