Rating Manual section 6 part 3: valuation of all property classes

Section 185: caravans, caravan sites, parks and pitches

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

This section covers leisure caravans and camping sites comprising caravan parks, caravan sites and touring & tenting sites. It does not cover land used for storing caravans unless that land forms part of a larger caravan related hereditament (such as a caravan site).

A caravan may be used for a variety of uses, the main uses being:

a.as holiday or periodic accommodation;

b.for residential purposes; and

c.for touring.``````````````````````````````````````

The first of these uses will be situated mainly on caravan sites. The second group consists of caravans situated primarily on organised residential sites. However, some residential caravans may be found on mixed leisure and residential parks whereas others will be in isolated situations, for example, on a farm and occupied by a farm worker or placed within the curtilage of dwelling house and used by a member of the occupier’s family.

Most caravan sites fall into one of the following categories:

a.Fleet parks, with licences for use for less than one year, where the site operator lets out his or her own caravans for short periods, and frequently having ancillary buildings such as site offices, shops, amusement halls, swimming pools, restaurants etc;

b.Leisure caravan parks where a caravan owner can rent a pitch for his or her caravan on a continuing tenancy but use of the caravan is restricted to the summer months. Individual pitches with or without their caravans together with any communal buildings, form the subject of a single assessment by virtue of the Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990/673) (see para 5.4 below).

c.Residential sites, with licences for all the year use, where caravans may be occupied on a permanent basis. The pitches and vans will be domestic property (see para 5.2 below) but communal buildings, will be non-domestic property.

d.Isolated caravans where the assessment will be in respect of either the caravan together with its pitch or of the pitch alone, dependent upon the degree of permanence and annexation;

e.Gypsy / traveller encampment sites established in areas designated by local authorities. Pitches occupied by caravans which are sole or main residences will be domestic property and left out of non-domestic rating.

f.Touring and/or camping sites where mobile caravans or tents can be pitched overnight or for a few nights. The facilities provided by the owner vary but can often be minimal. Some sites may include yurts, tipis, shepherds’ huts, camping pods, tree houses and similar provided for hire by the site owner. In addition, there will be cases of a combination of (a) (b) (c) and (f). Holiday caravans will also be found in conjunction with other holiday accommodation such as chalets.

2. List Description and Special Category Code

Descriptions should be as precise as practicable. The following are recommended, with or without “and premises”, as appropriate:

Caravan Park; Camping Site; Caravan; Caravan pitch; Caravan and Chalet Park; Chalet Park.

The hereditament will be composite where domestic accommodation forms part of the hereditament but is omitted from the valuation.

The following Special Category Codes should be used, as Unit Generalist Classes the appropriate suffix letter is G:

047G - CARAVAN PARKS (LEISURE) - where static vans present;

048G - CARAVAN SITES AND PITCHES - where no static vans, includes 5CLs and camping sites;

054G - CHALET PARKS.

3. Responsible Teams

Caravan hereditaments are a Unit class and each Unit has one or more specialist caravan valuers. Due to the specialised nature of these hereditaments valuations must be carried out by the limited number of specialist caravan valuers who may cover more than one Unit area.

4. Co-ordination

For all types of caravan parks, caravan pitches and camping sites it is the responsibility of the senior Unit Caravan Specialist to co-ordinate assessments both within their Unit and between Units. However, overall responsibility for the co-ordination of this class lies with the Caravan Class Co-ordination Team. You can find contact details here VP and CCT Members.The Team are responsible for the approach to and accuracy and consistency of valuations. The Team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

The Unit caravan specialist valuers have a responsibility to:

  • follow the advice given at all times

  • not to depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team

5.1 Caravan Sites and Control of Development Act 1960

Under the Caravan Sites and Control of Development Act 1960, a licence is required for any caravan site where the caravan is stationed for the purpose of human habitation, except as provided in the First Schedule. Among the exceptions are sites occupied by local authorities in whose areas the land is situated and sites occupied by certain organisations who have been granted certificates of exemption from control by the Minister under Para 12 of the Schedule. Such certificates have been granted to various clubs and associations including the following:

  • The Caravan Club
  • The Motor Caravan Club
  • The Camping Club of Great Britain and Ireland
  • The Scout Association
  • The Girl Guides Association
  • The Caravan Mission to Village Children
  • The Cheltenham Owners Club
  • The Caravan Tourists Association
  • The Safari Caravan Club
  • The Land Rovers Owners Club
  • The International Sprite Owners Club

It is understood that sites will not be established by such organisations without the prior approval of the local planning authorities concerned.

The special factors to be borne in mind for the inspection and valuation of such sites (known as Certificated Locations or 5CLs) are set out in Section E of the Practice Note.

The statutory definition of “caravan” contained in S.29 of the Caravan Sites and Control of Development Act 1960 (as amended by Section 16 of the Caravan Sites Act 1968) has been adopted in S.66(7) LGFA 1988 for the purposes of determining whether or not a structure is a caravan for rating purposes.

Section 29(1) of the 1960 Act defines “caravan” as, inter alia: -

“…. any structure designed or adapted for human habitation which is capable of being moved from one place to another (whether by being towed, or being transported on a motor vehicle or trailer) ….”.

Section 13 of the 1968 Act deals with twin-unit caravans. It stipulates in sub-section (1):-

“A structure designed or adapted for human habitation which - a.is composed of not more than two sections separately constructed and designed to be assembled on a site by means of bolts, clamps or other devices; and b.is, when assembled, physically capable of being moved by road from one place to another (whether by being towed, or being transported on a motor vehicle or trailer),

shall not be treated as not being (or as not having been) a caravan within the meaning of Part I of the Caravan Sites and Control of Development Act 1960 by reason only that it cannot lawfully be so moved on a highway when assembled.”

Sub-section(2) provides that:-

“For the purposes of Part I of the Caravan Sites and Control of Development Act 1960, the expression ‘caravan’ shall not include a structure designed or adapted for human habitation which falls within paragraphs (a) and (b) of the foregoing sub-section if its dimensions when assembled exceed any of the following limits, namely - a.length (exclusive of any drawbar): 60 feet (18.288 metres); b.width: 20 feet (6.096 metres); c.overall height of living accommodation (measured internally from the floor at the lowest level to the ceiling at the highest level): 10 feet (3.048 metres).”

From 1 October 2006 in England The Caravan Sites Act 1968 and Social Landlords (Permissible Additional Purposes) (England) Order 2006 (Definition of Caravans) (Amendment) (England) Order 2006 [SI 2006 No 2374] amended section 13(2) of the Caravan Sites Act 1968 by increasing the maximum dimensions of a structure that can be defined as a twin unit caravan to:

  • length (exclusive of drawbar): 20.00 metres (65.616 feet);

  • width: 6.80 metres (22.309 feet);

  • internal height: 3.05 metres (10.006 feet).

These revised dimensions have also been adopted by the National Assembly for Wales.

5.2 Domestic Caravans

By virtue of s.66 (3) Local Government Finance Act 1988 a pitch for a caravan will be domestic property (and therefore not rateable) if it is occupied by a caravan, which is the sole or main residence of an individual.

5.3 Rateability of Caravans

The question of whether a caravan is rateable with the pitch upon which it stands was considered by the Court of Appeal in the case of Field Place Caravan Park Ltd & Others v Harding (VO) [1966/RA/393]. The Court of Appeal held that the caravan in question was rateable together with the pitch upon which it stood, notwithstanding that the caravan was a chattel on wheels. The Court of Appeal also held that the caravan and its pitch comprised a separate hereditament in the rateable occupation of the occupier of the caravan. Subsequently, for leisure caravans owned by private individuals and situated on pitches rented from a site operator, the Rating (Caravan Sites) Act 1976 included a provision which gave VOs discretion to treat such pitches (and caravans) as forming part of a single hereditament together with the remaining parts of the site in the primary occupation of the site operator. This power was replaced, with effect from 1 April 1990, by The Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990 No 673) which, in addition, made this provision mandatory.

Caravans used for touring, not being used residentially or sited permanently or semi-permanently, are normally regarded as chattels and under these conditions the caravan will not be rateable although the pitches may be.

5.4 The Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990 No 673)

The SI provides that, where pitches for leisure caravans on a relevant site constitute separate hereditaments by virtue of being separately occupied by persons other than the site operator those pitches shall be treated as a single hereditament, together with so much of the rest of the site as is in the occupation of the site operator. A pitch is to be taken as including the caravan for the time being standing upon it if, apart from the SI, the caravan would be included as a part of a rateable hereditament.

The amalgamation rules do not apply to any pitch which is occupied by a charity or trustees for a charity, and which is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities)”.

SI 1990 No 673 Definitions

“A pitch for a leisure caravan” is one where, in accordance with any licence or planning permission, a caravan stationed on the pitch is not allowed to be used for human habitation throughout the year.

“Caravan” has the same meaning as for Pt I of the Caravan Sites and Control of Development Act 1960 (as amended) [see para 5.1].

“Site” means any land in respect of which a site licence is required under Pt I of that Act.

“Relevant site” means a site which has an area of 400 square yards or more and which includes some non-domestic property.

“Site operator” means the person who is the occupier under Pt I of the 1960 Act and “occupier” means, in relation to any land, the person who by virtue of an estate or interest therein is entitled to possession or would be so entitled but for the rights of any other person under any licence granted in respect of the land:

Provided that, where land amounting to not more than 400 square yards in area is let under a tenancy entered into with a view to the use of the land as a caravan site, the expression “occupier” means in relation to that land the person who would be entitled to possession of the land but for the rights of any person under that tenancy.

Notice to Site Operator

Regulation 4 of SI 1990/673 provides for the supply of information to site operators about the number of vans included in the hereditament and the rateable value attributed to them.

Where on the compilation of a local rating list, or by virtue of the alteration of such a list, there is included in the list a hereditament which falls to be treated as a single hereditament by virtue of SI 1990/673, the Valuation Officer (VO) shall within one month of that compilation or alteration inform the site operator in writing that the hereditament is so included, and shall also state in writing:

a.how many caravans occupied by persons other than the site operator are included in that hereditament, and

b.how much (if any) of the rateable value of the hereditament is attributable to those caravans, together with their pitches.

Whenever an assessment is reviewed (whether after receipt of a Billing Authority notification or otherwise) and it is decided that the RV needs altering, a further statement must be issued, again within one month of the change to the Rating List. Although the VO is allowed 1 month in which to provide the information, there is no reason why, in practice, it should not be sent to the site operator with the copy of the VO Notice.

Also, where it appears to the VO that the information previously issued in relation to a hereditament is no longer accurate, but no alteration of the local rating list is required, the site operator must still be informed of that fact and a further statement sent.

The number of caravans included in the Regulation 4 Notice will not necessarily coincide with the number of caravans included in the valuation. The number to be certified by the VO is the number of caravans, which, excluding those of the site operator, could properly have been the subject of separate assessments. The total RV for the number of vans and pitches should not be rounded unless there are no other values included in the value of the hereditament.

Any person occupying a pitch for a leisure caravan on a relevant site may, after giving reasonable notice to the VO, at any reasonable time and without payment inspect a copy of any statement supplied to the operator of that site under Regulation 4.

The Regulation 4 Notices are produced via the caravan valuation application on the non-bulk server. The Unit Caravan specialists must ensure that a copy of any Regulation 4 Notice issued is available for public inspection if requested.

6. Survey Requirements

6.1 General

Before any inspection is carried out it is good practice to search the web to gather information about the caravan park or camping site. However, remember this may not be fully up to date.

On inspection always collect a park brochure, tariff list and a site plan where available and date them. Establishing the true and complete picture will always require the full co-operation of the site operator or their agent.

It should be established as a question of fact the number of leisure static caravans, residential caravans, chalets or touring and tenting pitches that are permitted on the site by the site licence and the actual planning permission granted for the site. The actual physical numbers on the park at the material day should also be recorded together with the length of the season.

The correct identification of a caravan is crucial (see the legal definition in paragraph 5.1 above) and any cases of doubt should be referred to the Unit Caravan Specialist.

Caravans occupied as a sole or main residence are domestic property and should not form part of the NDR assessment but be assessed to Council Tax. The number and location of any such vans should be recorded. Where the park warden has no other domestic accommodation then the warden’s caravan, chalet or bricks and mortar property should be assessed to Council Tax. However, seasonal warden’s caravans are unlikely to qualify as domestic property and are therefore likely to be included in the assessment as a private leisure caravan or staff caravan.

The number and age of the operator’s fleet hire caravans should be established - these are the static caravans owned by the operator and let out as leisure caravans during the season. Likewise the details of any private caravans (static holiday caravans owned by private individuals who pay an annual pitch fee to the operator) should be recorded.

It should also be noted if the caravans are single or twin units. Generally all caravans will form a single unit of assessment to the site operator (see paragraph 5.4 above). The number and location of any caravans owned by a charity should be recorded as a separate assessment will be required.

For sites with touring and tenting pitches the location and number of pitches should be recorded and whether they have an electric hook-up facility. The number and location of any camping pods or pitches for large “family tents” such as yurts, tipis or similar should also be recorded.

If the site comprises chalets, large family camping pods, tree houses and such like as well as caravans their number, location, accommodation and construction should be noted.

6.2 Unit of Assessment

Reference should be made to RM Section 3 Part 1, which deals with the general principles governing occupation and the hereditament, however, the following problems are likely to arise in connection with caravan sites.

It is of paramount importance, whether valuing under The Non-Domestic Rating (Caravan Sites) Regulations 1990 [SI 1990/673] or not, that the correct tests are applied and consideration must be given to the ingredients of rateable occupation which are set out in RM Section 3 Part 1. This SI, while introducing a requirement to treat caravan pitches as a single hereditament in the occupation of the site operator, does not in any way alter the basic rules for determining the units of separate assessment; indeed, it is essential for the proper operation of the SI to apply these rules, for the SI can only be invoked if pitches are separately rateable.

Before a valuation can be made, it is necessary to decide who is to be rated and for what, namely: in relation to a pitch,

A.is the pitch let out and occupied so as to form a separate hereditament, and

B. is any caravan for the time being standing upon that pitch rateable together with it?

In relation to a site,

a.what is the physical area in the occupation of the site operator?

b.what buildings and site works and how many caravans, if any, belonging to the site operator fall to be included in the hereditament?

c.is the site one to which SI 1990/673 applies?

It may be noted that where a site operator owns a caravan and has parted with its control, together with a pitch, on a sufficiently permanent basis, then whilst a VO may correctly decide that the occupation is separately rateable, SI 1990/673 will still apply.

