Part 1: powers and duties of the Valuation Officer
The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.
1.1 Each unit head is the statutory valuation officer[VO] for the billing authorities[BA] within the unit boundaries and takes on the responsibilities contained in the Local Government Finance Act 1988
1.2 Unit VOs need to be aware of the statutory responsibilities for which they are accountable and make appropriate arrangements, particularly for any delegated tasks. These need to be transparent and satisfy any enquiry about fairness and impartiality of the VO and their representatives.
1.3 A Unit VO will need to maintain overall control over casework and list maintenance, and these arrangements will need to make it clear who is responsible to the VO for what and should be kept available for audit purposes.
1.4 Unit VOs will need to set requirements on Team Leaders and Specialist Teams to ensure that the VOs are kept informed of work progress and particular concerns and problems so that they know that statutory responsibilities are being properly carried out in their names.
2.1 The Commissioners of HM Revenue and Customs are responsible for the appointment of a 鈥渧aluation officer鈥� for each billing authority (BA) in England and Wales. This is a statutory appointment under the provisions of s.61(1) of the Local Government Finance Act 1988 (LGFA 1988 which provides that 鈥�
鈥楾he Commissioners of HM Revenue and Customs shall appoint 鈥� a valuation officer for each billing authority 鈥︹€�
In practice, a VO has responsibility for a valuation area that includes more than one BA area.
2.2 The VO鈥檚 statutory duties are set out in s.41(1) LGFA 1988:
鈥楾he valuation officer for a billing authority shall compile, and then maintain, lists for the authority (to be called its local non-domestic rating lists).鈥�
2.2 Unit VOs are responsible for all functions carried out in performance of those duties, whether by themselves in person or on their behalf. This includes specialists in other units, where the NVU including Mineral Valuers are undertaking work under the authority of the Unit VO.
2.3 The Commissioners of HM Revenue and Customs are also responsible, under the same section, for the appointment of the central valuation officer, one for England and one for Wales. Their duties are set out separately in s.52(1) LGFA 1988. It follows that Unit VOs have no authority to act in relation to any central list hereditament that may be located within their valuation area. The Unit VO does, however, have authority to act in relation to local list entries where the question arises as to whether the hereditament is, in whole or in part, a central list hereditament. In such cases the Unit VO should have regard to the contents of RM Section 2 Part 2, and in particular paragraphs 5 & 6.
2.4 The powers and duties of VOs, which are outlined in this and succeeding sections of this manual, must be read in conjunction with HR鈥檚 鈥楾he Guide.鈥�
3.1 Compilation and Maintenance of Rating Lists
VOs have a statutory duty to compile and maintain a Rating List for each billing authority area under their control. As part of this duty, VOs and their staff should note any physical changes to hereditaments, or other features, which are observed during inspections that lead them to suppose that an alteration of the rating list may be required. Appropriate action should then be taken. Billing authorities have a statutory duty to advise VOs where information comes to their attention which leads them to suppose a rating list may require alteration (Sch9 para 6(6) 1988 Act).
3.2 Observance of Legitimate Entitlements and Administrative Practices
Even where there is no specific statutory duty, the general principle remains that ratepayers must not be denied their legitimate entitlements and that all administrative practices shall be carried out in a correct and proper manner. Such entitlements may arise because of changes in the law or in the interpretation of the law by decisions of VTs, the UT or other appellate bodies.
3.3 In cases where, for instance, the VO鈥檚 view that no allowance should be made for a particular disability is not upheld by a court, the VO must decide the subsequent action to be taken. In such circumstances it should be considered whether an adjustment should be made in the assessments of other similar properties and, where appropriate, the VO should make alterations to the rating list or invite the ratepayers affected to make proposals.
3.4 There will be occasions, however, when the issues are not clear cut and the extent to which the assessments of other properties may be affected is not easy to determine. It is the decision of the VO as to the proper course of action in such cases. A ratepayer should not be deprived of a change in assessment when, in the VO鈥檚 opinion, that assessment should be corrected. However, care must be exercised in altering an assessment when there is an existing vehicle available, such as an outstanding proposal. An assessment should not be reduced after the start date of a sub-programme when there is a proposal made by the ratepayer or agent that can be used to give effect to the alteration the VO considers appropriate.
