Case Study

Question 1

What are the tests for unum quid?

Answer 1

Geographical
Functional
Terms of Letting - now a little bit redundant on the basis that unit of valuation cannot exceed to unit of occupation.
Capability of being separately let
Actings and Intentions of the Ratepayer

Question 2

What is Actual Use?

Answer 2

Valuing the subject property on its actual use and the use in what the hypothetical tenant would likely pay on a year to year basis

Question 3

What are some of the main cases for Actual Use?

Answer 3

Myles and Binnie v Stirlingshire
Spud u Like v Assessor for Tayside
Assessor for Glasgow v Monti Marino
Happy Feet v Assessor for Lanarkshire

Question 4

What happens in the case Myles and Binne?

Answer 4

Held that two units that had been well established as offices, even though they had the physical characteristics of shops, should be valued as offices as was the use in which they were devoted.

Question 5

What happens in the Spud U Like Case?

Answer 5

It was held that although the restaurant operated out of what had the physical characteristics of a shop unit, its actual use was as a restaurant and it should be valued as such. The premises served meals and drinks that were mainly meant for consumption on the premises.

Question 6

What happens in Assessor for Glasgow v Monti Marino?

Answer 6

Court found that the committees classification of the premises as a restaurant and cafe was appropriate and supported by factual considerations - premises layout with seating areas, food prep, table service, predominance of sit in customers and turnover with significant food sales.

Question 7

What happens in the Happy Feet case?

Answer 7

subjects were a day nursery situated on thoroughfare close to the central shopping centre and close to the railway.
Assessor valued other nurseries in other locations at a lower level - proceeded on the basis that was supported by rental analysis that nurseries which by virtue of their character and/or location had an obvious alternative office use and should be valued at same level as offices.
- entered in the roll as nursery but in applying statutory hypothesis concluded that in view of their physical layout, former use and location - hypothetical open market letting would produce a rent that reflected potential office use.

Question 8

What happens in the NHS Greater Glasgow and Clyde v Assessor for Renfrewshire VJB and the Assessor for Glasgow?

Answer 8

• held that certain health care services are to be valued by comparison to offices or on the contractors principle depending on their location and size. Tribunal concluded that subjects in a non central location and between 300 sqm and 550 sqm to be valued as offices and those subjects in a central location less than 550 sqm to be valued as offices.

Question 9

How would you value a car park?

Answer 9

comparable principle if there are established values/rents of comparable car parks
contractors where there are no rents or comparisons available
usual unit of comparison is that of a car space

Question 10

When would you enter a car park separately on the roll?

Answer 10

Where there has been no finding that its value has been included in the rental value of the units it serves - e.g. Scottish Development Agency v Assessor for Fife - no finding car park value had been included in the rental value of the industrial units on the estate and a nil value was inappropriate.

Question 11

When would you value a carp park as unum quid with another entry?

Answer 11

When the car park is included with and reflected in the rents of the properties it serves - B&Q v Assessor for Central Scotland - entry deleted on the grounds that the tenants were in paramount occupation of and joint rateable occupiers of the car park and whole of car park had been reflected in the rents of the retail warehouses entered in the roll.

Question 12

What is the main case surrounding error?

Answer 12

The Trustees for the National Gallery for Scotland v Lothian Assessors

Question 13

What happens in the National Galleries case?

Answer 13

It was held that where the ratepayer had appealed on the basis of an error that the art gallery and the restaurant should be entered as unum quid, there was no error of verifiable fact. The only error was that the ratepayer had not submitted the proposal within the statutory timsecales.

Question 14

Are there other cases, specifically on error of measurement?

Answer 14

Prestonfield House Hotels - an error of measurement includes that of not just physical measurement. Any way in which a subject is valued, in this case turnover, falls to be defined within measurement. Error in ‘measurement of turnover’ in accounts had to be rectified under error of measurement.

Question 15

What is error of survey?

Answer 15

observing and recording of all relevant details of subject - includes environment of subject as well as physical details.
Errors of opinion or judgement not accepted.

Question 16

What is error of classification?

Answer 16

placing of subjects in a category or group for the purposes of valuation
- e.g. shops, offices, dwellinghouses.

Question 17

What is error of arithmetic/administration?

Answer 17

Clerical error defined in Assessor for Strathclyde Region v Dass Nicholas - error made in copying or writing.

Question 18

When was the most recent definition of MCC changed?

Answer 18

Changed in 2020 by the Non Domestic Rates (Scotland) Act 2020

Question 19

What is the definition of MCC?

Answer 19

In relation to any lands and heritages, a change affecting their value:
a) including any decision of the VAC, LVAC or Tribunal which alters the net annual value or rateable value of any comparable lands and heritages.
b) not does not include any change:
i) in the rent of the lands and heritages (or any other lands and heritages)
ii) in level of valuations generally or in the value of lands and heritages generally.

Question 20

When must the change occur to constitute a relevant MCC?

Answer 20

As per the 1975 Act - ‘since the entry was made’. This has been confirmed in case law as a date after the valuation roll has been made up (sent to the rating authorities).

Question 21

What is a case which highlights the relevance of ‘since the roll was made up’?

Answer 21

• Assessor for Fife V Merkat Kirkcaldy Ltd and Assessor for Tayside v Land Securities Plc.
• Fall in value as a result of the 2008 recession = material change of circumstances during the 2005 reval cycle and values adjusted accordingly from 1st April 2009.
• Court rejected that a fall in the values could not constitute an MCC for the 2010 revaluation as the MCC occurred prior to the date the roll was made up - 15th March (sent to the rating authorities).

Question 22

Can an MCC be attributed to the normal ebb and flow of the market?

Answer 22

No - see Assessor for Glasgow v Schuh Ltd and Tesco Stores Ltd c Assessor for Fife.

Question 23

What happens in Assessor for Glasgow v Schuh?

Answer 23

Appeals lodged by a number of occupiers of Sauchiehall Street - they had maintained there had been an MCC since entries were made - founded on ground there had been a fall in rental values.
- committee held that combination of factors resulted in MCC - economic downturn in 2008, collapse of well known retail groups, building up of competing shopping centres and expansion and improvement of St Enoch Centre had resulted in MCC.
- Court held that in retail world change is constant and retailers and shopping centres are normally in competition with one another. Effect of these changes will be discovered and reflected in the next revaluation.
- only MCC was that of 2008 economic downturn as this was an extraordinary event.

Question 24

What happens in Tesco stores ltd v Assessor for Fife?

Answer 24

Ratepayers occupied a mid-sized supermarket and maintained that the opening of a large supermarket constituted a material change of circumstances.
Refused by committee and by LVAC on appeal on the fact:
no primary evidence to show support conclusion that a fall in turnover had caused the rental value of the subjects to fall.

Question 25

What happens in the Assessor for Lanarkshire v Thomas B Morrison?

Answer 25

Principle on the fact that ratepayer (proposer) has to prove that a MATERIAL change has occurred (change in value). ONUS IS ON THEM.