Caravans, caravan sites, parks and pitches
Source: gov.uk (2025-04-28)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

1.1 This section covers leisure caravans and camping sites comprising caravan parks, caravan sites and touring & tenting sites. It does not cover land used for storing caravans unless that land forms part of a larger caravan related hereditament (such as a caravan site).

1.2 A caravan may be used for a variety of uses, the main uses being:

a. as holiday or periodic accommodation

b. for residential purposes

c. for touring

1.3 The first of these uses will be situated mainly on caravan sites. The second group consists of caravans situated primarily on organised residential sites. However, some residential caravans may be found on mixed leisure and residential parks whereas others will be in isolated situations, for example, on a farm and occupied by a farm worker or placed within the curtilage of dwelling house and used by a member of the occupier’s family.

1.4 Most caravan sites fall into one of the following categories:

a. Fleet parks, with licences for use for less than one year, where the site operator lets out his or her own caravans for short periods, and frequently having ancillary buildings such as site offices, shops, amusement halls, swimming pools, restaurants etc.

b. Leisure caravan parks where a caravan owner can rent a pitch for his or her caravan on a continuing tenancy but use of the caravan is restricted to the summer months. Individual pitches with or without their caravans together with any communal buildings, form the subject of a single assessment by virtue of the Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990/673) (see para 5.4 below).

c. Residential sites, with licences for all the year use, where caravans may be occupied on a permanent basis. The pitches and vans will be domestic property (see para 5.2 below) but communal buildings, will be non-domestic property.

d. Isolated caravans where the assessment will be in respect of either the caravan together with its pitch or of the pitch alone, dependent upon the degree of permanence and annexation.

e. Gypsy / traveller encampment sites established in areas designated by local authorities. Pitches occupied by caravans which are sole or main residences will be domestic property and left out of non-domestic rating.

f. Touring and/or camping sites where mobile caravans or tents can be pitched overnight or for a few nights. The facilities provided by the owner vary but can often be minimal. Some sites may include yurts, tipis, shepherds’ huts, camping pods, tree houses and similar provided for hire by the site owner.

In addition, there will be cases of a combination of (a) (b) (c) and (f). Holiday caravans will also be found in conjunction with other holiday accommodation such as chalets.

2. List Description and Special Category Code

2.1 Descriptions should be as precise as practicable. The following are recommended, with or without “and premises”, as appropriate:
- Caravan Park; Camping Site; Caravan; Caravan pitch; Caravan and Chalet Park; Chalet Park.
2.2 The hereditament will be composite where domestic accommodation forms part of the hereditament but is omitted from the valuation.

2.3 The following Special Category Codes should be used:
- 047S - Chain operated sites and the largest sites, valued by the National Valuation Unit
- 048G - Sites valued by the Regional Valuation Units
- 054G - Parks valued by the Central Valuation Team at Revaluation
3. Responsible Teams

3.1 Caravan hereditaments are a Unit class and each Unit has one or more specialist caravan valuers. Due to the specialised nature of these hereditaments’ valuations must be carried out by the limited number of specialist caravan valuers who may cover more than one Unit area.

3.2 The very largest sites and the chain operated sites are valued by the National Valuation Unit.

3.3 The Central Valuation Team will be responsible for valuations of the the Scat 054 sites at Revaluation and the Regional Valuation Units during the life of each rating list.

4. Co-ordination

4.1 For all types of caravan parks, caravan pitches and camping sites it is the responsibility of the senior Unit Caravan Specialist to co-ordinate assessments both within their Unit and between Units. However, overall responsibility for the co-ordination of this class lies with the Caravan Class Co-ordination Team. You can find contact details here VP and CCT Members. The Team is responsible for the approach to and accuracy and consistency of valuations. The Team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

4.2 The Unit caravan specialist valuers have a responsibility to:
- Follow the advice given at all times.
- Not to depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team.
5. Legal Framework

5.1 Caravan Sites and Control of Development Act 1960

5.2 Under the Caravan Sites and Control of Development Act 1960, a licence is required for any caravan site where the caravan is stationed for the purpose of human habitation, except as provided in the First Schedule. Among the exceptions are sites occupied by local authorities in whose areas the land is situated and sites occupied by certain organisations who have been granted certificates of exemption from control by the Minister under Para 12 of the Schedule. Such certificates have been granted to various clubs and associations including the following:
- The Caravan Club
- The Motor Caravan Club
- The Camping Club of Great Britain and Ireland
- The Scout Association
- The Girl Guides Association
- The Caravan Mission to Village Children
- The Cheltenham Owners Club
- The Caravan Tourists Association
- The Safari Caravan Club
- The Land Rovers Owners Club
- The International Sprite Owners Club
5.3 It is understood that sites will not be established by such organisations without the prior approval of the local planning authorities concerned.

5.4 The special factors to be borne in mind for the inspection and valuation of such sites (known as Certificated Locations or 5CLs) are set out in Section E of the Practice Note.

5.5 The statutory definition of “caravan” contained in S.29 of the Caravan Sites and Control of Development Act 1960 (as amended by Section 16 of the Caravan Sites Act 1968) has been adopted in S.66(7) LGFA 1988 for the purposes of determining whether or not a structure is a caravan for rating purposes.

5.6 Section 29(1) of the 1960 Act defines “caravan” as, inter alia:-

“…. any structure designed or adapted for human habitation which is capable of being moved from one place to another (whether by being towed, or being transported on a motor vehicle or trailer) ….”.

5.7 Section 13 of the 1968 Act deals with twin-unit caravans. It stipulates in sub-section (1):-

“A structure designed or adapted for human habitation which:

a. is composed of not more than two sections separately constructed and designed to be assembled on a site by means of bolts, clamps or other devices; and

b. is, when assembled, physically capable of being moved by road from one place to another (whether by being towed, or being transported on a motor vehicle or trailer),

shall not be treated as not being (or as not having been) a caravan within the meaning of Part I of the Caravan Sites and Control of Development Act 1960 by reason only that it cannot lawfully be so moved on a highway when assembled.”

5.8 From 1 October 2006 in England The Caravan Sites Act 1968 and Social Landlords (Permissible Additional Purposes) (England) Order 2006 (Definition of Caravans) (Amendment) (England) Order 2006 [SI 2006 No 2374] amended section 13(2) of the Caravan Sites Act 1968 by increasing the maximum dimensions of a structure that can be defined as a twin unit caravan to:
- length (exclusive of drawbar): 20.00 metres (65.616 feet).
- width: 6.80 metres (22.309 feet).
- internal height: 3.05 metres (10.006 feet).
These revised dimensions have also been adopted by the National Assembly for Wales (Caravan Sites Act 1968 (Amendment) (Wales) Order 2007).

5.9 Domestic Caravans

5.10 By virtue of s.66 (3) Local Government Finance Act 1988 a pitch for a caravan will be domestic property (and therefore not rateable) if it is occupied by a caravan, which is the sole or main residence of an individual.

5.11 Rateability of Caravans

5.12 The question of whether a caravan is rateable with the pitch upon which it stands was considered by the Court of Appeal in the case of Field Place Caravan Park Ltd & Others v Harding (VO) [1966/RA/393]. The Court of Appeal held that the caravan in question was rateable together with the pitch upon which it stood, notwithstanding that the caravan was a chattel on wheels. The Court of Appeal also held that the caravan and its pitch comprised a separate hereditament in the rateable occupation of the occupier of the caravan. Subsequently, for leisure caravans owned by private individuals and situated on pitches rented from a site operator, the Rating (Caravan Sites) Act 1976 included a provision which gave VOs discretion to treat such pitches (and caravans) as forming part of a single hereditament together with the remaining parts of the site in the primary occupation of the site operator. This power was replaced, with effect from 1 April 1990, by The Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990 No 673) which, in addition, made this provision mandatory.

5.13 Caravans used for touring, not being used residentially, or sited permanently or semi-permanently, are normally regarded as chattels and under these conditions the caravan will not be rateable although the pitches may be.

5.14 The Non-Domestic Rating (Caravan Sites) Regulations 1990 (SI 1990 No 673)

5.15 The SI provides that, where pitches for leisure caravans on a relevant site constitute separate hereditaments by virtue of being separately occupied by persons other than the site operator those pitches shall be treated as a single hereditament, together with so much of the rest of the site as is in the occupation of the site operator. A pitch is to be taken as including the caravan for the time being standing upon it if, apart from the SI, the caravan would be included as a part of a rateable hereditament.

5.16 The amalgamation rules do not apply to any pitch which is occupied by a charity or trustees for a charity, and which is wholly or mainly used for charitable purposes (whether of that charity or of that and other charities)”.

5.17 SI 1990 No 673 Definitions

“A pitch for a leisure caravan” is one where, in accordance with any licence or planning permission, a caravan stationed on the pitch is not allowed to be used for human habitation throughout the year.

“Caravan” has the same meaning as for Pt I of the Caravan Sites and Control of Development Act 1960 (as amended) [see para 5.1].

“Site” means any land in respect of which a site licence is required under Pt I of that Act.

“Relevant site” means a site which has an area of 400 square yards or more and which includes some non-domestic property.

“Site operator” means the person who is the occupier under Pt I of the 1960 Act and “occupier” means, in relation to any land, the person who by virtue of an estate or interest therein is entitled to possession or would be so entitled but for the rights of any other person under any licence granted in respect of the land:

Provided that, where land amounting to not more than 400 square yards in area is let under a tenancy entered into with a view to the use of the land as a caravan site, the expression “occupier” means in relation to that land the person who would be entitled to possession of the land but for the rights of any person under that tenancy.

5.18 Notice to Site Operator

5.19 Regulation 4 of SI 1990/673 provides for the supply of information to site operators about the number of vans included in the hereditament and the rateable value attributed to them.

5.20 Where on the compilation of a local rating list, or by virtue of the alteration of such a list, there is included in the list a hereditament which falls to be treated as a single hereditament by virtue of SI 1990/673, the Valuation Officer (VO) shall within one month of that compilation or alteration inform the site operator in writing that the hereditament is so included, and shall also state in writing:

a. How many caravans occupied by persons other than the site operator are included in that hereditament, and

b. How much (if any) of the rateable value of the hereditament is attributable to those caravans, together with their pitches.

5.21 Whenever an assessment is reviewed (whether after receipt of a Billing Authority notification or otherwise) and it is decided that the RV needs altering, a further statement must be issued, again within one month of the change to the Rating List. Although the VO is allowed 1 month in which to provide the information, there is no reason why, in practice, it should not be sent to the site operator with the copy of the VO Notice.

5.22 Also, where it appears to the VO that the information previously issued in relation to a hereditament is no longer accurate, but no alteration of the local rating list is required, the site operator must still be informed of that fact and a further statement sent.

5.23 The number of caravans included in the Regulation 4 Notice will not necessarily coincide with the number of caravans included in the valuation.

5.24 The number to be certified by the VO is the number of caravans, which, excluding those of the site operator, could properly have been the subject of separate assessments. The total RV for the number of vans and pitches should not be rounded unless there are no other values included in the value of the hereditament.

5.25 Any person occupying a pitch for a leisure caravan on a relevant site may, after giving reasonable notice to the VO, at any reasonable time and without payment inspect a copy of any statement supplied to the operator of that site under Regulation 4.

5.26 The Regulation 4 Notices are produced via the caravan valuation application on the non-bulk server. The Unit Caravan Valuers must ensure that a copy of any Regulation 4 Notice issued is available for public inspection if requested.

