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
Office, Bristol - What evidence did the agent provide?
Floorplans pre and post redevelopment, photos of redevelopment works, before completion of finishing works and after completion of finishing works, planning consent notice, report containing explanation and reasoning
What is the newbigin case? What did it determine?
Considered an office building in Sunderland that was undergoing stripping out and refurbishment works to turn it into three new offices. It was held that the property was undergoing significant redevelopment and therefore the hereditament was incapable of beneficial occupation deeming it not rateable.
Is there any other case law regarding deletions/beneficial occupation?
Jackson v Canary Wharf – this clarified the decision set out in Newbiggin V Monk but it considered a modern office which was stripped out as part of periodic refurbishment between tenancies and was held the property was incapable of beneficial occupation and properties should be deleted rather than zero rated.
What does beneficial occupation mean?
Occupation must be of some benefit to the rateable occupier. Could be profit but not always, other reason is fulfilling a statutory requirement such as schools.
What is important to consider when acting as dual capacity role?
That as advocate you have a duty to client and as expert witness you have duty to the court
Can you act in dual capacity role?
If it is a simplified procedure yes. In more complex cases (such as requiring legal representation) the roles will be split.
What was the type 1 definition for the nursery?
Modern purpose built or substantially refurbished. Located in prime residential areas.
What was the type 2 definition for nurseries?
Urban/suburban solidly constructed buildings.
Is there any other types for nurseries?
Yes, nurserys were divided into 3 types in 2017. Type 3 was buildings converted from previous use in sparsely populated rural areas.
Why did they want it valued as a type 2?
Because they felt the property met the definition of a type 2 nursery and should be valued at a lower rate per m2
Day Nursery - What did you find on you inspection of the property?
Property was located off rain road on edge of village/town. The property had parking. Outdoor play space. Internally had been substantially refurbished to include facilities for children such as child height sinks, toilets. Non slip and hardwearing floor throughout the property.
What construction was the nursery?
Edwardian building – red brickwork with quoins, slate hipped roof, paned sash windows.
Why did you feel the nursery met the type 1 definition?
From my inspection, I felt the property had been substantially refurbished and it was located on a main road, close to the A4 which links to M5 and central Bristol. Public transport within 10-15 mins. Surrounded by residential properties
Nursery - What comparable evidence did you consider?
I had regard to other nurseries locally that had been categorised as type 1 nurserys and how these compared to the subject. I also reviewed the evidence submitted by the agent which was type 2 nurseries.
Nursery - What did you advise the tribunal?
I advised the tribunal that the nursery was correctly valued as a type 1 and that the existing rateable value was reasonable.
What is tone?
The general range of comparable evidence setting the tone. Generally established level of value via settlements.
Is there any caselaw in relation to tone?
O’Brien V Harwood (vo) 2003 established that there are three stages leading to the tone of the list. New rating list – entries carry little weight, opinions of value of valuation officer, unchallenged and untested by negotiation. 2n stage – over time assessments challenge and agreed or determined. 3. Stage where enough assessments have been agreed or determined or unchallenged to establish a pattern of values – tone of the list.
How old was the subject – day nursery?
1900 – early 1900s.
Why does rental evidence have an impact on rateable value?
As the definition of rateable value is the amount equal to which the hereditament would be reasonably let from year to year and therefore always trying to consider what the reasonable amount would be at the antecedent valuation date.
What are the implications of them withdrawing?
That they are unable to make a challenge on the same grounds and they are unable to progress to appeal
What is the material day?
The day we take all physical factors affecting the property and locality into account.
What is the effective day?
The date when rate liability starts, stops or changes. The day of the event.
What is the antecedent valuation date?
Sets the date for non-physical factors such as levels of rental value, economic factors.
What is the difference between advocate and expert witness?
Advocate has duty to client, expert witness has duty to court
Nursery - What was the outcome of the appeal?
The VT agreed with appellant that the nursery should be valued as a type 2
Nursery - What was the impact of the valuation at VT?
The valuation was reduced at a lower price per m2.
Are you aware of any guidance from RICS when acting at VT?
Surveyors acting as advocates 2nd edition, Feb 2017 – details conduct and duties of advocate
Surveyors acting as expert witness, 4th edition, Feb 2023 – details general duties, advice and questions to expect
Did you consider any rental evidence for the industrial in Carterton?
They hadn’t provided any rental evidence. I did however cross check the subject rent with the rateable value
Carterton - Why did you consider assessment evidence?
Time of the list, at this stage in the list put more weighting on this
Carterton - Why didn’t you inspect the property?
