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

Section 770: petrol filling stations

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

1. Scope

This guidance applies primarily to Petrol Filling Stations (PFS) but may also be referred to when valuing petrol sales forecourts as part of larger, multi-use hereditaments. Petrol filling stations forming part of a single hereditament with a superstore/hypermarket are dealt with at RM: S520 - (Hypermarkets and Superstores) and the accompanying Practice Notes. PFS located as part of Motorway Service Areas are considered separately in RM:S710 (Motorway Service Areas/Major Road Service Areas). The background to the PFS industry is at Appendix 1

2. List description and special category code

  • Primary Description Code: CG
  • List Description: Petrol Filling Station & Premises
  • Scat Code: 209
  • Suffix G

3. Responsible Teams

Responsibility for inspection, survey and valuation rests with NDR Business Unit Generalist caseworkers who have knowledge of this class. The National Specialist Unit (NSU) provides support and is responsible for development of each national scheme of valuation.

4. Co-ordination

4.1 The PFS CCT (Class Coordination Team) has overall responsibility for the co-ordination of this class. The team are responsible for the approach to and accuracy and consistency of PFS 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.

4.2 Caseworkers have a responsibility to:

  • Follow the advice given at all times
  • Not depart from the guidance given on appeals or maintenance work, without approval from the co-rdination team.
  • seek advice from the co-ordination team before starting any new work

There is no specific legal framework for this class however The Petroleum (Consolidation) Regulations 2014 (PCR) which came into force on 1 October 2014 apply to workplaces that store petrol where petrol is dispensed, i.e. retail and non retail petrol filling stations. From October 2014 the petrol licensing regime is replaced with a petrol certification scheme. An owner of dispensing premises where petrol is kept needs to hold a Petroleum Storage Certificate (known as a ‘storage certificate’) to comply with the regulations.

6. Survey requirements

6.1 Inspections should be carried out in accordance with the Valuation Office Agency Code of Practice with the forecourt shop measured to NIA and other buildings measured to GIA for example workshops.

6.2 A 2 page inspection checklist should be completed (see Appendix 2) for all new properties and updated for maintenance work and stored in the property folder of the Electronic Document Records Management (EDRM) system. It is recommended ELDA is used to produce plans including one of the overall site layout.

Unit of Assessment / identifying the hereditament

6.3 On inspection it is first necessary to consider the Unit of Assessment and to identify the hereditament(s).

6.4 It should be noted at many PFS there can often be more than one rateable occupier and unit of assessment and a separate hereditament may need entering into the list, for example separately operated ATMs or Electronic Delivery Lockers. In some cases hand car washes are operated at the site and may be separately occupied/let out. Full details should be taken and consideration as to whether more than one unit of assessment is required.

6.5 It should however be noted that often there may be separate stand alone buildings on a forecourt operating under a well known brand name, for example providing hot coffee or fast food. In many of these cases, similar to a Motorway Service Area, the operator of the host i.e. the PFS, remains in paramount control of all parts and simply has franchise arrangements with well known brands. In these cases it is expected only one assessment will exist but clarification should be sought on inspection and full facts obtained. Advice can also be provided by Unit CCT members for PFS or the NSU.

7. Survey capture

After carrying out an inspection the following should take place:

  • ELDA site plans saved in the EDRM property folder
  • A copy of the inspection checklist saved in the EDRM property folder
  • If not done so already, the address should be created in the Non Bulk Server (NBS) with survey information obtained entered on page 2 of the valuation

8. Valuation approach

Valuations of petrol filling stations are made on the direct rentals basis. For each Rating List a national scheme of valuation exists on this basis with full details shown within the appropriate Practice Note. Detailed information on the Valuation Methodology to be followed is at Appendix 3

9. Valuation support

In accordance with the relevant Practice Note valuations for Petrol Filling Stations should be maintained and stored within the relevant Rating List Non Bulk Server application. Further support is available from:

  • NDR Unit PFS Class Coordination Team Members
  • National Specialist Unit
  • VOA Rating Manual v5 s770
  • Non Bulk Server (NBS) Manual
  • RSA (Rating Support Application)

Practice note: 2017 - petrol filling stations

1. Market appraisal

Continuing the trend of previous years the number of active UK petrol filling stations (PFS) fell between 2008 and 2015, but at a much slower rate than before. As at 2015 approx. 8,490 active UK PFS were in operation compared with 9,283 in 2008. Statistics from Experian Catalist show the 2015 level of 8,490 has approx. 64% operated by independent dealers, 19% by oil companies & 17% by superstores. Whilst the number of active PFS is expected to continue to fall, the creation of many new to industry sites suggests the number of active sites may soon reach a plateau. Expansion of the market by the superstore operators has slowed since 2008 but the likes of Asda are still seeking opportunities to increase their PFS numbers, but seeking to refurbish existing sites also. BP with their M&S partnership are also actively looking for sites.

