APC - Local Taxation Flashcards

Question

What are the grounds for proposals?

Answer 1

MERCCD VP 1.MCC 2. eff date wrong 3. Recon 4. Removed or added to list 5. Change made by vo which is wrong 6. Compiled list error 7. Domestic or exempt 8. Vt decision 9. P&M change

Answer 2

LHFA 1988 SCH. 5 Agricultural land and buildings Fish farms Places of worship 1. Open invitation 2. Church of England certified. Caselaw church of Scientology 2023 Parks - Lambeth overseers v LCC 1897 free open access managed by LA. Ancillary to park if enhances enjoyment Disabled - must be for training or keeping disability occupants occupied not for hospitals Light houses Visiting forces

Answer 3

ELS CTEI 1. EMPTY BULDING ' 100% relief on vacant properties for 3 months and 6 months relief for industrial. (From Apr 24 must be re'occupied for 13 weeks 2. LISTED BUILDINGS- 100% relief until re-occupied 3. SBRR - 100% relief for RV of 12k or less. Relief phased from £12,001 to 15k. Must occ one property in UK 4. CHARITABLE - 80% if used for charitable purposes 5. TRANSITIONAL RELEIF- protect IP from large increase or decrease in their rating liability between valuations. From 2023 only for increase 6. ENTERPRISE ZONE RELEIF - If starting up or moving to Enterprise zone can get up to 55k over 5 years 7. IMPROVEMENT RELEIF - if area has been increase, efficiency or p&m improved and certified that occ has been in occ for duration of works by ba then eligible SMALL BUSSINESS SUPPORT RELEIF - No increase of more than £600 Sec 44a building ot occupied following redevelopment Council can award discretionary relief for short terms Retail relief 75% expire in Apr 2025. Reduced thereafter to 40% (Oct 24 budget).

Answer 4

Latin; taking things as they stand. This means we value things as they stand at the material date based in two separate limbs: PHYSICAL LIMB Using reasonable personal test we only have regard for minor changes/alterations. We do not have regard for hope value. I.e stud wall in zoned shop, zone straight through as a reasonable person would remove at little cost. This would not be the case with structural wall. USE LIMB Using principle characteristics use test, must value property for same general purpose as existing use of the hereditement in the open market. Value attributable to the prospect of using for different purpose must be disregarded I.e if u have parade of shops at 10k and subject could be used as restaurant and value at 15k we value based on existing use X2 caselaw FIR MILL V ROYSTON 1960 held cotton mill valued as factory ragter than a cotton mill. A factory is a factory and a shop is a shop SCOTTISH &NEWCASTLE V WILLIAMS 2000 Confirmed we assess mode and category based on 2 limbs of Rebus separately. Case was public house in parade of shops. Decision to value on existing use as public house

Answer 5

FRI Full repair and insure liability on tenant IRI Internal repair and insure liability on tenant

Answer 6

Contains assessments of major transport, utility, and communications such as gas, water, railways etc

Answer 7

Single totalled RV for all property occupied by ratepayer. Paid direct to dept. for levelling up.

Answer 8

Gov uk website

Answer 9

LOTUS AND DELTA V CULVERWELL AND LCC 1976 6 STAGES 1. The rent of the subject should be taken as a starting point 2. Closer the rent is to rating hypothethesis and the AVD, the more weight should be attached to it 3. Where rents of similar properties are available, they should be looked at. 4. Assessments of other comparable Assessments are also relevant 5. In light of all of the evidence obtained, an opinion can be formed. 6. Where no comparable rents are available a review of other Assessments may be helpful. SPECIAL EYES V FELDGATE 1994 rental evidence 86/87 helpful in determining upwards trend. But had little weight due to required adjustments to 1/4/88 Rental evidence close to AVD has biggest weighting due to requiring no adjustments Rental evidence post avd admissible but preferably not ot used

Answer 10

OBRIEN V HARWOOD 2003 3 stages leading to establishment of tone 1. New rating list, entries carry little weight due to being uncontested. 2. Over time assetments will be challenged or agreed 3. Finally a stage is reached where anought assetments have been agreed or determined or are unchallenged to establish a pattern of values, a tone of the list

Answer 11

P&M regs 2000 P&M rateable bc it's like chattel and enjoyed with land POWER Anything that creates, contains or maintains power. E.g air compressor, generators etc. Valued on cost guide. If for grid valued on central list SERVICES Heating/cooling, fire protection and security. Reflected in base price MOVEMENT Lifts/ elevators. Rejected in base price STRUCTURE Bund walls, pits and tanks. If less than 400 cubic meters and movable without need for demolition ie not permanent its not rateable. Valued on contractors basis. Aircon reflected as other addition Retail ac £7 p.s office £4 pms Iceland v woodberry 2018 ac exclusively used for services of hereditement therfore not rateable.