3.5 Legal Advice
Legal advice, when required, will be obtained by CVG. Requests for legal advice should be directed in the first instance to the appropriate Technical Adviser for that Unit, who will discuss with the Litigation Settlement Review Panel whether it is necessary to seek advice from HM Revenue and Customs Solicitor鈥檚 Office.
4.1 Unit VOs need to be confident that delegated functions are being properly carried out. To minimise any risk of judicial review, Unit VOs need to be aware of what is being carried out on their behalf.
4.2 Unit VOs, as VOs, have ultimate responsibility, when compiling and maintaining rating lists, for quality customer service as well as for technical quality.
4.3 Unit VOs can devolve certain of their statutory duties as a means of achieving the most practical working arrangement but are ultimately responsible for those duties.
4.4 The Unit VO role is to oversee the contributions of the separate teams within the Unit, taking the lead in liaising with valuation tribunals, billing authorities and with representatives of professional bodies.
4.5 Unit VOs will not have personal knowledge of all hereditaments and localities but will be expected to have an overall knowledge of value levels within their unit, and will be aware of the basis of the bulk classes, and relativities between one area and another. They should be seen to offer an overview of the highest assessments, and will be aware of sensitive properties and levels of RV.
4.6 While the Unit VO is ultimately accountable, the Team Leaders will be responsible to the Unit VO for whatever functions they and their teams carry out on behalf of the VO. They will be responsible for technical quality and should bring to the attention of the Unit VO all those cases that give rise to any significant valuation, legal, and policy issues. Where a Unit VO needs to be informed on such an issue it is important that the Team Leader ensures that this is done before the action is taken in the Unit VO鈥檚 name.
(i) Rating Team Leaders will need to brief the Unit VO on high profile assessments, and on those properties where RV is significant or sensitive.
(ii) The Unit VO will need to be kept fully informed on all Upper Tribunal Lands Chamber cases, and may need to be involved in discussions with the valuer dealing with the case, the Technical Adviser or the relevant CVG valuer in NVU, and the Solicitor of the HM Revenue and Customs, if instructed.
iii) Specialist teams in other units, the NVU and other units will need to keep the Unit VOs informed of the basis of valuation for the non-bulk properties under their control, briefing them on any significant issues arising. The Unit VOs will also need to be informed of any litigation arising at the Upper Tribunal and above.
(iv) Other specialists will also be accountable to the Unit VOs for functions carried out in their names where delegated authority has been given. They will need to inform Unit VOs of what developments are occurring within their respective specialist fields, and any current litigation.
5.1 A letter of authority for Rating is issued to the NDR Unit Head as the Valuation Officer for each Unit in England and Wales signed by the Chief Executive of the VOA. There are two separate versions for England and Wales, as well as a Welsh language version. (VO9059E and W)
5.2 Valuation Officers are then able to delegate the request of written information in their names and to authorise in writing those staff who need to enter premises to survey and value or appear before the courts in litigation. A separate authority to inspect is issued by Listing Officers for Council Tax (VO9056)
5.3 Without a correct letter of authority, actions taken may be invalid. Any VO who, at any time, is without an authority covering the whole of the valuation area concerned should contact Human Resources immediately.
5.4 If there is a gap between the end of one VO鈥檚 appointment and the start of the next (for example, because of death) it will be necessary to stockpile rating work until the new appointment has been made. There must always be a duly authorised VO in post.
6.1 In the case of composite hereditaments, that is properties that contain domestic and non-domestic parts, it is essential VOs and LOs liaise to ensure they agree on the extent of the non-domestic and domestic use of the property so that the survey data for each tax is consistent with the other part.
7.1 Regulation 13 of The Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009 SI 2269 provides that:
鈥淎 party may appoint a representative (whether a legal representative or not) to represent that party in the proceedings, but the representative must not be a member of the VTE or the VTS or an employee of the VTS.鈥�
And Regulation 29 of The Non-Domestic Rating (Alteration of Lists and Appeals) Regulations 2005 (SI 2005/659) (WSI 2005/758) provides in Wales that:
鈥淎ny party to an appeal . . . may appear in person (with assistance from any person if he wishes), by counsel or solicitor, or any other representative 鈥︹€�
7.2 The VO may therefore delegate to any caseworker the duty of conducting cases before the VT where the appeal concerns a hereditament which has been valued by the VO or a member of the VO鈥檚 staff. Officers representing the VO at VT hearings require an authorisation to do so (this does not apply to those who may be called solely as witnesses to matters of fact, e.g. effective date). The form of that authorisation is shown at RM Appendix 2:1:1 and should be produced on office headed paper. It is available from Templates in Word using form VO 7911.