The case had already been through check where plans of the property had been agreed. The agent had also provided photos of the property within their submission and I was able to gather evidence from my desktop review and therefore felt this was sufficient
Carterton - If this would have gone to appeal would you have done anything different?
Yeah, I would have inspected the property
What adjustments would you make to rental evidence?
FRI basis, length of lease, reviews, break clauses, stepped rents, rent frees and premiums
How did you know what effective date to adopt for the deletion?
From discussions throughout the challenge case I determined the date the property became capable of beneficial occupation. They agent had also provided copies of the tenancy agreements which stated when the offices were let from.
What is the main case law for the hierarchy of evidence and what is the hierarchy?
Lotus and Delta v Culverwell and Leicester City Council
Concerned a shop requesting values in line with comparables in the area
1) Rent on the property is the starting point
2) Rents on other comparable properties in the area
3) Comparables in the rating list
Which case considered timing of evidence, most weight closest to AVD?
Special eyes v Felgate 1992
You dealt with an office in Bristol, requesting deletion of assessment, can you explain why you came to conclusion it should be deleted?
As part of the challenge submission the agent had submitted photographs and evidence of works carried out to the property, this included things like removal of roof, ceiling and walls and stripping out of the accommodation. I considered case law on redevelopment woks and came to the conclusion works rendered the property incapable of beneficial occupation and therefore I deleted it from the rating list.
Is it common for properties being redeveloped to be deleted from the rating list?
Yes but depends on extent of redevelopment works.
How did you differentiate between what would be reasonable repair and redevelopment works?
Where there is a clear scheme of works and intention to do something this is likely to be redevelopment. Falling into repair less intentional. Sometimes we say not worthy of deletion and still consider repair hypothesis. Has to be substantial enough, typically transition for a different use. renewal and upkeep periodic part of repair hypothesis
Office, Bristol - Were the works undertaken typical for this case of property?
Yes, the work included IT cabling, kitchen facilities, partitioning.
You mentioned case law and you mention Newbiggin and Monk case, what was this and what did it establish?
Considered an office building in Sunderland that was undergoing stripping out and refurbishment works to turn it into three new offices. It was held that the property was undergoing significant redevelopment and therefore the hereditament was incapable of beneficial occupation deeming it not rateable.
Why was this case relevant to your challenge?
It is the main case law for this issue and because it considered redevelopment works and the extent of that and therefore a similar scenario to my case
Are there any other relevant caselaw you would consider?
Jackson V Canary Wharf
Office, Bristol - What was the outcome of this challenge?
That I agreed with agents proposal to be deleted and therefore deleted the assessment from the rating list
How did you advise senior manager to approve the deletion?
I set out my evidence from reviewing the challenge and why I felt it was reasonable to be deleted
You valued a day nursery in Bristol, what is a day nursery?
Provides care for children. Generally categorised by Ofsted as “Children on Non-domestic premises and if located in England and Wales can be identified on Care and Social Services or Nursery School. Treated by Ofsted as providers of nursery education
You made clear that you acting in dual role of advocate and expert witness?
An advocate has duty to the client, expert witness has duty to tribunal to give factual, truthful evidence
How did you make sure that you were the expert witness?
I inspected the property and during the tribunal I stated that I would now present my evidence as expert witness making sure to give my impartial view of the valuation
You gave advice at tribunal about the type of nursery, why was the type of nursery important?
As the type 1 nurseries were in at a higher base rate than type 2. Proxy for valuation, how I sourced my comparable evidence.
What was the difference between the two types of nursery?
Type 1 was higher quality, prime locations, type 2 was less optimally located, purpose built
Nursery - Did inspect the you property?
Yes
Day Nursery - What features did you identify to help you identify the type of the property?
Located position to public transport, main road. Newly refurbished.
How are nurseries valued?
For the list year for my case, they were valued on a price per m2 basis
Once you inspected an established the type of nursey, how did you value the property?
I inputted the survey details and areas into our database and applied the rate per m2 set out for type 1 nurseries.
Nursery - What role did comparable evidence play in your valuation?
Significant role as had regard to other type 1 nurseries in Bristol and how these compared to the subject. Also referenced against type 2 nurseries
You presented this challenge at VT hearing, can you explain the process at VT hearing?
Clerk and panel at VT hearing
Clerk deals with introductions
Appellant then able to give their evidence as advocate and then go onto evidence as expert witness. Panel is then able to ask questions, and be cross examined by the other party. Then the defendant chance to present their evidence as advocate and expert witness and again be asked questions by the panel and appellant. Defendant would then sum up their argument for the case, this would then be done by the appellant and the clerk would then bring the hearing to a close
What was the outcome of this appeal?
