Local taxation/assessment Flashcards

Question

Explain the outcome of Jackson (VO) v Canary Wharf. Fit out

Answer 1

The outcome of Jackson v canary wharf was that the separation of the stripping out from the fitting out did not prevent the premises from being under reconstruction and, therefore, incapable of beneficial occupation. A continuous programme of works was not required and the rateable value was restored to a nominal £10 during that period.

Answer 2

RICS Professional Standrd - Rating Consultancy code of practice UK 5th Edition, April 2024 Effective June 2024 sets out the standards of practice that rating consultants must adopt in all cases where they are either seeking instructions, or are approached by a new or existing client, to provide advice in relation to non-domestic rating matters. It has mandatory application in relation to rating consultancy work.

Answer 3

RICS Rating appeals is written for any surveyor who is involved in a proposal to alter the rating assessment of a client’s property. It takes the surveyor through every stage of an appeal, including: How and when to make a proposal; The grounds for making a proposal; What to do if there is no agreement - going to a Valuation Tribunal; Valuation Tribunal procedures; Pre-hearing preparations; and The stages involved in the hearing.

Answer 4

Take the rateable value and the relevant multiplier. up to £51,000 RV is small business multiplier. Over £51,000 RV is the standard briskness multiplier

Answer 5

To challenge the rating list you firstly have to process a check, which is where the factual details are agreed. When the decision notice of a check comes back there is a four month window of which the challenge is to be submitted. In the challenge, valuation aspects are argued, such as rental value as of the avd, allowances such as access/layout/split site etc. and applying case law in support of the appeal.

Answer 6

The uniform base rate, is the value applied on a £ per m2 basis without factoring in the property details.

Answer 7

A hereditament is a property which is or may become liable to a rate, being a unit of such property which is, or would fall to be, shown as a separate item in a valuation list

Answer 8

The Valuation Tribunal for England is a judicial statutory body. It deals with appeals about Council Tax and non-domestic (business) rates.

Answer 9

It is a relief given to support small business. It applies when the property's rateable value is less than £15,000 and the business only uses one property or if none of the other properties have a rateable value above £2,899, and the total rv of all properties is less than £20,000. In London this differs for a total RV of £28,000.

Answer 10

Small Business Rates Relief (SBRR) Supporting Small Business Rates Relief (SSBR) Retail, Hospitality and Leisure (RHL) Rural Rate Relief Charitable Relief Transitional Relief (TR)

Answer 11

Yes, Charities can pay business rates however they charitable relief can grant up to 80% off the business rates bill. And in some cases the council may top up the discount so they don't have to pay business' rates.

Answer 12

The antecedent valuation date is the 01 April 2021, and is the valuation date of the rating list for non-physical factors.

Answer 13

If you get empty property relief, you do not have to pay business rates on your empty property for 3 months. The relief starts from when the property becomes empty. After this time, most businesses must pay full business rates.

Answer 14

If you get empty property relief, you do not have to pay business rates on your empty property for 3 months. The relief starts from when the property becomes empty. After this time, most businesses must pay full business rates.

Answer 15

agricultural land and buildings, including fish farms buildings used for the training or welfare of disabled people buildings registered for public religious worship or church halls

Answer 16

AVD - 01 April 2021 Rating List - 01 April 2023 to 31 March 2026

Answer 17

Due to covid-19 the Government announced a delay to 2023, which was implemented by the Non-Domestic Rating (Lists) Act 2021

Answer 18

A Material Change in Circumstance. The rateable value shown in the list for a hereditament is inaccurate by reason of a material change of circumstances which occurred on or after the day on which the list was compiled. Including matters affecting the physical state or physical enjoyment the mode or category of use

Answer 19

if the repair costs are so out of proportion to the rental value that a reasonable landlord would not spend the money doing them.

Answer 20

Section 44a of the Local Government Finance Act 1988 provides that where part of a business premises appears to be unoccupied, and is expected to remain so for a short time only, the authority may ask the Valuation Officer to certify the relevant rateable values for the occupied and unoccupied parts.

