L1

Question 1

Explain the case of Monk v Newbigin 2017

Answer 1

This case summarised that where a property is undergoing redevelopment and therefore as a consequence is incapable of beneficial occupation, it does not constitute a hereditament and therefore the repair assumption in the statutory formula cannot apply

Question 2

What are the key pieces of legislation that governs local taxation?

Answer 2

Local Government Finance Act
General Rate Act
Rating Valuation Act
Non domestic rate act 2023

Question 3

What is the definition of rateable value?

Answer 3

The estimated annual rental value of a property as at the antecedent valuation date based on the assumption that:
Vacant
Available to let on an annual tenancy
FRI terms
In good repair
Tenant pays rates
Current use
No alterations may be made

Question 4

What makes a rateable occupier?

Answer 4

Beneficial
Exclusive
Actual
Transience / Permanence

Question 5

What’s the antecedent valuation date?

Answer 5

01 April 2021

Question 6

What’s a MCC and when does it apply?

Answer 6

Material change in circumstance. A physical change to the property that affects its profitability. Or something in the local area e.g roadworks happening outside your high street shop

Question 7

What sort of reliefs are available?

Answer 7

SBRR
Transitional Relief
Retail / Leisure / Hospitality
Empty property relief
Charitable relief
Hardship relief

Question 8

What relief was particularly influential at revaluation

Answer 8

Transitional relief

Question 9

What’s the Cca process

Answer 9

•Check,challenge,appeal
•check: To change factual information of a property e.g floor areas,description
•challenge: challenging based on the actual valuation
Appeal: appeal to the valuation tribunal

Question 10

What timings are involved for the cca process !?

Answer 10

• VOA have 12 months to respond to check.

• have to submit a challenge within 4 months of receiving a check decision notice

• VOA have 18 months to respond to a challenge and then we have 4 months from challenge decision to appeal to the VT

Question 11

What RICS guidance is there for rating work ?

Answer 11

• rating consultancy code of practice (4th addition march 2017)

Question 12

What’s a completion notice and when can the VO enter the property back into the rating list ?

Answer 12

•3 months before it would be reasonably finished.

• completion notices are sent by the local council and they set the date a new or altered property should appear in the valuation list.

Question 13

What is section 44A relief?

Answer 13

Relief on premises that are partly occupied, as long as this situation is for a short time only

Question 14

When submitting a check application for RV £0 purposes, what information would you submit?

Answer 14

Planning application and decision notice
Programme or schedule of works
Photographic evidence

Question 15

If you were undertaking an inspection of an office for rating purposes, what things influence value?

Answer 15

Raised floors
Air conditioning

Question 16

If you were inspection a retail property for rating purposes, what things influence value?

Answer 16

Masked areas
Steps
Hard frontage
Return frontage
Limited or no storage / ancillary areas
Wide but shallow (all zone a)

Question 17

What can you tell me about SBRR?

Answer 17

100% relief if RV is below £12k
Tapered relief for RVs between £12,001 and £15,000
Must be:
• ratepayers only property
• may have relief for other additional properties providing those have RVs less than £2,900 and the total RV of the properties is less than £20,000

Question 18

Explain the Woolway v Mazards Case

Answer 18

Case relating to premises leased by a firm of accountants, who occupied offices on the 2nd and 6th floor of a multi occupied office building.
Mazars applied for the two assessments to be merged on the basis that they were inter-dependant. The VT agreed but the VOA disagreed and appealed. Court of appeal dismissed VOAs appeal.

Question 19

What are the bandings for SBRR?

Answer 19

If a business has 1 hereditament with an RV less than £12,000 they don’t pay BR.
Rateable values between £12,001 and £15,000 the relief is based on a sliding scale

Question 20

How long do you get relief for empty rates relief?

Answer 20

3 months relief for retail & offices
6 months for industrial

Question 21

How much charitable relief is given?

Answer 21

80% statutory relief

Question 22

What’s the current standard multiplier and the small business multiplier?

Answer 22

Standard = 51.5 pence
Small = 49.2 pence

Question 23

What does the antecedent valuation date mean?

Answer 23

The date at which rental levels are assessed

Question 24

What are the 3 methods of valuation for rating purposes?

Answer 24

Comparable
Contractors
Profits (receipts & expenditure)

Question 25

What were some of the key changes under the non domestic rating act 2023?

Answer 25

1) Revaluations are to happen every 3 years in order to bring rateable values closer to rental values. Next revaluation in 2026.
2) councils are able to serve a completion notice on refurbished buildings to be re-entered into the rating list prior to being re-occupied
3) occupiers who undertake any new improvements will get a 12 month exemption from the business rates payable on the improvement
4) the reset period for empty property relief has increased from 6 weeks to 13 weeks

Question 26

Are you aware of any agent standards recently published?

Answer 26

The VOA published agent standards in January 2024. The standards set out clear expectations for agents regarding
1) their behaviour
2) their professional practice
3) the service they provide to clients

Question 27

What is meant by a hereditament?

Answer 27

Means property which is or may become liable to a rate shown as a separate item in the valuation list