7.3 At VT hearings an officer conducting a case for the VO should not describe him/herself as 鈥渢he valuation officer鈥� but, rather, as the VO鈥檚 鈥渞epresentative.鈥� Reference to the VO should be considered to be the one appointed officer.
7.4 For Upper Tribunal Lands Chamber hearings the term Valuation Officer is taken to include any officer authorised by the statutory VO in writing to act on that VO鈥檚 behalf.
7.5 Rule 11(1) of The Tribunal Procedure (Upper Tribunal) (Lands Chamber) Rules 2010 SI No.2600 provides that 鈥淎 party may appoint a representative (whether a legal representative or not) to represent that party in the proceedings.鈥� This permits the valuation officer to appoint a representative.
7.6 If an officer other than the appointed VO is to conduct an appeal with or without legal representation, that officer should be issued with an authority to act as the VO for the purposes of the appeal. An appointed VO conducting a case personally, or legally represented, will be named as the appellant or respondent as appropriate on all procedural documents. This authority should be worded as in RM Appendix 1:1:3. It is available from Templates in Word using form VO 7912.
7.7 An authorisation is needed for each Upper Tribunal appeal. Where there are a set of related appeals, e.g. an appeal and cross appeal, an authority to cover both may be issued.
7.8 At the same time as notice of appeal or notice of intention to appear is sent to the Registrar of the Upper Tribunal a letter (RM Appendix 1.1.4) should be sent to all the parties who appeared at the valuation tribunal informing them that the officer has been duly authorised to act on behalf of the VO for the purposes of the appeal. Any challenge prior to a hearing to an officer鈥檚 entitlement to appear as a party to an appeal should immediately be reported to CVG. If the challenge is made at the hearing an adjournment should be requested and direct advice sought by telephone from CVG.
8.1
VOs must carry out their statutory responsibilities, but at the same time the nature and number of tasks that have to be performed mean that they will have to delegate tasks to staff at appropriate levels, both within the Unit and also to specialists outside the Unit structure, in particular to Mineral Valuers, specialists in other units and the National Valuation Unit.
8.2
All delegations or authorisations must be able to satisfy any enquiry about the suitability (particularly concerning ability and experience) of the delegate to perform the tasks allocated. Authorisations need to be able to stand appropriate scrutiny and should not be issued without due care.
8.3
Unit heads need to be satisfied that staff dealing with work are knowledgeable and able to properly undertake the work. VOs should decide which staff should undertake the functions of signing agreement forms, withdrawal forms and certificates. VOs should maintain a list of the specified members of the VOA staff formally authorised to act for them. This should indicate what functions they may undertake and for what billing authorities and classes.
8.4 VOs will need to arrange the issue of appropriate authorities referred to above to staff at all locations within the Unit, to staff in other units, to CVG NVU specialists, to Mineral Valuers and Building Surveyors. All authorisations must be signed by the statutory VO and a copy kept on the personal file of the recipient. A single composite authority letter has been designed to cover all authorities. Units will need to maintain a schedule of authorities issued for control and audit purposes and an Excel Spreadsheet has been designed for this purpose. This can be used as a database using the Microsoft Mail Merge facility to produce the necessary standard authority letter. The spreadsheet and linked standard letter are maintained and managed by each Unit鈥檚 Support Team.
8.5 The various functions carried out as part of the process of compiling and maintaining rating lists will all need to be delegated. However, all actions taken will be in the name of the statutory VO and should be signed correspondingly 鈥榝or xxx Valuation Officer鈥�.
(i) Disposal of proposals and appeals: It will be necessary for inspections, valuations, agreements, withdrawals, well founded proposals, and the service of Notices in connection with appeals (Reg 17 in England Reg 31 in Wales), to be delegated to appropriate members of staff within the Unit, and to the specialists outside the Unit, but the Unit VO will always have the ultimate responsibility for these operations.