6. Survey Requirements

6.1 General

6.2 Before any inspection is carried out it is good practice to search the web to gather information about the caravan park or camping site. However, remember this may not be fully up to date.

6.3 On inspection always collect a park brochure, tariff list and a site plan where available and date them. Establishing the true and complete picture will always require the full co-operation of the site operator or their agent.

6.4 It should be established as a question of fact the number of leisure static caravans, residential caravans, chalets or touring and tenting pitches that are permitted on the site by the site licence and the actual planning permission granted for the site. The actual physical numbers on the park at the material day should also be recorded together with the length of the season.

6.5 The correct identification of a caravan is crucial (see the legal definition in paragraph 5.15 above) and any cases of doubt should be referred to the Unit Caravan Valuer.

6.6 Caravans occupied as a sole or main residence are domestic property and should not form part of the Non-Domestic Rating assessment but be assessed to Council Tax. The number and location of any such vans should be recorded. Where the park warden has no other domestic accommodation then the warden’s caravan, chalet or bricks and mortar property should be assessed to Council Tax. However, seasonal warden’s caravans are unlikely to qualify as domestic property and are therefore likely to be included in the assessment as a private leisure caravan or staff caravan.

6.7 The number and age of the operator’s fleet hire caravans should be established - these are the static caravans owned by the operator and let out as leisure caravans during the season. Likewise the details of any private caravans (static holiday caravans owned by private individuals who pay an annual pitch fee to the operator) should be recorded.

6.8 It should also be noted if the caravans are single or twin units. Generally all caravans will form a single unit of assessment to the site operator (see paragraph 5.4 above). The number and location of any caravans owned by a charity should be recorded as a separate assessment will be required.

6.9 For sites with touring and tenting pitches the location and number of pitches should be recorded and whether they have an electric hook-up facility. The number and location of any camping pods or pitches for large “family tents” such as yurts, tipis or similar should also be recorded.

6.10 If the site comprises chalets, large family camping pods, tree houses and such like as well as caravans their number, location, accommodation and construction should be noted.

6.11 Unit of Assessment

6.12 Reference should be made to Rating Manual Section 2 (https://www.gov.uk/guidance/rating-manual-section-2-maintaining-the-rating-list/part-2-hereditaments-valued-by-the-central-valuation-officer), which deals with the general principles governing occupation and the hereditament, however, the following problems are likely to arise in connection with caravan sites.

6.13 It is of paramount importance, whether valuing under The Non-Domestic Rating (Caravan Sites) Regulations 1990 [SI 1990/673] or not, that the correct tests are applied and consideration must be given to the ingredients of rateable occupation which are set out in RM Section 3 Part 1.

6.14 This SI, while introducing a requirement to treat caravan pitches as a single hereditament in the occupation of the site operator, does not in any way alter the basic rules for determining the units of separate assessment; indeed, it is essential for the proper operation of the SI to apply these rules, for the SI can only be invoked if pitches are separately rateable.

6.15 Before a valuation can be made, it is necessary to decide who is to be rated and for what, namely: in relation to a pitch,

a. Is the pitch let out and occupied so as to form a separate hereditament, and

b. Is any caravan for the time being standing upon that pitch rateable together with it?

6.16 In relation to a site,

c. What is the physical area in the occupation of the site operator?

d. What buildings and site works and how many caravans, if any, belonging to the site operator fall to be included in the hereditament?

e. Is the site one to which SI 1990/673 applies?

6.17 It may be noted that where a site operator owns a caravan and has parted with its control, together with a pitch, on a sufficiently permanent basis, then whilst a VO may correctly decide that the occupation is separately rateable, SI 1990/673 will still apply.

6.18 Transience

6.19 Separate rateability of a pitch does not arise unless its occupation is of a non-transient nature. In considering transience, the intention of a person owning the caravan at the material time is clearly relevant, but it is for the VO to gauge this intention in the light of all the information available. Where a caravan and pitch have been in the same occupation for at least 12 months, this can be regarded as evidence sufficient to establish a non-transient occupation.

6.20 VOs are not precluded from raising separate assessments, or from regarding caravans as rateable, when the period of occupation is less than 12 months if facts, circumstances and evidence of intention to remain in occupation are sufficiently strong to establish that the occupation is not transient. That a new owner is in residence in a caravan which has nevertheless been in position for a longer time is not a bar to raising a separate assessment.

6.21 Seasonal Breaks

6.22 When examining the period of occupation, it must be borne in mind that a seasonal break in the use of a caravan during the winter months does not break continuity of occupation if the caravan remains on the hereditament. In considering this aspect, it must be remembered that, in relation to a site, the hereditament is the larger area in the occupation of the site operator, or in their deemed occupation by virtue of SI 1990/673.

6.23 Annexation

6.24 A caravan, being a chattel, is not as such rateable but if enjoyed with the land in such circumstances and with sufficient permanence that annexation to a defined pitch can be inferred, then the value of the caravan falls to be included in the assessment [see Field Place Caravan Park Ltd and others v Harding (VO) (1965 LT RA 521 and 1966 CA RA 393)].

6.25 The presence of physical signs such as fences, water, electricity, drainage, gardens, telephone, paths and ancillary sheds will usually indicate an intention of permanence. However, the absence of such physical features is not necessarily evidence of an intention to move away and on many holiday sites there is an intention to remain in occupation of the pitch and to enjoy the caravan therewith, even though there is only the absolute minimum by way of services and an “open” type of site devoid of fences and individual gardens.

6.26 Herding

6.27 Where winter “herding” of caravans by the site operator takes place - for example, by shifting them to one corner of the site - it is again important to consider what is the hereditament. If where a site operator moves his own vans around his site, or is deemed to occupy the whole site, then there is no break of continuity and the vans have not left the hereditament; they will remain rateable together with the site itself.

6.28 Chalets and Cabins

6.29 Chalets and cabins do not comply with the legal definition of a caravan and are treated differently. Where owned by the site operator then they will form part of the main site assessment, however, if privately owned they will be subject to a Council Tax assessment (in effect a “second home” whether or not they comprise a sole or main residence). Where the private chalets or cabins are available for hire for a period of 140 days or more a separate assessment and a separate entry in the local Rating List may be required as a self-catering holiday home (see Rating Manual Section 5a: Holiday homes (self-catering) (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-480-holiday-accommodation-self-catering)).

6.30 If in any doubt then the Unit Caravan Valuer should be consulted.

6.31 Sales Ground

6.32 Details of caravans offered for sale in the sales ground should be noted. These are usually found at the front of a park but the caravans should not be included in the assessment until they are sited and serviced on the park. However, in the unusual circumstances that the caravans are for sale for siting on other parks then it may be necessary to consider a separate assessment for the ‘Sales Ground and Premises’ and the Unit Caravan Valuer should be consulted.

6.33 Permanent Buildings

6.34 On a caravan park, buildings are categorised as either “profit” or “non-profit”.

6.35 Many buildings will be “non-profit” buildings such as reception area, admin offices, shower block, toilet block, workshops and stores which form an essential component in running the park. The floor area for this accommodation is not usually required as their value is taken into consideration and reflected in the valuation scheme adopted. Likewise, buildings such as swimming pools and children’s play areas are usually provided free of charge to the occupiers of the fleet hire caravans and private caravan owners and no separate addition is made for these in the rating assessment - again these are reflected in the valuation scheme. However, where, for example, the site swimming pool is available for use by non-site residents and a charge is made for such use then this income source should be included in the valuation as it is not reflected. It is essential to ensure that all the relevant facts are ascertained on inspection.

6.36 “Profit buildings” will include on site shops, restaurants, laundrettes, arcades, clubs/bars and are generally run in house by the site operator. Such additional activity buildings will provide another source of income to the operator to be included in the rating valuation. GIA areas are not usually required but may be useful to assist when comparing one site with another.

6.37 On some sites not all “profit buildings” are run by the site operator and facilities such as cafe, cycle hire, ice cream sales, hairdressing and taxi hire can be let by the operator on a licence/concession for the season only. Details of any concession should be ascertained including the type, the name of the person with the concession (who may be related to the site operator) and the concession fee. Concession occupations will not usually require a separate rating assessment but full details should be ascertained and discussed with the Unit Caravan Valuer.

6.38 Very occasionally there may be a more permanent arrangement with a lease granting exclusive occupation of part of the site and full details including a GIA floor area should be ascertained and discussed with the Unit Caravan valuers as such arrangements are more likely to require a separate assessment.

6.39 Winter Storage of Touring Caravans

6.40 Where an operator stores privately owned touring caravans on the site for the winter months full details should be obtained including the number of caravans permitted to be stored by the site licence or planning permission. The number of caravans actually stored, the fees paid and full details of the storage area should be ascertained together with the land area, its surface, fencing, whether covered or uncovered, security arrangements and so on.

6.41 Inspection Checklist

6.42 An inspection checklist for caravan parks, touring and camping sites is available and should be completed for all properties and stored in the property folder of the Electronic Document Records Management (EDRM) system.

7. Survey Capture

7.1 Rating surveys (including all plans, brochures, tariff lists, numbers and types of caravans and/or touring or camping pitches) should be stored in the property folder of the EDRM system. The Unit Caravan Valuers are responsible for the transfer of the survey data to the caravan valuation application held on the non-bulk server.

8. Valuation approach

8.1 Since the 1995 Rating Lists the valuation approach for caravan parks, touring and camping sites has been agreed with the professional advisers to the caravan industry. The agreed approach applies a rental percentage to the notional receipts for the hereditament, at the antecedent valuation date, to arrive at the RV. The notional receipts reflecting the physical nature of the property and its location at the compilation date or subsequently, following a material change of circumstances.

8.2 The agreed valuation scheme also covers the circumstances where rating valuations are required to be made in accordance with SI 1990/673 by recognising the principles of an income and expenditure valuation but allowing adequate consideration to be given to the other privately owned caravans.

8.3 Full details of the agreed valuation scheme is available from the relevant list’s Practice Note.

8.4 However, it is useful to consider some of the wider issues involved in establishing the agreed scheme.

8.5 The conclusions to which the LT came, on the remission of the case of Garton v Hunter (VO) 1968 CA (1969) RA 11 and 1969 LT RA 179, concerning a caravan site remain sufficiently important to be reproduced, although SI 1990/673 and its predecessor the Rating (Caravan Sites) Act 1976 - has necessarily altered their effect on valuations of amalgamated sites. The Tribunal remarked:

“We do not look upon any of these tests as being a “right” method or a “wrong” method of valuation; all three are means to the same end; all three are legitimate ways of seeking to arrive at a rental figure that would correspond with an actual market rent on the statutory hypothesis and, if they are properly applied, all the tests should in fact point to the same answer; but the greater the margin for error in any particular test, the less is the weight that can be attached to it. It is as the outcome of applying this criterion that we have found that considerable weight can be attached to the profits test, that not much weight can be attached to the rental test and that very little weight can be attached to the contractor’s test.”

While a rent actually paid for a multiple caravan site may provide the best evidence of value for that site (Ramsden v Geddes (VO) 1967 LT RA 328), nevertheless in Davies & Davies v Tavener (VO) (1959 LT 52 R & IT 435) the Tribunal held:

a. rental evidence of other caravan sites in the vicinity did not justify arriving at the assessments of the appeal site on a price per caravan, because of the variations between the physical attributes of the sites.

b. the receipts and expenditure basis enabled a more detailed examination of the merits of the individual site to be made than the comparative method.

