Marinas
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

This Instruction applies to all marinas.

A marina is a natural or artificial harbour for privately owned pleasure boats, both motor and sail. It may be on the coast, or adjacent to, or within, a river, estuary, natural harbour, lake, canal or gravel pit.

Marinas will usually have an enclosed area of water with a number of jetties and landing stages, fixed or floating, with boats being berthed alongside and/or at right angles. There may also be a slipway, a crane or hoist, an area of hardstanding used for car parking in the season and boat storage in winter, a marina office, a chandler’s shop, boat sales, repair workshop, fuel pumps, toilets, changing rooms, laundry and refreshment facilities. Adequate security arrangements are essential, as there is direct access to the boats from the shore or riverbank.

There remains a wide variation in the quality and extent of marina facilities available, ranging from the very basic to the upmarket.

The growth in the numbers of privately owned leisure craft has led to shortages of mooring and berthing facilities, particularly in the South of England. These factors have stimulated the development of yacht harbours and marinas on both coastal and inland waters, but because of the difficulties in obtaining planning permission for such developments it remains likely that demand for moorings and berthing facilities will continue especially in the most popular locations.

Care needs to be exercised in deciding whether a site is a marina or a boatyard as the valuation approach will vary and boatyards on water side locations will often also have berthing facilities. If in doubt reference needs to be made to the Class Co-ordination Team for guidance.

2. List Description and Special Category Code

Primary Description Code: LS3

List Description: Marina and Premises

Scat Code 164 - Suffix S

3. Responsible Teams

This is a specialist class of property, to be valued by Valuers in each Business Unit.

4. Co-ordination

NVU Leisure Team has overall responsibility for the co-ordination of this class. The CCT are responsible for the approach to and accuracy and consistency of valuations. The CCT will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:
- follow the advice given at all times
- not depart from the guidance given on appeals or maintenance work without approval from the co-ordination team
- seek advice from the co-ordination team before starting any new work
5. Legal Framework

5.1 Statutory Docks and Harbours

Marinas can be found within Statutory Docks and Harbours. Where this is the case consideration needs to be given to whether the marina forms part of the Statutory Dock or Harbour occupation and dealt with as part of that hereditament (see Rating Manual: section 5 - Docks and Harbours) or whether it comprises a separately rateable occupation and should be a separately assessed as a marina. If there are any doubts or representations are received that a marina should be treated as a statutory dock or harbour undertaking, reference should be made to the CCT.

5.2 Domestic/non-Domestic border

There is the potential for an overlap between domestic and non domestic rating, as follows:
- Moorings (including those within a marina) can be domestic property as defined by Section 66(4) of the Local Government Finance Act 1988 (LGFA 1988). “A mooring is domestic property if it is occupied by a boat which is the sole or main residence of an individual.”
Moorings previously treated as domestic property should continue to be treated as such during a period when they are unoccupied if the Listing Officer is satisfied that, when next in use, the mooring will be domestic.

Care needs to be exercised to decide whether the mooring identified as residential should comprise a separate council tax band or a composite assessment.

Careful liaison between Council Tax sections and NDR Units is needed to ensure that the correct assessments are applied in both Rating and Council Tax lists.

6. Survey Requirements

6.1 The extent of the hereditament needs to be carefully considered and defined prior to commencing the survey. Considerations include identification of the extent of the land area, shore facilities including a description of what they comprise and a consideration as to whether they comprise separately rateable hereditaments.

6.2 The location and extent of moorings and pontoons need to be identified. Care should be exercised to identify whether there are any pontoons not located directly in the marina curtilage as these will be rateable and whether there are any swinging moorings within the marina occupation as these are exempt (Schedule 5 para 18 of The Local Government Finance Act 1988).

6.3 The Maximum Lettable Length needs to be established. Calculation of the “Maximum Lettable Length” of marina berths should be in accordance with the attached Code of Measuring Practice (Appendix 1).

6.4 The essence is that the actual occupier will use the berth spaces to the maximum and if they can accommodate more boat lengths then the actuality of what they can use rather than the industry standard should be adopted.

6.5 Facilities available to the moorings needs to be noted.

6.6 Marina buildings should be measured to Net Internal Area (NIA) in accordance with the VOA Code of Measuring Practice for Rating Purposes except for workshops and their associated facilities, which should be measured to GIA to enable comparison with similar non-marina properties.

