Statutory Valuations are for
for Local and National Taxation
Compulsory Purchase and Compensation
Compulsory Purchase and decompensation
Property Based Local Taxation
Business Rates (Rating)
Council Tax
Business checks (Rating)
Valuation Office Agency
Central Government Executive Agency
valuations for HMRC tax purposes
valuations for public sector organisations
valuations for private sector organisations
A locally set tax payable on all domestic properties.
Collected by local Councils to help pay for services such as schools, police, fire service, refuse collection etc.
Introduced in 1993 by the Local Government Finance Act 1992.
Introduced in 1992 by the Local Government Finance Act 1992.
How is a dwelling defined for Council Tax
a separate unit of living accommodation
a unit of living accommodation
Mixed use properties
A property can appear in the Council Tax Valuation List and a non-domestic Rating List
A property cannot appear in the Council Tax Valuation List and a non-domestic Rating List
This type of property is known as a “composite”
Valuations for Council Tax
Valuation Office Agency is responsible for setting the band.
Placed in one of 8 valuation bands (A-H) based on it’s capital value as at 1 April 1991
Council Tax came into effect on 1 April 1993
Council Tax came into effect on 1 April 1992
Placed in one of 8 valuation bands based on it’s capital value as at 1 April 1993
Each local authority is then responsible for setting it’s annual charge per band in accordance with need.
Council Tax Revaluation
There has been no revaluation for council tax in England since its introduction.
A revaluation took place in Wales in 2005 based on 2003 levels of capital value.
A revaluation took place in England in 2005 based on 2003 levels of capital value.
Northern Ireland and Scotland have different Local Government finance systems.
Can the band be challenged
Yes – but in limited circumstances, primarily where there have been physical changes that may have resulted in a change to the valuation.
Or - if within six months of becoming the taxpayer at that property for the first time (unless the same appeal has already been considered by a Valuation Tribunal).
no under no circumstances
will not be open to appeal unless the band is altered.
If an appeal or a banding review is successful a refund of any overpaid council tax will be paid
If an appeal or a banding review is successful a refund of any overpaid council tax will not be paid
RATING
RATES IS A TAX ON THE OCCUPATION OF LAND
The introduction of the General Rate Act 1967 consolidated a number of previous Acts and became the main statute governing rating
This was unforgiveably followed by the Local Government Finance Act 1988 and along with additional statutory instruments remains the main source of codified rating law
This was followed by the Local Government Finance Act 1988 and along with additional statutory instruments remains the main source of codified rating law
The Rating Lists
In England and Wales the List is compiled by the Valuation Office Agency (VOA) an Executive Agency of the HM Revenue & Customs
The legislation provides for a revaluation of the Rating List every 5 years
The current Rating List came into effect on 1 April 2008
Oct 2012 – Government announces postponement of revaluation to 1 April 2017
Oct 2012 – Government announces postponement of revaluation to 1 April 2018
Purpose of Revaluation
To adjust rateable values to reflect the rental market at the date of revaluation.
To adjust rateable values to not reflect the rental market at the date of revaluation.
Valuation dates – the valuation date for the revaluation is set 2 years before it comes into effect.
Valuation dates – the valuation date for the revaluation is set 3 years before it comes into effect.
This is known as the Antecedent Valuation Date (AVD)
What is a Rateable Value
an amount equal to the rent which it is estimated the hereditament might reasonably be expected to let from year to year
an amount equal to the value which it is estimated the hereditament might reasonably be expected to be worth
What is a Hereditament?
a unit of such property which is or would fall to be shown as a separate item in the Valuation List
a unit of such land which is or would fall to be shown as a separate item in the Valuation List
A general rule for an occupation to be a single hereditament is that it must be:
capable of definition
a single rateable occupier
a single use
a single geographical unit
Rateability: Four essentials elements:
actual occupation
beneficial occupation
exclusive occupation
not transient
Repairing assumptions
Rating hypothesis assumes the landlord puts the hereditament in a state of repair which the tenant will be responsible for maintaining
As a general rule no allowance is made for the actual state of repair
Camden LBC v Civil Aviation Authority & Longford VO 1980.
In that particular case the property had inherent structural defects sufficient to be regarded as uneconomic for the hypothetical landlord to carry out
In that particular case the property did not have inherent structural defects sufficient to be regarded as uneconomic for the hypothetical landlord to carry out
The state of repair would affect a tenants use and enjoyment of the property and consequently reduce the rental value.
When valuing a property for Rating you must
Value it “as it stands”
Ignore development potential
Have regard to mode and category of use.
Take into consideration development potential
When valuing a property for Rating you must:
Whilst the rateable value is assessed on the basis of an imaginary lease with hypothetical tenant the actual property is taken as it actually is at the Material Day (i.e. the first day of the Rating List).
The mode and category of use of the occupation cannot be altered.
The mode and category of use of the occupation can be altered.
Not all properties are rateable, these are the main exceptions:
agricultural land and buildings
property used for the disabled
Non domestic rating bills are issued to ratepayers by Local Authorities.
The charge is applied by multiplying the rateable value by the prevailing National Non- Domestic Rates (NNDR) mutliplier. (sometimes known as Uniform Business Rate or UBR)
The charge is not applied by multiplying the rateable value by the prevailing National Non- Domestic Rates (NNDR) mutliplier. (sometimes known as Uniform Business Rate or UBR)