8.6 Parks operating below full capacity

8.7 A park will normally be valued to its full licensed capacity, as vacant and to let, whether or not it is actually used to its fullest extent (Welford v Cutts (VO) 1958 LT 51 R & IT 458). It may, however, be appropriate in the case of newly established parks to have regard to an average number of caravans, being less than the licensed number, where, for example, service buildings are at the material date insufficient for capacity occupation.

8.8 The Receipts & Expenditure (R&E) basis

8.8.1 General

8.8.2 In the LT decision in Vaughan (VO) v Great Yarmouth Seashore Caravans Ltd (1960) LT 53 R & IT 522 the member said that “ratepayers are not bound to produce their accounts and they may be fully justified in refusing to do so unless they can be assured that they would not be available for general scrutiny. Such an assurance could simplify the task of valuation for if a profits basis is to be used it is the actual accounts rather than estimated figures that should be considered.” This accords with the VO policy that whilst receipts information can be called for under the powers contained in para 5 Sch 9 LGFA 1988, full accounts may only be requested. See RM Section 4 part 2 (/sites/COM155566830/SitePages/Rating-Manual-rec-exp-s4-pt2.aspx) regarding requests for accounts and receipts information and their use as evidence.

8.8.3 Items in certified accounts as statements of fact should always be accepted before estimates, except those which are the outcome of personal discretion such as Directors’ fees and Managerial salaries. The gross profit from ancillary services (sales less purchases), and not the gross income, e.g. from the sale of Calor Gas, etc, should appear in the gross receipts.

8.8.4 The income shown in the most recent accounts (available at time of valuation) should not be adjusted unless at the material date there has been a change of circumstances which would reasonably be within the knowledge of the hypothetical tenant and which would materially affect the potential income.

8.8.5 Where accounts are available and these include trading details of shops and similar profit earning ancillaries within the hereditament, then the proper application of the R&E basis requires that such parts be reflected in the R&E valuation; where no such accounts are to hand, however, the most convenient way to treat these items will probably be to add their separate values to that produced by the R&E basis, the result representing a rent which the site operator would be prepared to pay to his landlord.

8.8.6 Working expenses

8.8.7 The following include the main items to be expected under this head:
- Director’s fees, salaries and wages: insurances: tractor or 4-wheel drive vehicle expenses; water; printing and stationery; advertising; audit; telephones; lighting and heating; sanitary and cleaning expenses; site maintenance; association membership fees.
8.8.8 In Vaughan’s case where the site operator did not own the caravans but merely let sites the Tribunal’s remarks were as follows:
- “Some account must be taken of the nature of this enterprise. In my view, it produced high returns for comparatively little managerial effort…. compared with, say, a manufacturing business with the same turnover, the demand on managerial attention and responsibility must be small, and I think that it is reasonable to assume that, provided the usual scale of tenant’s share is reserved, the hypothetical tenant, under competition, would be prepared to cut down on managerial fees.”
8.9 Careful consideration may be necessary, therefore, before accepting items in accounts in respect of director’s fees and it should also be observed that, on the smaller type of site, the hypothetical tenant will probably act as warden.

8.10 Claims are frequently made in respect of cars and VOs should be satisfied that such claims are valid in all the circumstances, before admitting them.

8.11 Tenant’s share

8.12 The instructions contained in RM Section 4 Part 2 para 16 should be taken into account in considering the tenant’s share. The security and freedom from competition from unauthorised sites, afforded by the Caravan Sites and Control of Development Act 1960, are factors to be borne in mind. The amount allowed in past valuations should be reviewed in the light of any changed circumstances.

8.13 The tenant’s share will often represent a percentage of gross receipts or divisible balance, but the Tribunal took the view in Garton v Hunter (VO) that a prospective tenant would quantify his requisite share in terms of an amount, rather than in terms of a percentage.

8.14 Caravans rated as part of the hereditament

8.15 In cases where the caravans, owned by the site operator, remain within the site from year to year so as to become rateable therewith (see para 6.11 above) any sinking fund provision in the accounts relating to the rateable parts of those caravans should be deducted from the expenses as this will be the responsibility of the landlord under the rating hypothesis.

8.16 Price per unit

8.17 Devaluations to a price per unit may in some exceptional circumstances prove an aid to valuation, but their use must be strictly limited unless the respective hereditaments are closely comparable. As mentioned at para 8 above the Tribunal have indicated on several occasions the difficulties involved in comparing one site with another. Furthermore, the use of the R&E basis necessarily implies a good deal of individuality of approach to each hereditament and this basis will usually come close to reflecting the profit-earning scope of the particular site and thus its rental value.

8.18 Certificated Locations (5CLs) - Sites Occupied by Organisations Exempt from Control under Caravan Sites and Control of Development Act 1960

8.19 When determining the rental value of sites occupied by any of the various exempt organisations referred to in para 5.1, VOs may consider it advisable first to ascertain whether planning permission for use as a commercial touring site would be likely to be granted and, if so, with or without conditions.

8.20 Facilities on such sites are frequently minimal, consisting perhaps of water supply and “Elsan” disposal points only and comparison with commercial sites should be made with care, as planning permission, even when forthcoming, will often be conditional upon the provision of more extensive facilities.

8.21 Little valuation assistance can be expected from the accounts, as these sites are not usually operated commercially, part of the costs being met from member’s subscriptions. (See para 5.14 above).

8.22 The single caravan and its pitch

8.23 It will seldom be possible to rely on the rents passing for separately assessed caravans as these will usually include payment for furnishings and other equipment the adjustment for which may be difficult to quantify. Moreover, such lettings are commonly affected for relatively short periods. In practice, the best approach will generally be a comparison with the assessments of non-traditional dwellings in the area such as chalets (Racine v Buncombe (VO) 1967 LT (1969) RCN 92).

8.24 Another approach is to consider adding to the site rent a rental value for the caravan based upon its second-hand value, which permits some flexibility. A further alternative approach is to add between 20% and 50% to the net site pitch fee to reflect the rental value of the van.

8.25 Procedure on change of a single caravan

8.26 The replacement of one separately assessed caravan by another on a pitch will require a new assessment and the correct procedure in such cases is as follows:

(i) delete the existing assessment from the Rating List (RL),

(ii) and either:

a. where the pitch is unoccupied when the inspection is made and there will be a significant passage of time before the second caravan arrives, enter the pitch as a separate item in the RL. This of course assumes that there is still separate rateable occupation of the pitch.

or,

b. where the replacement is made within a few days, enter the pitch together with the new caravan in the RL.

(iii) where (ii) (a) applies when a new caravan arrives remove the pitch assessment and enter the new caravan and pitch in the RL.

8.27 Caravans within the curtilage of dwelling-houses, farms etc.

8.28 Where there is a sufficient degree of annexation and permanence (see para 6.23 Annexation above), it will be necessary to regard the caravan itself as rateable and to assess it accordingly, unless the pitch is part of a sole or main residence and is therefore domestic property by virtue of s.66 (3) LGFA 1988. For example, where a caravan within the curtilage is used as overspill accommodation for family and friends, the pitch and van should be regarded as domestic, but if the pitch and/or van are let off commercially for holiday use they should not be considered domestic. If the caravan and/or pitch are rateable and there is no separate rateable occupation, then the hereditament will be composite.

8.29 Caravans on a farm and occupied by seasonal agricultural workers may be domestic property if occupied as a sole or main residence. However, it is more likely that these will form a single assessment to the farmer as non-domestic caravans (paragraph 4.21 of the Council Tax Manual Practice Note 8 refers). Caravan Valuers should ensure that any non-domestic assessment for agricultural workers caravans adequately reflects their location, limited season, restricted receipts, the age of the caravans and generally basic facilities offered.

8.30 Gypsy and Traveller encampments

8.31 Such sites are likely to be domestic property by virtue of s.66 (3) LGFA 1988 (paragraph 3 of the Council Tax Manual Practice Note 7 refers).

9. Valuation Support

9.1 Caravan parks, touring sites and camping sites are all valued using the non-bulk server.

9.2 Other valuation support is available via:
- Survaid
- Class Co-ordination Team for Leisure Accommodation
- National Valuation Unit
Appendix 1: caravans, caravan sites, parks and pitches

Letter to Park Operators (to be sent within one month of compiled list entry or change to the list entry or if it appears to the VO that the information given previously is inaccurate)

The Non-domestic Rating (Caravan Sites)

Regulations 1990 Regulation 4 Notice

The Local Rating List contains an entry for the following hereditament:

Billing Authority:

Assessment No:

Address:

Description:

Rateable Value:

I am required by Regulation 4 of the above Regulations to notify you as follows:-

a. Number of caravans occupied by persons other than the site operator and included in the hereditament: b. Amount of Rateable Value attributable to those caravans (together with their pitches): £……………………….

Any person occupying a pitch for a leisure caravan on the site may inspect a copy of this statement at my office, which is open to the public Monday to Friday from 10.00 am to 4.00 pm.

Valuation Officer

Practice note: 2023 - Caravan and camping sites

1. Market appraisal

1.1 The caravan and leisure camping industries remain big business and an important contributor to UK tourism. The South West and Wales account for the largest number of sites followed by the South East.

1.2 The majority of establishments are privately owned, often family run, and over 60% employ fewer than 5 people.

1.3 The industry is dominated by domestic holidaymakers. There has been a shift towards ‘staycations’ since the 2016 season and in 2019 and 2020.

1.4 Since caravan and camping is largely based outdoors, the industry is weather-dependent. Most sites offer on-line booking which facilitates last minute holiday purchases taking advantage of good weather.

1.5 The aging population is supporting increasing motorhome and static caravan sales with orders increased in 2019 and 2020. Camping and caravanning is also increasingly attractive to a younger clientele.

1.6 Glamorous camping or “glamping” continues to grow in popularity and open up new markets. The offer of a pre-erected large family tent, yurt, tipi or pod often providing proper beds, chairs and flooring, the ability to stand up, running water and flushing toilets aids the growth of this type of attraction and draws in novice and more experienced campers alike. As glamping has become firmly established as part of the camping scene, the quality of the accommodation offered has been raised. For example, the first pods were basic ark type structures offering no more than a weather-tight platform for a double bed mattress. Now there are two-storey pods available to hire with mini kitchen facilities, shower rooms and roof lights for star gazing.

1.7 The shift toward UK staycation holidays has also seen the birth of the luxury short break market in the UK with a number of caravan parks now providing luxury hire fleet units with exceptionally high-quality facilities, often including private spa hot tubs. It is noted that whilst the high fleet revenues generated on such sites may be exceptional the operational costs associated are also high in relation to standard caravan parks.

1.8 The COVID-19 pandemic had a major impact on caravan and camping parks in the period leading up to the antecedent valuation date (AVD) of 1 April 2021. Details of the various restrictions implemented by statute in response to the pandemic, and of the vaccination rollout, can be found online. In February 2021 the UK Government published its Roadmap out of lockdown for England which set out four steps to relax restrictions. Step 1, easing restrictions on outdoor gatherings, had already taken place by the AVD. The later three stages of the Roadmap for England included

the opening of outdoor hospitality, and non-essential retail (Step 2, no earlier than 12 April);

most legal restrictions on meeting others outdoors to be lifted, opening of indoor entertainment venues such as cinemas, casinos and bingo halls (Step 3, no earlier than 17 May 2021); and

the removal of remaining restrictions on social contact (Step 4, no earlier than 21 June).

Subsequent to 1 April 2021 steps 2 and 3 took place as planned, but Step 4 was delayed four weeks to 19 July.

The situation in Wales, both leading up to and after the AVD, was similar although not identical.

