The rating hypothesis must be interpreted to allow for the actual policies of the tenant. Where the tenant would not overbid despite the finding that properties of this type could not be managed to produce a profit. Nil rating was appropriate. Peter Gibson LJ said: ‘In particular I would emphasise the necessity to adhere to reality subject only to giving full effect to the statutory hypothesis, so that the hypothetical lessor and lessee act as a prudent lessor and lessee. I would call this the principle of reality’ Scheimann LJ: ‘The statutory hypothesis is only a mechanism for enabling one to arrive at a value for a particular hereditament for rating purposes. It does not entitle the valuer to depart from the real world further than the hypothesis compels.’
Judges:
Peter Gibson LJ, Scheimann LJ
Citations:
Times 16-Oct-1998, [1998] EWCA Civ 1525, [1998] RA 319, [1999] 1 EGLR 155, (1999) 77 P and CR 366, [1998] EG 141
Links:
Statutes:
Local Government Finance Act 1988 Sch 6 p 2
Jurisdiction:
England and Wales
Cited by:
Cited – Orange PCS v Alan Roy Bradford (Valuation Officer) CA 17-Feb-2004
The claimant challenged the rating of the land it had used for the erection of a mobile ohone mast.
Held: Even though the company had the statutory right to place a mast in this location and without payment, for rating purposes the officer . .
Cited – Roberts and Another v South Gloucestershire Council CA 7-Nov-2002
The landowner appealed against the compensation awarded for the compulsory acquisition of his land for use as a road. The owners had been compensated only for its agricultural value, but said that it should have allowed for its value for minerals . .
Cited – Roberts and Another v South Gloucestershire Council CA 7-Nov-2002
The landowner appealed against the compensation awarded for the compulsory acquisition of his land for use as a road. The owners had been compensated only for its agricultural value, but said that it should have allowed for its value for minerals . .
Cited – Telereal Trillium v Hewitt (Valuation Officer) SC 15-May-2019
The court considered correct approach to determination of the rateable value of an office building, in circumstances where the evidence showed at the relevant time a general demand in the area for comparable office buildings, but no actual tenant . .
Lists of cited by and citing cases may be incomplete.
Rating
Updated: 04 February 2022; Ref: scu.145004
