LOCAL TAXATION Flashcards
Can you tell me the definition of rateable value?
The amount equal to the rent at which it is estimated the hereditament might reasonably be expected to let from year to year on 3 assumptions – at AVD, reasonable sate of repair, FRI basis
Can you tell me what the 4 tenants of rateability are?
Actual, Beneficial, Exclusive and Transience
If you were allocated an office appeal to deal with, could you talk me through what you would look at in terms of the valuation and how you would go about valuing an office for rating purposes?
I would consider the rating manual and guidance. Step by step approach.
What is the role of the valuation officer, what is the statutory duty?
To collate and maintain a fair and accurate rating list.
Can you act as both expert witness and advocate at upper tribunal?
If it is a simplified procedure yes. If it is a standard procedure, then you can only be an expert witness.
Why is A/C rateable?
Included in the plant and machinery regulations. Rateable if not used mainly or exclusively as part of the manufacturing operations or trade processes.
What are the stages set out in Lotus & Delta Ltd & Culverwell V Leicester City Council 1976?
Subject rent is the starting point
The closer the rent is agreed to time, subject matter and conditions within the definition of rateable value, the more weight should be applied to it.
Rental evidence of similar properties.
Assessment of comparable properties.
Opinion can then be formed, weight to be attributed to differing types of evidence depending on nature of subject rent and degree of comparability
Where no rents available a eview of other assessment may be helpfil but more difficult to reject the evidence of actual rent.
What are the statutory assumptions for rateable value?
At the Antecedent valuation date
Reasonable state of repair
FRI lease
How would you help mitigate a clients rates liability?
By Utilising legal exemption and reliefs.
By appealing rate valuations form them
Arranging short term occupancy of vacant properties. Using the space for temporary activities thereby altering eligibility for full business rates.
What would you do if client was going out of business?
Suggest hardship relief – councils can reduce or cancel business rates bill. Council must agree that you would you be in financial difficulties without the relief and giving the relief is in the interest of local people.
What would you do if car parking spaces weren’t included within their rating assessment?
If contiguous add them in, if not make separate survey note. If industrial sometimes reflected in base price.
What are the restrictions on making appeals?
They have to be on a point of law.
What do you look for in MCCs?
Duration and severity and intensity. Severity is more relevant than duration as severity is valuable. matters affecting physical state of hereditament and locality
What evidence can an appellant provide to show disturbance?
Downturn in trade?
What are the VT procedures?
For the hearing, there is a clerk who deals with introduction and any preliminary matters from the parties, the appellant then gives their introduction as advocate and evidence as expert witness they then answer any questions from the panel and myself. I would then five introduction as advocate and evidence as expert witness then answer any questions from the panel or appellant. I would then sum up as advocate and the appellant sums up as advocate. The clerk will then close the hearing.
What is the clerks role during a hearing?
Responsible for providing advice to the panel which it requires to discharge it functions. Keep a note of evidence and submission to assist in drafting the decision. Must not make findings of fact or law but may assist the panel by reminding of the evidence and arguments from notes. May ask questions to clarify evidence any issues when invited to do so by the Chairman. Duty to assist unrepresented parties to present their case without becoming advocate
What do you look for in a lease for analysing rents for rating?
The date of the rent is effective. The terms. If there are connected parties. Any incentives – rent free, break clauses. Fit out costs. Review. New lease. Stepped rent.
What adjustments would you make for IRI?
Apply a 5% reduction for external repairs
What if you had 3 comps on different lease terms?
Adjust and analyse them so all on the basis of definition of RV
How would you value a pub for rating?
Gather 3 years accounts for consistency, work out the fair maintainable trade, deduct costs and expenses to get fair maintainable operating profit for a reasonably efficient operator, times the fair maintainable operating profit by years purchase to get the capital value
What guidance is there on pub valuations?
Valuation of public houses approved guide, rating manual, practice notes
How do you adjust for rent free periods, stepped rent?
Rent free- defer the rent for the period of the rent free at the YP and PV it back
Stepped rent – Capitalise the rents for the term until they increase to next step at YP and PV it back
What is a deletion?
Removing the property from the rating list. Property does not meet 4 tenants of rateable occupation or does not constitute a hereditament.
What did redevelopment involve?
Removal of roof, ceiling, walls. Replacement of existing windows. Stripping of accommodation