Local Taxation (L2)

Question 1

Define NAV

Answer 1

Net annual value is the rental value that is paid year on year, from a hypothetical tenant to a hypothetical landlord, assuming that the tenant is responsible for all repairs

Question 2

What is the UBR for 2022/23?

Answer 2

49.8p RV > £51k
51.1p RV £51k - £95k
52.4p RV > £95k

Question 3

What is fresh start relief and what is the criteria?

Answer 3

12 months rate relief which is offered for properties with a RV under £95k that have been vacant for more than 6 months or have had a change of use

Question 4

When is the next revaluation in Scotland?

Answer 4

01/04/2023

Question 5

What is the tone date for the next revaluation?

Answer 5

01/04/2022

Question 6

What is tone of the roll?

Answer 6

Tone of the roll was established in the Local Government Scotland Act 1966. It requires that when you are make any new or altered entry to the roll, you must value them as though they had been available in their present state at the revaluaiton.

Question 7

What is the purpose of a tone date?

Answer 7

to set the level of value for an upcoming revaluation (sets a ceiling)

Question 8

Steps in cotractors method?

Answer 8

1) ERV
2) ARV
3) Land value
4) Decapitalisation
5) Review

(When using contractors method, properties are normally measured on a GIA basis)

(The ARV takes into account the current state of the property, relevant allowances are made)

Question 9

What are the decap rates?

Answer 9

2.9% (schools, churches, hospitals) and 4.6% (all other). You would find them in the Valuation for Rating (Decapitalisation Rates) (Scotland) 2016

Question 10

What legislation governs plant & machinery?

Answer 10

Valuation for Rating, Plant and Machinery, Scotland Regs 2000

Question 11

How would you improve the rating system?

Answer 11

Tbc

Question 12

Explain what tests you would consider when determining the unit of valuation?

Answer 12

Unum quid - should it be valued as on unit? You would use the functional and geographical tests. You would also take into account if it is capable of being separately let and the actual terms of the letting.

Question 13

Who has a right of appeal?

Answer 13

Anyone who takes an interest within a property (6 months right of appeal)
Within 6 months of date on valuation notice
If you think there is an error

Question 14

When can the assessor change the roll?

Answer 14

error, material change, new entry or deletion

Question 15

What regulations give the assessor the power to alter the roll?

Answer 15

Local Government Scotland Act 1975

Question 16

How would you value two office floors in a multi storey office block that weren’t contiguous?

Answer 16

Previously would have been valued as one entry in the valuation roll. Following the Woolway v. Mazars case this has changed and separate entries would now be made.

Question 17

What lands and heritages aren’t included in the Valuation Roll?

Answer 17

houses, agricultural properties, churches, public parks, sewers, public roads, atm in rural locations, off shore electricity generators

Question 18

What are the 5 classifications of error?

Answer 18

Measurement, survey, classification, arithmetical, clerical

Question 19

Where do you get costs from for a contractors valuation

Answer 19

SAA Cost Guide, BCI Cost Guide, Actual costs from developer

Question 20

Would you use unit costs or actual costs?

Answer 20

Unit costs

Question 21

When could an appeal be referred to the Lands Tribunal?

Answer 21

When evidence heard or facts of the case is complex or highly technical.
When the law applied is uncertain
When the decision is likely to be used in future cases

Question 22

What impact do you think the next revaluation will have?

Answer 22

Office & industrial rents will jump and re-align with the market. Retail will drop.

Question 23

A property is new at 1st March, what act would you use to add it to the roll?

Answer 23

LGS Act 1975. Sect 2(1)(b).

Question 24

What are the empty rates liabilities for offices and industrial?

Answer 24

Office - 50% for 3 months, then 10% thereafter
Ind - 100% for 6 months, then 10% therafter.

Question 25

In what circumstances do you get 100% relief?

Answer 25

listed building,
RV < £1,700,
by law it cannot be occupied,
is under a compulsory purchase order