MG- Rating

Question 1

In the retail shop you valued, if you had measured it what basis would you use?

Answer 1

NIA

Zone the unit in 6.1m increments to zone c, after that the remainder is the depth that is left

nonstructural partitions are ignored when using the zoning method.

Internal widths should be taken from the block/brickwork or from the plaster surface.

Staircases, columns, piers, structural walls, escalators, lifts and other similar features should be accurately plotted on plans.

Toilets should be measured and shown separately

Question 2

When valuing the

Question 3

Do you think the VOA will accept the decision in shoosmiths fit out case?

Answer 3

The appellate argued there should be no uplift for cat b fit out but voa proposed £10 & £15 uplift per sq m

Up for debate - wait and see if they will take it to upper tribunal

Question 4

Does the increase of £15 for fitout in manch and £10 psf in liverpool proposed in shoosmiths hold much weight?

Answer 4

Not yet - diff to quantify how they have reached these values

Question 5

What is the key outcome of the acendun v bunyan case?

Answer 5

Applied £47 per sq m in London on 2017 list for cat b fit out Ascenden Ltd’s offices at Ascot House, Maidenhead - CAT B Space is worth more than Cat A

Question 6

Give an example of an MCC in birmingham

Answer 6

Pending applications for birmingham business park which has been affected by HS2

Question 7

What did O’Brien v Harwood 2003 establish about tone?

Answer 7

that there are THREE STAGES:

1. At first, when a new rating list is put on deposit, entries will carry relatively little weight: they are opinions of value by the valuation officer, as yet unchallenged and untested by negotiation.
2. Over time assessments will be challenged and agreed or determined by a valuation tribunal or this tribunal or accepted by lack of challenge.
3. Finally a stage is reached where enough assessments have been agreed or determined or are unchallenged to establish a pattern of values, a tone of the list.

Question 8

How does the fit out debate affect space that is let furbished ?

Answer 8

not clear answer - how does this fit in with the vacant and to let hypothesis anyway?

Question 9

What are the timelines for the CCA process?

Answer 9

VOA has 12 months to decide on a check but they aim for 3 months
4 months after check decision for a challenge
18 months voa for a challenge
4 months to appeal challenge to tribunal

Question 10

Give an example of co-ordination with the VOA

Answer 10

Receiving a challenge or check decision that you don’t agree with and trying to have a conversation or agreeing to go and measure a property with the voa

Question 11

What is the AVD in scotland?

Question 12

What are the last 4 rating lists?

Question 13

What is the purpose of revaluation?

Answer 13

The whole purpose of having a revaluation is to reassess relativities and rebase the valuations to the new dates an

Question 14

What 2 things should each new rating list take into account?

Answer 14

PHYSCIAL - takes into account the changed physical circumstances at MARKET - changed market conditions at the new Antecedent Valuation Date.

Question 15

what has the autumn budget (30 oct) said about rating?

Question 16

what is a key change in the local gov and finance wales bill (24) in terms of rates mitigation?

Answer 16

It introduces a new anti-avoidance framework to permit the Welsh Ministers to
specify artificial anti-avoidance activity in regulations. The provisions also permit the
Welsh Ministers to impose financial penalties in connection with anti-avoidance
arrangements.

Question 17

If a unit is split into two hereditaments can you get a new rate free period?

Answer 17

Yes, if the hereditament is split and returned to the LL they might be able to benefit from a fresh rate period once the property is brought into the rating list (example unit 6a/6b)

Question 18

If you measured a unit and found that it contained say an office space which would increase the assessment would you declare this?

Answer 18

At present there is no duty to notify but understand there will be once the mechanism for this is in place
- tell client to budget for anticipated increase of xx

Question 19

What is a compiled list error??

Answer 19

An error made from the AVD (ie the voa bring a property in at apr 23 and have the incorrect factual details) - THIS MEANS THEY CAN ONLY CHANGE THE RV FROM THE DATE THEY REALISE THIS - CANT GO BACK TO APRIL 2023

• if the property changes e.g. adds in an office after apr 23 then the VOA can charge the RV from the date the change took place.

Question 20

what is the summary of jackson vs canary whard

Answer 20

OFFICE DELETION - 2 floors of a tower block (One Canada Square) at Canary Wharf, which had been stripped out to shell for 2 years.

AT the upper tribunal the case was decided
- The assessment of whether or not the property was capable of beneficial occupation is a matter of objective fact requiring no hypothetical assumptions - didn’t matter that there was not a scheme of works.

