Charles Waters v Wayne Cox (Valuation Officer)
[2024] UKUT 232 (LC)
Arma Hotels Ltd v Dawn Bunyan (Valuation Officer)
25 January 2023
[2023] UKUT 3 (LC)
Upper Tribunal
The hotel's owners fought the government's high tax bill. Because there wasn't enough similar data to compare prices with, the judge used a different method, and the tax bill was lowered significantly.
Key Facts
- •Appeal against Valuation Tribunal for England (VTE) decision confirming £31,000 rateable value for the Brent Hotel.
- •Hotel previously valued at £13,000 in 2020 for the 2010 rating list.
- •Dispute over valuation methodology: comparable rental value per DBU vs. fair maintainable trade (FMT) method.
- •Question of whether a reliable 'tone' was established in the 2017 rating list for small hotels in the area.
- •Valuation Officer (VO) argued for £2,400 per DBU based on comparable evidence and a perceived tone of £2,800, with downward adjustment for the Hotel.
- •Appellant argued for £11,750 (£915 per DBU) using FMT method due to insufficient comparable evidence and lack of established tone.
Legal Principles
Rateable value is the estimated rent a hereditament might reasonably be expected to let for from year to year, considering its state of repair, tenant responsibilities, etc.
Paragraph 2(1), Schedule 6, Local Government Finance Act 1988
Valuation must reflect matters affecting the hereditament's physical state, occupation mode, locality, and use/occupation of other premises.
Paragraph 2(7), Schedule 6, Local Government Finance Act 1988
The 'tone of the list' is established when enough assessments are agreed, determined, or unchallenged to create a pattern of values.
Futures (London) Ltd v Stratford (VO) [2006] RA 75
The VO has a statutory duty to maintain an accurate rating list and correct inaccuracies.
Stock Auto Breakers Ltd v Chris Sykes (VO) [2020] UKUT 52 (LC)
Outcomes
Appeal allowed.
Insufficient reliable rental evidence and no established tone of the list for small hotels in the area. FMT method deemed appropriate.
Rateable value determined at £16,250.
Based on FMT calculation considering previous occupier's receipts, appellant's trading performance, and adjustment for the hotel's characteristics. No MCC deduction applied.