The tribunal was in support of the agents valuation and this was adopted
Was there a big difference between the valuations?
£20,000
You valued an industrial in Oxfordshire, how would you describe the construction of the property?
Brick built to eaves height with corrugated sheet roofing
Carterton - You said you had consideration to age of property, how did you confirm the age of the property?
Internal records and looking at the construction of the property. If I was still unsure I would crosschecked this against planning and ask the ratepayer or agent for confirmation
Carterton - You issued a decision notice, why?
I had approached the agent with my initial thoughts on the valuation and they had the chance to respond to my evidence and come back however they did not provide nay evidence therefore issued decision notice to close the case.
You also valued a shop in Middlesex for floor level allowance, is this a reasonable adjustment?
Yes, depending on circumstances of the case, severity and comparable evidence
Middlesex - What steps did you go through when you considered this in your challenge?
My starting point was the subject rent and both the rent at the time of the challenge and at AVD were in excess of rateable value however I analysed the subject rent and had regards to comparables on the same street which also had steps with no allowances, subject rent significant weight as advantages and disadvantages, because it was higher I thought the existing rate was reasonable.
Middlesex - Why was the rent on the subject property relevant?
This is the starting point when assessing
Middlesex - How did you adjust the rent? Where any adjustments required?
No as the shop was let on an FRI basis
In a hypothetical scenario, what type of adjustments would be made for shops?
Adjust to FRI, stepped rents, premiums or rent free periods for fit out
After you adjusted the rent how do you analyse your adjusted rents?
I divided the adjusted rent by the area in terms of zone a
Middlesex - You say you tested the subject rent against comparables, how did you identify comparable evidence?
I had regard to other shops on the same street of a similar age and construction
Middlesex - Did you review comparables or just assessment evidence?
Assessment evidence enabled me to determine what other properties had steps. Rents established the tone on the street.
You say that your comparable evidence had similar layout for step situation, how did you clarify that?
I looked at internal records of plans for the property, if not had plans would have gone and inspected
Middlesex - You conclude the challenge by getting a withdrawal, what does it mean to withdraw a challenge?
Agent is not able to make a challenge on the same grounds again and they aren’t able to appeal the valuation
Middlesex -How did you convince them to withdraw the challenge
By outlining my evidence, including comparables, in a clear format and clearly explain why I thought existing value was reasonable
Middlesex - You mentioned that shop was zoned, how did you decide that you would continue to value on a zoned basis?
I had regard to how other shops in the area had been valued and this was on a zoned basis
You mentioned that you considered lotus and delta, can you tell me what that case is and why it is relevant to you?
The case was regarding a shop
Hierarchy of evidence
Can you tell me what the definition of rateable value is?
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 an amount equal to the rent at which it is estimated the hereditament might reasonably be expected to let from year to year on these three assumptions:
The first assumption is that the tenancy begins the day by reference to which the determination is to be made
The second assumption is that 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
The third assumption is that the tenant undertakes to pay all usual tenants rates and taxes and to bear the cost of repairs and insurance and other expenses (if any) necessary to maintain the hereditament in a state to command that rent mentioned above.
Where can you find the definition of rateable value?
Schedule 6 to LGFA 1988
Can you tell me the 4 classes of plant and machinery?
Class 1 – power, Class 2 – services, Class 3 – transport, Class 4 – Structures
You have a knowledge of the key dates for rating, what are they?
Material day, effective date and antecedent valuation date
You have an awareness off requirements for rateable occupation can you tell me what those area?
Actual, beneficial, exclusive and not too transient
What do you consider when determining a hereditament?
Single rateable occupier
In a billing authority
Be capable of separate occupation
Single geographical unit
Single use
Single definable position
You have knowledge of CCA process – what is it and why was it introduced?
Check stage where factual matters are dealt with
Then progress to challenge which deals with valuation matters
If not happy with outcome then can progress to appeals
Introduced to deal with matters in a more straightforward way and challenges were frequently submitted without supporting evidence
What was before CCA?
Previously a two-stage process for challenging business rates assessments (“proposal” and “appeal”)
Can you tell me what are some exemptions from rating?
Churches, parks and agricultural land used for human consumption
Can you tell me some rating reliefs?
Small business rates relief
Charitable rates relief
Empty property relief
What is small business rates relief?