6.7 A plan should be obtained, or drawn up, to show clearly the position of all jetties and linear moorings. It should be annotated to show the position of end-on, visitor, fuel and pump-out moorings. A location plan to show both vehicular access and access to sea or waterway should be obtained. Any brochures and tariff details should be obtained and dated

6.8 The survey should additionally record the following:
- details of fuel and pump out facilities;
- presence or absence of locks;
- any restrictions to access due to locks or tides;
- frequency of dredging the marina or access;
- necessity for sea defences
- presence of houseboats (with a note to the relevant Council Tax Section if not in assessment) and whether they have a designated berth;
- details of parking and whether adequate together with a note of whether there is any payment required to park.
- any Dry Stack facility and its extent;
- details of any residential development forming part of the marina;
- details of electricity and water supply to moorings;
- storage facilities including details of areas of land and dry stacking
7. Survey Capture

All inspection notes, checklists, plans and other relevant material should be captured in EDRM.

Photographs should be placed in RSA.

8. Valuation Approach

Marinas fall to be valued by reference to a receipts and expenditure approach expressed in terms of a valuation scheme that considers the incomes achieved. Such an approach already takes into account many benefits and disabilities, actual and perceived that a marina may possess. These are fully reflected in the tariffs, occupancy levels and incomes achieved. The scale percentages to adopt have been derived to reflect the costs of maintaining a marina. It is only when those costs exceed the limits as set out in the scheme that any allowance should be made for abnormal costs

###8.1 Factors likely to increase profitability

The following are the main factors that affect the profitability of a marina and are reflected in the tariff, occupancy rate, running and maintenance costs. These factors should be considered and noted on the valuation, where appropriate. It is essential that valuations are based on the correct facts for each property. Details given in advertising literature should be treated with caution.

within easy sailing distance of other good quality harbours/marinas together with pleasant coastline or countryside close by or close to large river/canal network;

good access by road from large affluent residential areas;

residential development forming part of marina complex;

direct access to open water without going through a lock;

deepwater - 1.5-2 metre minimum depth of water at pontoons and in channel entrance at all states of the tide;

sheltered harbour;

regular shape;

channels do not need dredging or only require infrequent dredging;

no, or minimal, expenditure on sea defences;

modern facilities with low maintenance liability;

good standard pontoons with easy access to land and full range of services available;

buildings of permanent nature rather than temporary construction with good quality club rooms/bars/social facilities;

good quality ancillary accommodation including WCs, showers and shops;

good standard chandlers and brokerage accommodation;

adequate good quality laying up facilities, workshops and stores;

good parking facilities;

maximum occupancy;

absence of houseboats or swinging moorings.

8.2 Factors likely to reduce profitability

Also reflected in the tariff and occupancy levels.

isolated from other marina facilities, unattractive coastline or countryside close by, limited river/canals access;

poor access by road, isolated and distant from affluent residential area and no residential development within marina complex;

access to open water by lock, or limited to certain times of tide;

exposed harbour;

irregular shape with irregular and long and difficult boundaries to maintain;

limited depth of water not capable of taking deep draught craft;

frequent dredging required;

high expenditure on sea defences;

old facilities with high maintenance liability;

poor quality pontoons with difficult access to land;

lack of electricity or water supply to berths;

poor ancillary accommodation often in temporary type buildings;

poor quality or no social facilities available;

poor or no chandlers and brokerage facilities;

poor workshops and stores;

inadequate laying up facilities;

poor or inadequate parking;

low occupancy;

includes swinging moorings and houseboats.

8.3 Let Outs

Questions may sometimes arise as to whether parts of marinas are so let out as to be capable of separate assessment. In such cases VOs should follow the principles established in Westminster Council v Southern Railway Company [1936] AC511 (Ryde on Rating and the Council Tax, Division B Chapter 2 paragraph 132 et seq). It is essential to establish who is in paramount control of the various parts of the property and to determine the extent of the hereditament.

Marina operators may let-out or franchise chandlery shops, brokerage, club/catering facilities and offices for marine surveyors etc. Provided the normal rules of unit of occupation are met, then, on the facts a separate hereditament may be created.

It is therefore important to obtain full details of any leases or licences in respect of any part of the site in order to decide whether any part shall be separately assessed.

Where a franchise remains part of the marina assessment, rental or licence payments should be considered separately from the trading turnover from the remainder of the hereditament. Concession income should be valued at a percentage within the range of 25-50% depending on the level of the occupier’s expenditure. This will be at the higher end where receipts involve the landlord in minimal expense, and at the lower end where the rateable occupier is responsible for all repairing liabilities, provision of services or significant non-rateable items. The resultant figure should then be added to the rateable value calculated for the main part of the hereditament.

8.4 Other Considerations

Care must be exercised when considering any receipts or expenditure information to ensure that it relates to the whole of the hereditament to be valued and not just a part of it, and conversely, that it does not include items for other properties which do not form part of the hereditament or are exempt.

9. Valuation Support

All valuations should be entered onto the Non-Bulk Server under the relevant Scat Code.