Changes throughout 2014/2015 saw a continuing retreat of certain oil companies from front line retailing. The likes of Shell and Esso were able to sell off tranches of sites which have been eagerly snapped up by independent dealers. The dealer sector of the market has risen in recent years with a market share of circa 70% expected by the end of 2015. Most of the former oil company sites have been acquired by larger well known independent dealers, but other smaller independent dealers have taken this opportunity to increase their numbers also.

Since 2008 margins achieved on fuel continue to be unpredictable at times due in part to fluctuating prices of oil. Many PFS have evolved and maintained or even enhanced levels of overall profitability, by developing their forecourt shops with recognised brands. Despite the economic downturn post 2008, many PFS have been able to increase their shop turnovers as UK shopping habits have changed and ‘convenience’ has become more important. Indeed PFS forecourt shop sales now exceed £4.2bn per year.

Despite the recession from late 2008 the PFS industry is considered to have held up relatively well, remained robust and generally positive with values having held up well compared to many other sectors.

In terms of fuel volumes the majority of oil company and independent sites saw falls of approx. 10-20% post 1/4/08, in many cases affected by the recession, as motorists sought to conserve funds as well as shop around for the cheapest fuel. However most retailers have seen increases in volumes since 2012/13 due in part to the fall in fuel prices since the peak at that time.

Since 1/4/08 car/jet wash turnover levels at certain PFS have been affected by the large proliferation of stand-alone hand car washes in the UK. Statistics from the Car Wash Association state approx. 10,000 are thought to exist currently in the UK, with many newly created hand car wash sites located close to existing PFS.

2. Changes from the last Practice Note

For the 2017 Revaluation the methodology of valuation for PFS is in line with the 2010 national scheme of valuation and associated Practice Note, and also with how the market operates in terms of assessing the rental value of PFS having regard to trading performance.

Therefore the format of this Practice Note is similar to the 2010 version, with updated values where appropriate.

3. Ratepayer Discussions

Since 2008/2010 the VOA has held regular discussions with industry experts to monitor the state of the market, attended industry events, and kept up to date with market reports and rental transactions.

In relation to the 2017 Revaluation, discussions began in earnest with the VOA / SAA (Scottish Assessors Association) and the PFS industry during 2014. Industry representatives included those acting for the PRA (Petrol Retailers Association), UKPIA (UK Petroleum Industry Association), Car Wash Association plus Superstores & Oil Companies.

Following these discussions the VOA/SAA has proposed a scheme of valuation to the PFS industry which has been agreed and accepted. This is applied to all relevant petrol filling stations throughout England, Wales & Scotland.

4. Valuation Scheme

4.1 Application

4.1.1 The scheme applies to all types of PFS, whether stand alone or part of a larger hereditament such as a superstore. An exception is where the PFS forms part of a Motorway Service Area and is ‘blue signed’ from a motorway. A separate scheme applies in these cases.

4.1.2 The 2017 petrol filling station valuation scheme has been developed jointly with the Scottish Assessors Association (SAA) and therefore applies in England, Wales and Scotland.

4.1.3 The PFS market is extremely complex and it is therefore important that VOA caseworkers have a knowledge and understanding of the PFS market together with an understanding of the operating practices of all the sites within their locality.

4.1.4 It is expected that VOA caseworkers undertaking PFS valuations are fully trained on the VOA Non Bulk Server and are fully conversant with this and previous Practice Notes and the PFS Rating Manual. Additional support should first be obtained if necessary from the PFS Class Coordination Team see here. The National Specialist Unit can also provide assistance if required.

4.2 Introduction to the scheme

4.2.1 Valuations of PFS in the 2017 Rating Lists are made on the direct rental basis in which the main elements are:

  • The petrol forecourt
  • The forecourt shop
  • Valeting
  • Non forecourt buildings e.g. workshops, showrooms and other sources of income where appropriate.

4.2.2 The PFS scheme is developed from the analysis of rental information using fair maintainable trade (FMT) as a measure of the rental value attributed to each element of a PFS.

