Reality Prevails in the Rating Valuation World

2 July 2020

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The Court of Appeal has refused permission to the Valuation Office Agency to appeal a ruling in favour of Exeter City Museum over the rateable value of the city’s Grade II listed Royal Albert Memorial & Art Museum.

Cooke & Arkwright director Jane Shankland's article of 16th January reported the Upper Tribunal (Lands Chamber) decision in the case of Stephen G Hughes (Valuation Officer) and Exeter City Council.  The Upper Tribunal had upheld the Valuation Tribunal England’s (VTE) decision that the rateable value of Exeter museum should be £1 with effect from 1st April 2015.

Rating practitioners welcomed the decision which brought a sense of reality to the valuation of grand, listed civic buildings. Finding that these types of properties should be valued adopting the receipts and expenditure basis rather than the contractor’s method, which is based on rebuilding costs and produces valuations which are manifestly too high. The R&E method reflects the fact that these types of properties are largely non- profit making and rely on significant deficit funding.

Jane commented “The refusal by the Court of Appeal to allow the Valuation Office Agency a further appeal is great news for our local authority clients.  We now have a green light to progress the many outstanding museum rating appeals we have lodged.   The decision also has potential application for other public buildings which we are keen to explore”.  

Cooke & Arkwright have been providing Newport City Council with rating advice for over 20 years. Andrew, Jane and Huw provide a personal and professional service and have an excellent knowledge of the Council’s assets which has enabled the Council to achieve substantial rate savings. A useful service offered is the status report which provides us with a snapshot of what appeals have been made and appeals outstanding throughout the life of the List. I would recommend Cooke & Arkwright Rating Services to any company wishing to procure up-to-date and professional rating advice.

Eirian Jones, Estates Team Leader, Newport Norse