A promise is a promise, but is it enough? – Iqbal v Epsom & Ewell Borough Council

The High Court has today given an ex tempore judgment in the case of Iqbal v Epsom & Ewell Borough Council (AC-2023-LON-003730), holding that undertakings given by the legal owner of a property in matrimonial finance proceedings not to occupy or rent the property out is not sufficient to make the property eligible for a Class G council tax exemption under the Council Tax (Exempt Dwellings) Order 1992.

In reaching this decision, the High Court has for the first time endorsed a line of Valuation Tribunal decisions – including Diamond Care UK2 Ltd v North Norfolk DC [2023] RVR 73 – which made it clear that prohibition of occupation of a property by law cannot arise as the result of decision within a property owner’s control if the council tax exemption is to apply. This follows the High Court having reached the same view on the equivalent exemption in the non-domestic rates context in Pall Mall Investments (London) Ltd v Gloucester CC [2014] EHC 2247 (Admin).

Katharine Elliot acted for the successful billing authority.