Local Taxation

Question 1

Key Legislation

Answer 1

Local Government and Finance Act 1988

Question 2

Definition of Rateable Value and where is it found

Answer 2

Local Government and Finance Act (lgfa) 1988 Section, Paragraph 2
* The amount equal to what a property would reasonaly be expected to be let from year to year based on 3 assumptions (seperate card)

Question 3

What are the 3 assumptions of Rateable Value

Answer 3

1. Lease begins at AVD
2. Reasonable state of repair
3. FRI lease with T paying all expected rates and taxes

Question 4

Material Day

Answer 4

Day on which physical factors are taken into account - sch 6 (paragraph 7) LGFA 1988.
6 Factors to Consider
A. matters affecting physical state or enjoyment of the hereditament;
B. mode or category of occupation
C. quantity of minerals / substances extracted
D. quantity of refuse permanently deposited on hereditament
E. matters affecting physical locality in which hereditament is situated
F. Use or occupation of surrounding properties

Question 5

Effective Date

Answer 5

The date at which liability begins

Question 6

Antecedent Valuation Date (AVD)

Answer 6

Date property is valued from and economic factors are considered, 2 years prior to beginning of new rating list

Question 7

What are the 7 Hypothetical Tenancy Assumptions

Answer 7

1. Property is Vacant
2. Available to let on an annual tenancy
3. FRI basis
4. Reasoanable repair (L puts property into reasonable repair prior to start of tenancy if economically reasonable to do so)
5. Tenant responsible for rates
6. Value as it stands/current use in line with Rebus Sic Stantibus
7. No major alterations

Question 8

What is the role of an Expert Witness

Answer 8

A duty to the court.

Question 9

What is the role as Advocate

Answer 9

A duty to the client (the VOA).

Question 10

Case Law for Heirarchy of Evidence and heirarchy principles

Answer 10

Lotus & Delta Ltd v Culverwell and Leicester City Council 1976
1. Subject rent should be starting point
2. Closer comparables are to time (AVD), subject and conditions, the more weight attached
3. Other rents should be used where available
4. Other VO assessments of comparable properties
5. Value formed on actual rent and degree of comparability of evidence
6. Where no comparable evidence, subject given most weight