Transience

Separate rateability of a pitch does not arise unless its occupation is of a non-transient nature. In considering transience, the intention of a person owning the caravan at the material time is clearly relevant, but it is for the VO to gauge this intention in the light of all the information available. Where a caravan and pitch have been in the same occupation for at least 12 months, this can be regarded as evidence sufficient to establish a non-transient occupation.

VOs are not precluded from raising separate assessments, or from regarding caravans as rateable, when the period of occupation is less than 12 months if facts, circumstances and evidence of intention to remain in occupation are sufficiently strong to establish that the occupation is not transient. That a new owner is in residence in a caravan which has nevertheless been in position for a longer time is not a bar to raising a separate assessment.

Seasonal Breaks

When examining the period of occupation, it must be borne in mind that a seasonal break in the use of a caravan during the winter months does not break continuity of occupation if the caravan remains on the hereditament. In considering this aspect, it must be remembered that, in relation to a site, the hereditament is the larger area in the occupation of the site operator, or in their deemed occupation by virtue of SI 1990/673.

Annexation

A caravan, being a chattel, is not as such rateable but if enjoyed with the land in such circumstances and with sufficient permanence that annexation to a defined pitch can be inferred, then the value of the caravan falls to be included in the assessment [see Field Place Caravan Park Ltd and others v Harding (VO) (1965 LT RA 521 and 1966 CA RA 393)].

The presence of physical signs such as fences, water, electricity, drainage, gardens, telephone, paths and ancillary sheds will usually indicate an intention of permanence. However, the absence of such physical features is not necessarily evidence of an intention to move away and on many holiday sites there is an intention to remain in occupation of the pitch and to enjoy the caravan therewith, even though there is only the absolute minimum by way of services and an “open” type of site devoid of fences and individual gardens.

Herding

Where winter “herding” of caravans by the site operator takes place - for example, by shifting them to one corner of the site - it is again important to consider what is the hereditament. If where a site operator moves his own vans around his site, or is deemed to occupy the whole site, then there is no break of continuity and the vans have not left the hereditament; they will remain rateable together with the site itself.

6.3 Chalets and Cabins

Chalets and cabins do not comply with the legal definition of a caravan and are treated differently. Where owned by the site operator then they will form part of the main site assessment, however, if privately owned they will be subject to a Council Tax assessment (in effect a “second home” whether or not they comprise a sole or main residence). Where the private chalets or cabins are available for hire for a period of 140 days or more a separate assessment and a separate entry in the local Rating List may be required as a self-catering holiday home (see Section 480: Holiday accommodation (self-catering)

If in any doubt then the Unit Caravan Specialist should be consulted.

6.4 Sales Ground

Details of caravans offered for sale in the sales ground should be noted. These are usually found at the front of a park but the caravans should not be included in the assessment until they are sited and serviced on the park. However, in the unusual circumstances that the caravans are for sale for siting on other parks then it may be necessary to consider a separate assessment for the ‘Sales Ground and Premises’ and the Unit Caravan Specialist should be consulted.

6.5 Permanent Buildings

On a caravan park buildings are categorised as either “profit” or “non-profit”.

Many buildings will be “non-profit” buildings such as reception area, admin offices, shower block, toilet block, workshops and stores which form an essential component in running the park. The floor area for this accommodation is not usually required as their value is taken into consideration and reflected in the valuation scheme adopted. Likewise, buildings such as swimming pools and children’s play areas are usually provided free of charge to the occupiers of the fleet hire caravans and private caravan owners and no separate addition is made for these in the rating assessment - again these are reflected in the valuation scheme. However, where, for example, the site swimming pool is available for use by non-site residents and a charge is made for such use then this income source should be included in the valuation as it is not reflected. It is essential to ensure that all the relevant facts are ascertained on inspection.

“Profit buildings” will include on site shops, restaurants, laundrettes, arcades, clubs/bars and are generally run in house by the site operator. Such additional activity buildings will provide another source of income to the operator to be included in the rating valuation. GIA areas are not usually required but may be useful to assist when comparing one site with another.

On some sites not all “profit buildings” are run by the site operator and facilities such as cafe, cycle hire, ice cream sales, hairdressing and taxi hire can be let by the operator on a licence/concession for the season only. Details of any concession should be ascertained including the type, the name of the person with the concession (who may be related to the site operator) and the concession fee. Concession occupations will not usually require a separate rating assessment but full details should be ascertained and discussed with the Unit Caravan Specialist.

Very occasionally there may be a more permanent arrangement with a lease granting exclusive occupation of part of the site and full details including a GIA floor area should be ascertained and discussed with the Unit Caravan Specialist as such arrangements are more likely to require a separate assessment.

Winter Storage of Touring Caravans

Where an operator stores privately owned touring caravans on the site for the winter months full details should be obtained including the number of caravans permitted to be stored by the site licence or planning permission. The number of caravans actually stored, the fees paid and full details of the storage area should be ascertained together with the land area, its surface, fencing, whether covered or uncovered, security arrangements and so on.

6.6 Inspection Checklist

An inspection checklist for caravan parks, touring and camping sites is available and should be completed for all properties and stored in the property folder of the Electronic Document Records Management (EDRM) system.

7. Survey Capture

Rating surveys (including all plans, brochures, tariff lists, numbers and types of caravans and/or touring or camping pitches) should be stored in the property folder of the EDRM system. The Unit Caravan Specialists are responsible for the transfer of the survey data to the caravan valuation application held on the non-bulk server.

8. Valuation approach

Since the 1995 Rating Lists the valuation approach for caravan parks, touring and camping sites has been agreed with the professional advisers to the caravan industry. The agreed approach applies a rental percentage to the notional receipts for the hereditament, at the antecedent valuation date, to arrive at the RV. The notional receipts reflecting the physical nature of the property and its location at the compilation date or subsequently, following a material change of circumstances.

The agreed valuation scheme also covers the circumstances where rating valuations are required to be made in accordance with SI 1990/673 by recognising the principles of an income and expenditure valuation but allowing adequate consideration to be given to the other privately owned caravans.

Full details of the agreed valuation scheme is available from the relevant list’s Practice Note.

However, it is useful to consider some of the wider issues involved in establishing the agreed scheme.

The conclusions to which the LT came, on the remission of the case of Garton v Hunter (VO) 1968 CA (1969) RA 11 and 1969 LT RA 179, concerning a caravan site remain sufficiently important to be reproduced, although SI 1990/673 and its predecessor the Rating (Caravan Sites) Act 1976 - has necessarily altered their effect on valuations of amalgamated sites. The Tribunal remarked:

“We do not look upon any of these tests as being a “right” method or a “wrong” method of valuation; all three are means to the same end; all three are legitimate ways of seeking to arrive at a rental figure that would correspond with an actual market rent on the statutory hypothesis and, if they are properly applied, all the tests should in fact point to the same answer; but the greater the margin for error in any particular test, the less is the weight that can be attached to it. It is as the outcome of applying this criterion that we have found that considerable weight can be attached to the profits test, that not much weight can be attached to the rental test and that very little weight can be attached to the contractor’s test.”

While a rent actually paid for a multiple caravan site may provide the best evidence of value for that site (Ramsden v Geddes (VO) 1967 LT RA 328), nevertheless in Davies & Davies v Tavener (VO) (1959 LT 52 R & IT 435) the Tribunal held

(i) rental evidence of other caravan sites in the vicinity did not justify arriving at the assessments of the appeal site on a price per caravan, because of the variations between the physical attributes of the sites.

(ii) the receipts and expenditure basis enabled a more detailed examination of the merits of the individual site to be made than the comparative method.

8.1 Parks operating below full capacity

A park will normally be valued to its full licensed capacity, as vacant and to let, whether or not it is actually used to its fullest extent (Welford v Cutts (VO) 1958 LT 51 R & IT 458). It may, however, be appropriate in the case of newly established parks to have regard to an average number of caravans, being less than the licensed number, where, for example, service buildings are at the material date insufficient for capacity occupation.

8.2 The Receipts & Expenditure (R&E) basis

8.2.1 General

In the LT decision in Vaughan (VO) v Great Yarmouth Seashore Caravans Ltd (1960) LT 53 R & IT 522 the member said that “ratepayers are not bound to produce their accounts and they may be fully justified in refusing to do so unless they can be assured that they would not be available for general scrutiny. Such an assurance could simplify the task of valuation for if a profits basis is to be used it is the actual accounts rather than estimated figures that should be considered.” This accords with the VO policy that whilst receipts information can be called for under the powers contained in para 5 Sch 9 LGFA 1988, full accounts may only be requested. See RM Section 4 part 2 regarding requests for accounts and receipts information and their use as evidence.

Items in certified accounts as statements of fact should always be accepted before estimates, except those which are the outcome of personal discretion such as Directors’ fees and Managerial salaries. The gross profit from ancillary services (sales less purchases), and not the gross income, eg from the sale of Calor Gas, etc, should appear in the gross receipts.

The income shown in the most recent accounts (available at time of valuation) should not be adjusted unless at the material date there has been a change of circumstances which would reasonably be within the knowledge of the hypothetical tenant and which would materially affect the potential income.

Where accounts are available and these include trading details of shops and similar profit earning ancillaries within the hereditament, then the proper application of the R&E basis requires that such parts be reflected in the R&E valuation; where no such accounts are to hand, however, the most convenient way to treat these items will probably be to add their separate values to that produced by the R&E basis, the result representing a rent which the site operator would be prepared to pay to his landlord.

8.2.2 Working expenses

The following include the main items to be expected under this head:

Director’s fees, salaries and wages: insurances: tractor or 4-wheel drive vehicle expenses; water; printing and stationery; advertising; audit; telephones; lighting and heating; sanitary and cleaning expenses; site maintenance; association membership fees.

In Vaughan’s case where the site operator did not own the caravans but merely let sites the Tribunal’s remarks were as follows:

“Some account must be taken of the nature of this enterprise. In my view, it produced high returns for comparatively little managerial effort…. compared with, say, a manufacturing business with the same turnover, the demand on managerial attention and responsibility must be small, and I think that it is reasonable to assume that, provided the usual scale of tenant’s share is reserved, the hypothetical tenant, under competition, would be prepared to cut down on managerial fees.”

Careful consideration may be necessary, therefore, before accepting items in accounts in respect of director’s fees and it should also be observed that, on the smaller type of site, the hypothetical tenant will probably act as warden.

Claims are frequently made in respect of cars and VOs should be satisfied that such claims are valid in all the circumstances, before admitting them.

8.2.3 Tenant’s share

The instructions contained in RM Section 4 Part 2 para 16 should be taken into account in considering the tenant’s share. The security and freedom from competition from unauthorised sites, afforded by the Caravan Sites and Control of Development Act 1960, are factors to be borne in mind. The amount allowed in past valuations should be reviewed in the light of any changed circumstances.

The tenant’s share will often represent a percentage of gross receipts or divisible balance, but the Tribunal took the view in Garton v Hunter (VO) that a prospective tenant would quantify his requisite share in terms of an amount, rather than in terms of a percentage.

8.2.4 Caravans rated as part of the hereditament

In cases where the caravans, owned by the site operator, remain within the site from year to year so as to become rateable therewith (see para 6.2 above) any sinking fund provision in the accounts relating to the rateable parts of those caravans should be deducted from the expenses as this will be the responsibility of the landlord under the rating hypothesis.

8.2.5 Price per unit

Devaluations to a price per unit may in some exceptional circumstances prove an aid to valuation, but their use must be strictly limited unless the respective hereditaments are closely comparable. As mentioned at para 8 above the Tribunal have indicated on several occasions the difficulties involved in comparing one site with another. Furthermore, the use of the R&E basis necessarily implies a good deal of individuality of approach to each hereditament and this basis will usually come close to reflecting the profit-earning scope of the particular site and thus its rental value.

8.2.6 Certificated Locations (5CLs) - Sites Occupied by Organisations Exempt from Control under Caravan Sites and Control of Development Act 1960

When determining the rental value of sites occupied by any of the various exempt organisations referred to in para 5.1, VOs may consider it advisable first to ascertain whether planning permission for use as a commercial touring site would be likely to be granted and, if so, with or without conditions.

Facilities on such sites are frequently minimal, consisting perhaps of water supply and “Elsan” disposal points only and comparison with commercial sites should be made with care, as planning permission, even when forthcoming, will often be conditional upon the provision of more extensive facilities.

Little valuation assistance can be expected from the accounts, as these sites are not usually operated commercially, part of the costs being met from member’s subscriptions. (See para 5.1 above.)

8.2.7 The single caravan and its pitch

It will seldom be possible to rely on the rents passing for separately assessed caravans as these will usually include payment for furnishings and other equipment the adjustment for which may be difficult to quantify. Moreover, such lettings are commonly effected for relatively short periods. In practice, the best approach will generally be a comparison with the assessments of non-traditional dwellings in the area such as chalets (Racine v Buncombe (VO) 1967 LT (1969) RCN 92).

Another approach is to consider adding to the site rent a rental value for the caravan based upon its second-hand value, which permits some flexibility. A further alternative approach is to add between 20% and 50% to the net site pitch fee to reflect the rental value of the van.

Procedure on change of a single caravan

The replacement of one separately assessed caravan by another on a pitch will require a new assessment and the correct procedure in such cases is as follows:

(i) delete the existing assessment from the Rating List (RL);

(ii) and either: a.where the pitch is unoccupied when the inspection is made and there will be a significant passage of time before the second caravan arrives, enter the pitch as a separate item in the RL. This of course assumes that there is still separate rateale occupation of the pitch;

or, b.where the replacement is made within a few days, enter the pitch together with the new caravan in the RL;

(iii) where (ii) (a) applies when a new caravan arrives remove the pitch assessment, and enter the new caravan and pitch in the RL.

8.2.8 Caravans within the curtilage of dwelling-houses, farms etc.

Where there is a sufficient degree of annexation and permanence (see para 6.2 Annexation above), it will be necessary to regard the caravan itself as rateable and to assess it accordingly, unless the pitch is part of a sole or main residence and is therefore domestic property by virtue of s.66 (3) LGFA 1988. For example, where a caravan within the curtilage is used as overspill accommodation for family and friends, the pitch and van should be regarded as domestic, but if the pitch and/or van are let off commercially for holiday use they should not be considered domestic. If the caravan and/or pitch are rateable and there is no separate rateable occupation, then the hereditament will be composite.