If a business had 1 hereditament with RV less than £15,000 or multiple under £20,000 in RV, they can apply for small business rates relief. Sliding scale from £15-12,000 dependent on % of relief
What is charitable rates relief
If a hereditament is used for charitable purposes, 80% statutory relied off the rates bill (+20% discretionary by local authority)
What is empty property relief?
If a hereditament is empty, 3 months ER will be applied (meaning zero rates payable) following the vacation date, industrial receives 6 months. This can be used by outgoing tenant or landlord
What is the fee for appeals?
£150 for small proposers or £300 for any other proposer. If VOA have not sent their challenge decision notice within 18 months of making the challenge, the appeal is free. If appeal is successful, appeal fee is refunded. If appeal unsuccessful but decided without a hearing refunded £50 for small proposer and £100 for any other proposer. Note: there is different appeal fees and timing when making further appeals up through the courts.
How soon after a challenge can appeal be made?
4 months
Can you tell me what transition is?
Limits how much the ratepayer bill changes, lessens the impact and adjusts it in stages
You dealt with an office in Bristol, with a scheme of works deletion, what was it being redeveloped into?
Building was redeveloped and reconstructed to create another storey to provide additional office accommodation.
Office, Bristol - What were the works that were taking place?
Removal of roof and ceiling to extend the property up
Removal of walls
Replacement of existing windows
Stripping off accommodation
At material day, no power ring, no partitioning, no ICT cabling or kitchen facilities
Office, Bristol - When did it become incapable of beneficial occupation? What date did you use?
Date of the event
Why did you have regard to this case law? (MONK)
It is the main case law for this issue and because it considered redevelopment works and the extent of that and therefore a similar scenario to my case
Was there any other case law which you could’ve had regard to? (other than monk)
Jackson V Canary Wharf
You dealt with a day nursery in Bristol, you mentioned type 1 and type 2, who decides what a type 1 or type 2 nursery is?
Decided at revaluation
Sorted into bands and types based on their description, location and size. A £/m2 then placed on properties within the bands based of available rental evidence.
Are there any more types of nursery or is it just 1 and 2?
There were 3 nursery types for 2017. Type 3 was buildings converted from a previous use in sparsely populated rural areas.
How do you think the type of nursery works with the agents?
Agents don’t get any say. They are at liberty to challenge if they like the way they have been categorised, challenge
You have looked at other comparables in type 1 and type 2 and used comparable evidence to determine your opinion, was the subject rented?
Yes, however number of years after the antecedent valuation date and for the 2017 rating list, nursery’s were sorted into bands or types based on their description, location and size. Once they have been sorted into their types a £/sqm is placed on the properties within the band based off available rental information.
Bridge closure – what is an mcc?
Material change in circumstances
Where is MCC defined?
Regulation 3 of the Non Domestic Rating Regulations 2009
How do you determine whether something is an MCC or not?
If it is set out under the mentioned matters
What are the mentioned matters?
Matters affecting the physical state of the hereditament - affecting the physical enjoyment of the hereditament
Mode or category of occupation of the hereditament
The quantity of refuse or waste material which is brought onto and permanently deposited on the hereditament, the quantity of refuse or waste material which is brought onto and permanently deposited on the hereditament
Matters affecting the physical state of the locality in which the hereditament is situated - matters which, though not affecting the physical state of the locality, are nonetheless physically manifest there
The use or occupation of other premises situated in the locality of the hereditament.
Where are the mentioned matters?
Regulation 4 of the Non-domestic rating regulations 2005
Bridge Closure - How did your inspection persuade you that the valuation was too high?
I was only advising on impact of the closure, I did not carry out the valuation however I knew there was a settlement comp with a 15% reduction agreed so I assessed where this was in relation to the bridge. From my inspection I could confirm the comparable was closer to the bridge than the subject property and see how far away the subject property was from the bridge. I then advised a senior collegue of my findings.
Was the café rented?
Yes
Had they negotiated a reduction in rent?
No, no reduction in rent had been granted on the subject property, however the comparable had a 30% reduction
How long did the works go on for?
1 year 2 months
Too transient period?
When looking at MCCs, looking at duration, severity and intensity. Severity is more relevant than duration as severity is valuable. matters affecting physical state of hereditament and locality. In this case, the subject was further from the bridge closure, trade had fallen, supporting a small reduction.
You tell me have kept up to date with rating case law 2024 can you give me some cases?
