Maintaining the Tax Base – The Billing Authority
Role in the Appeal Process
Christopher Grose BSc, MRICS, IRRV (Hons) – Divisional Director – Rating – Capita
The Background - Definition of Rateable Value
Sub-paragraph 2(1) of Schedule 6 to the Local Government Finance Act
1988, as amended by section 1(2) of the Rating (Valuation) Act 1988:“The rateable value of a non-domestic hereditament none of which consists
of domestic property and none of which is exempt from local non-domestic
rating shall be taken to be an amount equal to the rent at which it is
estimated the hereditament might reasonably be expected to let from year to
year on these three assumptions –
the first assumption is that the begins on the day by reference to which the
determination is to be made;
the second assumption is that immediately before the tenancy begins the
hereditament is in a state of reasonable repair, but excluding from this
assumption any repairs which a reasonable landlord would consider
uneconomic;
the third assumption is that the tenant undertakes to pay all the usual
tenant’s rates and taxes and to bear the cost of the repairs and insurance
and the other expenses (if any) necessary to maintain the hereditament in
state to command the rent mentioned above.”
Appeals - The Non-Domestic Rating (Alteration of Lists and Appeals) (England)
Regulations 2009 SI No 2268
a) Compiled List
b) Material change of circumstances
c) Plant and machinery schedule alteration
d) VO Notice
e) Tribunal/Court Decision
f) Effective date alteration,
g) New entry
h) Deletion;
i) Should be composite or part exempt
j)Should not be composite or part exempt
k) Merger
l) Split
m) Address change
n) Description change
o) Section 42 statement omitted
Appeals can be made by
a) An Interested Person
b) In certain circumstances by a Billing Authority
c) In cases (c), (d) and (f) by a person who was an interested party at the
time the changes had effect
Billing Authority Proposals
a) Compiled List
b) Material change of circumstances
c) Plant and machinery schedule alteration
d) VO Notice
e) Tribunal/Court Decision
f) Effective date alteration,
g) New entry
h) Deletion;
i) Should be composite or part exempt
j)Should not be composite or part exempt
k) Merger
l) Split
m) Address change
n) Description change
o) Section 42 statement omitted
When can a Proposal be made (Para 5)
In general at any time up to the date on which the next list is compiled
except:Proposals under grounds (d) (VO Alteration) and (f) (incorrect date) can
be made up to next compilation date or within 6 months of the relevant
alteration date which ever is the later (subject to change)
Proposals made under grounds (e) (Tribunal/Court Decision) can be
made up to next compilation date or within 6 months of the relevant
decision date which ever is the later
However ............
Material Day - The Non-Domestic Rating (Material Day for List Alterations)
Regulations 1992 No 556 as amended by The Non-Domestic Rating (Material Day
for List Alterations) (Amendment) (England) Regulations 2005 No 658
Material Change proposal – VO Date of event, proposal date served on
VO
Deletion, Insertion, Split, Recon Date of Event
Proposals Form Content (Section 6)
Sent to the VO stating
i) the proposer,
ii) their role,
iii) identify the property,
iv) how the list should be altered,
v) including a statement of the grounds,
vi) date of alteration where appropriate,
vii) details of Court decision and why applicable where appropriate,
vii) the rent payable HOWEVER a rating authority does not need to
provide this information,
Procedure after making of proposals (Section 9)
Within 6 weeks the VO shall send a copy of the proposal to
(a) any ratepayer
(b) the relevant authority
BUT unless the relevant authority is a special authority it has to advise
the VO it requires them
Withdrawal of proposals Section 11
A proposer can withdraw a proposal at any time but
(a) the current ratepayer if different needs to agree in writing
(b) an IP who served notice on the VO within 2 months of the proposal
date must be notified by the VO of the withdrawal and has 6 weeks to
advise the VO they wish to take over the proposal
Agreed alterations following proposals Section 12
If all parties to a proposal agree in writing that the List should be altered
then the VO shall within 2 weeks alter the List. The parties include:An authority who would have been able to serve the proposal and
served Notice on the VO within 2 months of receipt by the VO of the
proposal.
