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DeanieB > Local Taxation > Flashcards

Local Taxation Flashcards

1
Q

What are the hereditament tests?

A

Geographic Test – Do they touch? Or touch via common area?
Functional Test – 2 hereditaments may be separate but shared by occupiers for the same use.

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2
Q

What COVID-19 Relief is there?

A

Retail, Leisure and Hospitality – 100% relief from April 2020 to June 2021, 66% relief for remainder of 2021.
No relief for offices, factories or warehouses.

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3
Q

What are the 6 propositions?

A
  1. Subject rent should be the starting point
  2. The closer the circumstances of the rent, i.e. time, subject matter and conditions relate to the definition of gross value in General Rate Act 1967 19(6), the more weight attached.
  3. Rents of a similar property can be considered to confirm or otherwise the level of value indicated by subject rent.
  4. Comparable assessments, including subsequent list changes can be used as an indication of value.
  5. Reflecting all evidence, weight should be attributed to types of evidence, depending on the nature of the rent and degree of comparability.
  6. In cases of where no rents available for comparable properties, it would be difficult to disregard the subject rent, of any nature.
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4
Q

What is the AVD?

A

Antecedent Valuation Date – The date in which we consider the value of the property (based on physical state at the compiled list date).

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5
Q

Which act regulates CCA?

A

Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2009.

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6
Q

What is the RV definition?

A

“The rateable value of a non-domestic hereditament, none of which consists of domestic property and none of which is exempt from local non-domestic rating, shall be taken to be the amount equal to the rent at which is it estimated the hereditament might reasonably be expected to let from year on year, based on 3 assumptions.”

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7
Q

What is the Council Tax Act?

A

Local Government Finance Act 1992

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8
Q

What are the 3 assumptions of RV?

A
  1. The tenancy begins on the day by reference to which the determination is to be made.
  2. Immediately before the tenancy begins, the hereditament is in a reasonable state of repair, but excluding from this assumption any repairs which a reasonable landlord would consider uneconomic.
  3. The tenant undertakes to pay all usual tenants rates and taxes and to bear the costs of the repairs and insurance and other expenses necessary to maintain the hereditament in a state to command the rent mentioned above.
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9
Q

How many Bands are in Council Tax (England and Wales)?

A

8 in England and 9 in Wales.

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10
Q

CCA Dates?

A

Check – 12-months for VOA to respond, 4-months from decision appellant can submit a challenge.
Challenge – 18-months for VOA to respond, 4-months from decision appellant can submit an appeal

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11
Q

What is the AVD for Council Tax list (England and Wales)?

A

01-April-1991 (England) & 01-April-2003 (Wales)

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12
Q

What are the steps of CCA?

A

Check = Factual Issues
Challenge = Valuation Issues
Appeal = Do not agree with Challenge outcome

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13
Q

What discounts are there for Council Tax?

A

25% for Single Residents.

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14
Q

What is the COVID-19 grants?

A

£15,000 RV = £10,000 grant
£15,001 - £51,000 = £25,000
£51,001 > = No Grant

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15
Q

What are the 4 ingredients of Rateable Occupation?

A

Actual
Exclusive
Beneficial
Not too Transient

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16
Q

Where are rating exemptions found?

A

Local Government Finance Act 1988, Schedule 5

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17
Q

What exemptions are there for rates?

A
  • Agricultural Land
  • Fish Farms
  • Places of Religious Worship
  • Properties of Trinity House
  • Sewers
  • Property of Drainage Authorities
  • Parks
  • Property sued for the Disabled
  • Air-Raid Protection Works
  • Swinging Moorings
  • Road Crossing over Watercourses
  • Property used for road user charging schemes
  • Property in Enterprise Zones
  • Visiting Forces
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18
Q

What is Woolway v Mazars?

A

Woolway v Mazars 2012 – Relates to the 2nd & 6th floors of an office, occupied by the same tenant. Supreme Court deemed as separate due to not being contiguous or essential to one another (functional).

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19
Q

What are the Valuation Tribunal fees?

A

£100 for small proposers, £300 for everyone else.

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20
Q

What is the Specialeyes v Felgate case?

A

Specialeyes v Felgate 1994 – Relates to Zone A rent of a shop, subject rent is part of a larger transaction therefore has less weight. Determined best rent was close to AVD. Rents before showed trend. Rents after AVD only considered last.

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21
Q

What is the Jackson v Canary Wharf case?

A

David Jackson (VO) v Canary Wharf Ltd 2019 – Landlord would strip out office after vacation of a tenant, would be replaced when new tenant ready. Deemed incapable of beneficial occupation therefore not a hereditament, therefore, not to be in rating list. No schedule of works needed.

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22
Q

What is the Newbigin v Monk case?

A

Office had cooling system, ceiling, raised flooring and toilets removed to construct new assessments, had a schedule of works, deemed not capable of beneficial occupation – nominal rateable value.

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23
Q

What is small business relief?

A

RV less than £12,000 pay no rates.
RV between £12k and £15k pay tapered relief.
RV between £15k to £51k pay small business uniform business rate (UBR)

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24
Q

What is the small business UBR?