Caravans on a farm and occupied by seasonal agricultural workers may be domestic property if occupied as a sole or main residence. However, it is more likely that these will form a single assessment to the farmer as non-domestic caravans (paragraph 4.21 of the Council Tax Manual Practice Note 8 refers). Caravan specialists should ensure that any non-domestic assessment for agricultural workers caravans adequately reflects their location, limited season, restricted receipts, the age of the caravans and generally basic facilities offered.

8.2.9 Gypsy and Traveller encampments

Such sites are likely to be domestic property by virtue of s.66 (3) LGFA 1988 (paragraph 3 of the Council Tax Manual Practice Note 7 refers).

9. Valuation Support

Caravan parks, touring sites and camping sites are all valued using the non-bulk server. The manual can be accessed here.

Other valuation support is available via:

*Survaid *Class Co-ordination Team for Caravans *National Specialists Unit

Practice Note 1 2017 - Caravan and Camping Sites : Basic Certificated Locations and Sites

1. Market Appraisal

The caravan and leisure camping industries remain big business and an important contributor to UK tourism.

The National Caravan Council (NCC) figures show that the caravan industry regularly contributes more than £6 billion per annum to the UK economy (approximately £2 billion holiday spending and £4 billion from the sale of new and used products).

Approximately 130,000 people are employed in the industry (including part time and seasonal staff).

Caravan parks and touring & tenting sites have always experienced a somewhat cyclical market as airport delays or poor experiences abroad tempt holidaymakers to try caravan or camping holidays in the UK until poor summer weather tempts them back abroad.

Being one of the most affordable types of holiday option the caravan industry was well placed to weather the recent recession and the home tourism boom fuelled by the “staycation” attitude adopted by many. Caravan and camping holidays are generally considered ‘greener’ and cheaper than foreign travel and have increased appeal to environmentally minded people.

In 2012, UK residents took 15.9 million camping and caravanning trips nearly half of which were in static caravans, 26% camping and 26% in touring caravans or motorhomes (Great Britain Tourism Survey 2012).

Market research company IBISWorld reported in June 2013:

  • to 2018-19 revenue in the Camping & Caravan sites industry was expected to continue to grow due to constrained incomes and further austerity measures prompting families to seek cheaper holidays.

  • Improved sites and facilities keep guests coming back.

  • The industry did not escape the economic difficulties altogether but proved more resilient than most, while some families could not afford holidays others opted for a “staycation” and made use of campsites and holiday parks gradually raising demand.

  • Demand and revenue is expected to grow 2-3% in 2013-14.

  • High competition has limited tariff increases and profit margins have often been hit by greater investment in sites.

  • In the longer term continued development of sites and facilities plus a slow economic recovery will keep guests returning.

Glamorous camping or “glamping” continues to grow in popularity and open up new markets. The diversification into the more comfortable arm of camping offers a back to nature experience with a few creature comforts thrown in. The offer of a pre-erected large family tent, yurt, tipi or pod often providing proper beds, chairs and flooring, the ability to stand up, running water and flushing toilets aids the growth of this type of attraction and draws in novice and more experienced campers alike.

In the UK in 2014 the NCC estimated there were 550,000 touring caravans, 330,000 caravan holiday homes and more than 205,000 motorhomes. In 2014 there were significant increases in the sale and registration of new touring caravans (up 9.2%) and motorhomes (up 18%).

The winter of 2013/14 saw many miles of coastline battered by storms, wind and rain, 40ft waves smashing seaside towns and coastlines. Several parks suffered damage with a likely loss of trade during the 2014 season not just for the actual parks themselves but other sites may have been affected as people whose houses flooded would not visit even if the caravan or the caravan park or camp site they usually visit were unaffected.

Across the country many caravan park operators have, post-recession, recommenced offering private static caravans for sale often sacrificing fleet van numbers on their park.

The sector remains highly sensitive to increasingly unstable weather patterns, but most sites now offer an online booking service allowing holidaymakers to respond at the last minute to a good weather forecast, especially around Bank Holiday weekends. The massive growth in the popularity of cycling has boosted weekend breaks and campsites have benefitted.

Although caravanning and camping are currently more popular than ever and many operators have experienced revenue growth operating costs have also increased notably utility costs, the minimum wage and insurance premiums.

In February 2015 the pound climbed to a seven year high against the euro potentially putting the “staycations” under threat. Camping and caravan sites may feel some impact as the UK comes out of the recession and the relatively cheap euro creates better value breaks on the continent.

In September 2015 the long awaited merger of Parkdean and Park Resorts was announced which will create the biggest holiday park business with 73 venues, more than 35,000 pitches and over 22,000 private caravan owners.

2. Changes from last Practice Note

The major changes to the Practice Note for this class for R2017 are small amendments to the matrix headings and the recalibration, across the board, to the rental percentage matrices by - 1.5%. This is in line with the analysis of the available relevant accounts data which reflects the impact of increased costs on profitability. The Specialist Caravan Valuers are reminded that, when justified, full use should be made of the range of percentages available from the appropriate matrices in Appendix 2.

3. Ratepayer Discussions

For R2017 discussions were once again held with the professional rating advisors to the caravan industry. The organisations represented included the National Caravan Council, the British Holiday and Home Park Association, the Caravan Club, the Camping & Caravanning Club and Camping in the Forest.

Following the central discussions, the agreed valuation scheme for the 2017 rating lists is set out in section 4 below.

4. Valuation Scheme

4.1 A scheme of valuation for holiday caravan parks, touring and camping sites was agreed for the 1995, 2000, 2005 and 2010 rating lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2017 revaluation.

4.2 Information on receipts and gross profit for caravan parks, touring sites, camping sites and chalet parks, should be sought by serving FOR VO 6045. The wording of this form has not changed for the 2017 revaluation. Where, in addition, rental information is sought VO 6046 may also be served.

4.3 Caravan Specialist Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.

4.4 Similarly, when considering chalet parks, touring and camping sites it is recommended that the sites with completed VO 6045s are valued first.

4.5 Notices served under Regulation 4 of SI 1990/673 (see paragraph 5.4 of main section) will usually be served by the local Unit offices. For the compiled list valuations these Notices will be served centrally in April 2017 by a Network Support Office.

4.6 The IT application developed to assist in the valuation of this class has been re-written for R2017 and should be used for the valuation of all caravan hereditaments.

4.7 All 2017 rating valuations for caravan and camping hereditaments should be carried out, in accordance with the terms of this agreement, by the competent Unit Caravan Specialist Valuers experienced in the caravan and camping sector. As the valuations are receipts based the resultant RVs are specifically excluded from the standard VO rounding scale and the specialist valuers should stand back and look when finalising the RV.

A. Single Caravans, Small Static, Touring and Camping Sites

1. The scheme of valuation set out in Section B paragraphs 4 and 5 below is intended to cover sites with in excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans or pitches the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted, if anomalies are not to occur.

2. A scheme of valuation for single caravans and small sites will be drawn up by the Caravan Specialists who will also be responsible for the valuation of these hereditaments.

3. The valuation of certificated locations, 5CLs, is referred to separately in Section E below.

B. Static and Mixed Caravan Parks

1. The rating assessment will reflect the estimated net profit achievable as at 1 April 2015 by a hypothetical tenant operating the park in accordance with the statutory hypothesis. This will usually be based upon the actual account figures for the park for the 2014 summer season, with adjustments to allow for the statutory hypothesis.

2. The approach is based on the receipts and expenditure method as there is insufficient rental evidence for static caravan parks on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (i.e. where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.

3. Over the years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park operator (SI 1990/673 - see paragraph 5.4 of the main Rating Manual section) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.

4. In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:

a. actual income derived from hire fleet vans;

b. actual income from owner-occupied vans sublet through the site operator;

c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site;

d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis;

e. income from other let accommodation (chalets, flats, cottages etc.);

f. income from winter storage, touring vans and tent pitches;

g. gross profit from other income generating facilities, including bars, restaurants, etc.;

h. miscellaneous income, e.g. income from AWP machines, gas sales to touring vans, income from boat storage, etc.

I.Certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis, such as:

j. rental income from pitch fees paid by owners of static caravans;

k. profit on sale of static caravans onto the park;

l. income/profit from the siting of static vans;

m. profit derived from selling insurance to static caravans which form part of the hereditament.

5. The following scheme has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.

6. Calculation of Gross Potential Income / Notional Income

Gross potential income (or notional income) under the rating hypothesis will be calculated from the sources itemised in paragraphs 7 – 10 below.

7. Static Holiday Caravans and Pitches

Hire-fleet Caravans

7.1 The actual gross rental income (net of VAT) from hire fleet lettings, should include any separate club membership fees, fuel charges, hire charges for linen etc., before deduction of agent’s letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings on comparable sites in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt. If the site achieving the higher fleet income cannot be compared directly with other sites then it is expected that a valuer judgement would be made in arriving at the appropriate hire fleet income per van.

Equivalent Fleet Units (EqFUs)

7.2 Where there is sub-letting of owner-occupied vans (private vans) either through the park operator or privately this will be converted to Equivalent Fleet Units (EqFUs) as follows:

Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the equivalent fleet units.

Example 1

40 hire fleet vans earning income of £4,000 per van. 100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each. No. of EqFUs = 21 x £2000 ÷ £4000 = 10.

These will be shown as deriving an income of £4000 each.

The residue will be 100 -10 (EqFUs) = 90.

If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (e.g. by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.

Example 2

Residue as above is 90 @ 25% = 22.

Converted to EqFUs = 22 x 2000 ÷ 4000 = 11.

Total EqFUs are now 10 + 11 = 21.

Residue of owner occupied statics is 100 - 21 = 79.

7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the equivalent fleet units of this private sub-letting.

7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to Equivalent Fleet Units those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.

N.B. For the avoidance of doubt only fleet or private static caravans should be included when calculating the number of equivalent fleet units. However, when determining the number of effective fleet units again both fleet and private static caravans should be included together with chalets which form part of the fleet hire.

Residual Private Caravans

7.5 The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence, in the above example the income from the remaining 79 private (owner-occupied) vans would be:

Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000. Adjustment for Age and/or Lack of Services

7.6 Actual hire fleet income is normally derived from fleets of good quality, modern (mainly below 6 years old) fully-serviced caravans. Previously these were predominantly 3.048 metres (10 ft.) wide basic caravans but 3.658 metres (12 ft.) wide vans are now the norm for single caravans or up to 6.80 metres (22.309 ft.) wide for a twin unit.

7.7 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:

Age and Services allowances for private holiday caravans

Percentage of fleet value applied

 

Full Services

Partial Services

Unserviced

Band A (1-5 yrs.)

50

45

35

Band B (6-10 yrs.)

50

40

30

Band C (11-15 yrs.)

45

35

25

Band D (16 + yrs.)

35

30

25

7.8 These adjustments have been incorporated in the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.

7.9 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2014 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as may be appropriate.

Twin Units

7.10 The fleet income to be adopted for twin units is unlikely to be less than a minimum of 1.5 times the fleet income for a single unit on the same park. Close regard should be had to the actual difference in tariff levels between single and twin units on a site with any actual fleet rental evidence being overriding. For R2017 no addition is to be made to the scheme rental percentage when valuing twin units.

New Caravans

7.11 The current practice should continue whereby only new caravans brought on to a site and which are connected to the services are brought into assessment. New caravans coming on to a site but remaining unconnected, whether placed on a pitch or not, should not be assessed until connection to the services has been carried out.

Staff Caravans

7.12 Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - i.e. between 50% and 25% of fleet income.

Charity Caravans

7.13 Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.

Vacant Static Pitches

7.14 Unless used for touring caravans, vacant static pitches will be ignored.

8. Touring and Tenting Income

8.1 This will cover the actual gross rental income received (net of VAT) from pitches for touring caravans, motorhomes and tents. It will also include income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that since 2002 site owners have not been permitted to make a profit on the ‘resale’ of electricity.

8.2 The growing trend for site operators to include in their offer yurts, tipis or other large family tents has resulted in tenting pitches at some sites being amalgamated where no spare land was available. Only the pitch and not the tent will be rateable, however, the pitches used for these large tents will be larger than a typical standard size tent pitch. When considering the 2014 season receipts for these large tents and their pitches the Unit Caravan Specialist will need to adjust the receipts to arrive at a notional income for the pitch alone. It is recommended that, in the absence of full particulars, this adjustment should generally fall in the 30% - 40% range and may exceptionally rise to 50% (max) to reflect the non-rateable tent, the type of unit sited, its facilities and the associated services provided by the operator. The resulting gross receipts per pitch should then be compared with the pitch income adopted for a standard sized pitch at comparable campsites in the area. Where full particulars are available then a further check may be provided if there are also standard pitches on the site by removing the known yurt/tipi income and their pitches. This will enable the standard pitch income to be established for the site itself. It is considered that the pitch income to be adopted for a yurt, tipi or other large family tent is unlikely to be less than twice the standard sized pitch income for the locality.

8.3 Small camping pods should be treated the same as a similar standard camping pitch. However, larger family pods offering greater facilities often including electricity, water and surrounded by paths, lighting and landscaping are likely to be sufficiently annexed to the land to be rateable being more in the nature of a bottom end chalet and should be treated accordingly. Tree houses are also likely to be sufficiently annexed to the land to be rateable and should be considered in the same way as the larger family pods.

9. Other Lettings

9.1 Actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments, cottages, large family pods and tree houses etc. Seasonal staff premises are to be valued in the same way as set out for caravans above.

10. Profit Buildings and activities on the park (including winter storage income)

10.1 Gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (i.e. hiring artistes etc.) where relevant.

10.2 Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators liability for repairs, insurance, services, etc. normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are further overheads, a different percentage may be warranted. For R2017 the first £5,000 gross receipts (excl VAT) from the winter storage of touring caravans should be valued at the standard rental percentage for the site, the gross receipts (excl VAT) in excess of £5,000 should be valued at a rental percentage between 25% and 35%. The more basic the storage site the higher the percentage adopted.

11. Rateable Value

11.1 The rateable value arrived at by this formula will be calculated at between 9.5% and 14.5% of the adjusted turnover, plus any addition in respect of winter storage, concessions or franchises. Valuations are usually to be made to whole or half percentages.

General approach

11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.