Other support available:

Survaid

Class Co-ordination Team

Appendix 1: Main factors affecting profitability in marinas

1. Purpose of Code

The purpose of this Code is to provide a uniform approach to the referencing of marinas.

This guidance can be used to calculate both the “Maximum Lettable Length”, and “potential occupancy” length of marina berths.

2. Definitions

a. Maximum Lettable Length shall be:

i. In the case of Finger Pontoon berths, the length of the finger pontoon measured from the Walkway to the extremity of the finger pontoon plus overage or reflecting any reduced length where mooring restrictions occur.

ii. In the case of Alongside Berths, the total length of the Walkway properly useable for the mooring of boats less 15%. For inland marinas this figure may be reduced to 10% where conditions and mooring practice indicate that this is more appropriate.

iii. In the case of Walkways/pontoons to post or buoy moorings, the length between the Walkway/pontoon and post/buoy less 10%.

b. Overage shall mean any additional length extending beyond the length of a Finger Pontoon (usually up to a maximum of 10% of the length of the Finger Pontoon), which is properly useable when mooring a boat to the Finger Pontoon. At some sheltered or inland Marinas where overage actually exceeds 10%, and is reflected in the berthing receipts achieved a greater addition may be appropriate.

c. Reduced Length means any reduced length where a mooring is restricted by access, mooring post, etc.

d. Alongside shall mean a berth alongside a Walkway or Pontoon.

e. Finger Pontoon shall mean a floating or fixed pontoon attached at an angle to a Walkway.

f. Walkway shall mean an access way or pontoon serving Finger Pontoons which may also be used for Alongside moorings and may be a floating structure, quay wall or a bank.

When calculating “Maximum Lettable Length” or “potential occupancy” it will be necessary to exclude from the calculation those berths which are exclusively or permanently reserved for visitors, fuel, brokerage or repairs, the income from which is reflected as Non-Berthing Income, as well as any berth which is separately assessed, or is a mooring which is subject to Council Tax Banding.

Practice note: 2023 - marinas

1. Market appraisal

1.1 The market in marinas still divides into 2 main types; the inland, non-tidal marinas and the coastal, tidal marinas.

1.2 There has been growth in marina tariffs between 2015 and 2021. Marina operators have continued to focus on providing excellent infrastructure and better facilities for their customers

1.3 Investments have been made in our canals and waterways to carry out essential repairs, upgrades and maintenance work. Thus ensuring they are kept in good condition.

1.4 As a result of Covid-19 more people are opting to holiday in the UK and spend their leisure time on the water. The staycation effect has seen a boost in sales for leisure marine businesses.

1.5 Of concern to most operators is the age distribution of their clients, and the need to attract younger generations into using and owning their own boats.

1.6 Coastal and tidal marina berthing is restricted with few new marinas receiving planning permission.

1.7 However, new inland marinas continue to be built and once complete are rapidly populated often to the detriment of the older marinas whose facilities are dated.

1.8 The south coast still leads the way as the prime location for boating in terms of interest, numbers and facilities, and hence has the most expensive berthing charges. All this being concentrated around the Solent area. Marina development, particularly in this area, is most severely restricted.

1.9 One of the biggest elements identified over the last 6 years has been the apparent increase in the number of boats being occupied as sole or main residences and the implications in relation to Council Tax (CT). A sole or main residence is subject to CT and thus needs to be excluded from consideration in respect of non-domestic rating. Such apparent increase has led marina operators to try and formalise “live aboards” in their controlled marinas by obtaining planning permission for set numbers of residential berths and encouraging residential boat owners to occupy them rather than clog up leisure berths especially those on the river and canal banks. It remains to be seen how successful this initiative will be as there is some resistance.

1.10 Ancillary elements where there have been noticeable market changes centre around the increased development of dry stack facilities in coastal locations; additional development of such facilities being an indication of the market interest and need of the marinas to maximise their assets.

1.11 In summary, the market overall suffered detrimentally from the recession in 2008 but has seen significant improvements in terms of occupancy levels and profitability, helped by the continuing low interest rates immediately up to the 2021 AVD. Currently the biggest challenges to the industry are attracting younger people to boating.

2. Changes from the last practice note.

2.1 The present scheme was agreed with representatives from the industry for the 2010 list and was not substantively challenged in the 2017 list. No changes have been made to the scheme for 2023.

3. Ratepayer discussions

3.1 There have been no discussions with the leading rating surveyors for the industry for the 2023 list.

4. Valuation scheme

4.1 For the purposes of this scheme, a marina is defined as a business which provides managed berths for boats where the marina operator may supply services in addition to berthing facilities.

4.2 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 trading year (ending March or before) and any previous trading years.