A

49.9p

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25
Q

What is the standard business UBR?

A

51.2p

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26
Q

What is the Lotus and Delta case?

A

Retail shop in Leicester, considered the 6 propositions for rental evidence. Subject rent for a shell therefore not conclusive therefore relied upon basket of evidence.

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27
Q

How long do you receive empty rates relief?

A

3-months (6-months for industrial) – reset by 6 weeks of occupation.

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28
Q

What are the 5 methods of valuation?

A

Comparable, Investment, Residual, Profits and Costs

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29
Q

What is PICO?

A

Property in Common Occupation Act 2018 – Reversed Mazars, assessments contiguous either vertically or horizontally can be considered as one assessment. Space owned by landlord are to be considered contiguous.

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30
Q

What is the Laing v Kingswood case?

A

Building contractors for aerodrome, 2 years of construction, had offices, garages and canteen – which all met the 4 rateable occupation ingredients.

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31
Q

What are the types of relief?

A

Small Business Relief
Charitable Relief
Transitional Relief
Covid-19 Relief

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32
Q

What is transitional relief?

A

A type of relief applied for assessments with large increases or decreases in RV between lists, tapered percentage of relief.

33
Q

What is the definition of hereditament? Where is this found?

A

Section 115, General Rate Act 1967
Property, which is or may become liable to a rate, being a unit of such property which is, or would fall to be shown as a separate item in the valuation list.

34
Q

What does Rebus Sic Stantibus mean? What are the 2 limbs?

A

As It Stands
Matters affecting the physical state or physical enjoyment of the hereditament.
The mode or category of occupation of the hereditament.

35
Q

What is the definition of Market Value? Where is this found?

A

RICS Global Standards – January 2022
VPS 4 – Market Value – The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and willing seller in an arm’s length transaction, after proper marketing and where parties had each acted knowledgeable, presently, and without compulsion.

36
Q

What are the 6 rules of Unit of Assessment?

A
  • Be within one or more billing authorities.
  • Have a single rateable occupier.
  • Capable of separate occupation.
  • Single geographical unit.
  • Be put to a single purpose.
  • Have a single definable position.
37
Q

What are the MCC Matters?

A

Local Government Finance Act 1988 (Schedule 6, Para 7)
a) Matters affecting the physical state or enjoyment.
b) Mode or Category of Occupation
c) Quantity of Minerals Extracted
a. Waste deposited.
d) Matters affecting locality, but not physically.
e) Matters affecting use or occupation of other premises in locality.

38
Q

What is the Scottish and Newcastle v Williams case?

A

Scottish and Newcastle v Williams (2000)
Public House within shopping centre, underwent physical changes to become pub – beyond the extent of rebus therefore is not the same mode or category as a shop, and cannot be valued as such.

39
Q

What is the London County Council v Wilkins case?

A

London County Council v Wilkins (1957).
Temporary builders huts while working on school, remained for 18-21 months – deemed rateable as considered permanent and not too transient

40
Q

What is the Fir Mill Ltd v Royton case?

A

Fir Mill Ltd v Royton UDC & Jones (1960)
Cotton mill must be valued as a factory, not a cotton mill.

41
Q

What is the McAlpine v Payne case?

A

5 sheds not rateable as too transient, as existed for less than 12 months (year on year).

42
Q

What is the main legislation relating to Local Taxation?

A

Local Government Finance Act 1988

43
Q

Where do you find the definition of Rateable Value?

A

LGFA 1988, Sch 6, Para 2

44
Q

What case law relates to Rates Avoidance?

A

Makro Properties Ltd v Nuneaton & Bedworth Borough Council 2012
Large warehouse, occupied by stack of papers – deemed rateable. Removed after 6 weeks to reset 6-months rates free.

45
Q

What is charitable relief?

A

If property is used for charity purposes, they get 80% rates reduction. (BA can give 100%).

46
Q

What is the unit of assessment case law?

A

Gilbert (VO) v Hickenbottom & Sons 1956

47
Q

What case law relates to rateable occupation?

A

Laing (J) & Son v Kingswood 1949

48
Q

What case law relates to Rebus sic Stantibus?

A

Fir Mill Ltd & Royton & Jones 1960
Scottish & Newcastle Ltd v Williams 2000

49
Q

What case founded the AVD?

A

K Shoe Shops Ltd v Hardy (1983)
Oxford shops with differing rateable value due to valuation date.

50
Q

What is the Material Day?

A

The day in which we consider the physical elements of an assessment.

51
Q

What legislation relates to Material Day?

A

The Non-Domestic Rating (Material Day for List Alterations) Regulations 1992.

52
Q

What case law relates to Material Day?

A

Barlow & Sons Ltd v Wellingborough Council & James 1980
New shopping mall affected values, had they been there at the AVD.
RE The Appeal of Kendrick 2009
9/11 – London airport lounge, nothing physically manifested in the locality to affect the property values.

53
Q

What is the effective date?

A

The day in which rate liability stops or starts, usually the material day unless there is an increase, this would be date of schedule.