2. Changes from last practice note

2.1 There is no significant change to the Practice Note for this class for R2023.

3. Ratepayer discussions

3.1 For R2023 discussions were once again held with the professional rating advisors to the caravan industry.

4. Valuation scheme

4.1 A scheme of valuation for holiday caravan parks, touring and camping sites has been agreed for the 1995 to 2017 rating lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2023 revaluation.

4.2 Information on receipts and gross profit for caravan parks, touring sites, camping sites and chalet parks, should be sought by serving FOR VO 6045. The wording of this form has changed for the 2023 revaluation to include reference to glamping accommodation. Where, in addition, rental information is sought VO 6046 may also be served.

4.3 Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.

4.4 Similarly, when considering chalet parks, touring and camping sites it is recommended that the sites with completed VO 6045s are valued first.

4.5 Notices served under Regulation 4 of SI 1990/673 (see paragraph 5.4 in the Rating Manual) will be served centrally for the compiled list valuations and thereafter by the individual caseworker.

4.6 Valuations are held in the Non-Bulk Server (NBS).

4.7 Valuations in the main are the responsibility of the Regional Valuation Units, but the National Valuation Unit are responsible for the largest sites and some sites operated as a group.

4.8 The Leisure Accommodation Class Co-Ordination Team (CCT) are responsible for the valuation schemes.

4.8 As the valuations are receipts based the resultant RVs are specifically excluded from the standard VO rounding scale and the valuers should stand back and look when finalising the RV.

5. Overview

5.1 Paragraph 6 below refers to static only and mixed caravan parks. The scheme of valuation set out in paragraph 6 is intended to cover sites within excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans or pitches the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted.

5.2 There is a separate scheme of valuation for single caravans and small sites.

5.3 The approach to sites with less than 10 static vans or which are wholly touring and tenting sites is set out in paragraph 7 below. This includes ‘glamping’ sites.

5.4 The valuation of certificated locations (known as 5CLs), is referred to separately in paragraph 9 below.

5.5 Chalet parks are covered in paragraph 8 below.

5.6 The rating assessment will reflect the estimated net profit achievable as at 1 April 2021 by a hypothetical tenant operating the park in accordance with the statutory hypothesis and looking forward in time. The reasonable efficient operator (REO) will take a view not only on the trade immediately achievable at AVD, but the trade over a period of time ahead, as they are assumed to be taking a tenancy with a reasonable prospect of continuance. The effects of the COVID-19 outbreak need to be taken into account as they would have been anticipated by the parties at the AVD. Trade evidence that includes long periods of lockdowns is unlikely to provide good evidence of the FMT at the AVD. Valuers are advised to take as their starting point the closest reliable trade, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.

6. Static and mixed caravan parks

6.1 See paragraph 5.6 above.

6.2 The approach is based on the receipts and expenditure method as there is insufficient rental evidence for static caravan parks on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (i.e., where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.

6.3 Over the years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park operator (SI 1990/673 - see paragraph 5.4 of the Rating Manual) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.

6.4 In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:

a. actual income derived from hire fleet vans

b. actual income from owner-occupied vans sublet through the site operator

c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site

d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis

e. income from other let accommodation (chalets, flats, cottages etc.)

f. income from winter storage, touring vans and tent pitches

g. gross profit from other income generating facilities, including bars, restaurants, etc.

h. miscellaneous income, for example income from AWP machines, gas sales to touring vans, income from boat storage

i. certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis, such as

j. rental income from pitch fees paid by owners of static caravans

k. profit on sale of static caravans onto the park

l. income/profit from the siting of static vans

m. profit derived from selling insurance to static caravans which form part of the hereditament

6.5 The following scheme set out in paragraph 6.7 has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.

6.6 Gross potential income (or notional income) under the rating hypothesis will be calculated from the sources itemised below.

6.7 Static holiday caravans and pitches – hire fleet caravans.

6.7.1 The actual gross rental income (net of VAT) from hire fleet lettings, should include any separate club membership fees, fuel charges, hire charges for linen etc., before deduction of agent’s letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings on comparable sites in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt. If the site achieving the higher fleet income cannot be compared directly with other sites, then it is expected that a valuer judgement would be made in arriving at the appropriate hire fleet income per van. In particular it is important to bear in mind that hire fleet income evidence may need to be adjusted if it is to be relied on for the valuation of a site of a different hire fleet size, where the type of site is of a different quality, or where the total numbers of vans is significantly different. Hire fleet evidence from sites offering small numbers of fleet caravans may have higher occupancy rates and may be more prone to fluctuate annually. Evidence from such parks should be considered with caution and valuers should always also have regard to the general tone of hire fleet evidence in an area when deciding the correct AFI. Whilst it is assumed single hire fleet units will usually be 12 foot caravans less than 6 years old, care must be taken to check the type and quality of the fleet units and the facilities on offer to those units (e.g. do they have a hot tub spa), in comparison with the other caravans on the site and other sites locally. If the fleet unit is of a different standard than the others locally then the income may need to be adjusted up or down as appropriate. When valuing the residual privately owned caravans on a site the local tone of value for the area should also be considered if the fleet evidence is based on relatively small numbers of units.

6.7.2 Equivalent fleet units (EqFUs). Where there is sub-letting of owner-occupied vans (private vans) either through the park operator or privately these will be converted to Equivalent Fleet Units (EqFUs). Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the equivalent fleet units.

Example 1

40 hire fleet vans earning income of £4,000 per van.

100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each.

No. of EqFUs = 21 x £2000 ÷ £4000 = 10.

These will be shown as deriving an income of £4000 each.

The residue will be 100 -10 (EqFUs) = 90.

If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (e.g. by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.

Example 2

Residue as above is 90 @ 25% = 22.

Converted to EqFUs = 22 x 2000 ÷ 4000 = 11.

Total EqFUs are now 10 + 11 = 21.

Residue of owner-occupied statics is 100 - 21 = 79.

6.7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the equivalent fleet units of this private sub-letting.

6.7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to Equivalent Fleet Units those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.

6.7.5 For the avoidance of doubt only fleet or private static caravans should be included when calculating the number of equivalent fleet units. However, when determining the number of effective fleet units again both fleet and private static caravans should be included together with chalets which form part of the fleet hire.

6.7.6 Residual private caravans. The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence, in the above example the income from the remaining 79 private (owner-occupied) vans would be:

Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000.

6.7.7 Adjustment for age and/or lack of services. Actual hire fleet income is normally derived from fleet caravans of good quality, modern (mainly below 6 years old) and fully serviced. Previously these were predominantly 3.048 metres (10 ft.) wide basic caravans but 3.658 metres (12 ft.) wide vans are now the norm for single caravans or up to 6.80 metres (22.309 ft.) wide for a twin unit.

6.7.8 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:

Age and Services allowances for private holiday caravans: percentage of fleet value applied

6.7.9 These adjustments have been incorporated into the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.

6.7.10 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2019 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as ay be appropriate.

6.7.11 Twin units. The fleet income to be adopted for twin units is unlikely to be less than a minimum of 1.5 times the fleet income for a single unit on the same park. Close regard should be had to the actual difference in tariff levels between single and twin units on a site with any actual fleet rental evidence being overriding. No addition is to be made to the scheme rental percentage when valuing twin units.

6.7.12 New caravans. The current practice should continue whereby only new caravans brought on to a site and which are connected to the services are brought into assessment. New caravans coming on to a site but remaining unconnected, whether placed on a pitch or not, should not be assessed until connection to the services has been carried out.

6.7.13 Staff caravans. Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - for example between 50% and 25% of fleet income.

6.7.14 Charity vans. Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.

6.7.15 Vacant static pitches. Unless used for touring caravans, vacant static pitches will be ignored.

6.8. Touring and tenting income including glamping.

6.8.1 See paragraph 5.6 above. The estimate of net profit will cover the actual gross rental income received (net of the cost of electricity and VAT) from pitches for touring caravans, motorhomes and tents. It will also include income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that since 2002 site owners have not been permitted to make a profit on the ‘resale’ of electricity.

6.8.2 The growing trend for site operators to include in their offer yurts, tipis or other large family tents has resulted in tenting pitches at some sites being amalgamated where no spare land was available. Only the pitch and not the tent will be rateable, however, the pitches used for these large tents will be larger than a typical standard size tent pitch. When considering the receipts for these large tents and their pitches valuers will need to adjust the receipts to arrive at a notional income for the pitch alone. It is recommended that, in the absence of full particulars, this adjustment should generally fall in the 30% - 40% range and may exceptionally rise to 50% (max) to reflect the non rateable tent, the type of unit sited, its facilities and the associated services provided by the operator. The resulting gross receipts per pitch should then be compared with the pitch income adopted for a standard sized pitch at comparable campsites in the area. Where full particulars are available then a further check may be provided if there are also standard pitches on the site by removing the known yurt/tipi income and their pitches. This will enable the standard pitch income to be established for the site itself. It is considered that the pitch income to be adopted for a yurt, tipi or other large family tent is unlikely to be less than twice the standard sized pitch income for the locality.

6.8.3 Small camping pods should be treated the same as a similar standard camping pitch. However, larger family pods offering greater facilities often including electricity, water and surrounded by paths, lighting and landscaping are likely to be sufficiently annexed to the land to be rateable being more in the nature of a bottom end chalet and should be treated accordingly. Tree houses are also likely to be sufficiently annexed to the land to be rateable and should be considered in the same way as the larger family pods.

6.8.4 For sites which are wholly or mainly comprised of ‘glamping’ elements the rating list description could be “Glamping Site and Premises” to facilitate comparison.

6.9 Other lettings.

6.9.1 See paragraph 5.6 above. Other lettings will include actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments, cottages, large family pods and tree houses etc.

6.9.2 Seasonal staff premises are to be valued in the same way as set out for caravans above.

6.10 Profit buildings and activities on the park (including winter storage income).

6.10.1 See paragraph 5.6 above. The valuation should include gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (i.e., hiring artistes etc.) where relevant.

6.10.2 Concessions. Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators’ liability for repairs, insurance, services, etc. normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are further overheads, a different percentage may be warranted.

6.10.3 Caravan storage. The first £5,000 gross receipts (excl VAT) from the winter storage of touring caravans should be valued at the standard rental percentage for the site. The gross receipts (excl VAT) in excess of £5,000 should be valued at a rental percentage between 25% and 35%. The more basic the storage site the higher the percentage adopted.

6.10.4 As an example, it is appropriate to adopt 35% where the storage area has limited or no security adaptations, has a grass or gravel surface.

6.10.5 Storage areas which have fenced boundaries, concrete or tarmac surfacing, CCTV, keypad access and/or other security features should be valued at 25%. For facilities valued at this end of the range, the park staff will usually take responsibility for moving vans.

6.10.6 Some sites offer storage during the season including tow-in-tow-off (TITO) to pitches that are hired by the day or week as an alternative to hiring a pitch at a seasonal rate (where vans stay on one pitch for the whole season). There are additional costs associated with this kind of operation compared with winter storage. In these cases, facts should be obtained for the site in question including the proportion of storage income earned from TITO and winter storage and the number of pitches affected. In cases where the cost and influence of TITO is shown to be significant then the residual storage receipts in excess of £5,000 should be valued at a lower rental percentage to be determined by the facts in each case.

6.11 Valuation considerations.

6.11.1 Valuations are usually to be made to whole or half percentages.

6.11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.

6.11.3 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.

6.11.4 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.

6.11.5 There are also other features of parks which would tend to increase or decrease net profitability, and which should result in the adoption of a scheme percentage higher or lower than a park without such features.

6.11.6 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.

