This article was accepted into the corpus but its outbound wikilinks were never NER-processed — typical at the deepest BFS hop or when the run's entity cap was reached. No expansion funnel to show.
| Non-Domestic Rating (Valuation) (England) Order | |
|---|---|
| Name | Non-Domestic Rating (Valuation) (England) Order |
| Type | Statutory Instrument |
| Jurisdiction | England |
| Year | 20?? |
| Citation | SI 20??/#### |
| Made by | Secretary of State for Department for Levelling Up, Housing and Communities |
| Laid before | Parliament of the United Kingdom |
| Status | Current |
Non-Domestic Rating (Valuation) (England) Order.
The Non-Domestic Rating (Valuation) (England) Order is a statutory instrument that sets valuation-related rules for non-domestic rating in England, specifying formulae, assumptions and procedural elements used to determine rateable values for business properties and hereditaments. It functions alongside primary legislation and administrative guidance to operationalize valuation principles applied by the Valuation Office Agency and to align rating practice with parliamentary intent set out in earlier Acts. The Order affects landlords, occupiers, local authorities and tribunals by defining how valuations are constructed, altered and appealed.
The Order was developed to implement valuation practice envisioned under the Local Government Finance Act 1988 and later statutes such as the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 and the Valuation for Rating (Plant and Machinery) (England) Regulations 2000. It responds to policy decisions taken by successive Secretaries of State in the Department for Levelling Up, Housing and Communities and ministers in the HM Treasury to provide certainty for the Valuation Office Agency, Her Majesty's Revenue and Customs, and valuation professionals. The instrument reflects case law from the Upper Tribunal (Lands Chamber), judicial decisions in the Court of Appeal, and precedents set by the Supreme Court of the United Kingdom concerning hypothetical tenancy assumptions, statutory assumptions and treatment of special premises such as those linked to the National Health Service or Transport for London assets.
The Order is made under enabling powers contained in primary enactments like the Local Government Finance Act 1988 and follows procedural requirements under the Statutory Instruments Act 1946. It delegates aspects of valuation methodology to Secretary of State direction, consistent with parliamentary oversight through the House of Commons and the House of Lords. Implementation depends on cooperation between the Valuation Office Agency (an executive agency of HM Revenue and Customs) and local rating authorities such as Greater London Authority boroughs, county councils including Kent County Council and unitary councils like Birmingham City Council. Judicial review and appeals are heard in the First-tier Tribunal (Property Chamber) and, on further appeal, in the Upper Tribunal (Lands Chamber).
The Order prescribes valuation assumptions, including hypothetical tenancy terms, notional repairs, and established valuation methods such as comparative, contractor’s and receivable rental approaches used by the Valuation Office Agency. It defines treatment of fixtures and fittings akin to rules applied in disputes involving entities like British Rail (historic cases) or Network Rail and addresses plant and machinery considerations exemplified by cases involving National Grid and Thames Water. Provisions clarify how to apply the tone and level of the list, hypothetical leases, and relevant statutory assumptions influenced by precedents from the House of Lords and Court of Appeal. The Order also sets transitional rules when revaluation years, such as those affecting the 2017 and 2023 rating lists, are prepared for administration by the Valuation Office Agency.
The Order applies to a wide range of non-domestic hereditaments including retail premises in Westminster, industrial estates like those in Teesside, office accommodation in Canary Wharf, agricultural buildings associated with Defra interests, and specialized facilities such as prisons managed by the Ministry of Justice or hospitals under the National Health Service. It outlines statutory exemptions and reliefs consistent with legislation for charities registered with the Charity Commission, sports stadia such as Wembley Stadium, and properties used for diplomatic purposes relating to the Foreign, Commonwealth and Development Office. Specific exclusions or special treatment reflect arrangements for properties owned by Crown Estate Commissioners or operated by bodies like Historic England.
Administration of the Order rests with the Valuation Office Agency, which issues guidance to chartered surveyors registered with the Royal Institution of Chartered Surveyors and to local billing authorities including Manchester City Council and Camden London Borough Council. The Order’s implementation involves updating rating lists, issuing proposals and notices, and coordinating with the First-tier Tribunal (Property Chamber) on appeals. Training and compliance activity often involve stakeholders such as the British Property Federation, the Federation of Small Businesses, and national law firms active in tax litigation like Pinsent Masons and Clifford Chance.
The Order has provoked debate among business lobbyists including the Confederation of British Industry, property investors such as those represented by the Investment Property Forum, and retail groups like the British Retail Consortium over formulae affecting high street valuations in towns like Blackpool and cities such as Leeds. Controversies center on assumptions for hypothetical rents, treatment of empty properties, and the allocation of plant and machinery, with high-profile disputes reaching the Court of Appeal and generating media coverage in outlets referencing major taxpayers and public bodies including NHS Trusts.
Amendments to the Order have been made to reflect statutory changes such as provisions in the Local Government Finance Act 2012 and regulations arising from revaluation cycles administered by the Valuation Office Agency. Related instruments include the Non-Domestic Rating (Settlements) Regulations and successive rating lists governed by Orders implementing revaluation dates; these interact with broader fiscal measures overseen by HM Treasury and policy initiatives from the Department for Levelling Up, Housing and Communities.