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
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)  UKUT 0192 (LC); Allen (VO) v Tyne and Wear Archives and Museums  UKUT 0206 (LC) and Fryer v Cox (VO)  UKUT  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
- Blake Penfold BSc FRICS MCIArb, Business Rates Consultant, Blake Penfold Consultancy
- Josh Myerson FRICS Dip.Rating IRRV (Hons), Partner and Head of Rating, Montagu Evans LLP; Immediate Past President, The Rating Surveyors' Association
- Wayne Cox MRICS Dip.Rating, Head of Leisure and Licensed Property, Valuation Office Agency
- Colin Hunter, Divisional Director – Rating, Lambert Smith Hampton