Year of receipts

11.3 The fair maintainable receipts adopted are to be those envisaged by the hypothetical tenant as at 1 April 2015. The new season tariff would have been published by the AVD and will usually be set to maintain visitor numbers and reflect foreseeable items of additional expenditure such as increases in the minimum wage, utility bills and insurance costs. The 2014 season receipts should normally be used to inform the maintainable level upon which the hypothetical tenant would base a rental bid as at 1 April 2015. Where the individual circumstances of the park are such that the 2014 season receipts are unreliable, regard should be had to receipts of other similar parks or other trading years of the park as may be appropriate. For example, if forward bookings have traditionally accounted for a large proportion of the annual income of a particular site, and there is evidence of a substantial fall in forward bookings at the AVD compared to the position as at 1 April of other seasons, such evidence should be taken into account. Due to the possible impact of storm damage or flooding in the accounts for some locations, caution should be exercised when considering the receipts for the 2014 season which may be distorted either by an increase in holidaymakers or reduced due to closure or restrictions on the site or in the location for all or part of the season.

Valuation consideration

11.4 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.

11.5 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.

11.6 A wholly hire-fleet park without buildings will normally be taken at 12%.

11.7 A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 12% and 13%. A park wholly of private caravans without buildings will normally be taken at 13.5%. The same park with touring income as well would be taken at between 13.5% and 14.5%.

For other example percentages see the Matrix of example percentages attached as Appendix 2 to this Practice Note.

11.8 There are also other features of parks which would tend to increase or decrease net profitability and which should result in the adoption of a scheme percentage higher or lower than a park without such features.

11.9 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.

11.10 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of such a small club to a park with no buildings should result in an increase in RV. A common sense approach should be taken in interpreting the scheme.

11.11 A park with extensive non-revenue buildings e.g. swimming pool, sports hall etc. should be taken at a lower percentage than parks with a similar floor area, where all the buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit then the percentage adopted will be higher than parks with similar building floor areas without these features.

11.12 As the matrix percentages have been recalibrated for R2017 the 2010 list percentage adopted should not be carried over for R2017 valuations. Instead each R2017 valuation should be considered afresh.

Alterations

11.13 If during the valuation period alterations to the park take place, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of caravans since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.

**C. Touring Parks and Camping Sites (excluding certificated locations - 5CLs) **

1. Touring parks and camping sites will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks. As with static caravan parks, whilst the fundamental basis remains profitability, touring parks and camping sites will normally be valued on the basis of turnover achieved in the 2014 summer season. Turnover will be calculated in the same way as set out in paragraphs 8 to 11 above.

2. Rateable value will usually be assessed at between 14% and 18.5% of turnover, the percentage varying with expected net profitability.

3. Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.

4. A large number of sites, typically with a road network, about 30% of pitches with electrical hook -ups reception facilities and good quality toilets/showers, will normally be assessed at between 15% and 17% of turnover. Such a park with a permanent reception and shop facilities will normally be assessed at between 15% and 16%; a park with reception facilities in a caravan or other temporary building, and no shop, will normally be assessed at between 16% and 17%.

5. For other example percentages see the Matrix of example percentages attached as Appendix 2. Gross receipts (excl VAT) from the winter storage of caravans should be valued in accordance with the guidance given in paragraph 10.2 above.

6. As with the valuation of static/mixed sites above, features of a touring park or camping site affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.

D. Chalet Parks
1. Introduction

1.1 Chalet Parks vary from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.

1.2 Generally the chalets are let to holidaymakers for periods of 7 days and letting seasons are between April and the beginning of October.

1.3 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.

1.4 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.

1.5 In more recent years there has been a trend to higher standards of chalet construction with the appearance of Scandinavian timber lodges, log cabins or brick or block built chalets which are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.

2. Valuation approach

2.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995, 2000, 2005 and 2010 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.

2.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.

2.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.

2.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self-catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.

2.5 Paragraph 3 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for the 1995, 2000, 2005 and 2010 lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.

3. Examples

a. Caravan Parks/Chalet Parks with up to 50% units comprising chalets. Generally, unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits. This is an exception to the general overall percentage approach.

b. Chalets Parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.

c. A chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made.

d. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to C above. Some modern types may be present in small numbers. Again the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation present.

e. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges, log cabins etc. Valuer judgement, as to the up-lift to the caravan park basis but most sites should be contained within an up-lift of 5% to the normal caravan park percentage rate.

f. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this on the local office holiday accommodation basis, where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.

g. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally, a basic chalet park in this category should be valued by direct comparison with the self-catering holiday accommodation basis used locally. Such basis will usually go direct to a price per chalet or per single bed space having regard to the size and quality of the accommodation. Only where the chalets are clearly superior to the generality of holiday accommodation in the locality should higher levels of value, which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.

h. Staff Chalets. These should be valued at 50% of the income adopted for letting chalets.

4. Information to be requested

FOR number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.

E. Certificated Locations (5CLs)

1. Introduction

1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site licence requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The great majority of such certificates are issued by the Caravan Club or by the Camping and Caravanning Club. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.

1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.

1.3 Discussions were held with the agents acting for the Caravan Club and the Camping and Caravanning Club in respect of the basis to be applied for the 1995 rating lists for certificated sites. For revaluation 2000, 2005 and 2010 equivalent schemes were adopted and, following central discussions, a similar scheme will apply for 2017.

1.4 The Caravan Specialists should deal with assessments and appeals for 5CLs to ensure consistency of RV with commercial touring sites.

1.5 The R2017 matrix for 5CLs is set out at Appendix 1, this should be applied subject to the qualifications outlined below.

2. Basic 5 CLs

2.1 These are in effect undeveloped ‘greenfield’ sites with standard facilities only - i.e. drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.

2.2 The Scale for Basic 5CLs applies where the income exceeds £750 for the 2014 season, see Appendix 1 to this Practice Note.

3. Developed 5 CLs

3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’

3.2 Where the income exceeds £750 for the 2014 season and the site benefits from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 14% to 18.5% as outlined in the leisure caravan park and touring/camping site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). For example:

a. where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 18.5% of gross receipts would be applied to arrive at the RV;

b. where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (i.e.. grass roadways and no landscaping), 18.5% of gross receipts would also be applied to arrive at the RV;

c. where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 16.5% of gross receipts would be applied to arrive at the RV as would be the case for touring parks.

3.3 Assessments should be rounded down to the nearest £25.

4. Year of receipts

4.1 For practical purposes the 2014 summer season receipts should normally be regarded as the maintainable level upon which the tenant’s rental bid would be based as at 1 April 2015. Caution should be exercised if the receipts for the 2014 season are considered due to the possible distortion either way because of the impact of storm damage or flooding. In the absence of actual 2014 receipts for a particular site a view will have to be taken, based on the receipts for other 5CLs in the area, as to the general increase or decrease in receipts since the 2007 season.

5. Description and Address

5.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites. Where the hereditament, in the absence of any agreement to the contrary (such as a tenancy agreement), is a farm or agricultural land on which the 5CL is situated then the description in the Rating List should be “Camping Site (part exempt)” or “Camping Site and Premises (part exempt)”.

5.2 In most cases the hereditament will include domestic property and therefore be composite, where this is the case it should be marked as such.

5.3 The address of the site should always commence with the words ‘certificated location at……….. (e.g. Hill Farm)’.

6. General

6.1 In applying the R2017 scale caravan specialists must ensure that the resulting RV does not exceed the tone level of assessment for non-certificated touring sites in the locality having similar facilities.

6.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.

7. Seasonality and Unit of Assessment

7.1 In light of Counsel opinion received in respect of a steam fair in Dorset, the rare incidence of “seasonal assessments” for 5CL sites should cease to exist.

7.2 It is considered that the site owner, usually the farmer, should be regarded as remaining in occupation of the whole site all year round. Consequently, VOs should not remove a 5CL assessment from the Rating List at the end of the season even if the site reverts to an exempt agricultural use.

7.3 In many cases the unit of assessment will be the farm, or agricultural land as a whole, including the 5CL site, where a single, part exempt, assessment is appropriate. The assessment should remain in the list all year round.

Appendix 1

Basic Certificated Locations and Sites (5CLs)

**The Gross Receipts below are those for the 2014 season. **

Gross Receipts (£)

RV £

Gross Receipts (£)

RV £

Up to 750

Nil

1301 - 1350

280

751 - 800

125

1351 - 1400

295

801 - 850

135

1401 - 1450

310

851 - 900

150

1451 - 1500

325

901 - 950

165

1501 - 1550

335

951 - 1000

180

1551 - 1600

350

1001 - 1050

195

1601 - 1650

365

1051 - 1100

210

1651 - 1700

380

1101 - 1150

225

1701 - 1750

395

1151 - 1200

240

1751 - 1800

410

1201 - 1250

250

1801 - 1850

425

1251 - 1300

265

 

 

Over £1,850,(i.e. £1,851+), @ 23.5% of receipts, rounded down to next £25.

There should be no interpolation between the figures for RV in this scale.

Appendix 2

N.B. These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0%. Evidence of abnormal net profitability will be required. A “negative” example might be a difficult site where unusually high operating costs are incurred or where the operator supplies a very high quality service provision including hot tubs. A “positive” example might be an undemanding, straightforward but exceptionally well-located park.

Paragraph B 7.4 of the Practice Note explains Equivalent Fleet Units and Effective Fleet Units and paragraph B 10.2 provides guidance on the approach to adopt in respect of the income received from the winter storage of caravans.

1: Static Parks / Mixed Parks

A: 0-10% of total income from tourers

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Limited profit & non-profit buildings outdoor pool?

Standard profit & non-profit facilities:  Incl: pool, entertainment & eateries  (high profit buildings)

Extensive profit & non- profit facilities:   Incl: large indoor pool & significant entertainment & eateries

75 -100

12

11.5

11

10.5

10

30 - 75

12.5

12

11.5

11

10.5

10 - 30

13

12.5

12

11.5

11

under 10

13.5

13

12.5

12

11.5

Where there are over 100 Effective Fleet Units (Extensive) on the park the percentage will be amended as follows:

75 -100

11.5

11

10.5

10

9.5

30 - 75

12

11.5

11

10.5

10

20 - 30

12.5

12

11.5

11

10.5

10 - 20

13

12.5

12

11.5

11

under 10

13.5

13

12.5

12

11.5

Where there are over 400 Effective Fleet Units (Super) on the park the percentage will be amended as follows:

75 -100

11

10.5

10

9.5

9

30 - 75

11.5

11

10.5

10

9.5

20 - 30

12

11.5

11

10.5

10

10 - 20

12.5

12

11.5

11

10.5

under 10

13

12.5

12

11.5

11

**B: 10% - 30% of total income from tourers **

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Limited profit & non-profit buildings outdoor pool?

Standard profit & non-profit facilities:  Incl: pool, entertainment & eateries  (high profit buildings)

Extensive profit & non- profit facilities:   Incl: large indoor pool & significant entertainment & eateries

75 -100

12.5

12

11.5

11

10.5

30 - 75

13

12.5

12

11.5

11

10 - 30

13.5

13

12.5

12

11.5

under 10

14

13.5

13

12.5

12

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

75 – 100

12

11

10.5

10

9.5

30 – 75

12.5

12

11.5

11

10.5

20 – 30

13

12.5

12

11.5

11

10 – 20

13.5

13

12.5

12

11.5

Under 10

14

13.5

13

12.5

12

C: 30%- 50% of total income from tourers

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Limited profit & non-profit buildings outdoor pool?

Standard profit & non-profit facilities:  Incl: pool, entertainment & eateries  (high profit buildings)

Extensive profit & non- profit facilities:   Incl: large indoor pool & significant entertainment & eateries

75 – 100

13

12.5

12

11.5

11

30 – 75

13.5

13

12.5

12

11.5

10 – 30

14

13.5

13

12.5

12

Under 10

14.5

14

13.5

13

12.5

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

75 – 100

12.5

12

11.5

11

10.5

30 – 75

13

12.5

12

11.5

11

20 – 30

13.5

13

12.5

12

11.5

10 - 20

14

13.5

13

12.5

12

Under 10

14.5

14

13.5

13

12.5

2: Touring Parks & Camping Sites

 

Basic site no buildings

Basic site, basic facilities incl. roads, showers & reception

Standard park, adequate facilities such as roads, shop, reception & showers

As previous but landscaped with modern better quality facilities or a small club

As previous plus outdoor pool &/or more extensive buildings

As previous plus indoor pool

Over 50% EHU’s

 17.5

16.5

15.5

15

14.5

14

0 – 50% EHU’s

 18.5

17

16

15.5

15

14.5

Appendix 1: caravans, caravan sites, parks and pitches

Letter to Park Operators

(to be sent within one month of compiled list entry or change to the list entry or if it appears to the VO that the information given previously is inaccurate).

The Non-domestic Rating (Caravan Sites)

Regulations 1990 Regulation 4 Notice

The Local Rating List contains an entry for the following hereditament:

Billing Authority:

Assessment No:

Address:

Description:

Rateable Value:

I am required by Regulation 4 of the above Regulations to notify you as follows:-

a. Number of caravans occupied by persons other than the site operator and included in the hereditament: b. Amount of Rateable Value attributable to those caravans (together with their pitches): £……………………….

Any person occupying a pitch for a leisure caravan on the site may inspect a copy of this statement at my office, which is open to the public Monday to Friday from 10.00 am to 4.00 pm.

Valuation Officer

Practice Note 1: 2010: Holiday Caravan Parks, Caravan Sites and Chalet Parks

1. Co-ordination Arrangements

These are Group Classes, although due to the specialised nature of these hereditaments valuations will be carried out by a limited number of specialist valuers who may cover more than one Group area. Responsibility for implementing the scheme as set out within this Practice Note lies with the Regional Caravan Specialists and the Group Caravan Specialist valuers, as does responsibility for ensuring effective co-ordination.

The following R2010 Special Category Codes should be used, as Group Classes the appropriate suffix letter should be G:

047G - CARAVAN PARKS (LEISURE) - where static vans present;

048G - CARAVAN SITES AND PITCHES - where no static vans, includes 5CLs and camping sites;

054G - CHALET PARKS.

2. Introduction

2.1 A scheme of valuation for holiday caravan parks and sites was agreed for the 1995, 2000 and 2005 lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2010 revaluation.

2.2 Information on receipts and gross profit for caravan parks and sites, and chalet parks, should be sought by serving FOR VO 6045. The wording of this form was notified to agents acting for the industry. Where, in addition, rental information is sought VO 6046 should also be served.

2.3 Caravan Specialist Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.

2.4 Similarly, when considering chalet parks and touring sites it is recommended that the sites with completed VO 6045s are valued first.