4.2.3 The practice adopted by the actual occupier in terms of operator’s policy, will generally be taken as indicative of that which would be pursued by the hypothetical tenant in seeking to maximise overall profitability from the site taking due account of competition in the locality. However there may be circumstances where the actual trade is not indicative of the hypothetical fair maintainable trade and some adjustment, e.g. for over or under trading sites may be required. If this is the case discussion with the relevant NDR unit CCT/NSU contact is required.

4.3 The Petrol Forecourt

4.3.1 The petrol forecourt includes the value of the developed forecourt excluding non-rateable plant items.

There are three separate streams of fuel throughput to consider:

  • Retail
  • Low Margin Fuel Cards (LMFC), also known as Agency
  • Bunkered Fuel

The value of the petrol forecourt is determined in accordance with nationally applied scales relating rental value to the fair maintainable throughput of these three different streams of fuel volume.

4.3.2 For the avoidance of doubt, throughput data should be recorded on Forms of Return (FOR) as:

  • The total gross throughput (all grades) excluding bunkered fuel and
  • Bunkered fuel throughput

4.3.3 Retail Fuel

Retail throughput excludes LMFC and bunkered throughput.

To determine the Fair Maintainable Retail Throughput (FMRT), the following adjustments are applied where appropriate:

  • Customer Credit Accounts (CCA) – It is understood CCA at PFS are now generally historic and are declining in number. Where they do exist and are a significant part of the trade, to reflect the fact the hypothetical tenant would be unlikely to continue with such arrangements, where the CCA represents more than 5% of the retail throughput, the CCA throughput over 5% is reduced by 25%. Where the CCA represents 5% or less of the retail throughput, no adjustment will be made.

4.3.4 Low Margin Fuel Card (LMFC)

A Low Margin Fuel Card (also known as an Agency scheme), is where a fuel company (mainly oil companies), enter into contracts to supply fuel to vehicles through its filling station network. The card holder will often be a customer with a fleet of vehicles. A contract exists between the oil company who operate the fuel card, and the fuel card holder and payment is made directly to the fuel card operator. Once fuel is dispensed at the PFS the card company effectively repurchases the fuel from the retailer at cost price, plus a handling charge for dispensing the fuel and dealing with the paperwork. The handling charge is only a proportion of the notional margin available to the retailer for normal retail throughput.

4.3.5 Bunkered Fuel

Bunkered fuel is fuel which is stored and dispensed by a PFS operator, usually on behalf of another operator who actually owns the fuel. For providing this service the PFS operator receives a handling fee/commission. This fee is of a much smaller margin than that achieved for retail fuel or LMFC sales.

4.4 Valuation Scheme Scales

4.4.1 Retail Fuel (FMRT)

The price per 1000 litres (£/000L) to be applied to the FMRT varies, according to the level of total FMRT plus the weighted LMFC trade and the unleaded (UL) price per litre implicit in the retail throughput adopted. This has been developed from the analysis of rental evidence which includes an adjustment for price. Table 1 sets out the retail fuel scale to be applied.

The UL price per litre adopted is the site’s average Catalist price for 2014 and together with the throughputs for that year would be the most up to date trade information available to the hypothetical tenant when determining their rental bid at the Antecedent Valuation Date (AVD) of 1st April 2015. The national average UK Catalist UL price per litre for 2014 was 128.18p. The pricing policy adopted by the actual site is taken as indicative of the policy that would be pursued by the hypothetical tenant in aiming to maximise overall profitability from the site, taking due account of competition in the locality and price sensitivity of the local market.

LMFC throughput is ‘weighted’ so that this element of throughput is considered in terms of FMRT. The following equation illustrates how the LMFC throughput is converted to throughput in terms of FMRT:

LMFC throughput x LMFC margin = Weighted LMFC throughput

Notional Retail margin

This equation calculates the notional profit available from the LMFC throughput and then relates this to the amount of FMRT required to generate the same level of profit. The reason being that the hypothetical tenant would take the LMFC throughput and consider what this equated to in terms of FMRT when making their rental bid.

The weighted LMFC throughput is then added to the FMRT and together with the UL price per litre determines the appropriate price per 1000 litres to be applied.

4.4.2 LMFC

The price per 1000 litres (£/000L) applied to the LMFC varies according to the level of total FMRT plus the weighted LMFC in the same way as retail fuel. The notional margin does not vary and recognises the fact that a limited handling fee is received by the operator for this throughput rather than a full retail margin. Table 2 sets out the LMFC scale.