Answer 12

Go e VO time to produce and update list.

Answer 13

1. Stepped rent/ r/f period 2. Vat 3. Premiums/reverse premiums 4. Other adjustments such as living accommodation or overage 5. Break clauses 6. Tenant alterations/improvements

Answer 14

UBR set by government. Since 24/25 Below 51k is 49.9 pence Over 51 k is 54.6 pence

Answer 15

Allowances are made for e.g masking or irregularities falling beyond the scope of the scheme. However two peices of caselaw.are relevant 1) occ v struder unreasonable to assume allowance from one property should automatically apply another 2) onus on appellant to demonstrate allowance from comp is applicable to subject

Answer 16

England Judicial arm: VTE valuation tribunal for England Administrative arm VTS valuation tribunal service

Answer 17

VTE procedure regs 2009 Consolidated practise statement

Answer 18

Reg13 No DN after 18 months List not altered List altered but not as sought

Answer 19

VO have 4 weeks from being informed of appeal to dispute material Appellant has 2 weeks to respond if VO raise an issue Then one week each. 4 weeks not mandatory deadline is maximum 4 weeks before appeal VO must action VT decision within 2 weeks

Answer 20

Witness of fact: rare; something fa tual requires confirmation Expert witness: provide expert valuation opinion Advocate: don't offer opinion. Cross examine other side and highlight strengths/weaknesses has duty to client

Answer 21

Consent order Withdraw Decision

Answer 22

Reg 9 NRD alterations Act 2017: IP must disclose all information at check. Reg 17 VTE Regs 2009 Rents disclosed must be given in clear table etc....

Answer 23

Statutory assumptions property in reasonable state if repair apart from those deemed uneconomical (more than 5.6 times the RV If damage renders hereditement IOB as result of ongoing scheme of reconstruction then should be deleted. Relevant caselaw is Newbiggin v Monk 2015 and Jackson v Canary Wharf 2018

Answer 24

RICS code of practise - rating consultancy 5th ed. April 2024 RICS GN Rating Appeals 4th Ed Apr 2017. VOA agent standard April 2024 The RICS contractors basis of valuation for rating purposes 2nd Ed Aug 2017 Also check for expert witness and advocate x2 seperate docs

Answer 25

4.4% set by Central Central government 2.6% health and education due to stronger covenants

Answer 26

1) assess 3 years fmt leading up to avd. Not average! 2) determine appropriate val scale and band. Scale is is it 1,2,3 star hotel? Then apply band within scale which is based on accommodation receipt per dbu/proportion of trade. Usually 65-85% 3) use correct percentage within band to apply to fmt and arrive at rv.

Answer 27

Cheif financial officer Toby Nerval Report any money laundering team to information and lawful development team

Answer 28

1) confirm headline rent and date 2) vat deduction if applicable 3) adjusted for stepped rent or r/f period. Ignore 3 mth fitout 4) adjusted for premium and reverse premiums 5) othe adjustments such as overage, accommodation etc 6) adjust to FRI repairs 5% insurance 3.5%

Answer 29

Merton v Nuffield Health 2023 Church of Scientology 2023 Card tronics v sykes 2020 Lydgate house 2018 KC Prosser v Rikkets 2024

Answer 30

Local government Act 1966 introduced empty rates liability to encourage occupancy. Superseded by LGFA 1988 and now Empty rates Act 2007. Has grace period

Answer 31

Replaced short-lived poll tax which replaced domestic rates in 1990 Principle act is LGFA 1992. Tax came into force April 1993 (AVD 1991). In UK 8 Bands A-H. Based on Capital values not rental values. Rebus does not apply Dwelling = 1. Must appear in the valuation list Would have been liable for domestic rating had it continued

Answer 32

IP challenged (2017 list) post split from Hospital, premises had been incorrectly valued by prev caseworker applying incorrect arc's. 1) Adopted correct ERC (RM adopted from BCIS figs) 2) Estimated ARC for physical deteriation/obsolescence based on % from RM. (Added 12.5% for locational factor). 3) Estimated site value - per table of % in RM set by memorandum of agreement 4) Applied decap rate 2.6% 5) stand back Agreed with agent and well founded

