Part 5: Appendix 4a - Late validity PICO letter

The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.

NOTICE OF INVALID PROPOSAL TO ALTER THE 2010 RATING LIST

Billing Authority : *

Reference Number : *

Date Proposal received : *

Address : *

The amendments to the The Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations SI 2009 No. 2268 allowing a limited window to make 2010 list proposals are known as the Non-Domestic Rating (Alteration of Lists) and Business Rate Supplements (Transfers to Revenue Accounts) (Amendment etc.) (England) Regulations 2018 SI 1193.

The ability to make a 2010 list proposal is only available to seek a merger of properties that are contiguous but not interconnecting and are in the same occupation or if empty are both owned by the same owner.  This is explained below:

Reg 1 (2) states that a relevant proposal means a proposal -

(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.

And again it is clearly stated in Part 2 ‘Properties in common occupation’, Modification of the 2009 Regulations in respect of properties in common occupation -  modification of regulation 3 - a “relevant proposal” means a proposal made by a ratepayer on the ground in regulation 4(1)(k) as a result of the coming into force of section 64(3ZA) or (3ZB) of the Act ;”.

The amendment to the SI 2009 No. 2268 appeal regulations can be found here The Non-Domestic Rating (Alteration of Lists) and Business Rate Supplements (Transfers to Revenue Accounts) (Amendment etc.) (England) Regulations 2018   

The opportunity to make a proposal to alter the 2010 rating list in limited circumstances has resulted from the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 which amended S64 of the Local Government Finance Act 1988 to define an additional type of hereditament established by subsection (3) [(3ZA) – (3ZD)] namely one formed by 2 or more properties in the same occupation and that are contiguous.

Consequently a 2010 list proposal cannot be validly made against hereditaments that could have correctly been merged prior to the passing of the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018.

Paragraphs 7.5 & 7.6 of the explanatory note accompanying the Non-Domestic Rating (Alteration of Lists) and Business Rate Supplements (Transfers to Revenue Accounts) (Amendment etc.) (England) Regulations 2018 SI 1193 also clarify this point. Referring to the PICO and Nursery Grounds Acts at 7.6 the guidance notes state:

‘This will ensure that only those ratepayers affected by the changes in law in the two Acts can make new proposals on the 2010 rating list and that ratepayers cannot use this as a new right of proposal to access the 2010 rating list on wider grounds of challenge.’

It is my opinion that your proposal does not qualify as a relevant proposal under the regulations and has therefore not been validly made.  Please accept this letter as notification that the Valuation Officer believes that your proposal is invalid and that is should be withdrawn.  If the proposal is not withdrawn, the Valuation Officer will request the VTE here the validity of the proposal as a preliminary issue to a hearing.