2.5 Notices served under Regulation 4 of SI 1990/673 (see Part 4 of main section) will be served by Group offices. For the compiled list valuations these Notices will be served in April 2010.

2.6 An IT application was developed to assist in the valuation of these classes of property for Reval 2000 and was further upgraded for 2005. It has been re-written for R2010 and should be used for the valuation of all caravan hereditaments.

2.7 The database for the caravan application will be held on a central server based in Worthing.

3. Single Caravans, Small Static and Touring Sites

3.1 The scheme of valuation set out in paragraphs 4 and 5 below is intended to cover sites with in excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted, if anomalies are not to occur.

3.2 A scheme of valuation for single caravans and small sites will be drawn up by the Caravan Specialists who will also be responsible for the valuation of these hereditaments.

3.3 The valuation of certificated locations, 5CLs, is referred to separately at paragraph 7 below.

4. Static and Mixed Caravan Parks

4.1 The rating assessment will reflect the estimated net profit achievable as at 1 April 2008 by a hypothetical tenant operating the park in accordance with the statutory hypothesis. This will usually be based upon the actual account figures for the park for the 2007 summer season, with adjustments to allow for the statutory hypothesis.

4.2 The approach is based on the receipts and expenditure method as there is insufficient rental evidence for static caravan parks on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (ie where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.

4.3 Over the years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park operator (SI 1990/673 - see Part 4 of the main Rating Manual section) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.

4.4 In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:

a. actual income derived from hire fleet vans;

b. actual income from owner-occupied vans sublet through the site operator;

c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site;

d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis;

e. income from other let accommodation (chalets, flats, cottages etc);

f. income from winter storage, touring vans and tents;

g. gross profit from other income generating facilities, including bars, restaurants, etc.;

h. miscellaneous income, eg. income from AWP machines, gas sales to touring vans, income from boat storage, etc.

i. Certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis, such as:

j. rental income from pitch fees paid by owners of static caravans;

k. profit on sale of static caravans onto the park;

l. income/profit from the siting of static vans;

m. profit derived from selling insurance to static caravans which form part of the hereditament.

4.5 The following scheme has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.

4.6 Calculation of Gross Potential Income

Gross potential income under the rating hypothesis will be calculated from the sources itemised in paragraphs 4.7 – 4.10.

4.7 Static Holiday Caravans and Pitches

Hire-fleet Caravans

4.7.1 The actual gross rental income (net of VAT) from hire fleet lettings, should include any separate club membership fees, fuel charges, hire charges for linen etc, before deduction of agents letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings on comparable sites in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt. If the site achieving the higher fleet income cannot be compared directly with other sites then it is expected that a valuer judgement would be made in arriving at the appropriate hire fleet income per van.

Equivalent Fleet Units (EFUs)

4.7.2 Where there is sub-letting of owner-occupied vans either through the park operator or privately this will be converted to Equivalent Fleet Units (EFUs) as follows: a. Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the equivalent fleet units.

Example 1

40 hire fleet vans earning income of £4,000 per van.

100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each.

No. of EFUs = 21 x £2000 ÷ £4000 = 10.

These will be shown as deriving an income of £4000 each.

The residue will be 100 -10 (EFUs) = 90. a. If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (eg by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.

Example 2

Residue as above is 90 @ 25% = 22.

Converted to EFUs = 22 x 2000 ÷ 4000 = 11.

Total EFUs are now 10 + 11 = 21.

Residue of owner occupied statics is 100 - 21 = 79.

4.7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the equivalent fleet units of this private sub-letting.

4.7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to Equivalent Fleet Units those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.

N.B. For the avoidance of doubt only fleet or private static caravans should be included when calculating the number of equivalent fleet units. However, when determining the number of effective fleet units again both fleet and private static caravans should be included together with chalets which form part of the fleet hire.

Residual Private Caravans

4.7.5 The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence in the above example the income from the remaining 79 private (owner-occupied) vans would be:

Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000.

Adjustment for Age and/or Lack of Services

4.7.6 Actual hire fleet income is normally derived from fleets of good quality, modern (mainly below 6 years old) fully-serviced caravans. Previously these were predominantly 3.048 metres (10 ft) wide basic caravans but 3.658 metres (12 ft) wide vans are now the norm for single caravans or up to 6.80 metres (22.309 ft) wide for a twin unit.

4.7.7 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:

Age and Services allowances for private holiday caravans

Percentage of fleet value applied

 

Full Services

Partial Services

Unserviced

Band A (1-5 yrs)

50

45

35

Band B (6-10 yrs)

50

40

30

Band C (11-15 yrs)

45

35

25

Band D (16 + yrs)

35

30

25

4.7.8 These adjustments have been incorporated in the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.

4.7.9 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2007 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as may be appropriate.

Twin Units

4.7.10he fleet income to be adopted for twin units is unlikely to be less than a minimum of 1.5 times the fleet income for a single unit on the same park. Close regard should be had to the actual difference in tariff levels between single and twin units on a site with any actual fleet rental evidence being overriding. For R2010 no addition is to be made to the scheme rental percentage when valuing twin units.

New Caravans

4.7.11he current practice should continue whereby only new caravans brought on to a site and which are connected to the services are brought into assessment. New caravans coming on to a site but remaining unconnected, whether placed on a pitch or not, should not be assessed until connection to the services has been carried out.

Staff Caravans

4.7.12 Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - ie between 50% and 25% of fleet income.

Charity Caravans

4.7.13 Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.

Vacant Static Pitches

4.7.14 Unless used for touring caravans, vacant static pitches will be ignored.

4.8 Touring and Tenting Income

4.8.1 Actual gross rental income (net of VAT) including income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that it is no longer permissible for the site owner to make a profit on the ‘resale’ of electricity from 2002 onwards.

4.9 Other Lettings

4.9.1 Actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments and cottages etc. Seasonal staff premises are to be valued in the same way as set out for caravans above.

4.10 Profit Buildings and activities on the park (including winter storage income)

4.10.1 Gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (ie hiring artistes etc) where relevant.

4.10.2 Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators liability for repairs, insurance, services, etc normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are fewer overheads, a different percentage may be warranted. For R2010 the first £5,000 gross receipts (excl VAT) from the winter storage of touring caravans should be valued at the standard rental percentage for the site, the gross receipts (excl VAT) in excess of £5,000 should be valued at a rental percentage between 25% and 35%. The more basic the site the higher the percentage adopted.

4.11 Rateable Value

4.11.1 The rateable value arrived at by this formula will be calculated at between 11% and 16% of the adjusted turnover, plus any addition in respect of winter storage, concessions or franchises. Valuations are usually to be made to whole or half percentages.

General approach

4.11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.

Year of receipts

4.11.3 The fair maintainable receipts adopted are to be those envisaged by the hypothetical tenant as at 1 April 2008. The new season tariff would have been published by the AVD and will usually be set to maintain visitor numbers and reflect foreseeable items of additional expenditure such as increases in the minimum wage, utility bills and insurance costs. The 2007 season receipts should normally be used to inform the maintainable level upon which the hypothetical tenant would base a rental bid as at 1 April 2008. Where the individual circumstances of the park are such that the 2007 season receipts are unreliable, regard should be had to receipts of other similar parks or other trading years of the park as may be appropriate. For example, if forward bookings have traditionally accounted for a large proportion of the annual income of a particular site, and there is evidence of a substantial fall in forward bookings at the AVD compared to the position as at 1 April of other seasons, such evidence should be taken into account. Due to the possible impact of flooding in the accounts for some locations, caution should be exercised when considering the receipts for the 2007 season which may be distorted either by an increase in holidaymakers or reduced due to closure or restrictions on the site or in the location for all or part of the season.

Valuation consideration

4.11.4 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.

4.11.5 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.

4.11.6 A wholly hire-fleet park without buildings will normally be taken at 13.5%.

4.11.7 A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 13.5% and 14.5%. A park wholly of private caravans without buildings will normally be taken at 15%. The same park with touring income as well would be taken at between 15% and 16%.

For other example percentages see the Matrix of example percentages attached as Appendix 2 to this Practice Note.

4.11.8 There are also other features of parks which would tend to increase or decrease net profitability and which should result in the adoption of a scheme percentage higher or lower than a park without such features.

4.11.9 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.

4.11.10 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of such a small club to a park with no buildings should result in an increase in RV. A common sense approach has to be taken in interpreting the scheme.

4.11.11 A park with extensive non revenue buildings eg. swimming pool, sports hall etc. should be taken at a lower percentage than parks with a similar floor area, which buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit then the percentage adopted will be higher than parks with similar building floor areas without these features.

4.11.12 The retention of the same overall range of percentages does not mean that the percentage adopted for a particular park in the 2005 List should necessarily be carried over to the 2010 Revaluation. Each valuation should be considered afresh, and it may be that certain of the percentages, particularly those which were agreed in the early stages of the application of the scheme, need to be revised in the light of comparability with other sites, some of which may not have been subject to discussion in the 2005 List. The variation from the 2005 List scheme percentages for profitability considerations where there have been no material changes will normally be limited to a maximum of 1% up or down; this does not however mean that no adopted percentage will change by more than 1% point as there may be other reasons requiring a different percentage to be adopted for 2010 than that agreed for the 2005 list.

Alterations

4.11.13 If during the valuation period alterations to the park take place, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of caravans since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.

5. Touring Parks (excluding certificated locations - 5CLs)

5.1 Touring parks will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks. As with static caravan parks, whilst the fundamental basis remains profitability, touring parks normally will be valued on the basis of turnover achieved in the 2007 summer season. Turnover will be calculated in the same way as at 4.8 to 4.11 above.

5.2 Rateable value normally will be assessed at between 14% and 20% of turnover, the percentage varying with expected net profitability.

5.3 Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.

5.4 A large number of sites, typically with a road network, about 30% of pitches with electrical hook -ups reception facilities and good quality toilets/showers, will normally be assessed at between 16.5% and 18.5% of turnover. Such a park with a permanent reception and shop facilities will normally be assessed at between 16.5% and 17.5% ; a park with reception facilities in a caravan or other temporary building, and no shop, will normally be assessed at between 17.5% and 18.5%.

5.5 For other example percentages see the Matrix of example percentages attached as Appendix 2. Gross receipts (excl VAT) from the winter storage of caravans should be valued in accordance with the guidance given in paragraph 4.10.2 above.

5.6 As with the valuation of static/mixed sites above, features of a touring park affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.

6. Chalet Parks

6.1 Introduction

6.1.1 Chalet Parks vary from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.

6.1.2 Generally the chalets are let to holidaymakers for periods of 7 days and letting seasons are between April and the beginning of October.

6.1.3 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.

6.1.4 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.

6.1.5 In more recent years there has been a trend to higher standards of chalet construction with the appearance of Scandinavian timber lodges, log cabins or brick or block built chalets which are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.

6.2 Valuation approach

6.2.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995, 2000 and 2005 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.

6.2.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.

6.2.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.

6.2.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.

6.2.5 Paragraph 6.3 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for the 1995, 2000 and 2005 lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.

6.3 Examples

a. Caravan Parks/Chalet Parks with up to 50% units comprising chalets. Generally unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits. This is an exception to the general overall percentage approach.

b. Chalets Parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.

c. A chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made.

d. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to C above. Some modern types may be present in small numbers. Again the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation present.

e. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges, log cabins etc. Valuer judgement, as to up-lift to caravan park basis but most sites should be contained within an up-lift of 5% to the normal caravan park percentage rate.

f. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this on the local office holiday accommodation basis, where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.

g. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally such chalet parks should be valued by direct comparison with the self-catering holiday accommodation basis used locally. Such basis will usually go direct to a price per chalet with regard to the size and quality of the accommodation. Only where the property is clearly superior to the generality of holiday accommodation in the locality should higher levels of value which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.

h. Staff Chalets. These should be valued at 50% of the income adopted for letting chalets.

6.4 Information to be requested

FOR number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.

7. Certificated Locations (5CLs)

7.1 Introduction

7.1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site licence requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The great majority of such certificates are issued by the Caravan Club or by the Camping and Caravanning Club. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.

7.1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.

7.1.3 Discussions were held with the agents acting for the Caravan Club and the Camping and Caravanning Club in respect of the basis to be applied for the 1995 rating lists for certificated sites. For revaluation 2000 and 2005 equivalent schemes were adopted and, following central discussions, a similar scheme will apply for 2010.

7.1.4 The Caravan Specialists should deal with assessments and appeals for 5CLs to ensure consistency of RV with commercial touring sites.

7.1.5 A scale has been derived from an examination of accounts applying a percentage of gross receipts, derived from caravan or camping pitch fees and any ancillary income, to rateable value. This should be applied subject to the qualifications outlined below.

7.2 Basic 5 CLs

7.2.1 These are in effect undeveloped ‘greenfield’ sites with standard facilities only - ie drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.

7.2.2 The Scale for Basic 5CLs applies where the income exceeds £600 for the 2007 season, see Appendix 1 to this Practice Note.

7.3 Developed 5 CLs

7.3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’

7.3.2 Where the income exceeds £600 for the 2007 season and the site benefits from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 14% to 20% as outlined in the leisure caravan park and touring site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). For example:

a. where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 20% of gross receipts would be applied to arrive at the RV;

b. where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (ie. grass roadways and no landscaping), 20% of gross receipts would also be applied to arrive at the RV;

c. where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 18% of gross receipts would be applied to arrive at the RV as would be the case for touring parks.

7.3.3 Assessments should be rounded down to the nearest £25.

7.4 Year of receipts

7.4.1 For practical purposes the 2007 summer season receipts should normally be regarded as the maintainable level upon which the tenant’s rental bid would be based as at 1 April 2008. Caution should be exercised if the receipts for the 2007 season are considered due to the possible distortion either way because of the impact of flooding. In the absence of actual 2007 receipts for a particular site a view will have to be taken, based on the receipts for other 5CLs in the area, as to the general increase or decrease in receipts since 2002.

7.5 Description and Address

7.5.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites. Where the hereditament, in the absence of any agreement to the contrary (such as a tenancy agreement), is a farm or agricultural land on which the 5CL is situated then the description in the Rating List should be “Camping Site (part exempt)” or “Camping Site and Premises (part exempt)”.

7.5.2 In most cases the hereditament will include domestic property and therefore be composite, where this is the case it should be marked as such.

7.5.3 For 2010 SCAT Code 048G should be adopted.

7.5.4 The address of the site should always commence with the words ‘certificated location at. (eg Hill Farm)’.

7.6 General

7.6.1 In applying the R2010 scale caravan specialists must ensure that the resulting RV does not exceed the tone level of assessment for non-certificated touring sites in the locality having similar facilities.