4.4.3 Bunkered Fuel

The price per 1000 litres to be applied to bunkered fuel throughput is £1.40.

4.4.4 Staffed Kiosk Adjustment

In a relatively small number of instances a site will have no retail sales from a forecourt shop or the forecourt area itself and will only have a small kiosk. Where this kiosk is permanently staffed during opening hours for the sole purpose of collection of petrol, jet wash and car wash monies, an adjustment of 25% is made to the retail petrol value only. This is supported by rental evidence and reflects what the hypothetical tenants approach might be to the fact that all staff costs are covered by the fuel element income and not shared across fuel and a forecourt shop.

4.5 Forecourt Shop

4.5.1 Retail Trade Valuation Scales

The value of the forecourt shop, together with any ancillary offices and stores, will be determined in accordance with a nationally applied scale relating rental value to the achievable fair maintainable shop trade (FMST).

The FMST to be adopted is the turnover that a reasonably competent operator would expect the site to achieve from shop sales, excluding VAT. The turnover should also exclude income received from fuel, jet/wash transactions and monies received from both National Lottery Sales and Paypoint/Payzone facilities.

Where a site achieves only comparatively modest petrol sales an adjustment is made to the retail shop value. The overheads of running the forecourt shop are covered jointly by the income from the fuel throughputs and the shop sales, and where the fuel throughputs are considered modest, a greater proportion of the overheads fall to be covered by the shop sales, and the hypothetical tenant would adjust their bid accordingly.

This adjustment applies when the total of FMRT plus weighted LMFC throughput is less than 5 million litres.

By way of an adjustment for high turnover shops and following analysis of rental evidence and market knowledge/industry discussions, the total shop value is capped at £110,000.

This method of valuation is applied to both forecourts where shop sales are generated primarily from motorist trade as well as the increasing number of sites trading as a destination shopping venue or convenience store. It is not considered appropriate to compare the values attributed to standalone convenience stores with those forming part of a petrol filling station. Rental evidence and general market approaches suggest that there is no direct comparison between the two types of stores and would not be comparing like with like. Furthermore a convenience store is not within the same mode and category of use as a PFS.

Table 3 sets out the forecourt shop scale of values by reference to turnover and throughput.

4.5.2 Lottery, Paypoint and Payzone

A relatively low commission is received for National Lottery sales and Paypoint/Payzone facilities compared with the average level of gross profitability achieved on general forecourt shop sales and therefore monies received from operating these facilities are excluded from the FMST. However, the income available would be in the mind of the hypothetical tenant when making their rental bid and should not be completely ignored when arriving at a valuation. Conversion to Rent Factors (CRF) are therefore applied separately and as following:

CRF
Lottery 1%
Paypoint & Payzone 0.25%

4.6 Valeting

The value of any valeting services is derived from two elements: car washes and jet washes.

Like forecourt shops the valuation of valeting services for a PFS are based on the level of fair maintainable turnover generated.

4.6.1 Car Washes

Table 4 sets out the Conversion to Rent Factor (CRF) and value to be attributed to total fair maintainable turnover generated by automated car washing facilities on site. Where this turnover is generated by more than one machine a single 10% reduction is applied to the car wash value.

4.6.2 Jet Washes

A CRF of 17.5% is applied to the total turnover generated by jet washes.

There is no reduction for more than one machine.

4.7. Non-forecourt Buildings and Other Sources of Income

Non-forecourt buildings other than the shop, such as workshops and showrooms and other sources of income, such as land used as car sales or hand car washes, which are not separately assessed and which are considered subsidiary to the PFS use, should be valued on the basis of local comparable evidence and included in the valuation. It should be noted however that a PFS with say an ancillary workshop is a different mode & category of use compared with a stand-alone workshop. Therefore some adjustment may be required when considering appropriate comparative values.

Practice note 1: 2010: Petrol filling stations (revised)

1. Introduction

After initial publication of the 2010 rating list, the VOA and SAA (Scottish Assessors Association) held discussions with PFS industry representatives over the PFS 2010 valuation scheme. Representatives included agents acting for the RMI (Retail Motor Industry), UKPIA (UK Petrol Industry Association), Association of Convenience Stores, Car Wash Association plus Superstores and Oil Companies.