Answer 33

1. IP sought 12.5% allowance due to single track access via side of unit 2. Comp from next door not comparable as far inferior enclosed thus restricting vehicles. Comps across were alos inferior due to long windy twisty road, landlocked site, far inferior to subject. Agent cherry picking. We had comps with same as subject with no allowance applied. This confirmed issues similar to those raised by IP were inherent with property age and already reflected within scheme therefore any further allowances would be double counting...therefore disagreed

Answer 34

Agent contended 2017 tone should be reduced citing rents from furthest side of retail court. I contested those comps saying that the subject was better located and provided rents adjacent to subject which confirmed this. Also pointed out subject was located in south of centre right by footbridge to train station thus attracting footfall/explaining rental increase at this end. Agent agreed to withdraw.

Answer 35

Capitalise rental value for the term, then add on the premium to this capital value, then decapitalise over the period of the term

Answer 36

Capitalise payable period up until review and then discount this sum by the YP for the total term of the lease

Answer 37

Capitalise each rent up until review then decapitalise this over the period until review

Answer 38

A premium is given by the tenant in order to secure occupation of a site. It is typically reflected through a lower passing rent. Reverse premium is given by the landlord in order to incentivise a tenant to occupy the premises. It is reflected by the landlord increasing the passing rent in order to recoupe the initial sum

Answer 39

Rents may be capitalised into perpetuity where a long rent free period is given or incentive that could skew the capital value

Answer 40

Secretary of state

Answer 41

Out of London Below 51k 49.9p Above 51k 51.2p Inner London 0.08p more

Answer 42

1) Well Found 2) Withdrawn 3) Disagree 4) DN 5) Incomplete/unlawful0

Answer 43

NDR amendment regs 2009

Answer 44

RM 1.9 2023 rental adjustment UK Guidance Note 6 on 'Analysis of commercial lease transactions' (UKGN 6) of ‘RICS Valuation - Professional Standards UK A valuation for rating is made within a statutory framework, and so is not bound by the Red Book’s valuation technical and performance standards. However, the mandatory requirements of professional standards PS1 (compliance) and PS2 (Ethics) in the RICS Red Book Global Standards 2020 must still be observed.

Answer 45

* **Rental adjustment** enables us to put the rental details on the same basis as the definition of RV. * In summary **rental analysis** is the process of taking an adjusted rent and converting it (analysing) into a recognised unit of comparability (commonly a £/m2 or a £/hectare etc.) that can then be used to value other properties.

Answer 46

No! Only a set of 4 is

Answer 47

Becuase SLM does not reflect 'time value for money' as it does not account for compund interest We therefore need to ascertain the present value of PV of £1 (YP) 3 stages 1) capitilise rental value over payable period i.e x YP (right to receive this income from day one even though it will only be received later) 2) Confirm PV today for defered income (Decpapitilise) i.e x PV 3) Finally, need to equate const. equiv. rent. Instead of multiply, you devide by YP

Answer 48

If a property has poor access then it can have a negative impact on rental value. Therefore, it might qualify for a small reduction in the RV (normally 5%).

Answer 49

Tone is the general level of value which have been established in an area for a particular type of property.

Answer 50

Dal Virk (VO) v Moor Lane Self-storage 2023. 1. Value entirety of land 2. Then value each individual container based on their decapitalised actual cost (refer to RM), adjusted to Antecedent Valuation Date levels of cost.

Answer 51

1. CCA, or VO s41 duty to maintain fair list. But S41 is difficult as it is dificult to discern 2. Alternatively, where a building is not regarded as complete and capable of beneficial occupation, the billing authority may serve a completion notice [s.46A of the LGFA 1988].

Answer 52

The basic definition of “Domestic Property” is provided in s.66(1) LGFA 1988: “Subject to subsections (2) and (2B) below. Property is domestic if: 1. wholly used for the purposes of living accommodation, 2. it is a yard, garden, outhouse or other appurtenance belonging to or enjoyed with property 3. it is a private garage consiting of less than 25 m2 or is used wholly or mainly for the accommodation of a private motor vehicle, or it is private storage premises used wholly or mainly for the storage of articles of domestic use."

Answer 53

**These are valued on a rentals basis, not a receipts basis.** Pubs use the "fair maintainable turnover" as the comparator to assist in the analysis of rental evidence and therefore as a valuation basis. Percentage rental bids are applied to the various income streams which make up the FMT depending on location, age, modernity, style of operation etc. as set out in the Valuation of Public Houses Approved Guide.

