Rating Valuation : Principles and practice

433 Pages·2010·8.084 MB·English

by  Peter Brown, Patrick Bond

Rating Valuation
This page intentionally left blank
Rating Valuation
Principles and Practice
Third edition
Patrick H. Bond, B Sc (Est. Man.),
FRICS, Dip. Rating IRRV (Hons)
DeputyDirectorofRating,ValuationOfficeAgencyand
VisitingLecturerinRatingValuation,CityUniversity
and
Peter K. Brown, Dip. Est. Man.,
MRICS, Dip. Rating IRRV (Hons)
ProfessorofPropertyTaxation,LiverpoolJohnMooresUniversity

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Contents
Preface xi
Acknowledgements xiii
About the Authors xv
Table ofCases xvii
Table ofStatutes andStatutory Instruments xxvii
Chapter 1 Introduction 1
1.1 Introduction torating 1
1.2 Historical 2
1.3 Other approaches tolocalproperty taxation 4
1.4 Rateable properties 5
1.5 Assessment 6
1.6 Revaluation 6
1.7 Collection 6
1.8 Transitional arrangements 8
1.9 Wales 9
1.10 Scotland and Northern Ireland 10
1.11 Illustrativerateablevalues 11
Chapter 2 The rateable occupier 13
2.1 Introduction 13
2.2 Actual occupation 15
2.3 Exclusiveor paramountoccupation 19
2.4 Beneficial occupation 23
2.5 Transience 25
2.6 Rateable chattels 27
2.7 Summary 28
2.8 Wales 28
Chapter 3 The hereditament 29
3.1 Introduction 29
3.2 Within one ormore billing authorities’ area 30
3.3 Asingle rateable occupier 31
3.4 Capableof separateoccupation 31
v
vi Contents
3.5 Asinglegeographical unit 32
3.6 Single purpose 37
3.7 Single definable position 39
3.8 When does an hereditament come into existence? 39
3.9 Relevant non-domestichereditaments 40
3.10 Summary 41
3.11 Wales 41
Chapter 4 The domestic/non-domestic borderline 43
4.1 Introduction 43
4.2 Definition ofdomestic property 43
4.3 Hotels 47
4.4 Holidaycottages andotherself-catering accommodation 47
4.5 Composite hereditaments 48
4.6 Valuationof composites 49
4.7 De minimisuses 51
4.8 Short stay accommodation andthe ‘sixperson rule’ 53
4.9 Rating list entries 55
4.10 Wales 55
Chapter 5 Exemptions and reliefs 57
5.1 Introduction 57
5.2 Exemptions 57
5.3 Reliefs 69
5.4 Wales 71
Chapter 6 The basis ofvaluation 75
6.1 Rateablevalue 75
6.2 Interpretingthe definition ofrateablevalue 76
6.3 Additionalrules 89
6.4 Summary – the hypothetical tenancy 98
6.5 Date ofvaluation 99
6.6 Temporary reductions inassessments 107

6.7 Wales 110
Chapter 7 Rental analysisand valuation 111
7.1 Introduction 111
7.2 Rentalselection 112
7.3 Weighttobe attached torental evidence 115
7.4 Rent inachanging market 118
Contents vii
7.5 Adjustmentof rents 118
7.6 Incentives 127
7.7 Reverse premiums 132
7.8 Surrender andrenewal 133
7.9 Adjustmentfor date 135
7.10 Order ofadjustment 135
7.11 Rentalanalysis 135
7.12 Wales 148
Chapter 8 The contractor’s basis 149
8.1 Introduction 149
8.2 Historical development 149
8.3 The fivestages 150
8.4 Problems with the contractor’sbasis 152
8.5 Rejectionof the method 153
8.6 The fivestages indetail 154
8.7 Illustrativevaluation 174
8.8 Summary 176
8.9 Wales 176
Chapter 9 Receipts and expenditure 177
9.1 Introduction 177
9.2 Historical development 177
9.3 Overviewof the approach 178
9.4 Rejectionof the method 179
9.5 Use ofaccounts as acheck for other approaches 180
9.6 The approach indetail 181
9.7 Gross receipts 184
9.8 Expenditure 188
9.9 Tenant’s share 192
9.10 Local authorityoverbid 197
9.11 Loss-making properties 199
9.12 Valuationbytaking a percentage ofgross receipts 200

9.13 Illustrativevaluation 202
9.14 Wales 204
Chapter 10 Thevaluation ofshops 205
10.1 Introduction 205
10.2 Zoning 205
10.3 Numbersofzones and zone depths 207
viii Contents
10.4 Ancillaries 208
10.5 Quantity allowances 208
10.6 Allowances for shape 210
10.7 Natural zoning 213
10.8 Turnoverrents 215
10.9 Superstores and hypermarkets 216
10.10 Retail warehouses 218
10.11 Department stores 219
10.12 Kiosks 220
Chapter 11 Thevaluation ofoffices 223
11.1 Introduction 223
11.2 Basis of measurement 223
11.3 Survey requirements 223
11.4 Unit ofassessment 224
11.5 Valuationapproach 224
11.6 Rentalanalysis 225
11.7 Illustrativevaluation 225
11.8 Factorsaffecting value 226
Chapter 12 Thevaluation offactories, workshops andwarehouses 227
12.1 Introduction 227
12.2 Survey and basis ofmeasurement 229
12.3 Basis of valuation 231
12.4 Factorsaffecting valuation 232
12.5 Example 235
Chapter 13 Thevaluation ofplant and machinery 239
13.1 Introduction 239
13.2 Historical development 239
13.3 Rateability 240
13.4 Microgeneration 244
13.5 Valuationofplant andmachinery 245

13.6 Wales 256
Chapter 14 Thevaluation ofother types of property 257
14.1 Advertising rights and stations 257
14.2 Amusement parks, theme parks 258
14.3 Bingo halls and clubs 259
14.4 Bowling alleys 260
Contents ix
14.5 Caravan sites 260
14.6 Car parks 263
14.7 Cinemas 265
14.8 Clubs andhalls 267
14.9 Educationestablishments 269
14.10 Golf courses 275
14.11 Hotels 279
14.12 Leisure centres 280
14.13 Marinas 281
14.14 Mineral hereditaments 283
14.15 Petrolfilling stations 287
14.16 Publichouses 290
14.17 Ridingschoolsand liverystables 292
14.18 Snooker halls 295
14.19 Sportsgrounds 295
14.20 Swimmingpools 296
14.21 Telecommunication masts 297
14.22 Theatres 299
14.23 Village halls, community halls 300
Chapter 15 The 2010 rating lists: preparation,alterationand appeals 303
15.1 Introduction – revaluation and rating lists 303
15.2 Contentsoflocalrating lists 304
15.3 Central lists 305
15.4 Regulations 305
15.5 Alterations tolocal rating lists by valuation officers 306
15.6 Proposals 306
15.7 Who can makeproposals? 308
15.8 Contentsofa proposal 309
15.9 Time-limits for proposals 311
15.10 Invalidproposals 311
15.11 Procedure subsequent tothe makingof proposals 312
15.12 Effectivedates 314
15.13 Ap peals 317
15.14 Wales 323
Chapter 16 Rating administration,collection and enforcement 325
16.1 Rating administration 325
16.2 The annual rates bill 325
16.3 Form and content ofbills 326