7.6.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.

7.7 Seasonality and Unit of Assessment

7.7.1 In light of Counsel opinion received in respect of a steam fair in Dorset, the rare incidence of “seasonal assessments” for 5CL sites should cease to exist.

7.7.2 It is considered that the site owner, usually the farmer, should be regarded as remaining in occupation of the whole site all year round. Consequently, VOs should no longer remove a 5CL assessment from the Rating List at the end of the season if the site reverts to an exempt agricultural use.

7.7.3 In many cases the unit of assessment will be the farm, or agricultural land as a whole, including the 5CL site, where a single, part exempt, assessment is appropriate. This assessment should remain in the list all year round.

Practice Note 1 : 2010 : Appendix 1 : Caravan and Camping Sites : Basic Certificated Locations and Sites

The gross receipts below are those for the 2007 season

**Gross Receipts (£)** **RV £** **Gross Receipts (£)** **RV £**
Up to 600 Nil 1201 - 1250 270
601 - 650 80 1251 - 1300 285
651 - 700 100 1301 - 1350 300
701 - 750 120 1351 - 1400 315
751 - 800 135 1401 - 1450 330
801 - 850 150 1451 - 1500 345
851 - 900 165 1501 - 1550 360
901 - 950 180 1551 - 1600 375
951 - 1000 195 1601 - 1650 390
1001 - 1050 210 1651 - 1700 405
1051 - 1100 225 1701 - 1750 420
1101 - 1150 240 1751 - 1800 435
1151 - 1200 255 1801 - 1850 450
Over £1,850, (ie 1851+), @ 25% of receipts, rounded down to next £25. There should be no interpolation between the figures for RV in this scale.

Practice Note 1: 2010: Appendix 2: Caravan Valuation Scheme 2010

1: Static Parks

** A: 0-10% of total income from tourers**

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75 -100

13.5

13

12.5

12

11.5

30 - 75

14

13.5

13

12.5

12

10 - 30

14.5

14

13.5

13

12.5

under 10

15

14.5

14

13.5

13

Where there are over 100 Effective Fleet Units (Extensive) on the park the percentage will be amended as follows:

75 -100

13

12.5

12

11.5

11

30 - 75

13.5

13

12.5

12

11.5

20 - 30

14

13.5

13

12.5

12

10 - 20

14.5

14

13.5

13

12.5

under 10

15

14.5

14

13.5

13

Where there are over 400 Effective Fleet Units (Super) on the park the percentage will be amended as follows:

75 -100

12.5

12

11.5

11

10.5

30 - 75

13

12.5

12

11.5

11

20 - 30

13.5

13

12.5

12

11.5

10 - 20

14

13.5

13

12.5

12

under 10

14.5

14

13.5

13

12.5

B: 10% - 30% of total income from tourers

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75 -100

14

13.5

13

12.5

12

30 - 75

14.5

14

13.5

13

12.5

10 - 30

15

14.5

14

13.5

13

under 10

15.5

15

14.5

14

13.5

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

75 – 100

13.5

12.5

12

11.5

11

30 – 75

14

13.5

13

12.5

12

20 – 30

14.5

14

13.5

13

12.5

10 – 20

15

14.5

14

13.5

13

Under 10

15.5

15

14.5

14

13.5

C: 30%- 50% of total income from tourers

Number of Equivalent Fleet Units as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75 – 100

14.5

14

13.5

13

12.5

30 – 75

15

14.5

14

13.5

13

10 – 30

15.5

15

14.5

14

13.5

Under 10

16

15.5

15

14.5

14

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

75 – 100

14

13.5

13

12.5

12

30 – 75

14.5

14

13.5

13

12.5

20 – 30

15

14.5

14

13.5

13

10 - 20

15.5

15

14.5

14

13.5

Under 10

16

15.5

15

14.5

14

2: Touring Parks

 

Basic site no buildings

Basic site, roads, showers, temp reception

Average park, reception & shop, decent showers

As previous plus small club

As previous plus outdoor pool &/or more extensive buildings

As Previous plus indoor pool

Over 50% EHU’s

20 – 19

18

17

16.5

16

15.5

0 – 50% EHU’s

 

18.5

17.5

17

16.5

16

Practice Note 1 : 2005 - Revaluation 2005

1. Co-ordination Arrangements

These are Group National Scheme Classes, although due to the specialised nature of these hereditaments valuations will be carried out by a limited number of specialist valuers who will normally cover more than one Group area. Responsibility for implementing the scheme as set out within this Practice Note lies with the National Specialist and the specialist valuers, as does responsibility for ensuring effective co-ordination. The following R2000 Special Category Codes should be used. As Group Classes the appropriate suffix letter should be G. 047G - CARAVAN PARKS (LEISURE) - where static vans. 048G - CARAVAN SITES AND PITCHES - where no static vans, including 5CLs and camping sites. 054G - CHALET PARKS.

2. Introduction

2.1 A scheme of valuation for holiday caravan parks and sites was agreed for the 1995 and 2000 lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2005 revaluation.

2.2 Information on receipts and gross profit for caravan parks and sites, and chalet parks, should be sought by serving FOR (NRSI) VO 6045. The wording of this form was agreed with agents acting for the industry. Where, in addition, rental information is sought VO 6046 should also be served.

2.3 Caravan Specialist Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.

2.4 Similarly, when considering chalet parks and touring sites it is recommended that the sites with completed VO 6045s are valued first.

2.5 Notices served under Regulation 4 of SI 1990/673 (see Part 4 of main section) will be served by Group offices. For the compiled list valuations these Notices will be served in April 2005.

2.6 An IT application was developed to assist in the valuation of these classes of property for Reval 2000 and has been further upgraded for 2005.

2.7 The database for the caravan application will be held on a server based at CEO.

2.8 A basic ‘Valuation Checklist’, drawn up as an aide-memoire for use with the IT application, is attached at Appendix 5. This is not an exhaustive list of all items to consider.

3. Single Caravans, Small Static and Touring Sites

3.1 The scheme of valuation set out in paragraphs 4 and 5 below is intended to cover sites with in excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted, if anomalies are not to occur.

3.2 A scheme of valuation for single caravans and small sites will be drawn up by the Caravan Specialists for application in the Group areas for which they are responsible.

3.3 The valuation of certificated locations, 5CLs, is referred to separately at paragraph 7 below.

4. Static and Mixed Caravan Parks

4.1 The rating assessment will reflect the estimated net profit achievable as at 1st April 2003 by a hypothetical tenant operating the park in accordance with the statutory hypothesis. This will usually be based upon the actual account figures for the park for the 2002 summer season, with adjustments to allow for the statutory hypothesis.

4.2 The approach is based on the receipts and expenditure method, as for static caravan parks there is insufficient rental evidence on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (ie where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.

4.3 In recent years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park (SI 1990/673 - see main Rating Manual section) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.

4.4 In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:

a. actual income derived from hire fleet vans. b. actual income from owner-occupied vans sublet through the site operator. c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site. d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis. e. income from other let accommodation (chalets, flats, cottages etc). f. income from winter storage, touring vans and tents. g. gross profit from other income generating facilities, including bars, restaurants, etc. h. miscellaneous income, eg. income from AWP machines, gas sales to touring vans, income from boat storage, etc. i. Certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis: j. rental income from pitch fees paid by owners of static caravans. k. profit on sale of static caravans onto the park. l. income/profit from the siting of static vans. m. profit derived from selling insurance to static caravans which form part of the hereditament.

4.5 The following scheme has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.

4.6 Calculation of Gross Potential Income

Gross potential income under the rating hypothesis will be calculated from the sources itemised in paragraphs 4.7 – 4.10.

4.7 Static Holiday Caravans and Pitches

Hire-fleet Caravans

4.7.1 The actual gross rental income (net of VAT) from hire fleet lettings, including any separate club membership fees, fuel charges, hire charges for linen etc, but before deduction of agents letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt.

Equivalent Fleet Units (EFUs)

4.7.2 Where there is sub-letting of owner-occupied vans either through the park operator or privately this will be converted to EFUs as follows:

a) Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the effective fleet units.

Example 1

40 hire fleet vans earning income of £4,000 per van. 100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each. No. of EFUs = 21 x £2000 ÷ £4000 = 10. These will be shown as deriving an income of £4000 each. The residue will be 100 -10 (EFUs) = 90.

b) If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (eg by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.

Example 2

Residue as above is 90 @ 25% = 22. Converted to EFUs = 22 x 2000 ÷ 4000 = 11. Total EFUs are now 10 + 11 = 21. Residue of owner occupied statics is 100 - 21 = 79.

4.7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the effective fleet units of this private sub-letting.

4.7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to EFUs those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.

Residual Private Caravans

4.7.5 The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence in the above example the income from the remaining 79 private (owner-occupied) vans would be:

Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000.

Adjustment for Age and/or Lack of Services

4.7.6 Actual hire fleet income is normally derived from fleets of good quality, modern (mainly below 6 years old) fully-serviced caravans. Previously these were predominantly 10 ft wide basic caravans but 12 ft wide vans are now the norm.

4.7.7 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:

Age and Services allowances for private holiday caravans

Percentage of fleet value applied

 

Full Services

Partial Services

Unserviced

Band A (1-5 yrs)

50

45

35

Band B (6-10 yrs)

50

40

30

Band C (11-15 yrs)

45

35

25

Band D (16 + yrs)

35

30

25

4.7.8 These adjustments have been incorporated in the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.

4.7.9 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2002 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as may be appropriate.

**Staff Caravans **

4.7.10 Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - ie between 50% and 25% of fleet income.

**Charity Caravans **

4.7.11 Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.

**Vacant Static Pitches **

4.7.12 Unless used for touring caravans, vacant static pitches will be ignored.

4.8 Touring, Tenting and Winter Storage Income

4.8.1 Actual gross rental income (net of VAT) including income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that it is no longer permissible for the site owner to make a profit on the ‘resale’ of electricity from 2002 onwards.

4.9 Other Lettings

4.9.1 Actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments and cottages etc. Seasonal staff premises are to be valued in the same way as set out for caravans above.

4.10 Profit Buildings and activities on the park

4.10.1 Gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (ie hiring artistes etc) where relevant.

4.10.2 Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators liability for repairs, insurance, services, etc normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are fewer overheads, a different percentage may be warranted.

4.11 Rateable Value

4.11.1 The rateable value arrived at by this formula will be calculated at between 11% and 16% of the adjusted turnover, plus any addition in respect of concessions or franchises. Valuations are usually to be made to whole or half percentages and rounded.

General approach

4.11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.

Year of receipts

4.11.3 The fair maintainable receipts adopted are to be those envisaged by the hypothetical tenant as at 1 April 2003. The new season tariff would have been published by the AVD and will usually be set to maintain visitor numbers and reflect foreseeable items of additional expenditure such as increases in the minimum wage and insurance costs.

The 2002 season receipts should normally be used to inform the maintainable level upon which the hypothetical tenant would base a rental bid as at 1 April 2003. Where the individual circumstances of the park are such that the 2002 season receipts are unreliable, regard should be had to receipts of other similar parks or other trading years of the park as may be appropriate. For example, if forward bookings have traditionally accounted for a large proportion of the annual income of a particular site, and there is evidence of a substantial fall in forward bookings at the AVD compared to the position as at 1 April of other seasons, such evidence should be taken into account. Due to the possible impact of foot and mouth disease in the accounts for some locations, caution should be exercised when considering the receipts for the 2001 season which may be distorted either by an increase in holidaymakers or reduced due to closure or restrictions on the site or in the location for all or part of the season.

Valuation consideration

4.11.4 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.

4.11.5 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.

4.11.6 A wholly hire-fleet park without buildings will normally be taken at 13.5%.

4.11.7 A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 13.5% and 14.5%. A park wholly of private caravans without buildings will normally be taken at 15%. The same park with touring income as well would be taken at between 15% and 16%. For other example percentages see the Matrix of example percentages attached as Appendix 4.

4.11.8 There are also other features of parks which would tend to increase or decrease net profitability and which should result in the adoption of a scheme percentage higher or lower than a park without such features.

4.11.9 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.

4.11.10 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of such a small club to a park with no buildings should result in an increase in RV. A common sense approach has to be taken in interpreting the scheme.

4.11.11 A park with extensive non revenue buildings eg. swimming pool, sports hall etc. should be taken at a lower percentage than parks with a similar floor area, which buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit then the percentage adopted will be higher than parks with similar building floor areas without these features.

4.11.12 The retention of the same overall range of percentages does not mean that the percentage adopted for a particular park in the 2000 List should necessarily be carried over to the 2005 Revaluation. Each valuation should be considered afresh, and it may be that certain of the percentages, particularly those which were agreed in the early stages of the application of the scheme, need to be revised in the light of comparability with other sites, some of which may not have been subject to discussion in the 2000 List. The variation from 2000 List scheme percentages for profitability considerations where there have been no material changes will normally be limited to a maximum of 1% up or down; this does not however mean that no adopted percentage will change by more than 1% point as there may be other reasons requiring a different percentage to be adopted for 2005 than that agreed for the 2000 list.

**Alterations **

4.11.13 If during the valuation period alterations to the park take place, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of caravans since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.

5. Touring Parks (excluding certificated locations - 5CLs)

5.1 Touring parks will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks. As with static caravan parks, whilst the fundamental basis remains profitability, touring parks normally will be valued on the basis of turnover achieved in the 2002 summer season. Turnover will be calculated in the same way as at 4.8 to 4.11 above.

5.2 Rateable value normally will be assessed at between 14% and 20% of turnover, the percentage varying with expected net profitability.

5.3 Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.

5.4 A large number of sites, typically with a road network, about 30% of pitches with electrical hook -ups reception facilities and good quality toilets/showers, will normally be assessed at between 16.5% and 18.5% of turnover. Such a park with a permanent reception and shop facilities will normally be assessed at between 16.5% and 17.5% ; a park with reception facilities in a caravan or other temporary building, and no shop, will normally be assessed at between 17.5% and 18.5%.

For other example percentages see the Matrix of example percentages attached as Appendix 4.

5.5 As with the valuation of static/mixed sites above, features of a touring park affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.

6. Chalet Parks

6.1 Introduction

6.1.1 Chalet Parks vary from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.

6.1.2 Generally the chalets are let to holidaymakers for periods of 7 days and letting seasons are between April and the beginning of October.

