Bailiffs and exempt goods

If bailiffs have removed or clamped a vehicle that is exempt, make a claim to exempt goods. The claim will stop any potential sale.

It's crucial to commence the claim within 7 days from the date of removal or clamping of the goods.

If the exempt goods have already been sold, a successful claim for exemption can enable the court to reverse the sale.

In bailiff terminology, this type of claim is referred to as a CPR 85 claim, which stands for Civil Procedure Rule 85, or simply a Part 85 claim.

The procedure consists of two stages:

Request the bailiff company to return the goods to you.

If your request is denied, seek recourse through the court..

Regulations specify which goods are exempt from enforcement.

The Law:

Paragraph 4 of Taking Control of Goods Regulations 2013 states:

Exempt goods

4.—(1) Subject to paragraph (2) and to regulation 5, the following goods of the debtor are exempt goods—

(a) items or equipment (for example, tools, books, telephones, computer equipment and vehicles) which are necessary for use personally by the debtor in the debtor’s employment, business, trade, profession, study or education, except that in any case the aggregate value of the items or equipment to which this exemption is applied shall not exceed £1,350;

(b) such clothing, bedding, furniture, household equipment, items and provisions as are reasonably required to satisfy the basic domestic needs of the debtor and every member of the debtor’s household, including (but not restricted to)—

(i) a cooker or microwave;

(ii) a refrigerator;

(iii) a washing machine;

(iv) a dining table large enough, and sufficient dining chairs, to seat the debtor and every member of the debtor’s household;

(v) beds and bedding sufficient for the debtor and every member of the debtor’s household;

(vi) one landline telephone, or if there is no landline telephone at the premises, a mobile or Internet telephone which may be used by the debtor or a member of the debtor’s household;

(vii) any item or equipment reasonably required for—

(aa) the medical care of the debtor or any member of the debtor’s household;

(bb) safety in the dwelling-house; or

(cc) the security of the dwelling-house (for example, an alarm system) or security in the dwelling-house;

(viii) sufficient lamps or stoves, or other appliance designed to provide lighting or heating facilities, to satisfy the basic heating and lighting needs of the debtor’s household; and

(ix) any item or equipment reasonably required for the care of—

(aa) a person under the age of 18

(bb) a disabled person; or

(cc) an older person;

(c) assistance dogs (including guide dogs, hearing dogs and dogs for disabled persons), sheep dogs, guard dogs or domestic pets;

(d) a vehicle on which a valid disabled person’s badge is displayed because it is used for, or in relation to which there are reasonable grounds for believing that it is used for, the carriage of a disabled person;

(e) a vehicle (whether in public ownership or not) which is being used for, or in relation to which there are reasonable grounds for believing that it is used for, police, fire or ambulance purposes; and

(f) a vehicle displaying a valid British Medical Association badge or other health emergency badge because it is being used for, or in relation to which there are reasonable grounds for believing that it is used for, health emergency purposes.

(2) Paragraph (1)(a) does not apply where the debt is being enforced under—

(i) section 62A of the Local Government Finance Act 1988;

(ii) section 54 of the Land Drainage Act 1991;

(iii) paragraph 12 of Schedule 15 to the Water Resources Act 1991; or

(iv) section 127 of the Finance Act 2008.

Exclusions:

Paragraph 1(a) above does not apply to enforcement of:

Business rates: Section 62A of the Local Government Finance Act 1988

Drainage rates: Section 54 of the Land Drainage Act 1991

Drainage charges: Paragraph 12 of Schedule 15 to the Water Resources Act 1991

Money owed to HMRC: Section 127 of the Finance Act 2008

The majority of claims for exempt goods under CPR 85.8 pertain to vehicles used for work or trade purposes.

This includes trade vehicles such as vans or trucks, as well as vehicles used for business travel, such as mini-cabs and cars. However, it excludes vehicles used solely for commuting to a fixed place of work.

As per the law, only vehicles valued at less than £1350 are considered exempt.

In a court ruling in 2017 involving Newlyn Plc, it was determined that the vehicle's auction value determines its worth. If your vehicle is sold for an amount lower than £1350, you have the option to file a claim for exempt goods and regain possession of the vehicle.

Procedure:

The Law:

Civil Procedure Rule 85.8 states:

(1) A debtor making a claim to exempt goods must, as soon as practicable and in any event within 7 days of the removal of the goods, give notice in writing of the claim to exempt goods ("notice of claim to exempt goods") to the enforcement agent who has taken control of the goods or relevant enforcement officer and must include in such notice—

(a) their full name and address and that address is their address for service;

(b) a list of all those goods in respect of which they make such a claim; and

(2) On receipt of a notice of claim to exempt goods, the enforcement agent or relevant enforcement officer must within 3 days give notice of such claim to—

(a) the creditor; and

(b) any other person making a claim under rule 85.4 or 85.6 to the goods subject to enforcement ('any other claimant to the goods subject to enforcement').

(3) The creditor, and any other claimant to the goods subject to enforcement, must, within 7 days after receiving the notice of claim to exempt goods, give notice in writing to the enforcement agent or relevant enforcement officer informing them whether the claim to exempt goods is admitted or disputed in whole or in part.

(4) The enforcement agent or relevant enforcement officer must notify the debtor in writing within 3 days of receiving the notice in paragraph (3) whether the claim to exempt goods is admitted or disputed in whole or in part.

(5) A creditor who gives notice in accordance with paragraph (3) admitting a claim to controlled goods or to executed goods is not liable to the enforcement agent or officer for any fees and expenses incurred by the enforcement agent or officer after receipt of that notice by the enforcement agent or officer.

