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Hi there.
Just a little information for advisers. As you may know the Scottish Exec abolished Feu Duty in Scotland in November 2004, but allowed Superiors (the people who charge feu duty) to claim compensation from the Vassal (the person who pays feu duty).
With my client, who normally paid £16.01 per year in feu duty, the compensation level is a one off payment of £357 or payment in five instalments for £400 odd.
Basically, Superiors have to November 2006 to claim compensation and their is a strict procedure, which can be found on the Scottish Executive Website, searching under Feu Duty Compensation.
Clients can request to pay in instalments, providing they do so within 8 weeks of receiving the demand, but will typically pay 10% more.
With my client, his feu duty was normally paid by Pension Credit as a housing cost, but it isn't clear they will pay the compensatory amount he now needs to pay. We are only requesting this at this stage and will provide an update once we discover if they will pay it or not. If they don't we will no doubt go to appeal.
The Scottish Exec are currently trying to liaise with the DWP over this and can't currently get a name to forward advisors onto. The Scottish Exec, from what I have been told are not paying the compensation.
Finally, another point worth considering, is the DWP is, as far as I can see, still paying feu duty to many clients as part of their housing costs, despite it being abolished in November 2004. So no doubt any overpayment issues arising out of this should be challenged. If anyone has any further information, please add.
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