Fridays Ltd V Dawn Bunyan (2024) (UPPER TRIBUNAL CASE)
Agricultural Exemption sought under Para 3, Schedule 5 LGFA 1988, 3 separate buildings – egg packing centre, egg packing store and egg warehouse. There are exempt former poultry sheds, machinery stores, farm offices & 200 hectares of agricultural land used for growing crops at Chequer Tree Farm. No egg production on site brought in from 19 other farms. Satisfy para 3. Ratepayer contended single agricultural unit, common ratable occupation, used together, managed from the same offices, physically contiguous. VO argued against exemption because buildings were not occupied together with agricultural land, no eggs processed are produced on site, subject buildings do not form a single agricultural unit with the land. Determined in favour of VO and dismissed the appeal.
Kevin Prosser KC v Andrew Ricketts (2024
Who was in occupation of Pump Court Tax Chambers, was it PCTC occupying whole or were the individual barristers in occupation of their induvial rooms. VO defending single assessment. Appellant seeking 9 assessments. VT dismissed the appeal confirming a single assessment. Appellant has appealed to Upper lands tribunal.
Shynar Zhylzhaxynova and Jo Moore (2024) (UPPER TRIBUNAL CASE)
Appellant director and sole or majority shareholder of two companies. The appeal property comprised a warehouse on the ground floor and offices above it on the first floor. Appellant claimed one company occupied warehouse and the other the office and both run as separate businesses for which separate rating assessments were required. Following inspection, upper tribunal found that only one hereditament existed. Neither areas self contained but they could have been with some inconvenience by undertaking physical alterations with the landlords permission. Upper Tribunal determined that one of the companies, which was the lessee for the whole property, was in rateable occupation of it and the appeal was dismissed.
Where do the VOA Cost guide figures come from?
Professionals within VOA and externally and market evidence
Why is the decapitalisation rate 4.4% is it always
No, it is set by the government can change each list, 2.6% is the lower rate which is applied to hospitals and education facilities.
What was the difference between the Monk and Canary Wharf case?
Monk remained in the list 0 rated and Canary Wharf was completely deleted.
How long does a IP have to respond to an initial response?
15 working days / 3 weeks
What was the logically prior question in Jackson V Canary Wharf?
whether the property is capable of beneficial occupation at all, and thus whether it is a hereditament at all.
Futures London v Stratford (2008)
The hierarchy of evidence as set out in the 1976 Lands Tribunal decision in Lotus and Delta Limited v Culverwell (VO) and Leicester City Council was reaffirmed.
What is rating?
Tax on occupation rather than ownership. Tax on non-domestic properties.
What is the time period between initial response and decision notice?
10 working days. Compliance with a regulation.
What is the Local Government Finance Act 1988?
The Local Government Finance Act 1988 introduced significant reforms to local taxation in the United Kingdom. The old system of rates was replaced by business rates.
What was your at per m2 on the nursery?
£150/m2 was reduced to £100/m2 at appeal
Why do we have an AVD?
Case law - K Shoe Shops Ltd v Hardy (VO) and Westminster City Council (1983)
* Was demonstrated by the appellants that the general level of values in Oxford Street represented values in late 1970 – those in Regent Street, where K Shoe Shop located, had values close to the level when the list of rateable values had come into force in April 1973
* Unfair – Regent Street had been assessed to a later valuation date than those on Oxford Street – inflation had seen values rise significantly
* House of Lords confirmed the valuation date was 1 April 1973 when list came into force – did not want to reduce K Shoes to lower earlier level – therefore increased Oxford Street rateable values to the ‘correct’ 1 April 1973 level as a means of achieving uniformity
* To overcome problem in K Shoes – date of valuation is now set ‘ante’ or before a new rating list comes into force – antecedent valuation date – 2 years before a new rating list
What is some recent caselaw on rateable occupation?
Cardtronics UK Ltd & others V Skykes and others (2020)
ATMS both inside and outside of shops should not be separately assessed for business rates
Considered external ATMS in supermarkets which could be used 24 hours a day, internal ATMs in supermarkets which could only be accessed when a shop was open, convenience store ATMs, movable ATMs. Considered were the sites of the ATMs capable of being identified as separate hereditaments and who was in rateable occupation of the sites of the ATMs. Other than moveable ATM – no difficulty in all cases in satisfying the legal test of a self contained piece of property. Retailers retained occupation of the ATM sites even though they had conferred on the banks rights which substantially restricted their use of those sites.
What is the process for appeals after challenge?
Appeal is made by the appellant within 4 months of challenge decision. As soon as possible the VT notifies the VOA with couples of all documents. Anytime up to 4 weeks before the hearing the appellant or VOA can serve a ‘further evidence notice’ the other party has 2 weeks to ibject. VT decides on the admissibility of the evidence. Then 1 week window to respond with further evidence. Then 1 week max window to object. The hearing will then happen.
