Part 6: Dual List Maintenance England
Instructions on when to undertake DLM on the 2010 and 2017 rating lists.
This relates to the treatment of an assessment in either the 2010 or 2017 rating lists following completion of an appeal or maintenance case in the alternative (earlier / later) list and applies to England only. A bespoke version will be issued for Wales.
It does not cover action to be taken in respect of ‘consequential’ alterations to similar hereditaments (either by virtue of location or class) as a result of changes to the 2010 or to the 2017 list entries for the subject property.
1) There are two types of DLM; forward and backward:
‘Forward’ relates to alterations made in the 2010 list potentially needing to be reflected in the 2017 list
‘Backward’ relates to alterations made in the 2017 list that potentially need to be reflected in the 2010 list
2) Initially cases of forward DLM will be more prevalent as we settle 2010 casework. However as we move into the life of the 2017 rating lists, maintenance work and the results of CCA flowing from check cases this will change and backward DLM will be more usual.
3) From 1 April 2018 backward DLM will cease, but the need to issue TR certificates will continue.
4) DLM will be considered necessary unless:
- the change relates to the tone on one list only
- the change is a temporary allowance that ceased prior to 1 April 2017
- there is a further change to follow
- the change is an MCC that applies in one list only
- the 2010 assessment would increase but we are precluded from backdating the increase.
5) The introduction of CCA changes how challenges are made to rating assessments from 1 April 2017 and therefore forwards DLM is not always appropriate
High level Principles that apply – but see Matters to consider before undertaking DLM and scenarios in Appendix 1.
2010 list casework with 2017 potential DLM
As a general rule
i) Where the change is a physical change to the property and factual – DLM will usually apply –
ii) Where the change relates to value, treatment of disabilities, line adjustments or end allowances – DLM will apply only in exceptional circumstances - and the ratepayer should be signposted to CCA.
2017 list casework with 2010 potential DLM
Where the change is physical and factual and, subject to date of change pre 1/4/17– DLM will apply - However, where the 2010 list entry is as a result of an agreement or a valuation tribunal decision then DLM shouldn’t be carried out to further amend.
Where the change relates to value, treatment of disabilities, line adjustments or end allowances – then, where there is no relevant 2010 list appeal outstanding the caseworker should consider whether there is also clear evidence to demonstrate that the rating assessment in the 2010 list is inaccurate – and if so correct it, or where it is not possible to amend the 2010 list issue a TR certificate. However, where the 2010 list entry is as a result of an agreement or a valuation tribunal decision then DLM shouldn’t not be carried out to further amend.
In all cases of DLM this should be done as quickly as possible to ensure that billing authorities are able to process changes correctly.
Matters to consider before undertaking DLM
The following matters need to be considered before making the judgement whether or not to undertake DLM:
- when was the material day [MD] of the completed alteration to the relevant list?
- what was the reason for the change in the relevant list - normal ongoing maintenance (BAR/VOR), settlement of appeal, VT decision?
- has an inspection been carried out? If so, when? Was it full, partial or just external?
- to what extent were facts checked?
- was the change as a result of factual changes or valuation changes or a combination of both?
The table in appendix 1 below shows the scenarios likely to be encountered and the action to be taken.
1. Forward DLM (2017 list following 2010 alteration)
|Event||Scenario||DLM or CCA?||Questions/Comments/Recommendation|
|Reconstitution.||Hereditament split, merged or reconstituted in 2010 list, and revised entries still shown for 31 March 2017.||DLM||Recons should be replicated for 2017|
|Address changes - 1 to 1 recons (02/11 or 06/14).||Address-only change – no change in unit of assessment or other facts.||DLM||Address-change Recons should be replicated for 2017|
|Partial demolition||2010 RV reduced (either by notice or agreement).||DLM||Consider facts as at 1 April 2017 but presumption is that the 2017 is amended to reflect changed facts.|
|Extension built||RV increased (by BAR, VOR or IPP) in 2010 list.||DLM|
|Valuation issues||Scenario 1 – 2010 tone reduced on appeal - either zone A or rate/m2||CCA||Almost always list specific so DLM not appropriate .|
|Scenario 2 – 2010 [end] allowance conceded||CCA||Almost always list specific so DLM not appropriate|
|Mixed or factual and valuation issues?||Scenario 3 – 2010 tone reduced AND part demolition:||DLM||Reflect change of facts only|
|Deletions||Scenario 4 – Property deleted by notice or by agreement||DLM||Delete for 2017|
|Completion notices||Scenario 5 – Date specified pre 1/4/2017||DLM||Insert in 2017 list by DLM|
|External MCC||Scenario 6 - road works commencing pre 1/4/2017||CCA||No DLM – signpost to CCA|
|Scenario 7 - opening up of competitor business e.g. Wetherspoons, pre 1/4/2017||CCA||No DLM – signpost to CCA|
|Exemptions (including partial exemption)||Scenario 8 - farm office, exemption conceded on IPP wef 1/5/2013 & facts recently obtained.||DLM||DLM if VO is satisfied that at 1 April 2017 the facts are the same. If facts at 1/4/17 unclear then direct via CCA.|
|Scenario 9 - special school. Deleted from list wef 1/6/2016 by BAR & facts recently obtained.||DLM||DLM if VO is satisfied that at 1 April 2017 the facts are the same. If facts at 1/4/17 unclear then direct via CCA.|
|Composites - a property becoming a composite or an increase in amount of non-domestic.||Scenario 10 - house becoming partly non-domestic property; flat above shop converted to storage. 2010 list altered by BAR, VOR or agreement of IPP & reasonable to assume same applied at 1/4/17.||DLM||DLM and ensure CT entry is aligned.|
|Composites - a reduction in amount of non-domestic.||Scenario 11 – storage above shop converted to include in owner’s flat – 2010 list altered by BAR, VOR or agreement of IPP & facts unclear||CCA||Liaise with CT – if recently inspected for CT and all relevant facts for NDR confirmed then DLM|
|Evidence provided shows that the 2017 list is inaccurate (too low)||Scenario 12 – this is more likely to occur in receipt based valuations where the 2017 has been estimated and actual receipts have been provided during or prior to 2010 list negotiations.||DLM||DLM to correct.|
2. Backward DLM (2010 list following 2017 alteration)
There is a difference between what needs to be done up to 31 March 2018 and thereafter. Up to 31 March 2018 the VO can still usually alter the 2010 list therefore TR certification not normally appropriate. After this date the 2010 list is effectively closed and it will be only necessary to consider whether a TR certificate should be issued. Where there is a 2010 list IPP outstanding then DLM should still be carried out where appropriate .
