[Red Moon]

Big Brother beware, the taxman is watching you
By : Cheryl Taylor

7 January 2006

IT is possibly the most absurd stealth tax yet. As another group of dysfunctional celebrities enters the Big Brother House for Celebrity Big Brother 2006, the Valuation Office Agency (VOA) is considering whether it should be liable for council tax or business rates.

Just before Parliament’s Christmas recess an MP asked whether the contestants’ occupancy of the BBH should attract a charge for council tax. John Prescott’s Office of the Deputy Prime Minister, not slow to capitalise on possible new revenue, immediately sent a VOA inspector to the house (pictured left) at Elstree film studios to decide whether it should be subject to council tax.

Peter Chapman, a partner at estate agents Cluttons, represented Elstree at the meeting with the VOA and believes the contestants should not be liable for council tax because of the short period they live there. The VOA is also considering whether the property should be assessed for business rates. This hangs on whether the premises constitute a rateable hereditament. Again Chapman says no, because the building is temporary, changing in size and layout for each summer and winter series. It is in reality a film set. If the BBH is not a rateable structure then the only other consideration is whether the compound that encloses it should be taxed.

Chapman says: “This de-pends upon whether Endemol, which produces the series, has exclusive occupation of the site. However, any value attributable to this site is already reflected in the main assessment for the Elstree Studio and therefore business rates are already being paid.”

The valuation officer is expected to make his decision shortly.

Source: Business Online