Structure. Operational arrangements IRRV LEVEL 3 BUSINESS RATES CERTIFICATE. Non Domestic Rates Administration. Aim

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1 Non Domestic Rates Administration Aim To provide a knowledge and understanding of the - administration of the Non Domestic Rates functions for a local authority and the role of the Non Domestic Rates administrator - relationship of Non Domestic Rates administration with the overall administration of a local authority - role of quality systems, performance management and the relationship with external bodies Learning Outcomes recall the overall range of functions of a local authority and their relationship with Non Domestic Rates identify the principal powers and duties of a local authority in respect of Non Domestic Rates discuss the principles of e-government and their application to Non Domestic Rates describe and explain customer care and customer contact policies in relation to Non Domestic Rates describe performance management and explain its impact upon Non Domestic Rates administration. describe and identify the organisational and management approaches required for the administration of Non Domestic Rates in a local authority administer the exercise of discretion and cases referred to appeals tribunals Structure The structure, functions and principles of financing and administration of local government. Relationships between local authorities, regional authorities and central and devolved government. Governance of local authorities and the scrutiny function. Separation of responsibilities between Officers and Members; roles and responsibilities of Statutory Local Government Officers. The Judicial System and Judicial Review, Local Authority role as a partner in a public private partnership, outsourcing, shared services, and in other joint ventures with private and public sector bodies. Operational arrangements The work processes relating to Non Domestic Rates services; financial controls and the management of financial transactions relating to Non Domestic Rates. Setting and delivery of policy initiatives such as take-up campaigns, publicity, corporate debt, consultation, focus groups and customer panels. Grant, Statistics, Audit (external and internal) and controls, and the provision of statistical information and the completion of government returns. The various delivery models, elements of good process design, processing standards, Performance Management; setting and monitoring performance targets; performance measures including standards indicators information technology applications including the development of e-commerce; communication and customer relationship management.

2 Non Domestic Rating Law Aim To provide an introduction to non-domestic rating law and its application to the billing, collection enforcement and the assessment of Non-Domestic Rates in England, Wales and Scotland, and the appeals process Learning Outcomes recall and discuss the legislation and case law governing the administration and collection of Non-Domestic Rates state the bases of valuation describe the appeals process in relation to valuation matters identify the factors which affect the calculation of liability to Non-Domestic Rate state the criteria for considering and then awarding relief from the Non-Domestic Rate describe and explain the rules which govern billing, collection, recovery procedures outline the Non-Domestic Rating appeals process Valuation Local and central rating lists; valuation officer; basis of valuation; compilation and maintenance of list; contents; alterations; effective dates; interest Liability Occupation - Liability; 4 elements; joint & several; seasonal; advertising rights Unoccupied rate - Liability; exemptions; completion notices Reliefs Transition - Conditions; period and amount of relief Small Business Conditions; period and amount of relief; financial implications Charities & kindred organisations Conditions; period and amount of relief; financial implications Rural Areas - Conditions; period and amount of relief; financial implications Part-Occupied - Conditions; period and amount of relief; financial implications Hardship - Conditions; period and amount of relief; financial implications Collection Billing/collection - Multiplier; demand notice; instalments Enforcement Further/reminder notices; complaint; summons; liability orders; statement of case; distress; security for unpaid rate; an introduction to insolvency; committal; court procedures