(ii) Service of Notices to Alter the List: All functions necessary for the service of notices for list alterations can be delegated within the unit or to the remote specialist.
(iii) Service of FORs and RALDs: The VO will delegate arrangements for issuing FORs and RALDs and may delegate this to specialists. The LGFA 1988 allows VOs to specify the way FORs are to be returned and therefore VOs may request the FOR to be returned direct to the specialist e.g. the Mineral Valuer. All FORs must be issued in the name of the individual Unit VO and therefore specialists authorised to issue FORs will need to arrange for forms to be rubber stamped, or otherwise, to show the VO鈥檚 name e.g. A. Smith, Valuation Officer South Central.
(iv) Issue of Certificates, and Apportionments and Determinations of Rateable Value: The issue of certificates such as Transitional Certifications, certifications under Certificates of Apportionment and Certificates under the Rent Act 1977, can all be delegated. The signing of any Certificates, Apportionments, or Determinations should be devolved to Team Leader level. The issue of certificates such as Transitional Relief Certificates under the Chargeable Amounts regulations, and certificates of apportionment under section 44A LGFA 1988 can all be delegated. Certain tasks such as determination of Rateable Value under the Landlord and Tenant Act 1954 cannot be delegated (See RM3:5:12.2).
(v) Appearance at VT: The right to represent the Unit VO at VT in respect of an appeal will be delegated to caseworkers (See para 5 above).
(vi) Upper Tribunal Lands Chamber Appeals: Unit VOs will take a close interest in Upper Tribunal Lands Chamber cases and should ensure an experienced expert witness is available to consider the evidence and assist the court 鈥� Grade 7 and SEO staff taking cases will have strong support from Technical Advisers who will assist in the management of Unit Upper Tribunal Lands Chamber cases.
8.6 Staff should rely on the standard identity document VO 9053 when wishing to enter on, survey or value property.
8.7 At VT hearings a specialist valuer will normally be introduced by a caseworker from the Unit. The specialist valuer needs to request the relevant Valuation Officer to issue an authority worded as in RM Appendix 1:1:2 prior to any VT hearing.
8.8 The Building Surveyor and Plant and Machinery Valuer, if attending any VT hearing, will do so to give evidence as an expert rather than to represent the Valuation Officer and therefore will not need an authority to represent the Valuation Officer.
8.9 It is essential that caseworkers ensure that the appropriate authority has been obtained before representing the VO in any VT proceedings.
9.1 Para 6B of Schedule 9 of the Local Government Finance Act 1988 sets out the powers of entry provisions for England and para 7 of schedule 9 sets out the powers for Wales. Inspections undertaken by the Valuation Office Agency are carried out with the consent of the occupier.
9.2 To comply with the requirements of Paragraph 6B and 7, all staff who are engaged in referencing and valuation duties for rating purposes must hold a written authorisation signed by the VO. The authorisation should be in the form shown at RM Appendix 1 and be produced on office headed paper. A copy should be placed on the recipient鈥檚 personal file, and the recipient should keep the original safely. It is not intended that it should be displayed to the public when a property is being inspected. The identity document VO 9053 is designed for that purpose. It should however be available if requested, either by a ratepayer or during the appeal process.
9.3 Whilst staff may continue to operate under written authorisation of the previous Unit VO new authorities should be issued shortly after the new VO takes up post.
All documents issued by VOs under their statutory function must be issued either in their name or signed on their behalf by a member of staff to whom authority has been delegated. Unit instructions should clearly state which documents are to be signed by the VO, and which documents where authority is delegated to sign on the VO鈥檚 behalf. Unit instructions should clearly state which members of staff have the delegated authority to sign documents on behalf of the VO. Documents issued in exercise of delegated authority must be signed 鈥渇or Valuation Officer.鈥�
The VOA must be completely impartial in all contact with members of the public, their appointed agents and billing authorities (BAs). All assessments must be made completely free from personal interest or prejudice. In line with the VOA鈥檚 Conflict of Interest policy, if you are allocated any work involving a dwelling, hereditament, property, building or premises in which you have a personal interest (e.g. one you own, rent, occupy or have a commercial interest in, or in respect of which your family, friends or other third parties you know have an interest) you must explain your interest to your line manager and request that the task is allocated to another officer. Under no circumstances must you undertake work involving such properties yourself, and this includes amending the database where someone else has completed the banding or valuation.