The nominal assessment of rateable value £1, determined by the Valuation Tribunal, was upheld.

Question 21

What is the key case summary for monk and newbiggin?

Answer 21

Supreme Court - OFFICE strip out for refurbishment

The offices had been stripped out including removal of sanitary fittings, electrical wiring including the comfort cooling system, most of the ceiling tiles and light fittings and about 50% of the raised floors.

Where premises are undergoing redevelopment as a consequence of which they
are incapable of beneficial occupation they do not constitute a hereditament and, therefore,
them repair assumption in the statutory formula cannot apply.

If it is determined that the
premises do constitute a hereditament one must then consider the mode or category of
occupation and then whether the premises are in a reasonable state of repair consistent with
that mode or category.

in this case the Supreme Court ruled that Monk premises were undergoing refurbishment on
the material day and that the Upper Tribunal was entitled to alter the rating list so as to
reduce the RV to £1 (“building undergoing reconstruction”).

Question 22

In the contractors basis how can you deduct for obsolescence or age?

Answer 22

The Monsanto case established a scale to be used if accounting for age/ obsolescence

Question 23

What’s the final stage of the contractors basis?

Answer 23

Stand back and look - assess if it looks appropriate per sq m

Question 24

What is the receipts and expenditure method?

Answer 24

Concept is that income less expenditure = divsible balance

Firstly the gross profit derived from occupation of the hereditament is calculated by deducting the cost of purchases made from gross receipts.

The working expenses, including an allowance for renewal of the tenant’s assets, are then deducted from the gross profit to give the divisible balance.

The divisible balance represents the amount to be shared between the tenant (tenant’s share) and the landlord (rent, or rateable value) - often this might be 50/50

• Often used for pubs, leisure etc

Question 25

What are the key cases relating to the deletion?

Answer 25

Monk v newbiggin
Jackson v canary wharf

Question 26

What are the principles of monk v new biggin and jackson?

Answer 26

Overall key point is that if the works render the property incapable of beneficial occupation for its category of use then it is not rateable

Question 27

if you have got two properties next to each other how can you merge these assessments and what’s the leading case?

Answer 27

Mazaras 2015 - Mazars LLP, a firm of accountants, occupied Floors 2 & 6 of Tower Bridge House, a modern office block situated opposite to the Tower of London. As would be expected, the floors had various teams spread across them and there was a continual flow of staff between the floors via multiple high-speed lifts.

• Case went to the supreme court ruling

THE IMPACT WAS…

The VOA’s QC took a different approach during the Supreme Court hearing, choosing to rely heavily on Scottish rating law and less so on English rating law, which are substantially different in relation to contiguity. -

• Following an announcement in the 2017 Budget the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill was introduced in the House of Commons and received Royal
  Assent on 1 November 2018.
• The Act has retrospective effect from 1 April 2010 and provides that
  where two or more hereditaments are occupied by the same person (whether or not in the same building but provided they are not used for a different purpose) and meet the “contiguity condition”
  they will be assessed as one hereditament
• Premises will be
  contiguous if either
  (a) they are on consecutive floors of a building and some or all of the floor of one hereditament lies directly above all or part of the ceiling of the other hereditament (ignoring
  voids for services etc) or (
  b) they share a common wall, fence or other means of enclosure.

Question 28

What’s the current UBR in england?

Answer 28

Under £51,000 RV - it is 0.499
Over 51,000 RV - 0.516

Question 29

What is the staircase tax?

Answer 29

https://blakepenfold.com/news/post/legislation-reverse-staircase-tax/

Question 30

Please can you explain the CCA process

Answer 30

check - voa have 12 months
challenge - 4 months to challenge check then voa have 18 months
appeal - 4 months to appeal a challenge decision

Question 31

Is there a cost for the tribunal ?

Question 32

If you went to tribunal what would change about relationship with client?

Answer 32

• agree a fixed fee basis with the client
• Duty is to the tribunal
• relationship changes to advise tribunal rather than assist client

Question 33

How would you act as an advvocate and an ex witness?

Answer 33

Know that i can only do this in lower tribunals

• make clear that i am giving ex witness evidence that is duty to the tribunal
• when acting as an advocate that’s when you can discuss the legal argument

Question 34

Can you go to a tribunal on a conditional fee?

Answer 34

No - this is not ethcial