Answer 21

apportion the rateable value of the hereditament between the occupied and unoccupied parts of the hereditament and to certify the apportionment to the authority.

Answer 22

A completion notice is a document that specifies the 'completion date' – this is the date on which a commercial premises becomes rateable and enters the rating list for business rates purposes.

Answer 23

To start a rates appeal you have to first confirm the property details at check stage. This is done through the check challenge appeal service on the government gateway. The check could be to confirm no changes have been made or there the property details held are incorrect and need amending.

Answer 24

Yes there are risks associated with submitting an appeal, as any appeal could result in the rateable value increasing or decreasing.

Answer 25

(i) every person whose agreement is required under Reg 12 i.e. (a) VO, (b) Proposer, (c) Occupier at the date of proposal (d) Ratepayer at date of agreement, (e) Any IP (ii) anyone who has been a ratepayer of the hereditament since the date of confirmation of check (as defined in Reg 4(1)(c)).

Answer 26

An appeal can be made should the proposer disagree with a challenge decision can be appealed at VT.

Answer 27

There is a 4 month time limit in serving a proposal to the valuation tribunal appeal. This time limit starts from the date of the challenge decision notice.

Answer 28

The appeal form needs be complete explaining why you think the voas challenge decisioon is wrong. Also need to attach a copy of the voas challenge decision to the appeal form as well as all documents and correspondence presented at challenge stage.

Answer 29

Yes you can appeal a VT decision and appeal to the Upper Tribunal within 28 days of the date of the decision.

Answer 30

The AVD is fixed for the life of the rating list, and relates to the rental value for similar properties as of the date. The material date is the day on which certain “relevant matters” are taken into account for valuation purposes when considering an alteration to a list. The effective date is the day from which all those matters and value apply.

Answer 31

Local businesses pay business rates to their local council/billing authority.

Answer 32

The local government retains half of the income with he other half paid to the central government.

Answer 33

as it adds value to the property itself.

Answer 34

Tone is the general level of bands which have been established in an area for a particular type of property.

Answer 35

1 - Where the subject property is actually let, that rent should be the starting point. 2 - The more closely the circumstances to which the rent is agreed, the more weight will be attached 3 - Where rents of similar properties are available they are to be compared to assess the level of value. 4 - Assessments of other comparable properties are also relevant. 5 - In the light of all the evidence an opinion can then be formed of the value of the appeal hereditament 6 - where there are no rents available of comparable properties a review of other assessments may be helpful but in such circumstances it would clearly be more difficult to reject the evidence of the actual rent.

Answer 36

it is a term used in rating valuations to mean in its actual physical state. It states that the hereditament (unit of property) must be valued as it is or stands.

Answer 37

Council Tax is an annual fee your local council charges you for the services it provides for domestic properties.

Answer 38

Council tax is charged on domestic properties where as business rates is charged on non domestic properties.

Answer 39

Factors that affect the UBR are things such as, lack of heating, lack of insulation, air conditioning,

Answer 40

Cross rail charge is applied to properties in London with a rateable value over £75,000

Answer 41

In dealing with air conditioning in a rating instruction I would apply a a factor of 1.1 to the adjusted rate for the area in which the air condition is effective. In dealing with a raised floor in a rating instruction, I would apply a factor of 1.05 to the adjusted rate for the area in which the raised floor is effective.

Answer 42

It is the site of the machine rather than the machine itself which may be rateable.

Answer 43

A ratepayer’s attempt to value a bank that was situated at a crossroads, by zoning it from both of its frontages ‘banana zoning’ was rejected. Instead, the LT confirmed the approach taken by the VO (and preferred by the VT) to zone it from the street on which it had the greater proportion of its display windows and a direct entrance into its banking hall (Queen Street).