BAs uses these assessments to determine the amount of rate demands, so it is particularly important that there are no circumstances where an accusation of bias could be made against the VOA.
12.1 Information to Ratepayers 鈥� General
There is no statutory requirement for VOs to provide apportioned assessments to ratepayers on demand. The exception is where there are statutory provisions as set out above i.e. S.44A certificates.
12.2 Details of Valuations
12.2.1 VOs are reminded that rating law does not prevent disclosure to the ratepayer of details of the valuation underlying the rateable value of their property. Most valuations are available to view via the Rating list on the internet application. A person with an interest in a property, either the occupier or owner can obtain a detailed breakdown of their property鈥檚 assessment via the Check and Challenge portal by claiming their interest in the property with appropriate documentation e.g. a recent rate demand for the property. For more detail on this see Rating Manual Section 7 Part 4.
12.2.2 Therefore whilst requests by ratepayers for apportionments must be declined, VOs may provide a breakdown of the assessment in the form that would be presented to a VT in evidence. However, in any case when a rateable value has been arrived at by reference to a percentage of gross receipts, as in other cases when the valuation cannot be shown on a 鈥榬oom by room鈥� basis, ratepayers should be advised that the information might not assist them in the way they may be expecting. No attempt should be made to apportion rateable values arrived at by any method, other than in the circumstances set out above. See Paragraph 1.1 above.
12.2.3 There is of course no right of appeal against the breakdown of an assessment, only against the entry in the rating list. Any requests for apportionments outside the scope of these instructions should be referred to CVG via the Green Button.
12.3 Complaints
Complaints on case handling - not valuation - should be referred to the Complaints Investigation Team.
12.4 Check, Challenge Appeal
In general, Ratepayer enquiries should be directed to the CCA portal. This will enable interested persons to claim their property and advise the VO of any necessary survey data amendments at Check stage.
12.5 Reinstatement of temporary reductions
Where a reduction of assessment is conceded by the VO or determined by the VT as a result of a temporary change of circumstances, such as road works, it is essential that the ratepayer should clearly understand that the VO reserves the right to restore the assessment, either wholly or partially, whenever there is a further change of circumstances e.g. on completion of the work. Where the VO alters the list by reducing the assessment in such cases, or settles a proposal, the VO should write to the ratepayer explaining the position and send a copy of the letter to the BA for information. Additionally, where the VO decides to restore the assessment, either partially or wholly, the VO Notice of Alteration of the Rating List should be accompanied by a further explanatory letter. A copy of the letter should also be sent to the BA together with the schedule of alterations.
12.6 Advice to Appellant Ratepayers
In appropriate cases VOs may, at their discretion, inform appellant ratepayers, or their agents, that proposals concerning comparable properties have been unsuccessful. Care should be taken to avoid making any statement from which the inference could be drawn that if the ratepayer proceeds to a hearing by the VT and is successful, that an appeal to the Upper Tribunal by the VO will follow automatically. VOs should be careful not to give any formal advice to ratepayers personally, either of a general nature or of a specific nature relevant to the subject enquiry or any particular appeal. If a negligent statement were to be made during the course of such advice, or if ratepayers were to be given a legitimate expectation of a particular course of action or practice (later not realised) VOs could face legal proceedings, including judicial review, being taken against them.
12.7 Need for Care When Giving Assistance
VOs should make certain that all their staff take the greatest care when answering ratepayers鈥� enquiries and giving help, for example, on procedure or advice on rate liability arising from the operation of a scheme of transitional relief. The wish to assist should not lead to the giving of superficial advice where insufficient evidence or knowledge is available to reach a proper conclusion. Where an officer is unable to give accurate advice, it should be politely explained to the ratepayer that further consideration needs to be given to the enquiry. The matter should then be referred to a senior member of the VO鈥檚 staff.
12.8 Discovery of Mistakes
VO staff must in general exercise caution in their admission of errors. Before any mistake is admitted, special care should be taken by the officer to ensure, beyond any doubt, that a genuine error has been made, and any possible errors should be discussed with the Team Leader or line manager before advice is sought from customer service colleagues on how to inform the ratepayer. Matters involving previous judgements by other members of staff must not be admitted as errors. Any complaint must be referred to customer service colleagues .
