Local taxation level 3 Flashcards

1
Q

Tell me about the deletion case you dealt with?

A

4 newly constructed storage units in Hingham
Agent requested deletion as no completion notices served
Guidance from s46a of LGFA 1988 and case law
Confirmed with local authority no notices served
Advised senior management they should be deleted and re-entered.

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2
Q

What are completion notices?

A

A document with a date specifying a completion date.

They are issued when newly constructed buildings are deemed complete and liable for rates.

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3
Q

What section of the Act deals with completion notices?

A

Section 46a of LGFA 1988.
There is right to appeal.
New building also means those that have been structurally altered.

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4
Q

When should a completion notice be served?

A

As soon as practically possible. If building is not complete then BA can give a date of completion within 3 months as per Sch 4.

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5
Q

What do you know about empty rates and completion notices?

A

If after service of completion notice the property is unoccupied, then empty rates relief kicks in for 3 months of 6 months for industrials.

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6
Q

What happens if you do not serve a completion notice?

A

It becomes a question of fact whether the property is deemed to be ready for occupation for the purpose intended to occupy. Property cannot be entered into the list even if it is very nearly ready to be occupied if no notice served, until actually complete.

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7
Q

What is the effective and material day for completion notices?

A

The date specified in notice or by tribunal if appealed

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8
Q

What is the Aviva v Whitby 2014 case?

A

Confirms earlier case of Gladman Sipps 2011 (offices). Aviva was industrials. BA failed to serve completion notices. VO said property is deemed complete provided it does not lack any features that is needed for occupation. Tribunal found it lacked power and distribution. Ordered list to be deleted.

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9
Q

What was the main point from Prudential Assurance v VO 2011?

A

If no completion notice served then property cannot be entered into the list.

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10
Q

What was the advice you gave for this deletion case?

A

S46a gives us a mechanism by which new buildings can be brought into a list.
BA confirmed no notice. There was no basis on which entering these properties into the list as they were not ready for occupation as works were ongoing. No notice was served even when they were complete. The occupation date is the date they should be assessed from.

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11
Q

What are the two types of completion notices?

A

Sch 4a para 1(1) - building reasonably expected to be completed within 3 months. Serve asap. Serve and bring into list.

Sch 4a para 1(2) - building is complete. Serve and bring into list.

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12
Q

What does S46a of LGFA 1988 do?

A

It governs how to bring into the list new buildings

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13
Q

Why did you request the lease for the deletions case?

A

To see when they were occupied as that is when the effective dates will be from

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14
Q

Tell me about the harlow industrials units case?

A

Agent contended there had been an MCC which impacted the rental value of 8 industrial units caused by the roadwork scheme on Edinburgh Way in Harlow.
Requested 10% temp reduction.
Units were a mix of workshops and warehouses.
I assessed the contention and advised the agent that an allowance would be applicable to those closest to the works but no evidence has been presented to support a reduction on those further away.
Case proceeded to Tribunal. I advised the panel the same.
Panel part allowed. Granted 2.5% reduction.

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15
Q

What case law did you refer for MCC?

A

Morton v Jones 1994 - 4 shops affected by disturbance over 12 months from carriageway and pavement works. At material day the works were almost to an end so no reduction warranted.
In Sheppard 1977 - Two houses affected by noise and dirt over 6 months by sewer laying work. It was held that the hypothetical bidder may make a reduced bid on the material day.

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16
Q

What is an expert witness?

A

Person who gives expert evidence orally or written to assist the tribunal. He provides objective and unbiased opinions to the tribunal on matters within their expertise.

17
Q

What is an advocate?

A

Person who acts in the best interests of their client and advocates their case fairly and professionally.

18
Q

What is a dual role? Is it recommended?

A

Acting jointly as an expert witness and advocate. It is okay in lower courts as it provides access to justice. Avoided for more complex cases or higher courts.

Must always distinguish between the roles of EW and Adv.

19
Q

when did the allowance for temporary works become effective from and to?

A

Start of the works to end of the works

20
Q

What did you do during the inspection for MCC case?

A

I inspected the locality to understand the severity of the works, any route diversions, parking, traffic. Disturbances outside the locations of the properties.

21
Q

Tell me about the industrial unit in Tuxford case?

A

Challenge case on a industrial unit in Tuxford built 2001.
Agent contended RV at 01 Apr 2017 is wrong.
Proposed a lower base rate with stepped rent from 2011 as best evidence.
I advised senior management this rent lacks weight but recent settlement on a similar unit agreed at £27/m2 carries more weight.
Advised this would impact other properties also.
Negotiated and agreed base value of £27/m2. Rating list altered.

22
Q

How did you analyse the stepped rent?

A

Aim is to get to a rent which would remain constant.
Stepped rent is an incentive.
Adjustment is made first to calculate present value of the stepped rent.
Then you take the annual equivalent over the full period.

23
Q

Why did you feel the recent settlement was better evidence than the stepped rent?

A

Limited direct comps in locality. Had to widen search. Recent settlement on a similar, size property in the same industrial park carried more weight.
Stepped rent had to be adjusted extensively to get an equivalent constant rent. 4 years from AVD also.

24
Q

How do you take rating instructions?

A

Follow the rating consultancy code of practice 4th ed 2017. Issue TOE. Do not make untrue claims. Seek the right person to approach for instruction. Do not make proposal on behalf of ratepayer without their consent. Ensure clients are aware of fees and VT provisions.

25
Q

What are the normal rules for unit of assessment?

A

1 area of land - geographical
1 occupier
1 use

26
Q

Why is important to serve a MCC proposal asap?

A

Material day is date of check. Morton v Jones case - timing was too late.

27
Q

What is a unit of assessment?

A

A hereditament liable for rates as per Section 116 of general rates Act 1967.
Also known as the entry in the list.

28
Q

How has local tax changed with the 2017 rating list?

A

There is a new defined process for having business rates reviewed. CCA. 3 step process. Aim is to make appeals process more efficient for the tax payer where factual and valuation matters are dealt separately and more effectively.

Previous system had appeals made as a routine with little supporting evidence. Led to delays for ratepayers.

29
Q

When is the new rating list?

A

01 April 2023. Avd 01 April 2021

30
Q

Does planning use impact RV?

A

Planning use can restrict use of a premise. This may affect rents and therefore rents for cafes will provide best evidence if valuing a cafe. its about what the evidence suggests. You can consider other A1 shops also.

31
Q

What information must be on a valid proposal?

A

Regulation 6 of Non domestic rating (alterations of lists and appeals) 2017 list what is required on a valid proposal.

Reg 4 sets out grounds of challenge.

32
Q

Describe the property specs in Tuxford example?

A