Compounding Chancel Repair Liability

It is possible for a lay rector to seek to compound his liability under s.52 of the Ecclesiastical Dilapidations Measure 1923 (as amended). The sum to be paid can be agreed by the Diocesan Board of Finance after consultation with the PCC. The Board has the right to refer the matter to the Commissioners. The Commissioners have rarely been asked to agree a figure. Our formula when asked to do so is as follows:

(i)         the cost of putting the chancel in good repair at the time of the request, plus fees and any non-recoverable VAT;

(ii)        the estimated cost thereafter of annual maintenance of the chancel plus fees and any non-recoverable VAT, capitalised at the appropriate years' multiplier.

(iii)       the estimated annual cost of insuring the chancel for a sum adequate to reinstate it after destruction by fire, also capitalised at appropriate years' multiplier.

NOTES

 

It is the Commissioners' policy that the appropriate link for the capital multiplier is the average yield on the FTSE 100 Index. At the time of writing (23rd February 2016) the yield is 4.23% thereby giving a multiplier of 23.64.

Dioceses will want to take their own legal advice on the wording of any receipts issued under S.52(4). If (as in many cases) a fractional liability only is compounded, the receipt should state very clearly that it is only that fractional liability being compounded and that any other liabilities pertaining to the person compounding the relevant fraction and others so liable remain extant.