6.1.3 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.

6.1.4 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.

6.1.5 In more recent years there has been a trend to higher standards of chalet construction with the appearance of Scandinavian timber lodges or brick or block built chalets which are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.

6.2 Valuation approach

6.2.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995 and 2000 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.

6.2.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.

6.2.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.

6.2.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.

6.2.5 Paragraph 6.3 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for the 1995 and 2000 lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.

6.3 Examples

A. Caravan Parks/Chalet Parks with up to 50% units comprising chalets. Generally unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits. This is an exception to the general overall percentage approach.

B. Chalets Parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.

C. A chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made.

D. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to C above. Some modern types may be present in small numbers. Again the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation present.

E. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges etc. Valuer judgement, as to up-lift to caravan park basis but most sites should be contained within an up-lift of 5% to the normal caravan park percentage rate.

F. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this on the local office holiday accommodation basis, where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.

G. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally such chalet parks should be valued by direct comparison with the self-catering holiday accommodation basis used locally. Such basis will usually go direct to a price per chalet with regard to the size and quality of the accommodation. Only where the property is clearly superior to the generality of holiday accommodation in the locality should higher levels of value which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.

H. Staff Chalets. These should be valued at 50% of the income adopted for letting chalets.

6.4 Information to be requested

FOR (NRSI) number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.

7. Certificated Locations (5CLs)

7.1 Introduction

7.1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site licence requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The great majority of such certificates are issued by the Caravan Club or by the Camping and Caravanning Club. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.

7.1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.

7.1.3 Discussions were held with the agents acting for the Caravan Club and the Camping and Caravanning Club in respect of the basis to be applied for the 1995 rating lists for certificated sites. For revaluation 2000 a similar scheme was adopted, and following central discussions the same scheme will apply for 2005.

7.1.4 Whilst local offices should deal with assessments and appeals for 5CLs, cases causing difficulty should be referred to the relevant caravan site specialist valuer for advice. To ensure consistency of RV with commercial touring sites the specialist valuer should be consulted before determining the assessment of any site with annual receipts of more than £3,000.

7.1.5 A scale has been derived from an examination of accounts applying a percentage of gross receipts, derived from caravan or camping pitch fees and any ancillary income, to rateable value. This should be applied subject to the qualifications outlined below.

7.2 Basic 5 CLs

7.2.1 These are in effect undeveloped ‘greenfield’ sites with standard facilities only - ie drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.

7.2.2 The Scale for Basic 5CLs applies where the income exceeds £500 for the 2002 season, see Appendix 1 to this Practice Note.

7.3 Developed 5 CLs

7.3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’

7.3.2 Where the income exceeds £500 for the 2002 season and the site benefits from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 14% to 20% as outlined in the leisure caravan park and touring site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). eg.

a) Where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 20% of gross receipts would be applied to arrive at the RV.

b) Where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (ie. grass roadways and no landscaping), 20% of gross receipts would also be applied to arrive at the RV.

c) Where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 18% of gross receipts would be applied to arrive at the RV as would be the case for touring parks. 7.3.3 Assessments should be rounded down to the nearest £25.

7.4 Year of receipts

7.4.1 For practical purposes the 2002 summer season receipts should normally be regarded as the maintainable level upon which the tenant’s rental bid would be based as at 1 April 2003. Caution should be exercised if the receipts for the 2001 season are considered due to the possible distortion either way because of the impact of foot and mouth disease. In the absence of actual 2002 receipts for a particular site a view will have to be taken, based on the receipts for other 5CLs in the area, as to the general increase or decrease in receipts since 1997.

7.5 Description and Address

7.5.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites.

7.5.2 In most cases the hereditament will be a composite, including domestic property and/or exempt agricultural land, and should be marked as such.

7.5.3 For 2005 SCAT Code 048G should be adopted.

7.5.4 The address of the site should always commence with the words ‘Certificated location at ………. (eg Hill Farm)’.

7.6 General

7.6.1 In applying the above scale valuers must ensure that the resulting RV does not exceed the tone level of assessment for non certificated touring sites in the locality having similar facilities.

7.6.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.

7.7 Seasonality

7.7.1 Paragraphs 7.7.2 to 7.7.6 below apply only to ‘greenfield’ sites, ie. the basic 5CL site with no developed facilities.

7.7.2 If there is an exempt agricultural use during any “closed” season so that the site becomes part of the farm again from day to day, providing there is no evidence of the alternative use as a 5CL site, the site is not liable to be shown in a rating list during that period.

7.7.3 If the only evidence of the 5CL use in the closed season is the advertising of pitches for the next season, the annual licence to use the land as a 5CL site will not defeat the exemption. This is provided full agricultural use is resumed at the end of the camping season and maintained up to the time it first re-opens for use as a 5CL - eg. it is grazed or hay is made in the spring and early summer.

7.7.4 However, if the site has been identified as a hereditament for a separate purpose, or it is evident that any apparent agricultural use is intended to maintain the land for its 5CL use, it will remain rateable throughout the year.

7.7.5 Similarly, set aside land will be rateable, however occasional the 5CL use, as an exempt agricultural use is not resumed at any time.

7.7.6 VOs should assume that, unless the farmer demonstrates a bona fide intention to farm the land, “seasonal use” does not apply as nowadays land is rarely if ever used as “meadow or pasture ground only” during the winter months in England and Wales.

7.7.7 Where out of season agricultural use is claimed, VOs should send out a letter along the lines of Appendix 2 seeking confirmation of the use to which the land is put and the date upon which it is intended to resume the use as a 5CL site. This letter (Appendix 2) should enclose the questionnaire at Appendix 3 for completion and return by the occupier.

7.7.8 A record should be kept of all 5CL sites used for agricultural purposes out of season and therefore excluded from the Rating List, together with the date upon which it is intended to resume the use as a 5CL site at the beginning of the next season. These sites should be re-inserted in the Rating List with effect from this date, unless more recent evidence of the correct effective date is available. Where no date for resumption is given, and it is known that the 5CL use has resumed, VOs should assume the effective date to be the beginning of the next season. This is usually Easter and therefore, in the absence of better evidence, Maundy Thursday should be adopted as the effective date.

Practice Note 1 2005 - Appendix 2 : Property Address

With reference to your (letter of …./recent telephone conversation with …../recent correspondence with this office) in respect of the use of the above site, I enclose a questionnaire which seeks information in respect of the current use of the land and the date upon which it is intended to resume the use as a certificated location caravan and camping site.

Would you please complete, sign and return the enclosed questionnaire to me as soon as possible. This information is required so that I can consider whether or not it is appropriate to alter the Rating List in respect of your site. When I have received the completed questionnaire from you I shall review the position, amend the Rating List if appropriate and advise you accordingly. Please get in touch with me if you have any questions about the contents of this letter.

(Signed)

Practice Note 1 2005 - Appendix 3: Agricultural use of Certificated Locations & Sites Questionnaire

PROPERTY ADDRESS

(Full address of certificated location)

  1. Is the site referred to above operated on a seasonal basis? YES/NO If ‘YES’, when did your last season end? ……………………………………………….. If ‘NO’, no further information is required. Please sign, date and return this form to me.
  2. On what date is it intended to resume the use as a camping/caravanning site? …………………..
  3. Is the site currently used for agricultural purposes? YES/NO If ‘YES’, give details of the agricultural use: …………………………………………… …………………………………………………………………………………………………….. …………………………………………………………………………………………………….. ……………………………………………………………………………………………………..
  4. If different to the date given at 1 above, when did this agricultural use begin? …………………
  5. Is this use intended to maintain the land for its use as a camping/caravanning site? YES/NO
  6. Is the camping/caravanning site on land designated as set aside? YES/NO Signed: …………………………. occupier/owner/agent Date: …………………………. Tel. No: ………………………….

Practice Note 1 2005 - Appendix 4: Caravan Valuation Scheme 2005 Lists - Example

1 : Static Parks

A: 0-10% of total income from tourers

Number of
EFU's as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75-100

13.5

13

12.5

12

11.5

30-75

14

13.5

13

12.5

12

10-30

14.5

14

13.5

13

12.5

under 10

15

14.5

14

13.5

13

Where there are over 100 EFU’s (Extensive) on the park the percentage will be amended as follows:

75-100

13

12.5

12

11.5

11

30-75

13.5

13

12.5

12

11.5

20-30

14

13.5

13

12.5

12

10-20

14.5

14

13.5

13

12.5

under 10

15

14.5

14

13.5

13

Where there are over 400 EFU’s (Super) on the park the percentage will be amended as follows:

75-100

12.5

12

11.5

11

10.5

30-75

13

12.5

12

11.5

11

20-30

13.5

13

12.5

12

11.5

10-20

14

13.5

13

12.5

12

under 10

14.5

14

13.5

13

12.5

B : 10% - 30% of total income from tourers

Number of
EFU's as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75-100

14

13.5

13

12.5

12

30-75

14.5

14

13.5

13

12.5

10-30

15

14.5

14

13.5

13

under 10

15.5

15

14.5

14

13.5

Where there are over 100 EFU’s on the park the percentage will be amended as follows:

75-100

13.5

12.5

12

11.5

11

30-75

14

13.5

13

12.5

12

20-30

14.5

14

13.5

13

12.5

10-20

15

14.5

14

13.5

13

under 10

15.5

15

14.5

14

13.5

C : 30%- 50% of total income from tourers

Number of
EFU's as % of all statics

No Buildings

Small club & shop

Profit & non profit buildings outdoor pool?

Profit & non & indoor pool (high profit buildings)

Extensive non profit and profit facilities incl large indoor pool

75-100

14.5

14

13.5

13

12.5

30-75

15

14.5

14

13.5

13

10-30

15.5

15

14.5

14

13.5

under 10

16

15.5

15

14.5

14

Where there are over 100 EFU’s on the park the percentage will be amended as follows:

75-100

14

13.5

13

12.5

12

30-75

14.5

14

13.5

13

12.5

20-30

15

14.5

14

13.5

13

10-20

15.5

15

14.5

14

13.5

under 10

16

15.5

15

14.5

14

2 : Touring Parks

 

Basic site no buildings 

Basic site, roads, showers, temp reception

Average park, reception & shop, decent showers

As previous plus small club

As previous plus outdoor pool &/or more extensive buildings

As previous plus
indoor pool

Over 50% EHU's

20-19

18

17

16.5

16

15.5

0-50% EHU's

 

18.5

17.5

17

16.5

16

Practice Note 1 2005 - Appendix 5: VOA R2005 Caravan Application

VOA R2005 Caravan Application

Checklist Items

Screen(on IT application)

Main Items

Has 'Adopted RV' been entered?

Summary

Has a Reg 4 Notice been Saved for Later Output? Are the details correct?

Reg 4 (Summary)

If an existing valuation for which there is already a Reg 4 Notice pending has been amended, have the previous details been overwritten with the new valuation?

Reg 4 (Summary)

Is the 'Percentage to RV (%)' applied in accordance with the recommended scheme?

Summary

Other Items

Is the Reval 2005 SCAT Code correct?

General

Are the Primary Description, Description Code and dates correct?

General

Is it correctly recorded whether or not the hereditament is a composite?

General

If the number of private static vans has been altered, is the total number of private vans correct?

Static (2) [and Static (1)]

If no information supplied on VO 6045, has the correct number of vans been entered in the different age/service categories?

Static (2)

Are estimated receipts from private vans valued at a minimum of 1.5 x the net pitch fee?

Static (2)

Part 2: Principles of Rateability and Unit of Assessment

6. The caravan and its pitch

Reference should be made to RM 4 Section 3 Part 1, which deals with the general principles governing occupation and the hereditament. The following paragraphs deal with the special problems likely to arise in connection with caravan sites.

It is of paramount importance, whether valuing under The Non-Domestic Rating (Caravan Sites) Regulations 1990 [SI 1990/673] or not, that the correct tests are applied and consideration must be given to the ingredients of rateable occupation which are set out in Rating Manual section 3 part 1. This SI, while introducing a requirement to treat caravan pitches as a single hereditament in the occupation of the site operator, does not in any way alter the basic rules for determining the units of separate assessment; indeed, it is essential for the proper operation of the SI to apply these rules, for the SI can only be invoked if pitches are separately rateable.

Before a valuation can be made, it is necessary to decide who is to be rated and for what, viz: in relation to a pitch,

a. is the pitch let out and occupied so as to form a separate hereditament, and

b. is any caravan for the time being standing upon that pitch rateable together with it?

In relation to a site,

a. what is the physical area in the occupation of the site operator?

b. what buildings and site works and how many caravans, if any, belonging to the site operator fall to be included in the hereditament?

c. is the site one to which SI 1990/673 applies?

It may be noted that where a site operator owns a caravan and has parted with its control, together with a pitch, on a sufficiently permanent basis, then whilst a VO may correctly decide that the occupation is separately rateable, SI 1990/673 will still apply.

7. Transience

Separate rateability of a pitch does not arise unless its occupation is of a non-transient nature. In considering transience, the intention of a person owning the caravan at the material time is clearly relevant, but it is for the VO to gauge this intention in the light of all the information available to him. Where a caravan and pitch have been in the same occupation for at least 12 months, this can be regarded as evidence sufficient to establish a non-transient occupation.

VOs are not precluded from raising separate assessments, or from regarding caravans as rateable, when the period of occupation is less than 12 months if facts, circumstances and evidence of intention to remain in occupation are sufficiently strong to establish that the occupation is not transient. That a new owner is in residence in a caravan which has nevertheless been in position for a longer time is not a bar to raising a separate assessment.

8. Seasonal Breaks etc

When examining the period of occupation, it must be borne in mind that a seasonal break in the use of a caravan during the winter months does not break continuity of occupation if the caravan remains on the hereditament. In considering this aspect, it must be remembered that, in relation to a site, the hereditament is the larger area in the occupation of the site operator or in his or her deemed occupation by virtue of SI 1990/673.

9. Annexation

A caravan, being a chattel, is not as such rateable but if enjoyed with the land in such circumstances and with sufficient permanence that annexation to a defined pitch can be inferred, then the value of the caravan falls to be included in the assessment [see Field Place Caravan Park Ltd and others v Harding (VO) (1965 LT RA 521 and 1966 CA RA 393)].

The presence of physical signs such as fences, water, electricity, drainage, gardens, telephone, paths and ancillary sheds will usually indicate an intention of permanence. However, the absence of such physical features is not necessarily evidence of an intention to move away and on many holiday sites there is an intention to remain in occupation of the pitch and to enjoy the caravan therewith, even though there is only the absolute minimum by way of services and an “open” type of site devoid of fences and individual gardens.

