IRRV Alert - week ending 17th February 2023
News
Update on Museums
From: lisa.j.rawson@voa.gov.uk <lisa.j.rawson@voa.gov.uk> On Behalf Of laengagement@voa.gov.uk
Sent: 16 February 2023 13:40
Subject: Update on Museums
Good afternoon,
The following message has been sent to billing authorities.
Kind regards
Lisa
Dear billing authority,
Following Tyne and Wear v Allen, the VO is now implementing the decision from the Exeter and York cases on museums. This means that while museums were previously valued on the Contractor’s Basis, the vast majority will now be valued on a Receipts and Expenditure (R&E) approach. In the decided cases at Tribunal, the R&E approach resulted in significant reductions in RVs, sometimes to £1. In order to carry out R&E valuations we require accounts and admissions information at the relevant valuation date (AVD) for each list.
For the 2023 List revaluation, we did request this information. As the information was received, the VO valued the 2023 draft list assessments using the R&E method.
For the 2010 and 2017 lists the VO did not collect any accounts information at revaluation. For some assessments we did receive 2017 data at the same time as the 2023 information was returned. This allowed us to amend the 2017 valuations for these assessments as well. For the remaining 2017 assessments where we don’t have the information required to carry out an R&E valuation, we are asking ratepayers to engage with us via the CCA process. As part of the Check stage, will we request detailed accounts and admissions information with a view to revising valuations at the Check stage if possible.
Q - Why have the rateable values for some classes of property such as museums dropped for the 2023 rating list?
Following the York and Exeter Upper Tribunal decisions, the VO revised its valuation approach for museums from a contractors basis to a receipts and expenditure approach. The VO reviewed assessments in the 2023 list where sufficient receipts, expenditure, and admissions information had been provided. Generally speaking, this led to many assessments being reduced to RV £1 and significant reductions on the remainder.
The VO has not generally had the same information for the 2017 list valuation date (2015), and so has not yet been able to review these. We are happy to review 2017 list assessments where we have the relevant receipts, expenditure and admissions information.
Ratepayers (LAs) in England may want to consider making a Check and Challenge and in Wales a proposal. The time limit for submitting these checks and proposals is 31-Mar-2023.
Q – We have heard about a possible exception for modern and other large national museums
The VO is not now pursuing any such exceptions. It is a general principle of rating law that if a property can be occupied for a different use with no more than minor adaptions, and there is evidence that the occupier would have to pay a rent in competition with others for that use, a rentals approach can be taken. This is the only exception we anticipate applying to the general principle that R&E is the most appropriate method of valuation for museums. We are not expecting many of these situations to arise.
Kind regards,
Local Authority Engagement Team
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Lisa Rawson | Local Authority Relationship Manager Local Authority Engagement Team, Strategy and Transformation Directorate
Telephone 03000 500239 | E LAengagement@voa.gov.uk
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For information about the support and services we can provide to local authorities visit: https://www.gov.uk/voa-information-for-local-authorities
Please be advised our team mailbox address has changed to: LAengagement@voa.gov.uk
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