- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 28 Jun 2019
Business rates and 'reasonable repair'
|The above photograph is indicative and does not relate to the case described below.|
The case of Newbigin (Valuation Officer) v SJ &J Monk (a firm) (2017) concerned the issues of business rates and 'reasonable repair'.
The dispute between a property owner and the local rating office confirmed the principle that if a property is not in a reasonable state of repair, it is to be valued as it is, not as it ‘should be’, or as the Supreme Court put it:
The property concerned was an office building which was in the course of being renovated. When the rateable value was being assessed in January 2012, the premises were vacant and a great deal of the flooring, ceilings, lighting and other fittings had been removed.
The owners' agent suggested to the local valuation officer (LVO) that the rateable value should be reduced from £102,000 to £1, because the premises could not be occupied. The LVO refused, citing legislation which required the LVO to assume a property is in 'reasonable repair' for valuation purposes.
In considering the arguments, the Court gave weight to the 'reality principle', which establishes that 'the property must be valued as it exists at the relevant date'. Accordingly, the presumption that it was in reasonable repair could not stand.
The decision overturned a decision by the Court of Appeal which had cast doubt on the applicability of the ‘reality principle’. It will come as a considerable relief to property developers who are refurbishing properties.
 Related articles on Designing Buildings Wiki
Featured articles and news
Strategies to help provide safer working conditions.
Protecting flora, fauna and the other natural features of Scotland.
Architecture considered somewhere between 'sublime and beautiful'.
Polish piano factory revived through an energy-oriented tune up.
Dynamic architectural approach sets out to restore and improve the environment.
Entries accepted from 1 December 2020 to 14 April 2021.
Procedure discontinued for sale or re-mortgage of buildings without cladding.
The art of negotiation.
APPGI considers key issues for economic recovery.
Progress made on global fire safety standard.
Why did it take 111 years to build this Victorian engineering marvel?
Fantastic cities from above but flawed on the ground.
Organisation unveils supporting tools and initiatives.