PricewaterhouseCoopers LLP 24 February 2010 Page 1 Topical Issues from a private sector perspective SIMON TIVEY IRRV (Hons), Head of Rating, PricewaterhouseCoopers. Author and Editor of IRRV Rating Law & Practice Author of Tolley’s Property Taxation (Business Rates) Previously with Frank Innes Chartered Surveyors, East Staffs DC, South Derbys DC and Leicester City Council. Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 2 Topical Issues from a private sector perspective My brief was to identify rating issues from a “private sector” perspective. The private sector are: YOUR RATING CUSTOMERS / PAYERS Who are they? : employers, wealth creators, service providers, where you shop, your pension fund provider. What would they like from you? Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 3 Suspension of payment/recovery – Liability disputes Care required in deciding how to suspend. What markers or changes are made on your rating accounts /system. What is said in letters, s, telephone conversations. Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 4 Discovery What is covered by legal discovery? When does it apply? IRRV Forum or CIPFA advice Without Prejudice Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 5 Costs How and when are you exposed to costs? Be aware of Court protocols under Civil Procedure Rules Take liability disputes seriously Remember the Pool rules and procedures Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 6 Re-val compiled list date issues MCC’s at the compiled list date Why is this important? Rules about whether a hererditament has lost its identity. Uneconomic to repair What does it matter to a rating officer of the BA? Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 7 Empty Rate – Relevant Hereditament rules What is a relevant hereditament? Don’t confuse with exemptions Can you make a determination on relevant hereditaments? Can your system deal with non-relevant hereditaments? Can your system cope with non-recoverable empty rates? Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 8 Empty Rate – Relevant Hereditament rules Case Study Former employees social club, sports centre and conference centre. Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 9 Empty Rate – Relevant Hereditament rules Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 10 Recent changes in Scotland How can this possibly be relevant to us in the East Midlands? Denial of existence of completion notice legislation Refusal to use completion notice procedures where appropriate. Scottish Government Guidance Note Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 11 Time extension for Completion Notice Appeals New Valuation Tribunal Regulations granting new powers. How can this affect me? Also new rules for preliminary hearings Lead case procedures Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 12 The Tewkesbury Case VT held that the VO cannot circumvent the completion notice procedure. Lands Tribunal will decide whether there is a new principle of“de minimis” that overrides completion notices. Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 13 Tax deductability of empty rates Trading companies – empty rates are deductable Property rental companies – empty rates generally deductable. Investment companies – empty rates often non-deductable. Pension Funds – empty rates non-deductable. Business Rates

PricewaterhouseCoopers LLP 24 February 2010 Page 14 Section 44A relief Remember that the decision to exercise discretion precedes the calculation of relief. Don’t fall into the trap of letting the calculation tail wag the relief dog. Are you following CLG and IRRV advice? Have you read Gordon Heath’s articles? Don’t create false operative periods or prejudice one type of ratepayer in favour of another. Business Rates