Where the 2010 list entry is as a result of an agreement or a valuation tribunal decision then DLM should not be carried out to further amend.
|Event||Scenario||Before 1/4/18||After 1/4/18||Questions/Comments/Recommendation|
|Reconstitution||Hereditament split, merged or reconstituted w.e.f. 01 April 2017 by BAR or CCA.||DLM||TR Cert||Necessary for TR purposes to align lists entries so DLM. If circumstances actually arose ON 01 April 2017 then Schedule 2 TR certificate required. Post 31 March 2018, if circumstances arose before 01 April 2017 then Reg 18 TR certificate required.|
|Address-only change - 1 to 1 recons (02/11 or 06/14).||N/A||N/A||Unlikely to be necessary to alter 2010 list|
|Partial demolition||Scenario 1 - 2017 RV reduced (either by notice or agreement).||DLM||TR Cert||Consider confidence in facts and effective date of event subsisting prior to 01 April 2017.|
|Extension built pre 1/4/17||Scenario 2 - RV increased (by BAR, VOR or IPP) in 2017 list w.e.f. Date of Schedule.||DLM if date of ext'n known otherwise TR Cert||TR Cert|
|Valuation issues||Scenario 3 – 2017 tone reduced - either zone A or rate/m2||N/A||N/A||Almost always list specific so DLM not appropriate. If 2010 list tone affected then DLM or TR Cert may be required – consult RTL|
|Scenario 4 – 2017 [end] allowance conceded||N/A||N/A||Almost always list specific so DLM not appropriate. If 2010 list tone affected then DLM or TR Cert may be required – consult RTL|
|Mixed or factual and valuation issues?||Scenario 5 – 2017 tone reduced AND demolition: as for scenario 1||DLM||TR Cert||Consider confidence in facts and effective date of event subsisting prior to 01 April 2017.|
|As for scenario 2||DLM||TR Cert|
|Deletions w.e.f. 1/4/17||Scenario 6 – Property deleted by notice or on agreement. Circumstances arose pre 1/4/17||DLM||N/A|
|Completion notices||Scenario 7 – Date specified pre 1/4/2017||DLM||N/A|
|External MCC||Scenario 8 - road works commencing pre 1/4/2017.||DLM||TR Cert||Consider the severity and duration as relating to the 2010 list entry|
|Scenario 9 - opening up of competitor business, e.g. Wetherspoons, pre 1/4/2017||DLM||TR Cert||Consider the severity and duration as relating to the 2010 list entry|
|Survey corrections||Scenario 10 – survey errors discovered in dealing with 2010 list case (appeal or maintenance) , See Scenario 1 & 2||DLM/TR cert||TR Cert/||Consider confidence in facts and effective date of event subsisting prior to 01 April 2017.|
|Exemptions (including partial exemption||Scenario 10 - farm office, exemption conceded wef 1/4/2017 & facts recently obtained.||DLM*||TR for partial exemption only||*DLM if VO is satisfied that prior to 1 April 2017 the facts are the same. If facts at 31 March 2017 unclear then N/A.|
|Scenario 11 - special school. Deleted from compiled 2017 list by BAR & facts recently obtained. Circumstances arose wef 1/6/2016.||DLM*||N/A||*DLM if VO is satisfied that prior to 1 April 2017 the facts are the same. If facts at 31 March 2017 unclear then N/A.|
|Composites - a property becoming a composite or an increase in amount of non-domestic.||Scenario 12 - house becoming partly non-domestic property; part of shop over flat becomes used for storage. 2017 list altered by BAR, VOR or agreement of IPP w.e.f 1 April 2017 and facts arose prior to 1 April 2017.||DLM||N/A||Ensure CT entry is aligned.|
|Composites - a reduction in amount of non-domestic.||Scenario 13 – storage above shop converted to include in owner’s flat – 2017 list altered by BAR, VOR or agreement of IPP w.e.f. 1 April 2017 and facts arose prior to 1 April 2017.||DLM||TR Cert||Liaise with CT – if inspected for CT and all relevant facts for NDR confirmed then DLM|