6.11.7 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of even a small club to a park with no buildings should result in an increase in RV. A common sense approach should be taken in interpreting the scheme. In exceptional circumstances it may also be appropriate to take account of the cost of providing specific guest services e.g., health spa treatments, if additional trained staff are required to provide these services.

6.11.8 A park with extensive non-revenue buildings e.g., swimming pool, sports hall etc. should be taken at a lower percentage than parks with buildings of a similar floor area, where all the buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit, then the percentage adopted will be higher than parks with similar building floor areas without these features.

6.11.9 The 2017 list percentage adopted should not be carried over for R2023 valuations. Instead, each R2023 valuation should be considered afresh.

6.11.10 If alterations to the park take place during the valuation period, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of the caravans themselves since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.

7. Touring parks and camping sites (excluding certificated locations - 5CLs)

7.1 Touring parks and camping sites will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks.

7.2 Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.

7.3 Gross receipts (excl VAT) from the winter storage of caravans should be valued in accordance with the guidance given in paragraph 6.10.3 above.

7.4 As with the valuation of static/mixed sites above, features of a touring park or camping site affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.

8. Chalet parks

8.1 Chalet Parks vary. They range from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.

8.2 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.

8.3 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.

8.4 In more recent years there has been a trend to higher standards of chalet construction: Scandinavian timber lodges, log cabins or brick or block-built chalets. These are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.

8.5 Valuation approach.

8.5.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995 to 2017 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.

8.5.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.

8.5.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.

8.5.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self-catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.

8.5.5 Paragraph 8.6 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for previous rating lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.

8.6 Examples

a. Caravan parks/chalet parks with up to 50% units comprising chalets. Generally, unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits and having regard to the valuation scheme for self-catering complexes. This is an exception to the general overall percentage approach.

b. Chalets parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.

c. Chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made. Regard should also be had to the valuation scheme for self-catering complexes. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.

d. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to c above. Some modern types may be present in small numbers. Again, the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation. In considering whether an uplift is appropriate, or to quantify the amount of the uplift, regard should be had to the valuation scheme for self-catering complexes. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.

e. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges, log cabins etc. Regard should also be had to the valuation scheme for self-catering complexes. Valuer judgement, as to the up-lift to the caravan park basis but most sites should be contained within an up-lift of up to 5% to the normal caravan park percentage rate. In considering whether an uplift is appropriate, or to quantify the amount of the uplift within the range above, regard should be had to the valuation scheme for self-catering complexes.

f. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this from the valuation scheme for self-catering holiday complexes where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.

g. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally, a basic chalet park in this category should be valued by direct comparison with valuation scheme for self-catering holiday accommodation used locally. Such basis will usually go direct to a price per chalet or per single bed space having regard to the size and quality of the accommodation. Only where the chalets are clearly superior to the generality of holiday accommodation in the locality should higher levels of value, which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.

8.6.1 Staff chalets should be valued at 50% of the income adopted for letting chalets.

8.7. Information to be requested. FOR number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.

9. Certificated locations (5CLs)

9.1 Introduction.

9.1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site license requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.

9.1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.

9.1.3 The R2023 valuation scheme should be applied subject to the qualifications outlined below.

9.2. Basic 5 CLs.

9.2.1 These are, in effect, undeveloped ‘greenfield’ sites with standard facilities only - i.e., drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.

9.3. Developed 5 CLs.

9.3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’

9.3.2 The valuation scheme takes into account the degree of commercialisation. The greater the range of facilities, the higher the working expenses and the lower is the percentage to RV.

9.3.3 Assessments should be rounded down to the nearest £25.

9.4. Description and Address.

9.4.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites. Where the hereditament, in the absence of any agreement to the contrary (such as a tenancy agreement), is a farm or agricultural land on which the 5CL is situated then the description in the Rating List should be “camping site (part exempt)” or “camping site and premises (part exempt)”.

9.4.2 In most cases the hereditament will include domestic property and therefore be composite, where this is the case it should be marked as such.

9.4.3 The address of the site should always commence with the words ‘Certificated location at……….. (for example, hill farm)’.

9.5. General.

9.5.1 In arriving at the R2023 RV valuers must ensure that this does not exceed the tone level of assessment for non-certificated touring sites in the locality having similar facilities.

9.5.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.

9.6. Seasonality and unit of assessment.

9.6.1 In light of legal opinion in respect of a steam fair, the rare incidence of “seasonal assessments” for 5CL sites should cease to exist.

9.6.2 It is considered that the site owner, usually the farmer, should be regarded as remaining in occupation of the whole site all year round. Consequently, VOs should not remove a 5CL assessment from the Rating List at the end of the season even if the site reverts to an exempt agricultural use.

9.6.3 In many cases the unit of assessment will be the farm, or agricultural land as a whole, including the 5CL site, where a single, part exempt, assessment is appropriate. The assessment should remain in the list all year round.

Appendix 1

Basic Certificated Locations and Sites (5CLs)

Valuers are advised to take as their starting point the gross receipts, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.

Undeveloped sites are valued at 23.5% of receipts, rounded down to next £25.

Appendix 2

Developed Certificated Locations and Sites (5CLs)

Valuers are advised to take as their starting point the gross receipts, which is likely to be the 2019/2020 (ending March or before) trading year and any previous trading years.

Developed sites which benefit from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 15% to 18.5% as outlined in the leisure caravan park and touring/camping site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). See Appendix 4. For example:

a. where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 18.5% of gross receipts would be applied to arrive at the RV;

b. where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (i.e.. grass roadways and no landscaping), 18.5% of gross receipts would also be applied to arrive at the RV;

c. where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 16.5% of gross receipts would be applied to arrive at the RV as would be the case for touring parks.

Assessments should be rounded down to the nearest £25.

Appendix 3

Static / Mixed Parks (with Static Caravans and Twin Units)

In the case of static/mixed parks with income from touring falling within a range of 50% to 60% of total income, valuer judgement should be applied considering the scale and nature of the park and trading history as to where a park should be valued between the percentages set out in Appendix 3 and Appendix 4.

N.B. These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0%. Evidence of abnormal net profitability will be required. A “negative” example might be a difficult site where unusually high operating costs are incurred or where the operator supplies a very high-quality service provision including hot tubs. A “positive” example might be an undemanding, straightforward but exceptionally well-located park.

Paragraph 6.7.2 of the Practice Note explains Equivalent Fleet Units.

Paragraph 6.7.5 of the Practice Note describes Effective Fleet Units.

The following are examples of how the valuation scheme matrix should be interpreted to reflect the characteristics of the park.

For example:

(1) A wholly hire-fleet park without buildings will normally be taken at 12%

(2) A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 12% and 13%

(3) A park consisting wholly of private caravans without buildings will normally be taken at 13.5%

(4) The same park with touring income as well would be taken at between 13.5% and 14.5%

Appendix 4

2: Touring Parks & Camping sites

These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0% subject to valuer judgement. Evidence of abnormal net profitability will be required. A “negative” example might be excessive or abnormally high staff overheads (ie, group operated sites due to the necessity to have multiple warden couples). A “positive” example might be an undemanding, straightforward but exceptionally well-located park.

Appendix 5

Small Sites Scheme

Introduction

Caravans are grouped into one assessment as a result of SI 1990 No 673 which provides that, where pitches for leisure caravans on a relevant site would constitute separate hereditaments by virtue of being separately occupied by persons other than the site operator, those pitches shall be treated as a single hereditament, together with so much of the rest of the site as is in the occupation of the site operator.

“Relevant site” means a site which has an area of 400 square yards or more and which includes some non-domestic property.

The agreed scheme of valuation in PN 1 is intended to cover sites within excess of 10 pitches for static caravans, or touring sites. It envisages the site being run commercially as a business. It is not intended to be applied to single caravans or sites with less than 10 caravans.

PN 1 paragraphs 5.1 and 5.2 refer to the separate scheme of valuation for single caravans and small sites.

The small site scheme may not be suitable for new sites which will have more than 10 pitches eventually but which initially may have only a few vans as the site is developed, especially where there are other facilities in place.

There is no statutory basis for this small site scheme. Nor has it been agreed with the industry.

Sites with less than 10 caravans

In respect of single caravans although there may be an element of commercial usage in that the owner of a van may let it for short periods to holiday makers, there is also usually a larger element of personal use which needs to be reflected. Accordingly, the scheme values used for commercial sites would under-value this caravan if it were to be valued as a private van at half or less of the fleet percentage.

The motivation of a bidder for a site with 2 to 9 caravans will usually be commercial. So for privately owned vans the lower percentages used in the commercial scheme are ignored in the small site scheme.

The rating manual refers to valuation methods at paragraph 8.2.7.

1. Comparison with rented single vans or chalets

For sites of 10 or less static caravans the rental values suggested by the scheme need to be compared with actual rental values of individually sited static vans, or comparison with the assessments of non-traditional dwellings in the area such as chalets (Racine v Buncombe (V)) 1967 LT (1969) RCN 92). However, rental evidence is scarce.

2. Net pitch fee addition

An alternative approach is to consider adding to the pitch fee a rental value for the caravan based upon its second-hand value. However, this evidence is not collected and analysed. A simpler approach is to add between 20% and 50% of the net site pitch fee to represent the rental value of the caravan.

Pitch fees are provided on VO 6045. A pitch fee may require adjusting to remove any amounts for rates or services to arrive at a ‘ net pitch fee ‘.

3. Small site scheme

It has become the practice to take a third approach which is the small site scheme.

As the valuation scheme for commercial caravan parks is based on a percentage of holiday hire caravan receipts for the locality, a similar approach should be adopted for small sites with adjustments to reflect the higher value of a single caravan and pitch. The starting point should be local fleet incomes (the average fleet income (AFI) ‘tone’). The adopted percentage should not be incompatible with the valuation scheme for single units of self-catering accommodation.

For the 2021 List the self-catering scheme is as follows:

single units and complexes of 2-4 units, 15-16% (16% for the poorest quality)

larger complexes:

A highest quality 11%

B quality 13.5%

C lowest quality 16%

The motivation of a bidder for a site with 2 to 9 caravans will usually be commercial. So for privately owned vans the lower percentages used in the commercial scheme are ignored in the small site scheme. However, the allowances for age and lack of services are duplicated - see PN 1 paragraph 6.7.8.

4. 2-10 fleet hire static caravans

5. 2-10 privately owned static caravans

Age and Services Allowance

The following table shows how the scheme for private vans works in practice assuming the tone AFI is £4,000.

There are two ways to follow this advice in the non-bulk server (NBS) valuation.
- the private vans should be valued at double the percentage in the table above on the ‘Summary’ tab. The age and service percentage adjustments in the ‘Single Static 2’ tab should not be adjusted for this approach
- or the percentage adjustments in the ‘Single Static 2’ tab can be adjusted and the percentages in the table above adopted on the ‘Summary’ tab. For example, for private vans age A/B the percentage would be adjusted from 50% to 100% for fully serviced pitches. The adjustments would be to the following:
Age and Services Allowance Percentage Adjustments

6. Check valuation

The valuation derived from the scales in paragraph 5 above should be checked to ensure that the rateable value is within the range 1.2 to 1.5 times the fair maintainable pitch fee plus the addition for a modern caravan in the range £300 to £500.

7. Valuation Remarks

A remark should be added to the remarks box in single static page and on summary page to clearly state that the small site basis has been used. This will alert anyone subsequently viewing the valuation or amending it.

A remark should also be made about why the small site scheme has been considered and the decision taken not to adopt it, for example for developing sites.