4.3 Having established the likely FMT for the 19/20 trading year (ending March or before), the valuer should then consider any further adjustments needed to reflect the receipts envisaged as at 1 April 2021. The reasonable efficient operator 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.

4.4 The scheme incorporates the value of all relevant berthing income i.e., moorings and infrastructure (“Basic Rateable Value”) within the scales set out in para 4.13 below together with the value of non-berthing accommodation or facilities such as fuel sales, boat storage, parking, workshops, shops, etc., which is reflected by means of applying a percentage to any additional income generated (para 4.21).

4.5 The scheme is intended to value marinas and any ancillary activities – Where the marina appears to be ancillary to a larger activity such as boat building, consideration should be given as to whether “marina” is the correct description, and the use of this scheme should be limited to the valuation of that part relating to the marina berths and associated services (if any) provided.

4.6 Basic rateable value

4.7 The “Basic Rateable Value” is arrived at by applying a percentage (taken from one of the 5 scales set out in paragraph 4.13 below) of the Maximum Berthing Income (as defined). This will relate to income from the berthing element only.

4.8 Calculation of Basic Rateable Value (i.e. Berthing Income) is to be determined by taking a percentage of berthing income assuming full occupancy (i.e. Maximum Berthing Income). The percentage to be adopted will vary depending upon the level of potential occupancy at the AVD.

4.9 Full occupancy should exclude any mooring which, taken together with a moored boat, is subject to Council Tax banding.

4.10 Maximum Berthing Income should be calculated having regard to one or more of the following:

i) Marina operator’s records, or

ii) Estimate of the maximum gross receipts (or income). Gross receipts can be calculated by applying the actual berthing tariff rates to the “Maximum Lettable Length” of marina berths (net of VAT)

4.11 Calculation of the “Maximum Lettable Length” of marina berths should be in accordance with the attached Code of Measuring Practice (Appendix 1) applied to AVD Tariff rates. Alternatively, an estimate should be made of the length of the maximum number of boats which can be moored, which should be multiplied by the appropriate tariff.

4.12 Adjustment for leasehold, brokerage or visitor berths may be necessary in considering the above (see 4(d) below).

a. AVD Tariff Rates - The ratepayer’s published tariff per linear metre (excluding VAT) for a 10 metre craft should be used. If these are not available from the ratepayer or other local sources then tariff rates will have to be estimated from comparable marinas.

b. Calculation of “potential occupancy” will be the level of occupancy which the hypothetical tenant could have anticipated as at AVD for the forthcoming year having regard to occupancy levels and trends achieved in the years leading up to this date and expressed as a percentage of full occupancy (see paragraph (a) above) for the whole of the hereditament to be valued. A minimum of 3 years should be considered.

c. The relevant scales to be adopted are set out in paragraph 4.13 below and will depend upon the location of each marina. Scales 1-4 relate to marinas in coastal locations and scale 5 relates to all inland marinas (as defined). Scale 1 will include the south bank of the tidal part of the River Thames (subject to the qualification in 4(f) below).

d. The coastal scales will apply to all marinas which are significantly affected by tidal movement (movement will normally be expected to be in excess of ½ metre). All other marinas should be valued on the “inland scale”. The lower percentages adopted for coastal scales reflect, inter alia, increased maintenance costs which could normally be expected from significant tidal erosion.

e. It will be necessary to ensure that the Tariff Rate adopted excludes any payment towards cranage, boat movement or any other income which may be reflected in para 4.21 below. It should be noted that income received from the supply of electricity should be excluded for the purposes of arriving at an assessment.

f. Visitor fees received as additional income from absent berth holders should be reflected at para 4.21 below.

g. When calculating full or potential occupancy, care should be taken to ensure that all berths within the control of the marina operator (excluding swinging moorings) should be included in any calculation except those berths permanently reserved for visitors, fuel, brokerage or repairs where the facilities are run by the marina operator [and income will be reflected under para 4.21 below] or are separately assessed.

4.13 Valuers should be aware that there can be instances where rafting, vessels tie up alongside another vessel, takes place in the marina. Where this is identified careful consideration should be given to the effect on income and operational costs as both will impact upon rateable value. Valuers need to take care to ensure that rafting for this purpose only relates to permanent moorings and hire fleets operations since most rafting is for visiting yachts and the income from this source is dealt with separately, see para 4.21 below).

4.14 Hire fleets normally operate on inland waters, whilst charter fleets normally operate from coastal marinas. The rafting phenomenon relates to usually hire fleets, in inland marinas designed or adapted to accommodate these vessels.

4.15 Scales - Examination of rental evidence of a number of marinas suggests that scales should reflect both location and occupancy. Five scales have been adopted which relate to the following geographical locations:

Scale 1 - South East coast (including the South bank of the River Thames - see 4.10(e) and (f) above), South coast and South West coast up to but excluding Falmouth Bay.

