Part 5: Appendix 4 - Limited circumstances allowing a 2010 list Proposal which is served on the VO between 17 December 2018 and 31 December 2019

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Executive summary

Appendix 4 covers the Properties in Common Occupation (PICO) relevant proposals and legislation together with NDR (Nursery Grounds Act) 2018. It includes requirements for Relevant proposal forms and invalidity of a PICO proposal,

These changes apply to England only

The Non-Domestic Rating (Alteration of Lists) and Business Rate Supplements (Transfers to Revenue Accounts) (Amendment etc.) (England) Regulations 2018 have amended a number of the regulations in The Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2009.

The amendments allow proposals to alter the 2010 rating list in some limited circumstances.

These circumstances are for 2 or more hereditaments that;

 1. property which is shown in the list as more than one hereditament ought to be shown as one or more different hereditaments.

And specifically for Nursery Grounds only that;

 2. a hereditament shown in the list ought not to be shown in that list.

 3. the list should show that some part of a hereditament which is shown in the list is domestic property or is exempt from [non-domestic rating but does not do so.

Proposal forms for circumstance 1

The VOA have created an electronic proposal form specific to a relevant proposal . There are no legal requirements for ratepayers or former ratepayers to use this proposal form. However the statutory Valuation Officers would prefer that the new proposal form is used and served electronically to the mailbox set up to receive relevant proposals. Ratepayers and former ratepayers should be encouraged to use this form when seeking to serve a relevant proposal .

Requirements for a valid proposal to be made under circumstance 1

The proposer must have been a ratepayer of the subject property during the life of the 2010 Rating List. This will enable the ratepayer or former ratepayer to make a “relevant proposal “ on the ground of reg 4(1)(K) of the 2009 regs, due to the coming into force of section 64(3ZA) or (3ZB) of the Local Government Finance Act 1988 (see modification of reg 3 in the 2018 regs). The 2018 regulations enable relevant proposals to be made which seek to alter the rating list from 1 April 2010.

It is important to consider whether the proposal that has been served, is a relevant proposal as defined within the 2018 regulations. Both regs 1 and 3 of the 2018 regs explain the meaning of what a relevant proposal is. There are two specific criteria which need to be met for a proposal to qualify as a relevant proposal . These are:

(a) made by a ratepayer on the ground in regulation 4(1)(k) of the 2009 Regulations;

(b) which can only be made on that ground as a result of the coming into force of section 64(3ZA) or (3ZB) of the Local Government Finance Act 1988.

The first criterion is self-explanatory. The second criterion states that a proposal can only be a relevant proposal if it is made due to the coming into force of section 64(3ZA) or 64(3ZB) of the Local Government Finance Act 1988. This means that a merger proposal can only be a relevant proposal if the merger is possible only because of the coming into force of (3ZA) or (3ZB). If the merger could have been done prior to the coming into force of (3ZA) or (3ZB), then the proposal will not be a relevant proposal and it will be invalid.

The proposer will need to provide information to the Valuation Officer to meet all legal requirements for a proposal . These requirements are contained in the modification of reg 6 in the 2018 regs and are detailed below:

  1. The proposer will need to provide their name and address.

  2. The proposer will need to state whether they were the ratepayer in respect of the property for a period when the 2010 rating list was in force.

  3. The proposer must supply the dates for which they were the ratepayer for the property.

  4. The proposer must identify the property to which the proposal relates.

  5. The proposer must identify the respects in which the 2010 rating list should be altered.

  6. The proposer must give a statement of the grounds for making the proposal and a statement of the reasons for believing those grounds exist.

To serve a relevant proposal the only ground that can be relied on is the circumstance 1 above, which is taken directly from regulation 4(1)(k) of the 2009 regs.

For a relevant proposal made under SI 2018/1193, there is no effective date restriction and reconstitutions can be agreed back to 01/04/2010. More information on this is contained in paragraph 6 here VOA - Part 5: Effective dates

Invalidity

Reg 7 of the 2018 regs has inserted a paragraph, specifically ordering the VO to serve an invalidity notice if a relevant proposal does not include information required by reg 6(6)(c) of the 2018 regs. That requirement is referred to above at 3. and relates to the proposer supplying the dates they were the ratepayer in respect of the property.

If the relevant proposal does not meet any of the other requirements referred to above and in reg 6 of the 2018 regs, consideration will need to be taken as to whether the proposal is invalid. Where it is decided that the proposal is invalid, the process outlined in paragraph 6 of the proposals to alter the rating list section of the rating manual will need to be followed.

If a proposal has been made under reg (4)(1)(k), but the requested merger is not due to the coming into force of section 64(3ZA) or 64(3ZB), then the proposal should be declared invalid. This is a difficult check to make at initial registration and it is something that will likely become apparent when dealing with the proposal . Caseworkers are advised to consider whether a proposal qualifies as a relevant proposal before beginning discussions with the proposer or their representative. If a proposal is found not to qualify as a relevant proposal , then it should be declared invalid.

Late Invalidity

If a caseworker comes to the conclusion that the proposal they are dealing with does not qualify as a relevant proposal and it was received more than four weeks previous. Advice is to send a letter to the proposer with the text provided at Appendix 5 explaining that the Valuation Officer believes the proposal to be invalid.

What time limits will apply to relevant proposals?

The modification of reg in the 2018 regs, orders that relevant proposals can be made between 17th December 2018 and 31st December 2019. The modification of reg 5 in the 2018 regs allows further proposals to be made following the service of a notice to give effect to a merger agreed on a relevant proposal . A further relevant proposal can be made for a period of up to six months beginning with the date the 2010 list was altered.

Requirements for a valid proposal to be made under circumstances 2 & 3 above.

Part 3 of the 2018 regs has introduced modifications to the 2009 regs which allow “nursery ground proposals” to be made against the 2010 rating list. The requirements for a valid nursery ground proposal are primarily the same as the previous requirements for 2010 list proposals seeking exemption. A nursery ground proposal can only be made in respect of a hereditament which includes a building which is, or forms part of, a nursery ground and is used solely with agricultural operations at the nursery ground.

A nursery ground proposal will have an effective date restriction to 1 April 2015. This is due to the amendment to the law in the Non-Domestic Rating (Nursery Grounds) Act 2018 taking effect in England from 1 April 2015.

Proposals on these grounds can only be made between 17th December 2018 and 31st December 2019. Any 2010 rating list proposals served on the VO outside of this period will be invalid.

Proposal forms for circumstance 2 and 3

The VO’s are not expecting many proposals to be served in this specialised area, therefore no specific proposal form has been created. The existing 2010 list proposal form can be used or alternatively a letter from a ratepayer or their representative which meets all of the requirements for a valid proposal , will suffice.