Following these discussions a revised scheme of valuation for Petrol Filling Stations was applied to all relevant petrol stations throughout England & Wales. To a large extent this has now been accepted by the industry and is considered to be extremely well established.

The Petrol Filling Station valuation scheme is applied to all petrol filling stations, whether or not they are stand alone, or part of a larger hereditament, such as a superstore/hypermarket or car showroom etc. with the exception of those that are situated on motorways or at Major Road Service Areas (including those ‘blue’ signed from motorways) where a separate scheme applies.

Valuations of Petrol Filling Stations (PFS) in 2010 lists are made on the direct rental basis in which the main elements are:

(a) The petrol forecourt

(b) The forecourt shop

(c) Valeting

(d) Non-forecourt buildings (e.g. workshops, showrooms, etc) and other sources of income

The PFS scheme is developed from the analysis of rental evidence using fair maintainable trade as a measure of the value attributed to each element of a PFS.

The practice adopted by the actual occupier in terms of operator’s policy, will generally be taken as indicative of that which would be pursued by the hypothetical tenant in seeking to maximise overall profitability from the site taking due account of competition in the locality.

2. Petrol Forecourt

The petrol forecourt includes the value of the developed forecourt excluding non-rateable plant items.

There are three streams of fuel throughput to consider – Retail, Low Margin Fuel Cards (LMFC) and Bunkered Fuel. The value of the petrol forecourt is determined in accordance with nationally applied scales relating rental value to the fair maintainable throughput of these three streams of throughput.

2.1 Fair Maintainable Throughputs

For the avoidance of doubt, throughput data is provided on Forms of Return (FOR) as:

i) the gross throughput (excluding bunkered fuel), and

ii) the bunkered fuel.

2.1.1 Retail Fuel

Retail throughput excludes LMFC and bunkered fuel throughput.

To determine the Fair Maintainable Retail Throughput (FMRT) the following adjustments are applied where appropriate:

i) Customer Credit Accounts (CCA)

It is understood that customer credit accounts at petrol filling stations are now generally historic, and are declining in number. Where they do exist and are a significant part of the trade, to reflect the fact that the hypothetical tenant would be unlikely to continue with such arrangements, where the CCA represents more than 5% of the retail throughput, the CCA throughput over 5% is reduced by 25%.

Where CCA represents 5% or less of the gross throughput (excluding bunkered fuel), no adjustment is made.

ii) The FMRT should be based on a site with manned opening hours of up to 18 hours per day. Where the site is open and manned in excess of 18 hours a 5% reduction is applied.

Although it may be possible to purchase fuel from the site in excess of 18 hours, and up to 24 hours a day, using automatic pumps, no allowance is applied if the site is not actually manned in excess of 18 hours.

2.1.2 Low Margin Fuel Card (LMFC)

A Low Margin Fuel Card, or Agency scheme, is where a fuel company (mainly oil companies) will enter into contracts to supply fuel to vehicles through the filling station network. The contract is between the fuel card company and the card holder and payment for fuel is made direct to the card company. Once fuel is dispensed at the PFS the card company effectively repurchases the fuel from the retailer at cost price plus a handling charge for dispensing the fuel and dealing with the paperwork. The handling charge is only a proportion of the notional margin available to the retailer for normal retail throughput.

There is no adjustment for opening hours.

2.1.3 Bunkered Fuel

Bunkered fuel is fuel which is stored and dispensed by a forecourt operator, generally on behalf of another operator, for which the forecourt operator receives a handling charge. This handling charge is a much smaller margin than that achieved for retail fuel, or received for LMFC fuel.

There is no adjustment for opening hours.

2.2 Valuation Scales

2.2.1 Retail Fuel (FMRT)

The price per 1,000 Litres (£/000l) to be applied to the FMRT varies according to the level of total FMRT plus the weighted LMFC and the unleaded (UL) price per litre implicit in the retail throughput adopted. This has been developed from the analysis of rental evidence which includes an adjustment for price. Table 1 sets out the retail fuel scale.

The UL price per litre adopted is the site’s average Catalist price for 2007 and together with the throughputs for that year would be the most up to date trade information available to the hypothetical tenant when determining his rental bid at the Antecedent Valuation Date (AVD) of 1st April 2008. The national average Catalist UL price per litre for 2007 was 94.99p. The pricing policy adopted by the actual site is generally taken as indicative of the policy that would be pursued by the hypothetical tenant in seeking to maximise overall profitability from the site, taking due account of competition in the locality and the price sensitivity of the local market.