12.9 Prompt Action on Proposals
Work should be allocated and managed to ensure all Check and Challenge deadlines for action are met.
12.10 File Notes of Conversations
All staff must make a record of the details of any conversation on a case in either the Survey Remarks or Valuation Remarks fields, or in the Case Remarks facility on RSA, whether this conversation be by telephone or in person. This is particularly important for complaints.
13.1 Valuation Matters
Each Unit VO should ensure team leaders keep in touch with adjoining units to ensure uniformity in relation to the valuation of all classes of hereditaments dealt with by units directly. This applies particularly to properties situated close to boundaries and to hereditaments of an unusual, or special, nature.
13.2 Boundary Properties
Where a property is divided by the boundary between valuation areas only one VO will be responsible for its valuation and for negotiations and appeal proceedings but will consult the other VO concerned whenever it is necessary to do so. The VO responsible for the rating list in which the hereditament is entered will be responsible for these matters.
14.1 General
鈥楢ny person may require the VO to give him access to information to establish the state of a list, or its state at any time since it came into force, if:
a) the VO is maintaining the list, and b) the list is in force or has been in force at any time in the preceding 5 years鈥�
(See LGFA 1988 Sch 9 para 8(1) as amended).
Any person exercising this right may make copies or transcripts of, or make take extracts from, the information without charge. They may also require the VO to supply a copy of the information, but a charge may be made for this service depending upon how many copies are required.
14.2 There is a similar right under schedule 9 para 9(1) for persons to inspect any proposal made or notice of appeal given under the Appeals Regulations in respect of a list which is or has been in force at any time in the preceding 5 years. A person exercising this right may make copies of, or extracts from the documents free of charge, or, subject to payment of a charge, require the VO to supply a photographic copy. Proposals made against 2017 or later lists through the Challenge process will require careful consideration to ensure that only information relevant to the proposal is disclosed, for example any business name must be redacted.
14.3 Now that the Rating List [RLI] is available on the internet there are less requests made to inspect lists. Transitional certificates issued via RSA are also indicated on the RLI application, manually produced certificates are not shown. Requests to inspect lists which impose an unreasonable burden on the VO in terms of staff time and resources should be referred to the Information, Law and Disclosure team or Customer Services Team for advice.
Authority to be issued to all staff undertaking inspection for Rating purposes
I hereby authorise to enter on, survey, and value hereditaments for rating purposes in accordance with the provisions of paragraph 7 of Schedule 9 to the Local Government Finance Act 1988. This authority should be produced with an identity document, serial number * * * * * * * * * * bearing a photograph of the holder.
Signed
Valuation Officer.
Date
VO 7911 - Authority to be issued to all staff representing the VO at VT hearings in England
I hereby authorise * to be my representative at Valuation Tribunal hearings, in accordance with the provision of Regulation 13 of the Valuation Tribunal for England (Council Tax and Rating Appeal) (Procedure) Regulations 2009.
Signed
Valuation Officer
Date
VO 7911 - Authority to be issued to all staff representing the VO at VT hearings in Wales
I hereby authorise * to be my representative at Valuation Tribunal hearings, in accordance with the provision of Regulation 29 of the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005.
Signed
Valuation Officer
Date
VO 7912 - Authority to be issued to all staff representing the VO at the Upper Tribunal Lands Chamber
Dear Sir
APPEAL TO THE UPPER TRIBUNAL [LANDS CHAMBER] - LC *
I hereby authorise * to act on my behalf as Valuation Officer for the purposes of the appeal made by * on * against the decision of * Valuation Tribunal on * in respect of the above hereditament.
Yours faithfully
Valuation Officer
Authority to be issued to all staff representing the VO at the Upper Tribunal [Lands Chamber]
Dear
Appeal to the Upper Tribunal [Lands Chamber]
LC *
Address & Description
I have today sent to the Registrar of the Upper Tribunal [Lands Chamber] Notice of Appeal/Notice of Intention to appear at the Hearing of the Appeal, a copy of which is attached to this letter.
I have authorised ****** to act on my behalf as Valuation Officer for the purposes of the appeal to which the attached notice relates.
Yours faithfully