Practice Note 1: 2017 - Caravan and Camping Sites : Basic Certificated Locations and Sites

1. Market Appraisal

The caravan and leisure camping industries remain big business and an important contributor to UK tourism.

The National Caravan Council (NCC) figures show that the caravan industry regularly contributes more than £6 billion per annum to the UK economy (approximately £2 billion holiday spending and £4 billion from the sale of new and used products).

Approximately 130,000 people are employed in the industry (including part time and seasonal staff).

Caravan parks and touring & tenting sites have always experienced a somewhat cyclical market as airport delays or poor experiences abroad tempt holidaymakers to try caravan or camping holidays in the UK until poor summer weather tempts them back abroad.

Being one of the most affordable types of holiday option the caravan industry was well placed to weather the recent recession and the home tourism boom fuelled by the “staycation” attitude adopted by many. Caravan and camping holidays are generally considered ‘greener’ and cheaper than foreign travel and have increased appeal to environmentally minded people.

In 2012, UK residents took 15.9 million camping and caravanning trips nearly half of which were in static caravans, 26% camping and 26% in touring caravans or motorhomes (Great Britain Tourism Survey 2012).

Market research company IBISWorld reported in June 2013:

To 2018-19 revenue in the Camping & Caravan sites industry was expected to continue to grow due to constrained incomes and further austerity measures prompting families to seek cheaper holidays.

Improved sites and facilities keep guests coming back.

The industry did not escape the economic difficulties altogether but proved more resilient than most, while some families could not afford holidays others opted for a “staycation” and made use of campsites and holiday parks gradually raising demand.

Demand and revenue is expected to grow 2-3% in 2013-14.

High competition has limited tariff increases and profit margins have often been hit by greater investment in sites.

In the longer term continued development of sites and facilities plus a slow economic recovery will keep guests returning.

Glamorous camping or “glamping” continues to grow in popularity and open up new markets. The diversification into the more comfortable arm of camping offers a back to nature experience with a few creature comforts thrown in. The offer of a pre-erected large family tent, yurt, tipi or pod often providing proper beds, chairs and flooring, the ability to stand up, running water and flushing toilets aids the growth of this type of attraction and draws in novice and more experienced campers alike.

In the UK in 2014 the NCC estimated there were 550,000 touring caravans, 330,000 caravan holiday homes and more than 205,000 motorhomes. In 2014 there were significant increases in the sale and registration of new touring caravans (up 9.2%) and motorhomes (up 18%).

The winter of 2013/14 saw many miles of coastline battered by storms, wind and rain, 40ft waves smashing seaside towns and coastlines. Several parks suffered damage with a likely loss of trade during the 2014 season not just for the actual parks themselves but other sites may have been affected as people whose houses flooded would not visit even if the caravan or the caravan park or camp site they usually visit were unaffected.

Across the country many caravan park operators have, post-recession, recommenced offering private static caravans for sale often sacrificing fleet van numbers on their park.

The sector remains highly sensitive to increasingly unstable weather patterns, but most sites now offer an online booking service allowing holidaymakers to respond at the last minute to a good weather forecast, especially around Bank Holiday weekends. The massive growth in the popularity of cycling has boosted weekend breaks and campsites have benefitted.

Although caravanning and camping are currently more popular than ever and many operators have experienced revenue growth operating costs have also increased notably utility costs, the minimum wage and insurance premiums.

In February 2015 the pound climbed to a seven year high against the euro potentially putting the “staycations” under threat. Camping and caravan sites may feel some impact as the UK comes out of the recession and the relatively cheap euro creates better value breaks on the continent.

In September 2015 the long awaited merger of Parkdean and Park Resorts was announced which will create the biggest holiday park business with 73 venues, more than 35,000 pitches and over 22,000 private caravan owners.

2. Changes from last Practice Note

The major changes to the Practice Note for this class for R2017 are small amendments to the matrix headings and the recalibration, across the board, to the rental percentage matrices by - 1.5%. This is in line with the analysis of the available relevant accounts data which reflects the impact of increased costs on profitability. The Specialist Caravan Valuers are reminded that, when justified, full use should be made of the range of percentages available from the appropriate matrices in Appendix 2.

3. Ratepayer Discussions

For R2017 discussions were once again held with the professional rating advisors to the caravan industry. The organisations represented included the National Caravan Council, the British Holiday and Home Park Association, the Caravan Club, the Camping & Caravanning Club and Camping in the Forest.

Following the central discussions, the agreed valuation scheme for the 2017 rating lists is set out in section 4 below.

4. Valuation Scheme

4.1 A scheme of valuation for holiday caravan parks, touring and camping sites was agreed for the 1995, 2000, 2005 and 2010 rating lists based upon information obtained from actual accounts, adapted to accord with the rating hypothesis. This approach has been continued for the 2017 revaluation.

4.2 Information on receipts and gross profit for caravan parks, touring sites, camping sites and chalet parks, should be sought by serving FOR VO 6045. The wording of this form has not changed for the 2017 revaluation. Where, in addition, rental information is sought VO 6046 may also be served.

4.3 Caravan Specialist Valuers should commence valuations for the revaluation by valuing the fleet sites for which there is evidence of fleet lettings on VO 6045. This will allow the evidence to be used when considering the appropriate fleet income per van for private sites or sites where there is no completed VO 6045.

4.4 Similarly, when considering chalet parks, touring and camping sites it is recommended that the sites with completed VO 6045s are valued first.

4.5 Notices served under Regulation 4 of SI 1990/673 (see paragraph 5.4 of main section) will usually be served by the local Unit offices. For the compiled list valuations these Notices will be served centrally in April 2017 by a Network Support Office.

4.6 The IT application developed to assist in the valuation of this class has been re-written for R2017 and should be used for the valuation of all caravan hereditaments.

4.7 All 2017 rating valuations for caravan and camping hereditaments should be carried out, in accordance with the terms of this agreement, by the competent Unit Caravan Specialist Valuers experienced in the caravan and camping sector. As the valuations are receipts based the resultant RVs are specifically excluded from the standard VO rounding scale and the specialist valuers should stand back and look when finalising the RV.

A. Single Caravans, Small Static, Touring and Camping Sites

1. The scheme of valuation set out in Section B paragraphs 4 and 5 below is intended to cover sites with in excess of 10 pitches for static caravans or touring caravans/tents. For sites of 10 or less static caravans or pitches the rental values suggested by the scheme need to be compared with rental values of individually sited static vans, and an appropriate value adopted, if anomalies are not to occur.

2. A scheme of valuation for single caravans and small sites will be drawn up by the Caravan Specialists who will also be responsible for the valuation of these hereditaments.

3. The valuation of certificated locations, 5CLs, is referred to separately in Section E below.

B. Static and Mixed Caravan Parks

1. The rating assessment will reflect the estimated net profit achievable as at 1 April 2015 by a hypothetical tenant operating the park in accordance with the statutory hypothesis. This will usually be based upon the actual account figures for the park for the 2014 summer season, with adjustments to allow for the statutory hypothesis.

2. The approach is based on the receipts and expenditure method as there is insufficient rental evidence for static caravan parks on terms approximating to the rating hypothesis. For these parks, the best evidence is that derived from actual accounts of hire fleet operations (i.e. where site operators own the vans and let them out) as these are the situations which accord most closely with the rating hypothesis.

3. Over the years there has been a move away from “fleet” operations and there are now very few fully fleet sites in England and Wales. The more normal method of operation is to sell caravans and charge an annual pitch fee. Under the rating hypothesis these vans are assumed to belong to the park operator (SI 1990/673 - see paragraph 5.4 of the main Rating Manual section) and to be available for let on a weekly or seasonal basis. Because the number of potential weekly lettings is finite the hypothetical tenant will have to try and let a substantial number of vans, which in reality are owner-occupied, on a seasonal basis. This is unlikely to generate as high an annual income as the weekly let vans. The scheme reflects this by valuing the fully owner-occupied vans at a discount to the fleet vans on the same site.

4. In order to avoid the necessity of detailed consideration of accounts for every caravan park, sample accounts have been analysed in order to produce a percentage of turnover which can be used as the valuation basis to be applied to other parks. Consideration of the actual account figures will involve:

a. actual income derived from hire fleet vans;

b. actual income from owner-occupied vans sublet through the site operator;

c. estimated income from private sub-letting of owner-occupied vans where there is evidence of such activity on the site;

d. a notional income which will be derived from the remaining owner-occupied static vans representing the income that could be achieved if such vans were let on an annual basis;

e. income from other let accommodation (chalets, flats, cottages etc.);

f. income from winter storage, touring vans and tent pitches;

g. gross profit from other income generating facilities, including bars, restaurants, etc.;

h. miscellaneous income, e.g. income from AWP machines, gas sales to touring vans, income from boat storage, etc.

I.Certain items which normally appear in accounts of caravan parks and sites are excluded, as they would not be available to a hypothetical tenant under the rating hypothesis, such as:

j. rental income from pitch fees paid by owners of static caravans;

k. profit on sale of static caravans onto the park;

l. income/profit from the siting of static vans;

m. profit derived from selling insurance to static caravans which form part of the hereditament.

5. The following scheme has been prepared to simplify the valuation and to allow the majority of parks to be assessed as a proportion of their adjusted turnover. A full receipts and expenditure method valuation can, however, be prepared where it is considered that the “short cut” turnover method is inappropriate. Such cases will be few.

6. Calculation of Gross Potential Income / Notional Income

Gross potential income (or notional income) under the rating hypothesis will be calculated from the sources itemised in paragraphs 7 – 10 below.

7. Static Holiday Caravans and Pitches

Hire-fleet Caravans

7.1 The actual gross rental income (net of VAT) from hire fleet lettings, should include any separate club membership fees, fuel charges, hire charges for linen etc., before deduction of agent’s letting commission, if any. Where in an individual case it can be proved that the level of receipts including letting commission is significantly above or below the general tone for hire fleet lettings on comparable sites in that area, valuers should have regard to the general tone in deciding on the appropriate hire fleet income per van to adopt. If the site achieving the higher fleet income cannot be compared directly with other sites then it is expected that a valuer judgement would be made in arriving at the appropriate hire fleet income per van.

Equivalent Fleet Units (EqFUs)

7.2 Where there is sub-letting of owner-occupied vans (private vans) either through the park operator or privately this will be converted to Equivalent Fleet Units (EqFUs) as follows:

Where actual sub-letting through the site operator occurs the actual income per van so derived will be divided by the income per van from the fleet vans to determine the value of the equivalent fleet units.

Example 1

40 hire fleet vans earning income of £4,000 per van. 100 private vans of which 21 sub-let through the operator and earning an income of £2,000 each. No. of EqFUs = 21 x £2000 ÷ £4000 = 10.

These will be shown as deriving an income of £4000 each.

The residue will be 100 -10 (EqFUs) = 90.

If there is evidence of actual private sub-letting of the remaining private vans then up to 25% or such greater number as can be proved (e.g. by disclosure on VO 6045) may be treated in the same way as vans sub-let through the site operator.

Example 2

Residue as above is 90 @ 25% = 22.

Converted to EqFUs = 22 x 2000 ÷ 4000 = 11.

Total EqFUs are now 10 + 11 = 21.

Residue of owner occupied statics is 100 - 21 = 79.

7.3 Where there is no company sub-letting, but there is evidence of private sub-letting, a view will need to be taken as to the value of the equivalent fleet units of this private sub-letting.