(6) If an enforcement agent or relevant enforcement officer receives a notice from a creditor and from any other claimant to the goods subject to enforcement under paragraph (3) admitting a claim to exempt goods the following applies—

(a) the enforcement power ceases to be exercisable, and the right to execute conferred by any writ of execution ceases to have effect, in respect of such exempt goods;

(b) as soon as reasonably practicable the enforcement agent or relevant enforcement officer must make the goods available for collection by the debtor if the enforcement agent or officer has removed them from where they were found.

(7) Where the creditor, or any other claimant to the goods subject to enforcement to whom notice of claim to exempt goods was given, fails, within the period mentioned in paragraph (3), to give the required notice, the enforcement agent or relevant enforcement officer may seek—

(a) the directions of the court by way of an application; and

(b) an order preventing the bringing of any claim against them for, or in respect of, their having taken control of or seized by execution any of the goods or their having failed to do so.

(8) An application under paragraph (7) must be made to the court which issued the writ or warrant conferring power to take control of controlled goods, or the writ of execution or, if the power to take control of controlled goods was conferred under an enactment, to the County Court hearing centre which is the debtor’s home court.

Collect the following items as exhibits regarding the exempt vehicle:

Screenshots of various completed listings on eBay within the past 30 days, demonstrating that the value of a similar vehicle is below £1350.

Documentation indicating the nature of the vehicle's use, such as evidence of it being employed as a minicab, for delivery services, courier purposes, tradesman work, etc.

Proof of insurance coverage specifically for business or trade use of the vehicle. (This requirement doesn't apply if the vehicle is used for educational purposes.)

Forward these documents via email to the creditor (counciil) and copt the bailiff company, using the subject line: "Notice of Claim to Exempt Goods".

In your email, provide the following details:

Your full name
Your address, with the notation: "This is my service address"
Description of the goods, specifying the make, model, and registration
The basis of your claim, such as explaining how the vehicle is utilised in your professional or business activities

Template email - "The notice of claim to exempt goods".

Attach the supporting exhibits to the email, including the eBay listings, evidence of business use, and, if applicable, the insurance policy.

Take a screenshot of the email displaying the time of sending, as this will be required when submitting your claim for exempt goods in court.

The bailiff company is required to forward your notice to the creditor within 3 days. The creditor then has 7 days to respond to the bailiff company regarding the admission of your claim (acknowledging that your goods are exempt). Subsequently, the bailiff company has 3 days to inform you of the creditor's decision. This entire process takes 13 days.

If the creditor acknowledges your claim, you can retrieve your vehicle and initiate a claim for damages. For further information, refer to the guidelines on retrieving a vehicle from a compound.

Arrange for a solicitor to deliver the information to the bailiff company.

If the creditor is inclined to reject your claim, they will be aware that you are incurring expenses, which they will be responsible for if the court approves your claim.

If your claim to exempt goods is not admitted, make an application to court for a claim to exempt goods under CPR 85.8.

Procedure:

The Law:

Civil Procedure Rule 85.9 states::

(1) Where a creditor, or any other claimant to goods subject to enforcement to whom notice of a claim to exempt goods was given, gives notice under rule 85.8 that the claim to exempt goods, or any part of it, is disputed, and wishes to maintain their claim on the goods subject to enforcement, the following procedure will apply.

(2) The debtor must make an application within 7 days of receiving the notice under rule 85.8(3) which must be supported by—

(a) a witness statement—

(i) describing any goods to which a claim to exempt goods is made; and

(ii) setting out the grounds upon which such claim is based; and

(b) copies of any supporting documents that will assist the court to determine such claim.

(3) In the High Court the debtor must serve the application notice and supporting witness statements and exhibits on—

(a) the creditor;

(b) any other claimant to the goods subject to enforcement of whom they are aware; and

(4) In the County Court the debtor must provide to the court when the application is made the addresses for service of—

(a) the creditor;

(b) any other claimant to controlled goods of whom the debtor is aware; and

(c) the enforcement agent, ('the respondents'), and the court will serve the application notice and supporting witness statements and exhibits on the respondents.

(5) An application under paragraph (2) must be made to the court which issued the writ or warrant conferring power to take control of controlled goods or the writ of execution or if the power to take control of controlled goods was conferred under an enactment, to the debtor’s home court.

(6) The application notice will be referred to a Master or District Judge.

(7) On receipt of an application for a claim to exempt goods, the Master or District Judge may—

(a) give directions for further evidence;

(b) list a hearing to give directions;

(d) make directions for the retention, sale or disposal of the goods subject to the claim to exempt goods;

(e) give directions for determination of any issue raised by the exempt goods claim.

If your claim is successful, you have the opportunity to claim three types of damages:

Special Damages: This includes expenses such as the cost of repairing the car, expenses related to transporting the car from the compound, loss of use of the car (e.g., taxi fares, rental car fees), and loss of earnings.

Restitutional Damages: The bailiff may be directed to reimburse you for any profits earned or benefits acquired from the seizure of your car.

Conversion: This entails receiving payment or compensation for being deprived of the lawful right to use your car.

Collect the following items to support your claim:

eBay listings demonstrating that the vehicle is priced below £1350.

Evidence confirming the vehicle's use in your business, trade, or education.

Insurance policy details (if relevant).

A list detailing the expenses and losses incurred due to the vehicle's unavailability.

If already submitted, include the screenshot of the email sent to the creditor and bailiff company.