Deletions from the rating list

On a recent trip out, I noticed the “petrol station” from a previous era, as shown in the photo. This inspired a period of reflection as to the current state of Rating law as it relates to obsolete premises awaiting their next use, which often involves development of some kind.

Until February 2015, when a property was demolished or stripped out in readiness for redevelopment, no Business Rates would be payable from demolition or strip out. Rates would become payable again when the new premises were complete.

In February 2015, the Court of Appeal decided the case of Monk v Newbigin, giving guidance on the assumption that premises are in repair when they are valued. The Court overturned guidance to valuation officers in the Valuation Office Agency’s own manual. In consequence, rates are payable up to the time that the new works begin. The VOA interpretation at the moment is even more draconian in that they are taking the point of no return rather than the beginning of works as the deletion date.

Fortunately, leave to appeal to the Supreme Court has been granted and we hope for a reversal.

Paul Sewell