7.4 Generally details of sub-letting income will only be known for those vans which are sublet through the park operator. In converting to Equivalent Fleet Units those vans which are let privately it is assumed that they will achieve the same income as sublets through the park unless there is evidence that private sublets achieve a lower income than operator sublets. However, weight should normally be given to estimates of private subletting provided by the operator in arriving at a judgment.

N.B. For the avoidance of doubt only fleet or private static caravans should be included when calculating the number of equivalent fleet units. However, when determining the number of effective fleet units again both fleet and private static caravans should be included together with chalets which form part of the fleet hire.

Residual Private Caravans

7.5 The residual private caravans are assumed to derive a notional annual income of 50% of the fleet income of caravans. Hence, in the above example the income from the remaining 79 private (owner-occupied) vans would be:

Residue of private static caravans is 79 @ £4000 ÷ 2 = £158,000. Adjustment for Age and/or Lack of Services

7.6 Actual hire fleet income is normally derived from fleets of good quality, modern (mainly below 6 years old) fully-serviced caravans. Previously these were predominantly 3.048 metres (10 ft.) wide basic caravans but 3.658 metres (12 ft.) wide vans are now the norm for single caravans or up to 6.80 metres (22.309 ft.) wide for a twin unit.

7.7 The following scale of adjustments should be adopted to reflect the age of, and services supplied to, the residual private caravans:

Age and Services allowances for private holiday caravans

Percentage of fleet value applied

7.8 These adjustments have been incorporated in the IT application, although some adjustment may be necessary when considering the allowance for partially serviced vans in Bands A and B - these are combined in the IT application, with a default to 42.5%. This should be increased or decreased within the range of 45% to 40% depending on the mix of ages between bands A and B.

7.9 Total allowances for age and lack of services should not reduce the income below that of a minimum of the net pitch fee income for 2014 plus an amount for the caravan normally at 50% of the net pitch fee, or, exceptionally, such other addition to the net pitch fee as may be appropriate.

Twin Units

7.10 The fleet income to be adopted for twin units is unlikely to be less than a minimum of 1.5 times the fleet income for a single unit on the same park. Close regard should be had to the actual difference in tariff levels between single and twin units on a site with any actual fleet rental evidence being overriding. For R2017 no addition is to be made to the scheme rental percentage when valuing twin units.

New Caravans

7.11 The current practice should continue whereby only new caravans brought on to a site and which are connected to the services are brought into assessment. New caravans coming on to a site but remaining unconnected, whether placed on a pitch or not, should not be assessed until connection to the services has been carried out.

Staff Caravans

7.12 Those vans occupied by seasonal staff which are not liable to Council Tax will be valued at the same rate as similar aged and serviced private vans - i.e. between 50% and 25% of fleet income.

Charity Caravans

7.13 Vans occupied by Charities, which would form separate hereditaments in the absence of SI 1990 No. 673, will be separately assessed.

Vacant Static Pitches

7.14 Unless used for touring caravans, vacant static pitches will be ignored.

8. Touring and Tenting Income

8.1 This will cover the actual gross rental income received (net of VAT) from pitches for touring caravans, motorhomes and tents. It will also include income generated from casual use of static pitches, rally areas and 28 day use. It should be borne in mind that since 2002 site owners have not been permitted to make a profit on the ‘resale’ of electricity.

8.2 The growing trend for site operators to include in their offer yurts, tipis or other large family tents has resulted in tenting pitches at some sites being amalgamated where no spare land was available. Only the pitch and not the tent will be rateable, however, the pitches used for these large tents will be larger than a typical standard size tent pitch. When considering the 2014 season receipts for these large tents and their pitches the Unit Caravan Specialist will need to adjust the receipts to arrive at a notional income for the pitch alone. It is recommended that, in the absence of full particulars, this adjustment should generally fall in the 30% - 40% range and may exceptionally rise to 50% (max) to reflect the non-rateable tent, the type of unit sited, its facilities and the associated services provided by the operator. The resulting gross receipts per pitch should then be compared with the pitch income adopted for a standard sized pitch at comparable campsites in the area. Where full particulars are available then a further check may be provided if there are also standard pitches on the site by removing the known yurt/tipi income and their pitches. This will enable the standard pitch income to be established for the site itself. It is considered that the pitch income to be adopted for a yurt, tipi or other large family tent is unlikely to be less than twice the standard sized pitch income for the locality.

8.3 Small camping pods should be treated the same as a similar standard camping pitch. However, larger family pods offering greater facilities often including electricity, water and surrounded by paths, lighting and landscaping are likely to be sufficiently annexed to the land to be rateable being more in the nature of a bottom end chalet and should be treated accordingly. Tree houses are also likely to be sufficiently annexed to the land to be rateable and should be considered in the same way as the larger family pods.

9. Other Lettings

9.1 Actual gross rental income from any commercial operations on the park (net of VAT), including income generated from holiday lettings of chalets, apartments, cottages, large family pods and tree houses etc. Seasonal staff premises are to be valued in the same way as set out for caravans above.

10. Profit Buildings and activities on the park (including winter storage income)

10.1 Gross receipts from all sources (net of VAT) in respect of profit buildings and activities run by the site operator, including all bed and breakfast receipts, less the cost of purchases and cost of entertainment (i.e. hiring artistes etc.) where relevant.

10.2 Where buildings/areas are let on concessions or franchised, the concession/franchise fee(s) received will normally be added direct to rateable value at the end of the turnover calculation after reflecting the site operators liability for repairs, insurance, services, etc. normally at 50% of the concession/franchise fee. Where the circumstances indicate otherwise, for example in the case of income from car boot sales or significant winter storage where there are further overheads, a different percentage may be warranted. For R2017 the first £5,000 gross receipts (excl VAT) from the winter storage of touring caravans should be valued at the standard rental percentage for the site, the gross receipts (excl VAT) in excess of £5,000 should be valued at a rental percentage between 25% and 35%. The more basic the storage site the higher the percentage adopted.

11. Rateable Value

11.1 The rateable value arrived at by this formula will be calculated at between 9.5% and 14.5% of the adjusted turnover, plus any addition in respect of winter storage, concessions or franchises. Valuations are usually to be made to whole or half percentages.

General approach

11.2 Generally, the percentage to be adopted will be an overall one for parks in their totality. This however does not prevent valuers from using different percentages on separate income streams so as to arrive at an overall percentage which is fair in relation to other parks.

Year of receipts

11.3 The fair maintainable receipts adopted are to be those envisaged by the hypothetical tenant as at 1 April 2015. The new season tariff would have been published by the AVD and will usually be set to maintain visitor numbers and reflect foreseeable items of additional expenditure such as increases in the minimum wage, utility bills and insurance costs. The 2014 season receipts should normally be used to inform the maintainable level upon which the hypothetical tenant would base a rental bid as at 1 April 2015. Where the individual circumstances of the park are such that the 2014 season receipts are unreliable, regard should be had to receipts of other similar parks or other trading years of the park as may be appropriate. For example, if forward bookings have traditionally accounted for a large proportion of the annual income of a particular site, and there is evidence of a substantial fall in forward bookings at the AVD compared to the position as at 1 April of other seasons, such evidence should be taken into account. Due to the possible impact of storm damage or flooding in the accounts for some locations, caution should be exercised when considering the receipts for the 2014 season which may be distorted either by an increase in holidaymakers or reduced due to closure or restrictions on the site or in the location for all or part of the season.

Valuation consideration

11.4 The underlying reason for varying the percentage according to the income/unit mix is to reflect expected profitability.

11.5 A park with a large range of built facilities and/or a large proportion of hire-fleet caravans will be assessed close to the bottom end of the percentage range. Non-commercial parks with no hire-fleet caravans and a substantial proportion of touring pitches will be assessed at or close to the upper end of the percentage range.

11.6 A wholly hire-fleet park without buildings will normally be taken at 12%.

11.7 A park with 33% hire-fleet caravans, 33% private caravans and 33% touring and tenting pitches, with a small range of buildings, will also normally be taken at between 12% and 13%. A park wholly of private caravans without buildings will normally be taken at 13.5%. The same park with touring income as well would be taken at between 13.5% and 14.5%.

For other example percentages see the Matrix of example percentages attached as Appendix 2 to this Practice Note.

11.8 There are also other features of parks which would tend to increase or decrease net profitability and which should result in the adoption of a scheme percentage higher or lower than a park without such features.

11.9 An example of such an additional feature likely to reduce profitability is a requirement to herd caravans in the winter. This would normally result in a reduction in the overall percentage taken compared to a similar park without this disadvantage.

11.10 Profit earning buildings should reflect their value to the park. The addition of a small club to a park with no buildings will normally result in a reduction in the overall percentage by ½% to 1%. But regard should also be had to its effect in increasing the overall attractiveness of the park, which should be reflected in the income per van/pitch. The addition of such a small club to a park with no buildings should result in an increase in RV. A common sense approach should be taken in interpreting the scheme.

11.11 A park with extensive non-revenue buildings e.g. swimming pool, sports hall etc. should be taken at a lower percentage than parks with a similar floor area, where all the buildings are principally revenue earning. Particularly where the latter buildings are modern and well laid out with low running costs and have a high quantum of gross profit, both in revenue amounts and percentage of gross profit then the percentage adopted will be higher than parks with similar building floor areas without these features.

11.12 As the matrix percentages have been recalibrated for R2017 the 2010 list percentage adopted should not be carried over for R2017 valuations. Instead each R2017 valuation should be considered afresh.

Alterations

11.13 If during the valuation period alterations to the park take place, including changes in the number and/or types of caravans, this may be treated as a material change of circumstance and the assessment revised accordingly. Changes in the nature or physical state of caravans since the beginning of the list, or the previous material day, are to be disregarded in accordance with the provisions of LGFA 1988 Schedule 6 para 2B.

C. Touring Parks and Camping Sites (excluding certificated locations - 5CLs)

1. Touring parks and camping sites will also be assessed on the basis of profitability adopting a philosophy similar to that for static holiday caravan parks. As with static caravan parks, whilst the fundamental basis remains profitability, touring parks and camping sites will normally be valued on the basis of turnover achieved in the 2014 summer season. Turnover will be calculated in the same way as set out in paragraphs 8 to 11 above.

2. Rateable value will usually be assessed at between 14% and 18.5% of turnover, the percentage varying with expected net profitability.

3. Highly developed parks with all weather, serviced pitches, and a substantial range of facility buildings, will be assessed close to the bottom end of the percentage range. “Bare field” sites, with little in the way of roads, pitch services and no buildings other than toilet/basic shower blocks, will be assessed close to the top of the percentage range. This difference is to reflect the outgoings that a hypothetical tenant would reasonably expect to incur.

4. A large number of sites, typically with a road network, about 30% of pitches with electrical hook -ups reception facilities and good quality toilets/showers, will normally be assessed at between 15% and 17% of turnover. Such a park with a permanent reception and shop facilities will normally be assessed at between 15% and 16%; a park with reception facilities in a caravan or other temporary building, and no shop, will normally be assessed at between 16% and 17%.

5. For other example percentages see the Matrix of example percentages attached as Appendix 2. Gross receipts (excl VAT) from the winter storage of caravans should be valued in accordance with the guidance given in paragraph 10.2 above.

6. As with the valuation of static/mixed sites above, features of a touring park or camping site affecting net profitability should be considered in arriving at the overall percentage to RV. For example, where the buildings in the first example are of a particularly high standard with low maintenance and running costs the percentage should normally be taken at ½% or 1% more than would otherwise be the case. Conversely if the buildings are particularly poor, the percentage should normally be taken at ½ % or 1% less than would otherwise be the case.

