Properties undergoing redevelopment can have £1 Rateable Value
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).