3 Valuation for Rating Note: This subject must be studied AFTER Valuation Theory and Practice Aims - To provide a basic knowledge and understanding of the legislation and case law as it applies to Valuation for the non-domestic rating system in England and Wales - To provide a basic knowledge and understanding of rental adjustment and analysis techniques and the various methods of valuation used to value non-domestic property for rating purposes - To apply the above knowledge and understanding in calculating rateable values of common and less common types of property. Learning Outcomes Rating legislation and case law Understand and be able to apply the four ingredients of rateable occupation Define the hereditament and understand why this is important Recognise composite hereditaments and be able to value the non-domestic element Know and be able to discuss Schedule 5 exemptions 1 Know, understand and be able to apply the definition of rateable value Know and understand the factors that must be taken into account at the Material Day Appreciate the difference between repair and improvement. Learning Outcomes - Valuations for Rating Apply investment valuation techniques in the analysis of premiums or inducements. Apply the comparison method of valuation: rent selection, adjustment and analysis and the weighting of evidence. Apply the Contractor s Basis method of valuation and know its limitations Apply the Receipts and Expenditure method of valuation and know its limitations Apply a basic understanding of the valuation of plant and machinery where this adds additional value to the overall value of the hereditament. Know, understand and apply appropriate method(s) of valuation in the assessment of various types of property listed (see separate table). Legislation and Case Law The hypothetical tenancy; vacant and to let; fresh to the scene; reasonable prospect of continuance; rebus sic stantibus; mode or category of occupation; the Antecedent Valuation Date (AVD); the Effective Date; the Material Day; tone of the list; empty property rate; Completion Notices. 1 Local Government Finance Act 1988 Schedule 5 exemptions.

4 Valuation Theory and Practice Aim To provide basic knowledge and understanding of: the role of the valuer, codes of conduct and valuation standards; the legal system in England and Wales as it influences the valuation of property; the methods of valuing property; and the measurement of buildings for the valuation of property. Learning Outcomes describe the role of the valuer and the application of codes of conduct and valuation standards identify those aspects of the legal system in England and Wales that influence the valuation of property state the methods of valuing property state which method of valuation is appropriate for the commonplace residential, commercial, and industrial classes (as specified below) describe how buildings are measured for the valuation of property The role of the valuer and the application of professional standards The reason for requests for valuation to be undertaken including: mortgage, sale, purchase, rent/letting, insurance, taxation, compensation; the process of reporting valuation advice; codes of conduct, ethics and valuation standards. The legal system in England and Wales as it influences the valuation of property Law of property and legal interests in property including outline of the law of landlord and tenant. The methods of valuing property Comparison method; Investment method; Residual method; Contractors basis; Receipts and Expenditure approach Bases and characteristics of: Open Market Value; Existing Use Value; Hope Value; Marriage Value; Alternative Use Value. [Mathematics of valuation tables: amount of 1 table; present value of 1 table; amount of 1 per annum] The valuation of leasehold interests: the general features that affect the rental value of property; the key characteristics of property as an investment; factors that affect investment yields; the relationship between risk and yield incentives. Rental adjustment and analysis techniques for physical features, repairing and insuring liability, capital contributions; stepped rents and premiums The valuation of freehold interests: the analysis, adjustment and assessment of sales, purchase and lettings of freehold interest transactions 1

5 Valuation Tribunal Administration England and Wales only Aim England To provide a knowledge and understanding of the statutory duties, practice statements and tribunal business arrangements of the Valuation Tribunal for England. To understand its relationship with the Valuation Tribunal Service and other bodies. Wales To provide a knowledge and understanding of the statutory duties and responsibilities of the Valuation Tribunal for Wales, its administration and relationships with other bodies. Learning Outcomes Explain the relevant legislation relating to constitution and jurisdiction of the Valuation Tribunal and its application before, during and after the hearing. Discuss the general administrative functions relating to the Valuation Tribunal. England Identify the principal roles of the President, Vice Presidents, Chairmen, Registrar Clerk, Clerks and Panel Members. Wales Identify the principal roles of the President, Regional Representatives, Chairmen, Clerk, Clerks and Members. Legal Framework The legal framework for the establishment, jurisdiction, administration and procedures of the Valuation Tribunal to the extent that it affects its administration and practice. Practice Statements. England: Tribunal Business Arrangements and the Valuation Tribunal Service. The Valuation Tribunal for England, Wales Constitution, membership, appointment of members and chairmen, terms of appointment, disqualifications, resignations, removal from office, powers and duties of President, Vice Presidents (England), Regional Representatives (Wales) and Chairmen. Hearings: conduct, admission of press and public, the role of the expert witness, natural justice and human rights, publication of decisions. Jurisdiction as regards Non-Domestic Rates: alteration of rating lists, invalidity appeals, certification appeals and penalty appeals. Tribunal administration listing appeals, selection of members and cases for hearing; application of the management and administration procedures and practices to the Valuation Tribunal. Review of tribunal decisions, further appeals, complaints and judicial review

