Valuation Office Agency
This relates to the treatment of an assessment in either the 2017 or 2023 Rating Lists following completion of cases (check, challenge, appeal or maintenance) in the alternative (earlier/later) list.
It does not cover action to be taken in respect of consequential alterations to similar hereditaments (either by virtue of location or class) as a result of changes to the 2017 or to the 2023 list entries for the subject property.
1. There are two types of DLM; forward and backward:
Forward relates to alterations made in the 2017 lists that potentially need to be reflected in the 2023 lists.
Backward relates to alterations made in the 2023 lists that potentially need to be reflected in the 2017 lists.
2. Initially cases of forward DLM will be more prevalent as we settle 2017 casework. However, as we move into the life of the 2023 rating lists backward DLM will be more usual.
3. From 1 April 2024 backward DLM will cease as the 2017 lists can only be altered as a result of a proposal or appeal. However, TR certificates (in England) will continue to be needed see RM Section 3 Part 5 for details of which certificates are required.
4. DLM will be considered necessary unless:
- The change relates to the tone on one list only
- The change is a temporary allowance that ceased prior to 1 April 2023
- There are further 2023 changes to follow
- The change is an MCC that applies in one list only
- The 2017 assessment would increase but we are precluded from backdating the increase (but have regard to the potential need to issue TR certificates).
5.The introduction of CCA changed how challenges are made to rating assessments from 1 April 2017 (in England) and 1 April 2023 (in Wales) and therefore forwards DLM is not always appropriate.
6. High level Principles that apply but see para 8 below and scenarios
2017 list casework with 2023 potential DLM
As a general rule
Where the change is a physical change to the property and factual DLM will usually apply.
Where the 2017 list entry is the result of an agreement (challenge or proposal) or atribunal decision DLM should not be carried out - the previous agreement or decision should stand. In that circumstance, DLM is only required if the 2017 list change relates to an MCC that occurred after the Material Day of the previous alteration.
i) Where the change relates to value, treatment of disabilities, line adjustments or end allowances DLM will apply only in exceptional circumstances - it will depend on the assumptions made in the valuation basis for the particular list.
2023 list casework with 2017 potential DLM
Where the change is physical and factual and subject to date of change pre 1/4/23 DLM will apply
Where the change relates to value, treatment of disabilities, line adjustments or end allowances if there is no relevant 2017 list case outstanding the caseworker should consider whether there is clear evidence to demonstrate that the rating assessment in the 2017 list is inaccurate and if so correct it. Where it is not possible to amend the 2017 list issue TR certificates (England only) as appropriate.
In all cases of DLM this should be done as quickly as possible to ensure that billing authorities are able to process changes correctly.
7. Matters to consider before undertaking DLM
The following matters need to be considered before making the judgement whether to undertake DLM:
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When was the material day [MD] of the completed alteration to the relevant list?
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What was the reason for the change in the relevant list - normal ongoing maintenance (BAR/VOR), settlement of appeal (challenge or proposal), VT decision?
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Has an inspection been carried out? If so, when? Was it full, partial, or just external?
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To what extent were facts checked?
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Was the change because of factual changes or valuation changes or a combination of both?
8. The table in appendix 1 below shows the scenarios likely to be encountered and the action to be taken.
9. 2026 Revaluation - Triple List Maintenance
In addition to forward (2017 to 2023) and backward (2023 to 2017) DLM, any change to the 2023 assessment will also trigger a change to the 2026 reval case survey. This is generally referred to as Triple List Maintenance (TLM) or Data Ripple.
In most instances these changes will be automatic. The survey will be copied automatically from the 2023 list to the 2026 list case. It will only be in rare circumstances - where the 2026 reval case has had data changes made and is protected where changes to the Reval case survey will be required.
Appendix 1
1. Forward DLM (2023 list following 2017 alteration)
| Event | Scenario | DLM or CCA? | Questions/Comments/Recommendation |
|---|---|---|---|
| Reconstitution. | Hereditament split, merged, or reconstituted in 2017 list, and revised entries still shown for 31 March 2023. | DLM | Recons should be replicated for 2023 |
| Address changes - 1 to 1 recons (Codes 02/11 or 06/14). | Address-only change no change in unit of assessment or other facts. | DLM | Address-change Recons should be replicated for 2023 |
| Partial demolition | 2017 RV reduced (either by notice or agreement). | DLM | Consider facts on 1 April 2023 but presumption is that the 2023 is amended to reflect changed facts. |
| Extension built | RV increased (by BAR, VOR or IPP) in 2017 list. | DLM | |
| Valuation issues | Scenario 1 2017 tone reduced on appeal either zone A or rate/m2 | CCA | Almost always list specific so DLM not appropriate. |
| Mixed or factual and valuation issues? | Scenario 3 2017 tone reduced AND part demolition: | DLM | Reflect change of facts only |
| Deletions | Scenario 4 Property deleted by notice or by agreement | DLM | Delete for 2023 |
| Completion notices | Scenario 5 Date specified pre 1/4/2023 | DLM | Insert in 2023 list by DLM |
| External MCC | Scenario 6 road works commencing pre 1/4/2023 | CCA | No DLM signpost to CCA as compiled list error |
| Scenario 7 opening up of competitor business e.g. Wetherspoons, pre 1/4/2023 | CCA | No DLM signpost to CCA as compiled list error | |
| Exemptions (including partial exemption) | Scenario 8 farm office, exemption conceded on IPP wef 1/5/2019 & facts recently obtained. | DLM | DLM only if VO is satisfied that on 1 April 2023 the facts are the same. If facts at 1/4/23 unclear then direct via CCA. |
| Scenario 9 special school. Deleted from list wef 1/6/2022 by BAR & facts recently obtained. | DLM | DLM only if VO is satisfied that on 1 April 2023 the facts are the same. If facts at 1/4/23 unclear then direct via CCA. | |
| Composites a property becoming a composite or an increase in amount of non-domestic. | Scenario 10 house becoming partly non-domestic property; flat above shop converted to storage. 2017 list altered by BAR, VOR or agreement of IPP & reasonable to assume same applied at 1/4/23. | DLM | DLM (also add composite indicator) and ensure CT entry is aligned. |
| Composites - a reduction in amount of non-domestic. | Scenario 11 storage above shop converted to include in owners flat 2017 list altered by BAR, VOR or agreement of IPP & facts unclear | CCA | Liaise with CT if recently inspected for CT and all relevant facts for NDR confirmed then DLM |
| Evidence provided shows that the 2023 list is inaccurate (too low) | Scenario 12 this is more likely to occur in receipt-based valuations where the 2023 has been estimated and actual receipts have been provided during or prior to 2017 list negotiations. | DLM | DLM to correct. |
2. Backward DLM (2017 list following 2023 alteration)
There is a difference between what needs to be done up to 31 March 2024 and thereafter. Up to 31 March 2024 the VO can still usually alter the 2017 list therefore TR certification is not normally appropriate. After this date the 2017 list