Scale 2 - East Coast (including the North bank of the River Thames up to and including The Wash) and the South West coast of Cornwall (from Falmouth Bay to Penzance).

Scale 3 - The extreme South West coast of Cornwall beyond Penzance, the Bristol Channel, the coast of Wales and the West coast of England up to and including the Mersey estuary

Scale 4 - North West Coast (North of the Mersey estuary) and North East Coast (North of The Wash).

Scale 5 - Inland Marinas.

4.16 Where occupancy falls between the above figures, the percentage adopted should be derived from interpolation on a straight line basis.

4.17 Marinas which have an occupancy rate of below 50%, should be valued having regard to the recommended percentages above but not necessarily constrained by interpolation on a straight line basis.

4.18 The scales relate to marinas containing a minimum of 10 berths. They may be adopted for smaller marinas in the absence of suitable local evidence.

4.19 Dry stacking

4.20 Dry stacking comprises storage of boats on multi storey racking. The tariff, (normally based on the boat length), usually includes on demand launching and recovery by the operator.

4.21 Dry stacking should be assessed at a percentage of the maximum potential income obtainable, but having regard to the actual level of occupancy/income and at similar percentage levels to those adopted for wet berthing using the relevant scale for that area.

4.22 A few standalone small boat storage “dry stack” sites exist. Whilst it is accepted that local offices will value them, they have a greater value than straightforward storage land because of their special suitability to store launch and recover boats. That additional value needs to be included in the valuation. Regard should be had to local waterfront storage values but levels of value should reflect improvements to the site to enable dry stacking to be operated. To ensure consistency of valuation, regard should also be had to values adopted where dry stacking is part of a marina. These storage systems are considered to be rateable under the Plant and Machinery Regulations 2000 (SI 2001/540) Class 4, Table 3 as supports.

4.23 Non-berthing income

4.24 Non-berthing income should be calculated by deducting the actual berthing income from the total gross receipts from all other sources of the marina as estimated at the AVD. This non - berthing income should be valued by adopting an appropriate proportion or proportions (of the percentage which is applied to the berthing income of the marina as calculated in section 4.13 above) as indicated below. The scheme allows for differences in relative profit margins of the different income streams by adjusting the income from the income stream to reflect the different profitability.

4.25 Valuers need to be certain that in valuing the brokerage income they do not include the full sale price of boats. Where a ratepayer provides turnover figures for the sale of boats, this amount should be reduced to a brokerage equivalent by taking 10% of this income before dealing with it in accordance with this scheme.

4.26 Provided that each item of income can be identified, then it can be valued on a “sliced” basis in accordance with the table set out below. If the income cannot be apportioned, valuer judgement will be necessary in deciding the appropriate overall proportion to be adopted having regard to the major sources of income.

4.27 Actual or estimated income (excluding VAT) should always be adopted. If a FOR has not been received back, a realistic estimate of non-berthing income will have to be made from knowledge of other comparable marinas. In such circumstances the value of this ancillary accommodation should not be less than the value derived from local tone rates.

4.28 Brokerage and chandlery sales should only be included in the non-berthing income to the extent that they are derived from the normal operations at the marina. Any additional sales of chandlery, e.g. by internet or by mail order, where the chandlers’ goods are not held at the marina should be excluded. Similarly brokerage of new and used boats moored at other marinas should be discounted.

4.29 Deductions

4.30 Since berthing tariffs should reflect the quality, general facilities, location, access etc of each marina, the above percentages need only be adjusted for extraordinary features within the hereditament.

4.31 Deductions may be required for:

excessive dredging provision/maintenance of lock (but this may save on dredging costs) excessive sea defences excessive maintenance costs or other disabilities which increase running costs 4.32 The sum of this expenditure would normally be within 5% of the Maximum Berthing Income arrived at under paragraph 4 above. Expenditure above this level should be reflected by a deduction pro-rata, to the amount in excess of 5% (note should be taken of the costs over a number of years rather than isolated expenditure, in order that one-off extraordinary costs are eliminated).

4.33 Swinging moorings

4.34 The Local Government Finance Act 1988 provides that swinging moorings are exempt from rating (Schedule 5, paragraph 18). Such a hereditament is exempt to the extent that it consists of a mooring, which is used or intended to be used by a boat or ship, and which is equipped only with a buoy attached to an anchor, weight or other device:

a. which rests on or in the bed of the sea or any river or other waters when in use

b. which is designed to be raised from that bed from time to time

4.35 Income derived from swinging moorings will therefore need to be disregarded for the purposes of assessing rateable value.

Practice note 1: 2017 - marinas

1. Market Appraisal

The market in marinas divides into 2 basic limbs; the Inland, non-tidal marinas and the coastal, tidal marinas.

