Billing Authorities are responsible for the administration and calculation of the rate liabilities and they apply the transition rules. In order to do so for the 2017 Rating List they need to compare like with like, as at 31 Mar 2017 and 1 Apr 2017.
Transitional arrangements for England applicable to the 2017 rating lists and the relevant statutory provisions are contained in:
The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016 SI No 1265
Regulation 14
Changes in rateable value occurring on 1 April 2017
Where the RV shown in a list for 1 April 2017 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 2017 the VO must certify the RV that would have been shown for 1 April 2017 on the assumption that the factors applicable on 31 March 2017 had continued to apply (i.e. that the MCC or change in exemption had not taken place).
Regulation 15
Partly occupied hereditaments apportioned under s44 certificates, transitional relief is calculated by BA, and is based upon s44 apportionment.
Regulation 16 -
Inaccuracy in the Rateable Value shown for 1 April 2017
This regulation requires the VO to certify that a) it applies and b) the correct RV for 1 April 2017 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 14 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 17
Inaccuracy in the Rateable Value shown for 31 March 2017
This certificate is used when the VO is of the opinion that the RV shown for a hereditament for 31 March 2017 is inaccurate and the list cannot be amended the VO must certify that a) regulation 17 applies and b) 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 2017 it will only have effect from either:1.the date from which any certificate issued under regulation 16 has effect.2.where no regulation 16 certificate has been issued then the regulation 17 certificate will have effect from the day it is issued.
Where the RV so certified is less than the RV actually shown in the list for 31 March 2017 the certified value has effect for liability from 1 April 2017.
Regulation 18 Splits, Mergers and Reconstitutions actually occurring prior to 1 April 2017
This certificate is applicable where the actual day on which a split, merger or reconstitution took place was prior to 1 April 2017, but the new hereditament(s) is/are first shown in a list on 1 April 2017. The VO must certify a) that regulation 18 applies and b) the RV(s) applicable for the new hereditament(s) if it/they had been shown in a list for 31 March 2017. In most cases the values to be certified will be the original rateable value(s) shown in the 2017 compiled list prior to the list alteration which reflects the split, merger or reconstitution.
The VO has the power until 31 March 2018 to alter the 2010 list to show new hereditaments arising from these circumstances so there was no need to issue regulation 18 certificates until after 1 April 2018.
Schedule 1 Altered hereditaments
This certificate will apply to a hereditament which is shown in a 2017 rating list for the first time, but it must consist wholly or mainly of property which was at least part of a hereditament previously shown in the 2010 list and that original hereditament must have been deleted because of structural alterations.
If these conditions apply, then when the new hereditament is first shown in the 2017 list a certificate may be necessary. The certificate must show what the 31 March 2017 rateable value (i.e. a 2010 list assessment) would have been for that new hereditament, but importantly reflecting the matters mentioned in para 2(7) of Sch 6 to the 1988 Act as they are on the material day for the 2017 list new entry.
Whilst Schedule 1 does not distinguish between properties in upward or downward phasing, a certificate will actually only have effect if the property is in downward phasing.
Schedule 2 Splits, Mergers and Reconstitutions occurring on 1 April 2017
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 2017. The certificate is of the rateable value(s) that would have been shown for 1 April 2017 but in respect of the hereditament(s) and facts that existed on 31 March 2017.
Regulation 20 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 21 is taken to be withdrawn.
(4) The AVO must send a copy of the certificate to
(a) the billing authority or, so far as it relates to a liability under section 54 of the Act, the Secretary of State; and
(b)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 21, 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 may be inspected by any
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