Reality returns, says Nicola Murrish, Head of Rating at Vickery Holman Property Consultants.
March 1st saw the long awaited outcome of the Newbegin v Monk Supreme Court decision
which has seen the return of the principle that properties undergoing redevelopment or
refurbishment should have their Rateable Value (RV) reduced to £1.
The case saw the ratepayer appeal to reduce their rates liability during a period of
redevelopment, seeking a Rateable Value of £1. Rating Law assumes that a property should
be valued as it existed on the ‘material day’ being the date of an appeal, but we also have to
assume a ‘reasonable state of repair’ contradictory in the case of properties undergoing
refurbishment.
The Supreme Court concluded that the Valuation Office Agency must assess objectively
whether a property is undergoing reconstruction and subsequently incapable of beneficial
occupation. If the works being carried out are assessed as the property undergoing
redevelopment, the RV should be reduced to £1.
There are now only a few weeks before appeals can be registered under the existing 2010
Rating List (which closes on 31st March 2017) which would see any adjustment backdated to
1st April 2015.
If you or your clients have relevant projects that need an appeal being lodged swift action
needs to be taken to ensure you don’t miss out. For further information contact your local
Vickery Holman office in Truro (01872 245600), Plymouth (01752 261811) and Exeter (01392
203010).