Most inland marinas are situated on waterways, rivers or canals and are within the purview of the Canal and Riverside Trust (CaRT) - formerly British Waterways (BW). The marinas are operated by its wholly owned subsidiary British Waterways Marinas Ltd (BWML). The driver of inland water ways throughout the UK was a policy document published by BW pre 2008 and which envisaged development of inland waterways for leisure use with a perceived emerging shortage of marina berths. BW policy developed to positively encourage new berthing capacity development.

The 2008 world economic difficulties impacted on the marina industry in several key ways:-

Slowdown in the UK economic activity and reductions in disposable income led to a re appraisal of individuals leisure priorities and reductions in spending. Boats being a luxury tended to be sold.

Strengthening of the Euro from 2008 on, led to disposals of numbers of boats into Europe, particularly from the South Coast. This trend, apparent immediately after 2008, has in more recent years seen an element of reversal, but the immediate effect was a reduction in South Coast marina berth occupancies and a knock on impact on berth tariff growth.

A greater move to carry out maintenance on the boat by the boat owner rather than have the yard do work.

A more recent stronger pound against the Euro has improved berth tariffs and occupancy levels leading to a resultant increase in overall profitability. Such improvement is in evidence now (summer 2015) and therefore should be taken into account in AVD considerations.

Coastal and tidal marina berthing is restricted with few new marinas receiving planning permission other than a re-use of a few redundant port facilities in the north and limited redevelopment of surplus MOD facilities in the South.

The South Coast still leads the way as the prime location for boating in terms of interest, numbers and facilities, and hence has the most expensive berthing charges. All this being concentrated around the Solent area. Marina development, particularly in this area, is most severely restricted although disposal of a number of MOD locations has provided limited new development opportunities. Announcement in December 2014 of the new 400 berth marina development to be known as Victoria Marina at East Cowes Isle of Wight represents the most significant additional berthing to the area for a long time. Development was ongoing at AVD and due to be completed in 2017. When completed it will be interesting to see whether, and if so to what extent, the additional berths have affected occupancies in the Solent.

Further north redevelopment of redundant docks and wharfage in harbours continues to provide opportunities and facilities for marina development but the hinterland areas are not always able to provide sufficient wealth to support a vibrant marina. The perception also persists that as a cruising ground the north of the UK, other than perhaps Essex creeks and inlets, does not provide sufficient interest.

In general coastal marina berth rates and occupancies recovered well keeping up with increases in running costs. They have thus maintained their profitability.

By contrast inland marinas, which were also adversely affected by the economic downturn and increases in costs, were, in certain parts of the country, further impacted by the new marinas coming on stream through 2009 onward. The picture however is patchy with certain marinas seeing little tariff growth whilst others have achieved increases, albeit by not always as much in proportionate terms as is the case on the coast.

One of the biggest elements identified over the last 5 years has been the apparent increase in the number of boats being occupied as sole or main residences and the implications in relation to Council Tax (CT). A sole or main residence is subject to CT and thus needs to be excluded from consideration in respect of non-domestic rating. Such apparent increase has led BWML to try and formalise “live aboards” in their controlled marinas by obtaining planning permission for set numbers of residential berths and encouraging residential boat owners to occupy them rather than clog up leisure berths especially those on the river and canal banks. It remains to be seen how successful this initiative will be as there is some resistance.

Ancillary elements where there have been noticeable market changes centre around the increased development of dry stack facilities in coastal locations; additional development of such facilities being an indication of the market interest and need of the marinas to maximise their assets.

The impact of the 2008 changes to red diesel tax and issues associated with that seem to have settled down into a general acceptance of the increase in fuel costs. It is noted that the two largest marina businesses, MDL and Premier Marines have been advertising sale of fuel “at cost” to their berth holders. Such is not felt to have had any practical impact on the profitability of fuel sales which in any case was very low; hence the agreed factor of 0.25 for that income stream for the 2008 agreed scheme. It is in any case understood that the term “at cost” is not quite the same as what it costs the company to purchase the fuel.

Development of berth holder loyalty schemes by a number of the multi marina owners, and particularly in respect to berth fees and fuel sale discounts are not felt to have had any practical effect either way on business at the individual sites nor on profitability.

In summary the market overall suffered detrimentally from the recession but has seen significant improvements in terms of occupancy levels, tariff rates and profitability, helped by the continuing low bank rate immediately up to and beyond the 2015 AVD. Whilst profitability may well have dipped in the early days of the recession this is largely behind the industry now.

2. Changes from the Last Practice Note

There have been no changes to the main principles of the 2010 valuation scheme. The valuation scale for inland marinas has been revised to reflect the market knowledge currently available.