10. Herding

Where winter “herding” of caravans by the site operator takes place - for example, by shifting them to one corner of the site - it is again important to consider what is the hereditament. If where a site operator moves his own vans around his site, or is deemed to occupy the whole site, then there is no break of continuity and the vans have not left the hereditament; they will remain rateable together with the site itself.

11. Generally

The following cases are recommended for reference:

Cartwright v Shaw (VO) 1951 LT 44 R & IT 678;

Hilleshog Sugar Beet Breeding Co Ltd v Wilkes (VO) 1971 LT

RA 275;

Thomas (VO) v Witney Aquatic Co Ltd 1972 LT RA 493;

Brown v Lang (VO) LT Vol 226 EG 823;

Dick Hampton (Earth Moving) Ltd v Lewis (VO) and United Gravel Co Ltd v Sellick (VO) 1975 CA RA 269.

VOs should carefully consider each site and, with the foregoing in mind, decide the extent to which individual assessments should be made and whether the caravans fall to be included. Past practice in the area should not be allowed to influence consideration of each case on its merits.

12. Descriptions

Descriptions should be as precise as practicable. The following are recommended, with or without “and premises”, as appropriate:

Leisure caravan park (for those to which SI 1990/673 applies);

Fleet caravan park (for those where the caravans are owned and rateably occupied by the site operator);

Caravan;

Caravan pitch.

Where any domestic accommodation is omitted from the assessment the hereditament will be composite.

Part 3: Single Caravan Pitches, Touring Caravan Sites and Fleet Caravan Parks

13. General Approach to valuation

The conclusions to which the LT came, on the remission of the case of Garton v Hunter (VO) 1968 CA (1969) RA 11 and 1969 LT RA 179, remain sufficiently important to be reproduced, although SI 1990/673 and its predecessor the Rating (Caravan Sites) Act 1976 - has necessarily altered their effect on valuations of amalgamated sites. The Tribunal remarked:

“We do not look upon any of these tests as being a “right” method or a “wrong” method of valuation; all three are means to the same end; all three are legitimate ways of seeking to arrive at a rental figure that would correspond with an actual market rent on the statutory hypothesis and, if they are properly applied, all the tests should in fact point to the same answer; but the greater the margin for error in any particular test, the less is the weight that can be attached to it. It is as the outcome of applying this criterion that we have found that considerable weight can be attached to the profits test, that not much weight can be attached to the rental test and that very little weight can be attached to the contractor’s test.”

While a rent actually paid for a multiple caravan site may provide the best evidence of value for that site (Ramsden v Geddes (VO) 1967 LT RA 328), nevertheless in Davies & Davies v Tavener (VO) (1959 LT 52 R & IT 435) the Tribunal held

(i) rental evidence of other caravan sites in the vicinity did not justify arriving at the assessments of the appeal site on a price per caravan, because of the variations between the physical attributes of the sites.

(ii) the receipts and expenditure basis enabled a more detailed examination of the merits of the individual site to be made than the comparative method.

14. Parks operating below full capacity

A park will normally be valued to its full licensed capacity, as vacant and to let, whether or not it is actually used to its fullest extent (Welford v Cutts (VO) 1958 LT 51 R & IT 458). It may, however, be appropriate in the case of newly established parks to have regard to an average number of caravans, being less than the licensed number, where, for example, service buildings are at the material date insufficient for capacity occupation.

15. The Receipts & Expenditure (R&E) basis

15.1 General

In the LT decision in Vaughan (VO) v Great Yarmouth Seashore Caravans Ltd (1960) LT 53 R & IT 522 the member said that “ratepayers are not bound to produce their accounts and they may be fully justified in refusing to do so unless they can be assured that they would not be available for general scrutiny. Such an assurance could simplify the task of valuation for if a profits basis is to be used it is the actual accounts rather than estimated figures that should be considered.” This accords with the VO policy that whilst receipts information can be called for under the powers contained in para 5 Sch 9 LGFA 1988, full accounts may only be requested. See RM Section 4 Part 2 regarding requests for accounts and receipts information and their use as evidence. See the appropriate Practice Note for information about any agreed Codes of Practice regarding the use of receipts information

Items in certified accounts as statements of fact should always be accepted before estimates, except those which are the outcome of personal discretion such as Directors’ fees and Managerial salaries. The gross profit from ancillary services (sales less purchases), and not the gross income, eg from the sale of Calor Gas, etc, should appear in the gross receipts.

The income shown in the most recent accounts (available at time of valuation) should not be adjusted unless at the material date there has been a change of circumstances which would reasonably be within the knowledge of the hypothetical tenant and which would materially affect the potential income.

Where accounts are available and these include trading details of shops and similar profit earning ancillaries within the hereditament, then the proper application of the R&E basis requires that such parts be reflected in the R&E valuation; where no such accounts are to hand, however, the most convenient way to treat these items will probably be to add their separate values to that produced by the R&E basis, the result representing a rent which the site operator would be prepared to pay to his landlord.

15.2 Working expenses

The following include the main items to be expected under this head:

Director’s fees, salaries and wages: insurances: tractor or 4-wheel drive vehicle expenses; water; printing and stationery; advertising; audit; telephones; lighting and heating; sanitary and cleaning expenses; site maintenance; association membership fees.

In Vaughan’s case where the site operator did not own the caravans but merely let sites the Tribunal’s remarks were as follows:

“Some account must be taken of the nature of this enterprise. In my view, it produced high returns for comparatively little managerial effort…. compared with, say, a manufacturing business with the same turnover, the demand on managerial attention and responsibility must be small, and I think that it is reasonable to assume that, provided the usual scale of tenant’s share is reserved, the hypothetical tenant, under competition, would be prepared to cut down on managerial fees.”

Careful consideration may be necessary, therefore, before accepting items in accounts in respect of director’s fees and it should also be observed that, on the smaller type of site, the hypothetical tenant will probably act as warden.

Claims are frequently made in respect of cars and VOs should be satisfied that such claims are valid in all the circumstances, before admitting them.

15.3 Tenant’s share

The instructions contained in RM Vol 4 Section 6 para16 should be taken into account in considering the tenant’s share. The security and freedom from competition from unauthorised sites, afforded by the Caravan Sites and Control of Development Act 1960, are factors to be borne in mind. The amount allowed in past valuations should be reviewed in the light of any changed circumstances.

The tenant’s share will often represent a percentage of gross receipts or divisible balance, but the Tribunal took the view in Garton v Hunter (VO) that a prospective tenant would quantify his requisite share in terms of an amount, rather than in terms of a percentage.

15.4 Caravans rated as part of hereditament

In cases where the caravans, owned by the site operator, remain within the site from year to year so as to become rateable therewith (see para 9) any sinking fund provision in the accounts relating to the rateable parts of those caravans should be deducted from the expenses as this will be the responsibility of the landlord under the rating hypothesis.

16. Price per unit

Devaluations to a price per unit may in some circumstances prove an aid to valuation, but their use must be strictly limited unless the respective hereditaments are closely comparable. As mentioned at para 13 the Tribunal have indicated on several occasions the difficulties involved in comparing one site with another. Furthermore, the use of the R&E basis necessarily implies a good deal of individuality of approach to each hereditament and this basis will usually come close to reflecting the profit-earning scope of the particular site and thus its rental value.

17. Sites Occupied by Organisations Exempt from Control under Caravan Sites and Control of Development Act 1960

When determining the rental value of sites occupied by the organisations referred to in para 5.1, VOs may consider it advisable first to ascertain whether planning permission for use as a commercial touring site would be likely to be granted and, if so, with or without conditions.

Facilities on such sites are frequently minimal, consisting perhaps of water supply and “Elsan” disposal points only and comparison with commercial sites should be made with care, as planning permission, even when forthcoming, will often be conditional upon the provision of more extensive facilities.

Little valuation assistance can be expected from the accounts, as these sites are not usually operated commercially, part of the costs being met from member’s subscriptions. The best guide to value may be to look at those commercial touring sites, which are most comparable.

18. The single caravan and its pitch

It will seldom be possible to rely on the rents passing for separately assessed caravans as these will usually include payment for furnishings and other equipment the adjustment for which it may be difficult to quantify. Moreover the lettings are commonly effected for relatively short periods. In practice the best approach will generally be a comparison with the assessments of non-traditional dwellings in the area such as chalets (Racine v Buncombe (VO) 1967 LT (1969) RCN 92).

An alternative approach is to consider adding to the site rent a rental value for the caravan based upon its secondhand value, which permits some flexibility.

19. Caravans within the curtilage of dwelling-houses, etc

Where there is a sufficient degree of annexation and permanence (see para 9), it will be necessary to regard the caravan itself as rateable and to assess it accordingly, unless the pitch is part of a sole or main residence and therefore is domestic property by virtue of s.66 (3) LGFA 1988. For example, where a caravan within the curtilage is used as overspill accommodation for family and friends, the pitch and van should be regarded as domestic, but if the pitch and/or van are let off commercially for holiday use they should not be considered domestic. If the caravan and/or pitch are rateable and there is no separate rateable occupation, then the hereditament will be composite.

20. Gipsy encampments

Under Part II of the Caravan Site Act 1968, which came into force on 1 April 1970, local authorities are to provide adequate accommodation for gipsies residing in or resorting to their areas and accordingly may set up encampments and charge for their use. These sites are likely to be domestic property by virtue of s.66 (3) LGFA 1988.

21. Procedure on change of caravans

The replacement of one separately assessed caravan by another on a pitch will require a new assessment and the correct procedure in such cases is as follows:

(i) delete the existing assessment from the Rating List (RL);

(ii) and either: a. where the pitch is unoccupied, when the inspection is made and there will be a significant passage of time before the second caravan arrives, enter the pitch as a separate item in the RL. This of course assumes that there is still separate rateable occupation of the pitch;

or a. where the replacement is made within a few days, enter the pitch together with the new caravan in the RL;

(iii) where ii (a) applies when a new caravan arrives remove the pitch assessment, and enter the new caravan and pitch in the RL.

Part 4: Leisure Caravan Parks - The Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990 No 673)

SI 1990/673 to a large extent replicates The Rating (Caravan Sites) Act 1976. The major difference is that its provisions are mandatory whereas those of the 1976 Act were discretionary.

23. SI 1990 No 673

The SI provides that, where pitches for leisure caravans on a relevant site constitute separate hereditaments by virtue of being separately occupied by persons other than the site operator those pitches shall be treated as a single hereditament, together with so much of the rest of the site as is in the occupation of the site operator. A pitch is to be taken as including the caravan for the time being standing upon it if, apart from the SI, the caravan would be included as a part of a rateable hereditament(see para 9).

The amalgamation rules do not apply:

“to any pitch which is occupied by a charity or trustees for a charity, and which is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities)”.

24. SI 1990 No 673 Definitions

“A pitch for a leisure caravan” is one where, in accordance with any licence or planning permission, a caravan stationed on the pitch is not allowed to be used for human habitation throughout the year.

“Caravan” has the same meaning as for Pt I of the Caravan Sites and Control of Development Act 1960 (as amended) [see para 5.2].

“Site” means any land in respect of which a site licence is required under Pt I of that Act.

“Relevant site” means a site which has an area of 400 square yards or more and which includes some non-domestic property.

“Site operator” means the person who is the occupier under Pt I of the 1960 Act and “occupier” means, in relation to any land, the person who by virtue of an estate or interest therein is entitled to possession or would be so entitled but for the rights of any other person under any licence granted in respect of the land:

Provided that, where land amounting to not more than 400 square yards in area is let under a tenancy entered into with a view to the use of the land as a caravan site, the expression “occupier” means in relation to that land the person who would be entitled to possession of the land but for the rights of any person under that tenancy.

25. Valuation approach

The valuation approach to this class of hereditament is constrained by the fact that direct evidence of value will not be available for the single hereditament, because the site is owned by the site operator and the caravans are owned by the various caravanners. A contractor’s basis approach is possible but the age allowance on short-life caravans is problematical and may be contentious. A full “R&E basis” valuation is inappropriate because of the “hybrid” manner in which such enterprises are run, ie by renting out the pitches but selling the caravans. It is recommended that where possible recourse be made to a valuation approach which recognises the principles of an income and expenditure valuation and has regard to the other caravans and pitches.

This property is valued using the non-bulk server. The manual can be accessed here.

26. Practice Notes

Practice Notes and sample valuations relating to the 1990 and subsequent Rating Lists are at the end of this section.

27. Notice to Site Operator

Regulation 4 of SI 1990/673 provides for the supply of information to caravanners about the number of vans included in the hereditament and the rateable value attributed to them.

Where on the compilation of a local rating list or by virtue of the alteration of such a list there is included in the list a hereditament which falls to be treated as a single hereditament by virtue of SI 1990/673, the Valuation Officer shall within one month of that compilation or alteration inform the site operator in writing that the hereditament is so included, and shall also state in writing:

a. how many caravans occupied by persons other than the site operator are included in that hereditament, and b. how much (if any) of the rateable value of the hereditament is attributable to those caravans, together with their pitches.

The Regulation 4 Notices are produced via the caravan valuation application.

Whenever an assessment is reviewed (whether after receipt of a Billing Authority notification or otherwise) and it is decided that the attributions need altering, a further statement must be issued, again within one month of the change to the Rating List.

Where it appears to a Valuation Officer that information given in relation to a hereditament is no longer accurate, but no alteration of the local rating list is required, he must still inform the site operator of that fact, and shall supply to him or her a further statement.

Any person occupying a pitch for a leisure caravan on a relevant site may after giving reasonable notice to the Valuation Officer at any reasonable time and without payment inspect a copy of any statement supplied to the operator of that site under Regulation 4.

Although the VO is allowed 1 month in which to provide the information, there is no reason why, in practice, it should not be sent to the site operator with his or her copy of the VO Notice.

The number of caravans included in the Regulation 4 Notice will not necessarily coincide with the number of caravans included in the valuation. The number to be certified by the VO is the number of caravans, which, excluding those of the site operator, could properly have been the subject of separate assessments. The total RV for the number of vans and pitches should not be rounded unless there are no other values included in the value of the hereditament.

An extra copy of the Regulation 4 Notice should be produced, and signed by the VO which is to be kept within an A4 binder marked “Leisure Caravan Park Notices”. These should be filed in Billing Authority and assessment number order and are to be made available for public inspection when requested.