LMFC throughput is weighted so that this element of throughput is considered in terms of FMRT. The following equation illustrates how the LMFC throughput is converted to throughput in terms of FMRT:

LMFC throughput x LMFC margin = Weighted LMFC throughput

Notional retail margin

This equation calculates the notional profit available from the LMFC throughput and then relates this to the amount of FMRT required to generate the same level of profit. As the hypothetical tenant would take the LMFC throughput and consider what this equated to in terms of FMRT when making his rental bid.

The weighted LMFC throughput is then added to the FMRT and together with the (UL) price per litre determines the price/000l to be applied.

2.2.2 LMFC

The price per 1,000 Litres (£/000l) applied to LMFC varies according to the level of total FMRT plus the weighted LMFC in the same way as retail fuel. The notional margin does not vary and recognises the fact that a limited handling fee is received for this throughput rather than the full retail margin. Table 2 sets out the LMFC scale.

2.2.3 Bunkered Fuel

The price per 1,000 Litres (£/000l) to be applied to bunkered fuel throughput is £1.40.

2.3 Manned Kiosk Adjustment

In a relatively small number of instances, a site will have no retail sales from a forecourt shop or the forecourt area itself and will only have a kiosk. Where this kiosk is permanently manned during the site opening hours for the sole purpose of collection of petrol, jet wash and car wash monies, an allowance of 25% is made to the retail petrol value only. This is supported by rental evidence and reflects what the hypothetical tenants approach might be to the fact that all staff costs are covered by the fuel element income and not shared across fuel and a forecourt shop.

3. Forecourt Shop

3.1 Retail Trade Valuation Scales

The value of the forecourt shop, together with any ancillary offices and stores, will be determined in accordance with nationally applied scales relating value to the achievable fair maintainable shop trade (FMST).

The FMST to be adopted is the turnover that a reasonably competent operator would expect the site to achieve from shop sales, excluding VAT. The turnover should also exclude income received from fuel, jet/car wash transactions and monies received from both National Lottery Sales and Paypoint/Payzone facilities.

Where a site achieves only comparatively modest petrol sales an adjustment is made to the retail shop value. The overheads of running the forecourt shop are covered jointly by the income from the fuel throughputs and the shop sales, and where the fuel throughputs are modest, a greater proportion of the overheads fall to be covered by the shop sales, and the hypothetical tenant would adjust his bid accordingly.

This adjustment applies when the total of FMRT plus weighted LMFC throughput is less than 5 million litres.

By way of an adjustment for high turnover shops and following rental evidence, the total shop value is capped at £110,000.

This method of valuation is intended to apply to both forecourts where sales are generated primarily from motorist trade as well as the increasing number of sites trading as a destination shopping venue or convenience store. It is not considered helpful to compare the values attributed to standalone convenience stores with those forming part of a petrol filling station. The rental evidence suggests that there is no direct comparison between the two types of stores and would not be comparing like with like.

Table 3 sets out the forecourt shop scale of values by reference to turnover and throughput.

3.2 Lottery, Paypoint and Payzone

A relatively low commission is received for National Lottery sales and Paypoint/Payzone facilities compared with the average level of gross profitability achieved on general forecourt shop sales and therefore monies received from operating these facilities are excluded from the FMST. However, the income available would be in the mind of the hypothetical tenant when making his rental bid and should not be completely ignored when arriving at a valuation. Conversion to Rent Factors (CRF) are therefore applied separately and as following:

CRF
Lottery 1%
Paypoint and Payzone 0.25%
  1. Valeting

The value of automated valeting is derived from two elements; car washes and jet washes.

Like forecourt shops, the valuation of valeting services on the PFS is based on the level of turnover generated.

4.1 Car Washes

Table 4 sets out the Conversion to Rent Factor (CRF) and value to be attributed to total fair maintainable turnover generated by automated car washing facilities on site. Where this turnover is generated by more than one machine a single 10% reduction is applied to the car wash value.

4.2 Jet Washes

A CRF of 17.5% is applied to the total turnover generated by jet washes.

There is no reduction for more than one machine.

5. Non-forecourt Buildings And Other Sources Of Income

Non-forecourt buildings other than the shop, such as workshops and showrooms and other sources of income, such as from land used as car sales or hand car washes, which are not separately assessed, and which are considered subsidiary to the PFS use, should be valued on the basis of local comparable evidence and included in the valuation.