Disagreement as to proposed alteration Section 13
Within 3 months of receipt of the proposal if there is no agreement then
the VO shall refer the proposal to the Valuation Tribunal.
The Valuation Tribunal for England (Council Tax and Rating
Appeals) (Procedure) Regulations 2009 No 2269
Parties to an Appeal Section 3
Section 3 (d) (i) (aa) Confirms that local authorities are parties to an
appeal where their agreement is required to the List alteration.
VTE Procedures – Practice Statement A7-1
The Valuation Tribunal Stard Directions state that: No later than 6 weeks prior to the hearing an Appellant shall serve on the
Tribunal and all other parties to the appeal (including the respondent) a
Statement of Case
And
No later than 4 weeks prior to the Hearing, the respondent or any party
other than the appellant shall serve on the Tribunal and other parties
their Statement of Case in response. Not doing so means the party will
be barred
Consequences
If the appellant does not serve a Statement of Case the appeal is struck
out, therefore a Billing Authority may require to serve a protective
proposal of its own.
If a Billing Authority is an Interested Party they must serve a response to
the appellants Statement of Case or be barred from the proceedings and
therefore have no involvement in the case at the hearing or
subsequently.
If barred BA’s or any other Interested Party can apply to have the Bar
lifted
Interested Parties can be parties to any subsequent appeal
Practical Effects
b) Material Changes
e) Tribunal/Court Decisions
g) Entries to the List
h) Deletions from the List
i) Should show part domestic/exempt
j) Shouldn’t show part domestic/exempt
Rate Retention and Localisation
Gives Billing Authorities an ability to be involved on proposals for
material change that cause RV loss
If the VO no actions a report BA’s could serve a proposal in certain
circumstances
Prevent wasted High Court Cases?
Any Guesses on the Case two of these properties were in?
Pall Mall Investments Ltd v Gloucester City Council
Going Forward
Should Billing Authorities have additional rights?
Interested Party to Compiled List appeals?
Ability to appeal Compiled List appeals?
Effective date change?
Address change?
If seeking these rights should BA’s make use of their existing rights?
Changes to Appeal Regulations
Announced as part of Autumn Financial Statement
Ratepayer appeals submitted after 1 April 2015 only back dated to 1 April
2015
VO alterations after 1 April 2016 only backdated to 1 April 2015
No reason given for change
Rate retention? Stability of Business Rate Income? Clearing decks for
2017 revaluation?
Changes to Appeal Regulations - Impact
Need to submit appeals by 31 March 2015
Dramatic increase in number of appeals served?
However many should be cleared before 1 April 2017
Marketing calls – remember IRRV Marketing Code
Marketing Code
New Marketing Code: •Applies to IRRV Members from 1 July 2014
•Applies to RSA Members from 1 August 2014
IRRV and RSA Marketing Code
No blanket restriction in approaching a ratepayer, even if another agent
is instructed but: “those making such approaches should act professionally at all times
and should not persistently or in a harassing manner seek instructions
after the ratepayer has indicated that he is content with his present
advisers or does not wish to use the services of the firm or individual
making the approach.”
And
“A ratepayer may decide to conduct his or her own appeal without
representation and such a decision must be respected without repeated
attempts to encourage that person to engage outside assistance”
IRRV and RSA Marketing Code
• Instructions must not be solicited directly from any branch of a
national organisation where it is known it would be dealt with by the
headquarters .
• Proper diligence must be exercised in identifying the appropriate
person to approach
• if that person declines the approach no other person in the
organisation should be approached
• Marketing staff should be given appropriate training in the basic
principles of rating advice
• Marketing should be restricted to describing the services the firm has
to offer
• Should not include any criticism, direct or implied, of the firm
currently instructed by the ratepayer