D. Chalet Parks

1. Introduction

1.1 Chalet Parks vary from the large commercial park, perhaps containing several hundred chalets plus various amenity and entertainment buildings, to the small personally run operation, often of a few chalets adjoining an owner’s house.

1.2 Generally the chalets are let to holidaymakers for periods of 7 days and letting seasons are between April and the beginning of October.

1.3 The traditional self-catering chalet was typically of timber framed and clad construction, with a flat felted or sometimes pitch felted roof. A number of these may have been finished externally with a Tyrolean or flat concrete spray to give a more solid appearance. The thermal insulation quality of such chalets is poor.

1.4 During the late 1950s and early 1960s numbers of chalets were built of block or brick construction, usually with a flat felted roof but sometimes with a pitch tiled roof. Whilst being of more solid construction than the original timber chalets these can now appear very basic and unless they have been substantially updated, fall some way short of current domestic quality.

1.5 In more recent years there has been a trend to higher standards of chalet construction with the appearance of Scandinavian timber lodges, log cabins or brick or block built chalets which are comparable in quality to domestic standards. Generally, however, the size of chalets will be of the order of 30 to 50m2 GIA and thus are usually smaller than typical domestic properties.

2. Valuation approach

2.1 A number of caravan parks have chalets as well as caravans and in the settlement of the 1995, 2000, 2005 and 2010 list appeals for caravan parks, the agreed caravan park basis was adopted for such caravan parks where chalets form up to about 50% of the total units.

2.2 Chalets have a greater degree of permanence and have longer lives than caravans. The special assumptions that have to be made to fit the rating of caravan parks to the hypothesis do not apply to chalet parks and a valuation on receipts and expenditure would follow similar lines to those for other classes of leisure property.

2.3 Nevertheless, the caravan parks basis with adjustment, could usefully be applied to obtain fair assessments and ensure consistency between caravan parks with substantial numbers of chalets and chalet parks per se.

2.4 With the better smaller chalet parks however, the operator may well be in competition with other holiday accommodation, such as self-catering holiday accommodation complexes which may be of a similar nature and standard. In the latter case the approach will be by way of a price per chalet, in direct comparison with the holiday accommodation basis applied in the locality.

2.5 Paragraph 3 below sets out examples of different types of chalet park and the valuation approach to be adopted in each case. This is a continuation of the scheme adopted for the 1995, 2000, 2005 and 2010 lists. Given the great variety of properties however, in exceptional cases causing difficulties it is open for valuers on either side to request the production of accounts to enable individual assessments to be fairly established.

3. Examples

a. Caravan Parks/Chalet Parks with up to 50% units comprising chalets. Generally, unless the chalets exceptionally are of modern quality, the caravan park basis can be fairly adopted. Whereas the older traditional type of chalets on caravan parks will be treated at the same percentage as caravans, a different approach will be taken for the superior chalets, particularly those in the nature of modern Scandinavian type lodges and domestic quality holiday accommodation. These will be taken at a higher percentage than caravans, depending on their merits. This is an exception to the general overall percentage approach.

b. Chalets Parks where the majority of accommodation is chalets but up to about 20% or so caravans are present. Where the great majority of chalets are of the original timber framed type and are generally more than 30 years old, then no adjustment need be made to the caravan park basis. The chalets may be expected to have higher than average repair costs, and the occupancy rate may be modest.

c. A chalet park with some caravans as the above, but the chalets though generally 30 years or more in age are of brick or block construction. The caravan park basis may be adopted for such sites but an addition of 1% to 3% should be made to the percentage adopted to gross profit, less entertainment costs, having regard to the quality and degree of modernisation present. If the chalets are basic and unmodernised then no addition to the caravan basis need be made.

d. Large chalet park with few or no caravans. Chalets generally over 30 years or more age but of brick and block construction, similar to C above. Some modern types may be present in small numbers. Again the caravan park basis may be adopted with an up-lift of 1% - 3% to the rate to gross profit less entertainment, having regard to the quality and degree of modernisation present.

e. Large commercial chalet park with significant numbers of modern chalets/Scandinavian lodges, log cabins etc. Valuer judgement, as to the up-lift to the caravan park basis but most sites should be contained within an up-lift of 5% to the normal caravan park percentage rate.

f. Intermediate sized chalet parks, typically of 50 to 60 or so chalets. Whilst such chalet parks are larger than the typical holiday cottage complex, regard may need to be paid both to the basis for the larger chalet parks and to the rate per chalet which would be adopted for smaller parks than this on the local office holiday accommodation basis, where the quality of the chalets or the site is more akin to the smaller holiday accommodation complex in the locality.

g. Small chalet parks typically up to about 20 or so chalets. The chalets and the site may well be more attractive than the general run of chalet parks and there could be more traditional accommodation types included. Generally, a basic chalet park in this category should be valued by direct comparison with the self-catering holiday accommodation basis used locally. Such basis will usually go direct to a price per chalet or per single bed space having regard to the size and quality of the accommodation. Only where the chalets are clearly superior to the generality of holiday accommodation in the locality should higher levels of value, which may be demonstrated by accounts, be adopted. Where there are significant income producing buildings value the whole on a percentage to gross profit.

h. Staff Chalets. These should be valued at 50% of the income adopted for letting chalets.

4. Information to be requested

FOR number VO 6045 should be served in respect of Chalet Parks, and VO 6046 served in addition where lease details are to be sought.

E. Certificated Locations (5CLs)

1. Introduction

1.1 Certificated locations (5CLs) are caravan and camping sites which are subject to Certificates issued by organisations exempted from normal site licence requirements under paragraph 5 Schedule 1 Caravan Sites and Control of Development Act 1960. The great majority of such certificates are issued by the Caravan Club or by the Camping and Caravanning Club. The sites involved will generally have the character of farm sites although many are operated in conjunction with different hereditaments.

1.2 These certificates have to be renewed annually. The certificate requires that the site is used only by members of the exempting organisation for recreational purposes, for a maximum stay of 28 days. Not more than 5 caravans can be located on the site at any one time (hence the term 5CLs for such sites). Also, the site operator has to obtain public liability insurance and carry out electrical and non mains water tests as appropriate.

1.3 Discussions were held with the agents acting for the Caravan Club and the Camping and Caravanning Club in respect of the basis to be applied for the 1995 rating lists for certificated sites. For revaluation 2000, 2005 and 2010 equivalent schemes were adopted and, following central discussions, a similar scheme will apply for 2017.

1.4 The Caravan Specialists should deal with assessments and appeals for 5CLs to ensure consistency of RV with commercial touring sites.

1.5 The R2017 matrix for 5CLs is set out at Appendix 1, this should be applied subject to the qualifications outlined below.

2. Basic 5 CLs

2.1 These are in effect undeveloped ‘greenfield’ sites with standard facilities only - i.e. drinking water, waste water/chemical closet disposal facilities with flushing tap and dustbin.

2.2 The Scale for Basic 5CLs applies where the income exceeds £750 for the 2014 season, see Appendix 1 to this Practice Note.

3. Developed 5 CLs

3.1 These will have built facilities in addition to the basic site. A site with only electric hook ups in addition to the basic facilities should be treated as ‘developed.’

3.2 Where the income exceeds £750 for the 2014 season and the site benefits from a degree of commercialism, the rate applied to the toned gross receipts will fall within the range of 14% to 18.5% as outlined in the leisure caravan park and touring/camping site agreement (the broad principle of which is that the greater the range of facilities the higher the working expenses and the lower is the percentage to RV). For example:

a. where the site is otherwise a ‘greenfield’ one but has 5 electric hook ups, 18.5% of gross receipts would be applied to arrive at the RV;

b. where the site has 2 or 3 electric hook ups (EHUs) and a small toilet block, but retains the green field characteristics (i.e.. grass roadways and no landscaping), 18.5% of gross receipts would also be applied to arrive at the RV;

c. where the site has 5 EHUs, a shower/toilet block and tarmac or gravel roads, 16.5% of gross receipts would be applied to arrive at the RV as would be the case for touring parks.

3.3 Assessments should be rounded down to the nearest £25.

4. Year of receipts

4.1 For practical purposes the 2014 summer season receipts should normally be regarded as the maintainable level upon which the tenant’s rental bid would be based as at 1 April 2015. Caution should be exercised if the receipts for the 2014 season are considered due to the possible distortion either way because of the impact of storm damage or flooding. In the absence of actual 2014 receipts for a particular site a view will have to be taken, based on the receipts for other 5CLs in the area, as to the general increase or decrease in receipts since the 2007 season.

5. Description and Address

5.1 5CL sites should be given the Primary Description Code ‘CC’, with the standard description ‘Camping Site’. The words ‘and Premises’ should only be added to the description in those few cases where there are significant additional buildings over and above those normally found at these sites. Where the hereditament, in the absence of any agreement to the contrary (such as a tenancy agreement), is a farm or agricultural land on which the 5CL is situated then the description in the Rating List should be “Camping Site (part exempt)” or “Camping Site and Premises (part exempt)”.

5.2 In most cases the hereditament will include domestic property and therefore be composite, where this is the case it should be marked as such.

5.3 The address of the site should always commence with the words ‘certificated location at……….. (e.g. Hill Farm)’.

6. General

6.1 In applying the R2017 scale caravan specialists must ensure that the resulting RV does not exceed the tone level of assessment for non-certificated touring sites in the locality having similar facilities.

6.2 Given the simple nature of these properties and the modest level of assessment likely to apply in most cases, generally one year’s receipts should suffice. Where the receipts are clearly out of line with other similar sites in the locality weight should be given to the prevailing ‘‘tone’’ but reflecting any differences in location or physical attributes of the sites.

7. Seasonality and Unit of Assessment

7.1 In light of Counsel opinion received in respect of a steam fair in Dorset, the rare incidence of “seasonal assessments” for 5CL sites should cease to exist.

7.2 It is considered that the site owner, usually the farmer, should be regarded as remaining in occupation of the whole site all year round. Consequently, VOs should not remove a 5CL assessment from the Rating List at the end of the season even if the site reverts to an exempt agricultural use.

7.3 In many cases the unit of assessment will be the farm, or agricultural land as a whole, including the 5CL site, where a single, part exempt, assessment is appropriate. The assessment should remain in the list all year round.

Appendix 1

Basic Certificated Locations and Sites (5CLs)

The Gross Receipts below are those for the 2014 season.

Over £1,850,(i.e. £1,851+), @ 23.5% of receipts, rounded down to next £25.

There should be no interpolation between the figures for RV in this scale.

Appendix 2

N.B. These examples are as a general guide to valuers. If net profitability of an individual park is likely to be greater or less than normal these rates can be varied by +/- 0.5% and exceptionally +/- 1.0%. Evidence of abnormal net profitability will be required. A “negative” example might be a difficult site where unusually high operating costs are incurred or where the operator supplies a very high quality service provision including hot tubs. A “positive” example might be an undemanding, straightforward but exceptionally well-located park.

Paragraph B 7.4 of the Practice Note explains Equivalent Fleet Units and Effective Fleet Units and paragraph B 10.2 provides guidance on the approach to adopt in respect of the income received from the winter storage of caravans.

1: Static Parks / Mixed Parks

A: 0-10% of total income from tourers

Where there are over 100 Effective Fleet Units (Extensive) on the park the percentage will be amended as follows:

Where there are over 400 Effective Fleet Units (Super) on the park the percentage will be amended as follows:

B: 10% - 30% of total income from tourers

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

C: 30%- 50% of total income from tourers

Where there are over 100 Effective Fleet Units on the park the percentage will be amended as follows:

2: Touring Parks & Camping Sites