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Part 5: Transitional Relief

Valuation Office Agency

May 17
15:08 2023

Transitional relief was introduced by The Local Government Finance Act 1988 and provided for by The Non-Domestic Rating (Transitional Period) Regulations 1990 SI 608. Further schemes were introduced for the 1995, 2000, 2005 and 2010 Non-Domestic Rating lists.

Each scheme although similar stands on its own, and is dealt with in more detail within the year tabs above.

The Billing Authority need to be able to compare the rate liability on the day the list is compiled with the rate liability the day before to phase in the increases and decreases in rate liability caused by a revaluation.

The rate liability on the last day of the previous list is known as the Base liability.

The rate liability on the first day of the new list is know as the Notional Chargeable Amount.

Significant dates

2005 scheme: 31.03.05 and 01.04.05.

2010 scheme: 31.03.10 and 01.04.10.

Transition relief 2023 scheme regulations

The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2022 SI No.1403.

Regulation 16

Changes in rateable value actually occurring on 1 April 2023.

Where the RV shown in a list for 1 April 2023 is affected by a change in relevant factors [a material change of circumstances (MCC)] or the extent to which the property is exempt] that actually occurs on 1 April 2023 the VO must certify the RV that would have been shown for 1 April 2023 on the assumption that the factors applicable on 31 March 2023 had continued to apply (i.e. that the MCC or change in exemption had not taken place).

Regulation 17

Partly occupied hereditaments apportioned under s44A certificates, transitional relief is calculated by BA, and is based upon s44A apportionment.

Regulation 18

Inaccuracy in the Rateable Value shown for 1 April 2023.

This regulation requires the VO to certify

a) that it applies, andb) the correct RV for 1 April 2023,if the VO is of the opinion that the RV shown for that day is inaccurate for any reason other than solely due to an MCC occurring on that day [in which case see Reg 16 above].

It is most likely to be necessary where the VO has increased the RV due to a compiled list inaccuracy and the effective date of that increase has been restricted to the day the list was altered by the VO by regulation 14(7) of the Non-Domestic Rating (Alteration of Lists and Appeals)(England) Regulations 2009 SI No 2268. All other errors in the compiled list are capable of being corrected by alteration of the list itself and certification will not be necessary. Even though such a certificate may result from an increase in rateable value there is no need to seek the consent of, or a request from, the ratepayer before issuing the certificate.

Regulation 19

Inaccuracy in the Rateable Value shown for 31 March 2023.

This certificate is used when the VO is of the opinion that the RV shown for a hereditament for 31 March 2023 is inaccurate and the list cannot be amended. The VO must certify

a) that regulation 19 applies, andb) the RV that should have been shown for that day.

Where the RV certified is greater than the RV shown in the list for 31 March 2023 it will only have effect from either:

  1. the date from which any certificate issued under regulation 18 has effect.
  2. where no regulation 18 certificate has been issued then the regulation 19 certificate will have effect from the day it is issued. Template certificate VO7635, VO7635A

Where the RV so certified is less than the RV actually shown in the list for 31 March 2023 the certified value has effect for liability from 1 April 2023.

Regulation 20: splits, mergers and reconstitutions occurring prior to 1 April 2023

This certificate is applicable where the actual day on which a split, merger or reconstitution took place was prior to 1 April 2023, but the new hereditament(s) is/are first shown in a list on 1 April 2023. The VO must certify

a) that regulation 20 applies, andb) the RV(s) applicable for the new hereditament(s) if it/they had been shown in a list for 31 March 2023.

The VO has the power until 31 March 2024 to alter the 2017 list to show new hereditaments arising from these circumstances so there is no need to issue regulation 20 certificates until after 1 April 2024.

Schedule Splits, Mergers and Reconstitutions actually occurring on 01 April 2023

The only occasion a VO needs to provide a certificate under this Schedule is when a split, merger or reconstitution of hereditaments actually occurs on 1 April 2023. The certificate is of the rateable value(s) that would have been shown for 1 April 2023 but in respect of the hereditament(s) and facts that existed on 31 March 2023.

In most cases the values to be certified will be the original rateable value(s) shown in the 2023 compiled list prior to the list alteration which reflects the split, merger or reconstitution.

Note that as 1 April 2023 is a Saturday it is likely that these certificates will not be commonplace.

Regulation 23 provides that:

(1) The appropriate valuation officer (the AVO) must certify the rateable values which fall to be certified by the AVO under these Regulations as soon as practicable after the circumstances calling for the certification come to the AVOs attention (whether by virtue of an application by the billing authority, the Secretary of State, the ratepayer or otherwise).

(2) Where, whether by reason of a decision of the Valuation Tribunal for England or otherwise, the AVO forms the opinion that a certificate under these Regulations (other than such a certificate which has been confirmed on appeal) is inaccurate, the AVO must certify the rateable value which in the AVOs opinion should be substituted for the rateable value originally certified.

(3) A certificate under paragraph (2) has effect in place of the previous certificate, and any appeal against the previous certificate under regulation 24 is taken to be withdrawn.

(4) The AVO must -

(a) notify the billing authority or, so far as it relates to a liability under section 54 of the Act, the Secretary of State, of the effect of the certificate; and

(b) send a copy of the certificate to the ratepayer.

(5) The copy of a certificate sent to a ratepayer under paragraph (4) may be sent to -

(a) the ratepayers last known address, or

(b) the address of the hereditament.

(6) The copy of a certificate sent to a ratepayer under paragraph (4) must be accompanied by -

(a) a statement of the effect of regulation 24, and

(b) for a value certified under paragraph (2), a statement of the effect of paragraph (3).

(7) A certificate issued under these Regulations -

(a) must be retained by the AVO who issued it; and

(b) may be inspected by any person at any reasonable time.

Regulation 24 Appeals against certificates

(1) Where an interested person in relation to a hereditament in respect of which a value is certified by an appropriate valuation officer under these Regulations is dissatisfied with the value so certified, the interested person may appeal against the certificate in accordance with this regulation.

(2)An appeal under paragraph (1) is made by serving a notice on the appropriate valuation officer stating the appellants reasons for being dissatisfied.

(3)A notice mentioned in paragraph (2) must be served within the period of 6 months beginning with the date on which the certificate was issued.

(4)Unless

(a) the notice is withdrawn, or

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