Local Taxation Flashcards
How would you adjust a rent for service charge?
You wouldn’t if the service charge was paid by the tenant and considered reasonable repairs
How would you adjust a lease for a rent free period?
- Capitalize the rent for the period receivable
- Discount back to the present day
- Amortize until rent review
What are the deadlines in CCA?
Check - 12 months to respond
4 months to make a Challenge
Challenge - 18 months to respond
4 months to make an appeal
What are the Plant and Machinery regulations?
Valuation for Rating (Plant and Machinery) (England) 2000
What are the 4 plant and machinery classes?
- Power eg compressor
- Heating eg heater
- Movement eg lifts
- Structure eg bridges
What is the case law for repair?
Monk v Newbiggin 2017
Canary Wharf v Jackson 2019
Is air conditioning rateable?
Yes unless used for trade related purposes
Displayed in Iceland Foods v Berry 2018
How is air conditioning valued for Rating?
- comparable approach - rents then settlements
- cost approach - find annual equivalent
- backstop of £7.00/m2
How would you treat post AVD evidence and what is the case law?
Place less weighting on it
Specialeyes v Felgate
What factors do you consider at the material day?
Factors that impact:
Physical state/ quiet enjoyment
Physical locality
Mode/ category of use
Use of surrounding properties
Waste disposed of on site
Are you aware of any recent case law regarding repair?
Aviva Investors v Bunyan 2022
Minor alterations are considered repair
What is the relevant case law for mode/ category of use?
Fir Mill v Royton 1960
Scottish and Newcastle Retail v Williams 2000
What was established in Monk v Newbiggin?
Schedule of works is NOT required if incapable of beneficial occupation
Who is the VOA’s client for Rating?
Department for Housing, Levelling Up, and Communities
What is the RICS guidance relating to Rating?
RICS Professional Statement: Rating Consultancy 2017
RICS Guidance Note: Rating Appeals 2017
What is the difference between the roles of advocate and expert witness?
Advocate- acts for client without compromising professional standards
Does not offer opinion of value
Expert Witness- overriding duty to tribunal, independent expert opinion
Tell me about the case of Cardtronics v Sykes 2020
Supreme court ruled that internal and external ATMs should be treated the same
Not separate hereditaments as retailer remained in paramount control
Where are exemptions from Rating found and what are they?
Schedule 5 of Local Government Finance Act 1988
Agricultural buildings and land
Sewers
Properties occupied by disabled people
Places of religious worship
Parks
Give me some examples of building rates reliefs
Empty rates relief
Small business relief (RV less than £15k)
Transitional relief
Tell me about the case of Iceland v Berry
Originally ruled by the upper tribunal that more powerful air con was not a trade related purpose for frozen food store
Supreme court overruled this- not rateable as ‘tool of the trade’
What are the assumptions regarding rateable value?
Reasonable repair
Fully FRI lease
Tenancy begins on the date the RV is to be assessed
What did the case of Woolway v Mazars 2012 determine?
What defines a hereditament
- definable position
-single occupation
-single use
-single geographical location
What are the 4 elements of rateable occupation? What is the case law?
Actual
Exclusive
Beneficial
Not too transient
John Laing v Kingswood 1948
Can you name any other case law regarding weighting of evidence?
Harwood v OBrien
Settlements have greater weight than rents
Can you talk me through the case of Jackson v Canary Wharf?
Follows on from Monk v Newbigin:
- beneficial occupation comes logically prior to the repair assumption
- if undergoing redevelopment or reconstruction on material date then no beneficial occupation
- value in the list at zero
Jackson v Canary Wharf
- regarding two floors of offices which had been stripped to a shell prior to tenant fit out
- take premises as they are on the material date
- doesn’t have to be an ongoing scheme of works
- removed from the list as not a hereditament
Why did you request a schedule of works for the retail unit in Horsham?
To see if there was a hereditament on the material day.
The shop was being changed substantially and therefore the the original hereditament no longer existed.
Where are material dates outlined?
List Alteration Regulations 1992