54
Q

What other legislations relate to Local Taxation?

A

Non-Domestic Rating (Alterations of Lists and Appeals) (England) (Amendments) Regulations 2017.
The Valuation Tribunal for England (Council Tax & Rating Appeals) (Procedure) (Amendment) Regulations 2017.

55
Q

What RICS guidance relates to Local Taxation?

A

RICS Rating Consultancy, Code of Practice, 4th Edition, March 2017.
Users should act professional, not give misleading statements regarding individuals business rates, sets out mandatory terms of engagement for an instruction.

56
Q

What case relates to the weighting of evidence?

A

Lotus & Delta v Culverwell and Leicester City Council 1976.

57
Q

What case relates to the tone of the list?

A

Obrien v Harwood 2003

58
Q

What is an expert witness?

A

Duty is to the court, when giving factual evidence, when ANSWERING questions.

59
Q

What RICS guidance relates to expert witness?

A

RICS Surveyors Acting as Expert Witness, 4th Edition, August 2020.

60
Q

What is an advocate?

A

Duty to client, when giving an opinion, when ASKING questions.

61
Q

What RICS guidance relates to advocates?

A

RICS Surveyors Acting as Advocates, 2nd Edition, February 2017.

62
Q

What is the Central List?

A

Rating list for national utilities, gas pipelines, pylons etc.

63
Q

What is happening in the UK regarding business rates?

A

SME could benefit from potential rise of small business relief from £15,000 to £25,000.

64
Q

What makes a valid proposal?

A
  • Name and Contact details of Appellant.
  • Connection to Property
  • Relevant Billing Authority
  • Identify property that challenge relates to.
  • Grounds for the Proposer.
  • Revised RV proposed.
  • Supporting evidence statement.
  • Effective date.
  • Material date.
  • Which properties are affected?
  • Rental details for the property.
  • Statement for nature of change or alteration.
  • Details of any related court agreement.
65
Q

What are the restrictions for making a challenge?

A

One compiled list challenge (tone)
One challenger per MCC
One challenge to VON

66
Q

What is the Ladies Hosiery case?

A

Ladies Hosiery & Underwear v West Middlesex Assessment Committee 1932.
Shop assessed at a higher RV than others on the street, however the subject had a rent reflecting RV – therefore RV found to be correct. Correctness should not be replaced by Uniformity.

67
Q

What is the Fielder v Baker case?

A

Fielder v Baker 1970
MCC appeal dismissed due to vast majority of works over at the time of material date, less of an impact.

68
Q

What case law relates to repair?

A

Newbigin v Monk 2015
David Jackson (VO) v Canary Wharf 2019

69
Q

What are the 4 classes of Plant and Machinery?

A

Power – compressors, engines, turbine, storage batteries.
Services – Heating, cooling, ventilation.
Transport – railways, lifts, escalators, travelators.
Structures – bridges, tunnels, viaducts, fixed cranes.

70
Q

3 Questions for Repair Assumption?

A

Is the property in a reasonable state of repair?
If not, can the works which are required to put the property into a state of reasonable repair properly be described as ‘repairs’.
Would a reasonable landlord consider the repairs uneconomic?

71
Q

What legislation relates to Plant and Machinery?

A

The Valuation for Rating (Plant and Machinery) Regulations 2000.

72
Q

What case relates to post AVD evidence?

A

Specialeyes v Felgate (VO) 1992

73
Q

Are exemptions and relief the same?

A

No. Exemptions are Statutory, and Relief is applied by the BA.

74
Q

What are the grounds for appeal? Where are these found?

A

NDR Regs 2009 - Regulation 4
* The RV inaccurate on day list compiled.
* The RV inaccurate due to MCC.
* RV inaccurate due to change in Plant and Machinery Act?
* RV inaccurate due to VO alteration.
* RV inaccurate due to appear against related unit.
* Day in which alteration is wrong.
* Hereditament not shown in list but should be.
* Hereditament in the list but should not be.
* Some part of unit is domestic or exempt.
* Some part of unit is not actually domestic or exempt.
* One hereditament should be shown as multiple.
* Multiple hereditament should be shown as one.
* Address is wrong.
* Description is wrong.
* Statement about hereditament under section 42 of the act has been omitted from the list.

75
Q

What case relates to valuation of ATM’s?

A

Cardtronics v Sykes 2020

76
Q

What is Cardtronics v Sykes 2020 case about?

A

Internal and External ATMS to be treated the same.
Should not be separated as retailer remained in paramount control.

77
Q

What case relates to the rateability of Air Conditioning?

A

Iceland Foods v Berry 2018
A/C used to keep freezers cool essential to the trade. Not rateable.

78
Q

What case law relates to locality?

A

K Shoe Shops v Hardly 1983.
Locality to mean an area within sufficient evidence to produce a reasonably expected rent and outside locality in which the rent may be different.

79
Q

What case law relates to Exclusive Occupation?

A

Westminster Council v Southern Railway 1936 - Paramount Control

DeanieB (10 decks)

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