Partner Article

Rating Revaluations Advice for Schools - The Beattie Partnership

The last business rates revaluation was in 2010, and the forthcoming 2017 revaluation is now overdue, as there was originally intended to be a revaluation this year.

There is a more immediate concern because the information schools supply to the Valuation Office this year will be what the 2017 revaluation is based on. It is important for Independent schools to complete and return their VO 6065 forms relating to building costs within the 56 days specified.

For schools, accuracy is paramount. The Valuation Office is very clear in its own practice guidelines about the different categories of school building and where certain reductions in the estimated replacement cost (ERC) can apply.

“It’s vital for schools supplying information to the Valuation Office that they get the details spot on to ensure their rating revaluation is correct and fair,” advises Paul Giness of The Beattie Partnership, http://www.bepart.co.uk who specialise in business rates reductions in the education sector.

“Some things to think about include understanding how refurbishments are handled.” Paul continues, “Will the Valuation Office treat this as new build? Schools should be aware of how refurbishment costs can impact upon their valuation.

In addition if new buildings have more expensive, non-standard elements involved, like excessive demolition costs or construction issues with connecting buildings, these are useful to mention.“

Paul asks “How is new furniture handled, for instance? Is it lumped in with fitting-out costs? If it is, it might make the cost of the fit-out seem higher than it should be on the form. Schools should be aware that desks aren’t rateable.”

If, prior to refurbishment, an older school building is functionally obsolete, then the Valuation Office might be persuaded to apply a reduction to its value. So if this is the case consider taking professional advice on how best to approach this.

Reductions can also apply around a building’s use. For boarding schools, accommodation for both staff and pupils is classed as domestic, but so too (either partially or wholly) can be common rooms, study areas and music practice rooms. The important thing is for the details to be correct on completion of the forms and to maximise the savings opportunities that are available.

Paul concludes, “Make sure you’ve all the relevant information to hand so that when you complete the Valuation Office’s form you’re putting it all down correctly. But if you are unsure about any part of the form, seek professional advice”

This was posted in Bdaily's Members' News section by David Lomas .