Answer 54

Appeals under the 2010 list were made to the VOA and heard by the VT. Appeals under CCA are made directly to the VT

Answer 55

To deal with cases fairly and justly and act in accordance with The Local Government Finance Act 1988, Schedule 11, Part 1, paragraph A17(1) and The Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009.

Answer 56

The regulations only permit an interested person to make a single proposal in respect of each event, defined as the compilation of the list, a material change of circumstances or an alteration of the list by the valuation officer [regulation 4(3)(b)(i)].

Answer 57

**Schedule 9 LGFA 1988** The Valuation Officer (VO) for a charging authority is required to compile and maintain non-domestic rating lists for the authority (Section 41 of the Act) as one of the statutory functions, and therefore may serve notices stating that the information requested in the notice will assist in the compilation of a new rating list or the maintenance of an existing rating list.

Answer 58

The statutory assumption applies irrespective of the reasons why a hereditament is in a particular state. Whilst the property is damaged it would come under the repairing assumptions, but once work starts to repair it becomes subject to a scheme of redevelopment.

Answer 59

In Lambeth Overseers v LCC (1897) AC 625 where LCC purchased a park under a special Act and maintained it for recreational purposes. It was held that the public had the right to use the park in perpetuity and LCC were not in occupation. The land was “struck with sterility” as no one could derive a greater benefit from it than anyone else.

Answer 60

Waveney Mushrooms Ltd v Moore (VO) – VT 11-May-2023. It cannot be exempt under paragraph 7 as the agricultural operations (growing mushrooms) are carried out in a building and not on land. Note the importance of the fact that agricultural land and buildings are mutually exclusive.

Answer 61

Porter (VO) v Gladman SIPPS (2011) RA-63-2008 the President of the Lands Tribunal said, ‘a building is only a hereditament if it is ready for occupation, .....in the light of the purpose for which it is designed to be occupied. There is in consequence no scope for including in the list a building which is nearly, even very nearly, ready for occupation unless the completion notice procedure has been followed.’

Answer 62

* Gilbert v S Hickinbottom and Sons Ltd 1956; whether the primary test was geographic (that the occupation can all be ringed around on a map without intervening occupations) or a functional test (that the parts were occupied together in the same building and without inconvenience caused by the lack of contiguity). * Woolway v Mazars [2015]; Lord Sumption set out intercommunication requirements * In England, the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 - from 1st April 2010. * Cardtronics UK Ltd and Others v Sykes and Others VO – lodger & landlord scenario

Answer 63

Bunyan v Acenden 2023 Need to compare Cat A to Cat B and see diff in rental values. Case found a hypothetical tenant would pay more for Cat B, hence rquiring an uplift. Its very difficult due to lack of evidance in open market so courts just awarded a figured in between the two opposing parties

Answer 64

To ensure uniformity so that all hereditaments are valued on the same date. The leading case on this is K Shoes where values on Regent Street and Oxford Street were assessed 3 years apart and because of inflation one was paying much more than the other and it was ruled there needed to be uniformity.

Answer 65

A composite hereditament is one which is a mixture of domestic and non-domestic such as a shop with living accommodation.

Answer 66

Cross check it against similar properties nearby, contact ratepayer to double check, contact landlords agent to check.

Answer 67

Comparable method, receipts and expenditure method and Contractors test.

Answer 68

As a VOA employee I would search the database for rental information of similar property types in the location around the valuation date. In private practice companies would have their own databases of rental information they have collected over the years from appeals they have submitted and rent reviews, new lettings they have dealt with.

Answer 69

This gives examples of the types of incentives that may be included in leases and explains the considerations that should be made when adjusting and analysis a rent. It goes through worked examples of different scenarios. It does not tell you how to analyse a rent, just the thought process you should follow when doing so.

Answer 70

I make it quite clear, I say 'I am now acting as an expert witness' 'I am now acting as an advocate.'

Answer 71

A written submission is where the appellant cannot attend the tribunal and so asks for his statement of case to be treated as his submission at the VT hearing. The clerk will usually read this out.

Answer 72

Yes! Empty rates act 2007

Answer 73

Yes! not based on profit, rather on can it produce a rent

Answer 74

Depends! Must establish if heradit is COBO per Porter v Gladman 1) COBO for purpose it was designed 2) If it lacks certain items which will form part of the hereditament and it is unoccupied then the unit is not complete Exeptions Completion notice or heradit is occupied