6 Methods of valuation for classes of property Valuation method appropriate to: Residential - Dwelling house/flat with vacant possession; dwelling house/flat subject to a tenancy; Commercial Retail shop; superstore; offices; petrol filling station; public house; car park; Industrial property warehouse; factory; tyre and exhaust centre Valuation using the comparison method; the application of data to a valuation using the investment method; using the residual method; using the contractors basis; using the receipts and expenditure. Measurement of buildings for the valuation of property Definition of measurement; RICS Code of Measuring Practice; core definitions; application of measuring practice to commonplace residential, commercial and industrial property; importance of accuracy of measurement 2

7 Valuations for Rating Investment valuation techniques in the analysis of premiums and inducements (stepped rents; rent free periods; capital contributions; reverse premiums). Valuation and Investment Tables. Rental (or comparison) method: Rental analysis; adjustment for repairs; insurance; rates; services; chattels; plant and machinery; user covenants; incentives; tenant s fit out costs; tenant s voluntary and conditional improvements; key money; premiums. Order of adjustment; adjusting for time to AVD. An understanding of the methods of valuation applied to different types of property Contractors Basis: The five stages 1. Estimated replacement cost of construction; substituted building; grants. 2. Adjusted replacement cost; obsolescence. 3. Land value. 4. Decapitalisation rates. 5. Stand back and look; the sixth stage. 2 Receipts and Expenditure: Accounts and adjustment of them. Receipts: Income from all sources including grants and donations; sponsorships and TV rights. Expenditure: Cost of purchases; working expenses; allowable and non-allowable expenses; divisible balance; tenant s share. Stand back and look. Local Authority Overbid; hereditaments that generate a loss. Shortened method (percentage of gross receipts). A basic understanding of the valuation of plant and machinery where this adds additional value to the overall value of the hereditament. 2 Imperial College of Science and Technology v Ebdon (VO) and Westminster City Council [1987] 1 EGLR 164

8 Appeals Who may appeal; time limits for appeals; the appeals process; avenues of further appeal; the relevant legislation relating to the constitution and jurisdiction of the Valuation Tribunal. SCOTLAND Valuation Valuation Roll; the Assessor; Valuation areas/boards; bases of valuation; compilation, maintenance and alterations to the roll; exemption from valuation; effective dates; appeals; Valuation Appeal Committee, Lands Tribunal; interest on overpaid rates Liability Rateable occupation, joint and several, prescription, obtaining information from landlords, empty rate provisions, appeals against improper assessment Reliefs / Remission of rates Transitional arrangements, mandatory and discretionary reliefs, hardship, rural areas, small business bonus scheme, disabled persons. Recovery Rate poundage, demand notices, instalments, reminders/final notices, summary warrant, ordinary action, Sheriff Officers, forms of diligence, inhibitions, outline of Debt Arrangement Scheme, Bankruptcy, liquidation and insolvency; court procedures

9 General Administration The relationship with other council departments; liaison with government agencies and appeals services; publicity; the principles of form and document design including the use of plain language; liaison with the Citizens Advice Bureaux; dealing with elected members and the general public; presentation of management and committee reports; staff recruitment and training; control and organisation of workload; organisation of the Non Domestic Rates office; distribution of duties; acquisition of specialist stationery, equipment, services and systems; all relevant Court proceedings and their administration; public enquiry facilities; customer service standards; including complaints procedures; Ombudsman; data protection; freedom of information; race relations; equal opportunities and the equality standard ; publicity and advertising material; relationships with the media; the awarding of reliefs and exemptions; the exercise of discretion.