Answer 44

Banana Zoning is where the Zoning starts from both its frontages. Occurred in Abbey National v O'hara, where the property was situated on a crossroads, and the ratepayer zoned from both its frontages. This was rejected at VT and the decision was that the zone should start on the street with the greater proportion of display windows.

Answer 45

The precedent set in the 2021 case was that a present intention to occupy coupled with slight occupation is sufficient to constitute rateable occupation

Answer 46

The high court ruled in favour of PHE and that the storage of archive boxes was sufficient to demonstrate rateable occupation for the six week periods and that the empty rates exemptions for the periods are to be applied.

Answer 47

provides clarity on how charity law and rating relief align. it confirms that registered charities operating over multiple sites will be able to obtain relief without having to demonstrate that the activities on each site would have qualified as a charity in their own right

Answer 48

The last rating revaluation has affected tenants and landlords both positively and negatively. In most industrial cases the rateable value has increased which is a negative impact, however with transitional relief the initial increase will be stepped over the years to help with the increases. With retail, we have seen rateable values decrease as a result of the struggling high streets, meaning the liability of these shops have decreased. My role has been affected by the change of market, having to determine the rental value of the AVD and the impact of Covid on the rental market.

Answer 49

One rating appeal I have submitted was based on the property details. It was a new assessment compiled into the rating list in 2021. Having inspected and measured the property I found the area to be sum 5000 sqm smaller than the assessment. I provided a report amending the areas and reduced the rateable value by £200,000.

Answer 50

I have limited expereince in MCC appeals however I am aware of when they can take place, such as roadworks impacted the business. In regard to the compiled list I have had experience since the revaluation and have so far been focusing on whether the property details are correcet whilst collating rental evidence to assess whether the correct level of tone has been applied.

Answer 51

One favorable rating outcome I have negotiated was on a nursery. Applying the first proposition of lotus and delta i analysed the rental value at AVD and found grounds to reduce the rateable value. The VOA agreed with the rental value however, came back with adjustment for fit out carried out. Of which I was happy to accept as the difference was minimal in regard tot he rateable value.

Answer 52

A prime pitch is the most desirable and most expensive property in a location.

Answer 53

No I did not zone my comparable. On the rating assessment the zone A rate had been applied to properties in the locality/parade. I assessed whether the comparable were located on the same parade as to whether the zone a rate should be applied.

Answer 54

Yes, it give an indication of the area and the values applied. It provided me an understing of where the prime pitch was for this parade. Yes i think it is necessary to inspect in person to gain a good understanding of the area. You can see how active the area is and the level footfall which can impact the value/MCC.

Answer 55

I discovered it was incorrect following my inspection where i measured the property and assessed the factual property details.

Answer 56

The fee was structured on a no win no fee basis, at an agreed % of savings generated.

Answer 57

I have utilized the comparable method of valuation. I assessed the market and found properties in the same valuation bandings as the subject property and analysed rents found around the AVD. I have determined the rental value per m2 to determine of the value per m2 is fair on the current rating list.

Answer 58

I have complied with the RICS guidance in a rating VT case by providing the correct and relevant documents in submission to the VT. By providing a statement of agreed facts and matters in dispute.

Answer 59

I provided my client with a report which outlined what the assessment currently is, what the assessment would be if the areas were corrected and what it could be if the areas were corrected and the correct level of value as per the comparable evidence was applied. I talked through the risks of appealing and my client was happy to provide the factual details as they would rather have paid the correct level from the beginning than be hit with a bill down the line.

Answer 60

The tribunal pack included the appeal form and a consolidated document including all documents submitted at challenge and all correspondence with the voa relating to the challenge, including the challenge decision notice.

Answer 61

To appeal there is a fee of £150 (for smaller proposers) or £300 (for any other proposer). If you’re appealing where the VOA have not sent their challenge decision notice within 18 months of making your challenge, the appeal is free.

Answer 62

The appeal has yet to take place.

Local taxation/assessment Flashcards

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