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Rating Talking Heads: November

Valuation Methodology and the Receipts & Expenditure Basis

This event runs as an informal discussion with a small panel of leading and informed practitioners extracting the nuances from the selected topic. They discuss practical issues that arise, with participants in the meeting being encouraged to listen, join in, ask questions and share comments.

Module Duration: 1 hour 2 minutes

Recorded: 16/11/2022

Areas covered

Please note there are no slides accompanying this recording. 

There have been a few recent decisions from the Upper Tribunal (Lands Chamber) which have looked at choice of Valuation Methodology, in particular, the Receipts and Expenditure method of valuation. 

The cases concerned are: BNPPDS Limited v Ricketts (VO) [2022] UKUT 0192 (LC); Allen (VO) v Tyne and Wear Archives and Museums [2022] UKUT 0206 (LC) and Fryer v Cox (VO) [2022] UKUT [2022] 0229 (LC). 

During this discussion, we will cover the following:

  • Shortened R&E – where do these decisions leave this approach? Can it still be an appropriate method of valuation? In what circumstances might it still be applied?                                                     
  • Rental Evidence – how much rental evidence is “enough” to justify a rental basis, rather than R&E?  
  • Tenant’s Share – First call on divisible balance, but is 50% the normal starting point? What are the preferred methods of calculating tenant’s share following these decisions? What factors are relevant to this calculation?
  • Joint Professional Institutions’ Rating Forum R&E guidance note – has been approved by the UT (LC). Does this require updating? If so, what elements should be revised or updated?
  • R&E method for 2023 – how are we to treat receipts and expenditure at an AVD during the COVID-19 pandemic?
  • Museums – are all now nil or nominal RV? For those not at nominal value, how can a correct value be derived?
  • Mode or category of occupation – the car park decision seems to offer a common-sense application of this. Does this change anything?

November's Talking Heads