3. Ratepayer Discussions

Contact has been made with the leading rating surveyors for the industry. Discussions will be ongoing in the period prior to compilation with a view to exploring the possibility of securing agreement on the scheme before that date.

4. Valuation Scheme

4.1 General

For the purposes of this scheme, a marina is defined as a business which provides managed berths for boats where the marina operator may supply services in addition to berthing facilities.

The scheme incorporates the value of all relevant berthing income i.e. moorings and infrastructure (“Basic Rateable Value”) within the scales set out in para 4.3 below together with the value of non-berthing accommodation or facilities such as fuel sales, boat storage, parking, workshops, shops, etc, which is reflected by means of applying a percentage to any additional income generated (para 4.5).

The scheme is intended to value marinas and any ancillary activities – where the marina appears to be ancillary to a larger activity such as boat building, consideration should be given as to whether “Marina” is the correct description, and the use of this scheme should be limited to the valuation of that part relating to the marina berths and associated services (if any) provided.

4.2 Basic Rateable Value

The “Basic Rateable Value” is arrived at by applying a percentage (taken from one of the 5 scales set out in paragraph 4.3 below) of the Maximum Berthing Income (as defined). This will relate to income from the berthing element only.

4.2.1 Calculation of Basic Rateable Value (i.e. Berthing Income)

a. The Basic Rateable Value is to be determined by taking a percentage of berthing income assuming full occupancy (i.e. Maximum Berthing Income). The percentage to be adopted will vary depending upon the level of potential occupancy at the Antecedent Valuation Date (1 April 2015). Full occupancy should exclude any mooring which, taken together with a moored boat, is subject to Council Tax Banding.

b. Maximum Berthing Income should be calculated having regard to one or more of the following:

i) Marina Operator’s records, or

ii) Estimate of the maximum Gross Receipts (or income). Gross receipts can be calculated by applying the actual berthing tariff rates to the “Maximum Lettable Length” of marina berths (net of VAT).

4.2.2 2015 Tariff Rates - The ratepayer’s published tariff per linear metre (excl VAT) for a 10 metre craft should be used. Since 2002 it has no longer been permissible for operators to make a profit from the ‘resale’ of electricity. Annual berthing fees will usually exclude electricity charges, however the visitor’s tariff will generally include electricity costs in the daily fee. As any amount is likely to be marginal no adjustment should be made. Where the AVD tariff rate is not available from local sources it will have to be estimated from comparable marinas.

4.2.3 Calculation of “potential occupancy” will be the level of occupancy which the hypothetical tenant could have anticipated as at 1/4/15 for the forthcoming year having regard to occupancy levels and trends achieved in the years leading up to this date and expressed as a percentage of full occupancy (see paragraph 4.2.1a above) for the whole of the hereditament to be valued. A minimum of 3 years should be considered.

4.2.4 The relevant scales to be adopted are set out in paragraph 5 below and will depend upon the location of each marina. Scales 1-4 relate to marinas in coastal locations and scale 5 relates to all inland marinas (as defined). Scale 1 will include the south bank of the tidal part of the River Thames (subject to the qualification in 4.2.5 below).

4.2.5 The coastal scales will apply to all marinas which are significantly affected by tidal movement (movement will normally be expected to be in excess of ½ metre). All other marinas should be valued on the “inland scale”. The lower percentages adopted for coastal scales reflect, inter alia, increased maintenance costs which could normally be expected from significant tidal erosion.

4.2.6 It will be necessary to ensure that the Tariff Rate adopted excludes any payment towards cranage, boat movement or any other income which may be reflected in para 4.5 below. It should be noted that income received from the supply of electricity should be excluded for the purposes of arriving at an assessment.

4.2.7 Visitor fees received as additional income from absent berth holders should be reflected at para 4.5 below.

4.2.8 When calculating full or potential occupancy, care should be taken to ensure that all berths within the control of the marina operator (excluding swinging moorings) should be included in any calculation except those berths permanently reserved for visitors, fuel, brokerage or repairs where the facilities are run by the marina operator [and income will be reflected under para 4.5 below] or are separately assessed.

Valuers should be aware that there can be instances where rafting takes place in the marina (doubling-up or more alongside). Where this is identified careful consideration should be given to the effect on income and operational costs as both will impact upon rateable value. Valuers need to take care to ensure that rafting for this purpose only relates to permanent moorings and hire fleets operations since most rafting is for visiting yachts and the income from this source is dealt with separately, see para 4.5 below.

Hire fleets normally operate on inland waters, whilst charter fleets normally operate from coastal marinas. The rafting phenomenon relates to usually hire fleets, in inland marinas designed or adapted to accommodate these vessels.

