Part 8D: Penalties (Reg 9A)

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

If a penalty is applied during the challenge, then the time limits are suspended until the penalty process is concluded and a decision notice should not be issued see Reg 9D

9.1 False Information

If any of the information provided by the Proposer in connection with the Proposal is false in a material particular and has been provided knowingly, recklessly or carelessly, then the VO can impose a penalty (Reg 9A).  That is:

(a)   Knowingly - information which the IP knows to be false in a material particular,

(b)   Recklessly - information provided by the IP with little regard to the effect that information may have if it was inaccurate and relied upon by the VO, and

(c)   Carelessly - information provided by the IP or former IP which is inaccurate and which by taking reasonable care could have been identified and corrected by the person submitting it.

This will also include information provided by the Proposer at the confirmation of check in connection with the Proposal (Reg 9A (5)).

Penalties are £200 for each piece of incorrect information for smaller proposers and £500 for each piece of incorrect information for other persons.

Although the penalties include erroneous information at Check, a penalty cannot be imposed if a Proposal has not been received (Reg 9A(1))

9.2 False in a material particular

Thismeans that the information provided contains an inaccuracy which, if relied upon:

a) May alter the outcome of the Check or the Challenge or

b) May lead to an inaccuracy in the rating list.

9.3 Penalty Notice

If a penalty is to be imposed the VO must serve a notice on the proposer stating (Reg 9A(4)):-

(a)   that a penalty has been imposed, 

(b)   the date on which the check to which the proposal relates was completed,

(c)   the date the proposal was made,

(d)   the date the proposal was determined, (i.e. the date that the decision notice was sent)

(e)   the false information,

(f)    the date the information was provided,

(g)    the date the penalty notice is served,

(h)   the amount of the penalty,

(i)    and the right to appeal to the VTE under Reg 9C.  

9.4 Recovery of penalty (Reg 9B)

This is normally carried out by the VOA Penalties team. Money received by the VO under the penalty procedures must be paid into the consolidated fund and any outstanding penalties are a civil debt. Recovery of a penalty cannot be made until the end of the penalty appeal period under Reg 9C or if a penalty appeal is made, the penalty appeal is decided.

The VO may remit in full a penalty under Part 2 (Reg 9B (4)) and refund any amount paid in respect of the penalty (Reg 9B(5)).

A person receiving a penalty may make an appeal against the notice to the VTE, (Reg 9C) either against the imposition or the amount of the penalty. To make an appeal (Reg 9C(4)) the VTE electronic portal must be used (or other manner agreed with the VTE) and the appeal made within 28 days of service of the penalty notice or as extended by the VTE under Reg 6(3)(a) SI2009/ 2269.

9.5 Appeal against the penalty notice

Appeals are made to the VTE and the appeal must include

 (Reg (9C(5)):

(a)   whether the appeal is against the imposition or the amount,

(b)   the date of service,

(c)   a copy of the penalty notice,

(d)   if the appeal is against the amount a statement that the person is a smaller, and

(e)   a copy of the confirmation of check to which the proposal relates.

If the appeal is submitted out of time then a request for an extension of time and reasons why the notice of appeal was not served in time should also be submitted (Reg 9C(7)).

See VTE practice statements, SI 2009/2267 and Rating Manual VOA - Part 3: Appeals to the Valuation Tribunal for procedures on appeals.