Statutory Valuations 1

for Local and National Taxation

Compulsory Purchase and Compensation

Compulsory Purchase and decompensation

Business Rates (Rating)

Council Tax

Business checks (Rating)

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.

a separate unit of living accommodation

a unit of living accommodation

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”

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.

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.

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

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

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

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)

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

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

capable of definition

a single rateable occupier

a single use

a single geographical unit

actual occupation

beneficial occupation

exclusive occupation

not transient

a single use

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

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.

Value it “as it stands”

Ignore development potential

Have regard to mode and category of use.

Take into consideration development potential

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.

agricultural land and buildings

property used for the disabled

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)