4.3 Scales

a.There are five scales which relate to the following geographical locations:

Scale 1 - South East coast (including the South bank of the River Thames - see 4.2.4 and 4.2.5 above), South coast and South West coast up to but excluding Falmouth Bay.

Scale 2 - East Coast (including the North bank of the River Thames up to and including The Wash) and the South West coast of Cornwall (from Falmouth Bay to Penzance).

Scale 3 - The extreme South West coast of Cornwall beyond Penzance, the Bristol Channel, the coast of Wales and the West coast of England up to and including the Mersey estuary

Scale 4 - North West Coast (North of the Mersey estuary) and North East Coast (North of The Wash).

Scale 5 - Inland Marinas.

b. Scales to be adopted;

Where occupancy falls between the above figures, the percentage adopted should be derived from interpolation on a straight line basis.

Marinas which have an occupancy rate of below 50%, should be valued having regard to the recommended percentages above but not necessarily constrained by interpolation on a straight line basis.

The scales relate to marinas containing a minimum of 10 berths. They may be adopted for smaller marinas in the absence of suitable local evidence.

4.4 Dry Stacking

For the purposes of this agreement, dry stacking comprises storage of boats on multi storey racking. The tariff, (normally based on the boat length), usually includes on demand launching and recovery by the operator.

Dry stacking should be assessed at a percentage of the maximum potential income obtainable, but having regard to the actual level of occupancy/income and at similar percentage levels to those adopted for wet berthing using the relevant scale for that area. It should not be included with storage nor with cranage.

A few standalone small boat storage “dry stack” sites exist. Whilst it is accepted that generalist teams will value them, they have a greater value than straightforward storage land because of their special suitability to store launch and recover boats. That additional value needs to be included in the valuation. Regard should be had to local waterfront storage values but levels of value should reflect improvements to the site to enable dry stacking to be operated. To ensure consistency of valuation, regard should also be had to values adopted where dry stacking is part of a marina. These storage systems are rateable under the Plant and Machinery Regulations 2000 (SI 2001/540) Class 4, Table 3 as supports.

4.5 Non-Berthing Income

Non-berthing income should be calculated by deducting the actual berthing income from the total gross receipts from all other sources of the marina as estimated at the AVD 1/4/15. This non-berthing income should be valued by adopting an appropriate proportion or proportions (of the percentage which is applied to the berthing income of the marina as calculated at paragraph 4.3b above) as indicated below. The scheme allows for differences in relative profit margins of the different income streams by adjusting the income from the income stream to reflect the different profitability.

Valuers need to be certain that in valuing the brokerage income they do not include the full sale price of boats. Where a ratepayer provides turnover figures for the sale of boats, this amount should be reduced to a brokerage equivalent by taking 10% of this income before dealing with it in accordance with this scheme.

Provided that each item of income can be identified, then it can be valued on a “sliced” basis in accordance with the table set out below. If the income cannot be apportioned, valuer judgement will be necessary in deciding the appropriate overall proportion to be adopted having regard to the major sources of income.

Actual or estimated income (excluding VAT) should always be adopted. If a FOR has not been received back, a realistic estimate of non-berthing income will have to be made from knowledge of other comparable marinas. In such circumstances the value of this ancillary accommodation should not be less than the value derived from local tone rates.

Brokerage and Chandlery sales should only be included in the non-berthing income to the extent that they are derived from the normal operations at the marina. Any additional sales of chandlery, e.g. by internet or by mail order, where the chandlers’ goods are not held at the marina should be excluded. Similarly brokerage of new and used boats moored at other marinas should be discounted. If the brokerage office is anything more than nominal, and off site sales are made from that office then consideration should be given to assessing the brokerage office based on a local office tone.

4.6 Deductions

Since berthing tariffs should reflect the quality, general facilities, location, access etc of each marina, the above percentages need only be adjusted for extraordinary features within the hereditament.

Deductions may be required for:

excessive dredging

provision/maintenance of Lock (but this may save on dredging costs)

excessive sea defences

excessive maintenance costs or other disabilities which increase running costs.

The sum of this expenditure would normally be within 5% of the Maximum Berthing Income arrived at under paragraph 4.2.1 above. Expenditure above this level should be reflected by a deduction pro-rata, to the amount in excess of 5% (note should be taken of the costs over a number of years rather than isolated expenditure, in order that one-off extraordinary costs are eliminated).

4.7 Swinging Moorings

The Local Government Finance Act 1988 provides that swinging moorings are exempt from rating (Schedule 5, paragraph 18). Such a hereditament is exempt to the extent that it consists of a mooring, which is used or intended to be used by a boat or ship, and which is equipped only with a buoy attached to an anchor, weight or other device:

a.which rests on or in the bed of the sea or any river or other waters when in use, and

b.which is designed to be raised from that bed from time to time.