Part 4: Rateable Value - AVD, Material Day and Effective Date
Source: gov.uk (2025-04-29)

The Valuation Office Agency's (VOA) technical manual for the rating of business (non-domestic) property.

1. Statutory definition of Rateable Value

1.1

The definition of Rateable Value is set out in Schedule 6, paragraph 2(1) of the Local Government Finance Act 1988 (as amended by the Rating (Valuation) Act 1999):

“2 (1) The rateable value of a non-domestic hereditament none of which consists of domestic property and none of which is exempt from local non-domestic rating, shall be taken to be an amount equal to the rent at which it is estimated the hereditament might reasonably be expected to let from year to year on these three assumptions—

(a) the first assumption is that the tenancy begins on the day by reference to which the determination is to be made;

(b) the second assumption is that immediately before the tenancy begins the hereditament is in a state of reasonable repair, but excluding from this assumption any repairs which a reasonable landlord would consider uneconomic;

(c) the third assumption is that the tenant undertakes to pay all usual tenant’s rates and taxes and to bear the cost of the repairs and insurance and the other expenses (if any) necessary to maintain the hereditament in a state to command the rent mentioned above.

……

(8A) For the purposes of this paragraph the state of repair of a hereditament at any time relevant for the purposes of a list shall be assumed to be the state of repair in which, under sub-paragraph (1) above, it is assumed to be immediately before the assumed tenancy begins.”

1.2

This is a deliberately involved definition and over the years, since the definition became law, the courts have considered the wording carefully. A number of these elements are covered in detail in other sections of the Rating Manual but important points to consider regarding the definition are set out below.

1.3

This definition only covers non-domestic property. Special provision is made at paragraph 2 (1A) of Schedule 6 for situations where the hereditament comprises both domestic and non-domestic elements i.e. a composite property. Similar provisions are made in paragraph 2 (1B) for situations where a hereditament is partially exempt. For more information of the domestic /non-domestic borderline please see Section 2, Part 5.

1.4

The principle is based on a notional annual rent adopting certain assumptions. This rent is assumed to have been agreed between a reasonable landlord and reasonable tenant and to begin on the antecedent valuation date (AVD). It is not necessarily the actual rent on the subject property since this may be based on different terms to the definition and at a different date. In addition, the rent on the subject property may be out of line with comparable properties. Despite this, it is important evidence since it is based on the actual property with the inherent advantages and disadvantages of that individual property.

1.5

The statutory definition applies to all types of property, whether rented or not including properties that are never actually let in reality. This ensures a uniformity of approach to all non-domestic property. Where there is little or no rental evidence the notional rental value may have to be calculated using different methods of valuation (see Section 4: Valuation Methods).

1.6

The words “from year to year” in the definition above means a yearly tenancy. This does not mean that the tenancy ends after a year but rather the courts have accepted that the tenant has a reasonable expectation of the tenancy continuing for more than a year. This expectation may differ depending on the circumstances of the case. In the Court of Appeal decision in Humber Ltd v Jones (VO)[1960] 53 R&IT 293 the ratepayers argued for a reduction in rateable value since an annual tenancy was not reasonable for a car manufacturer where it took 5 years to set up and reach full capacity on a new production line. Here the tenant had a 21-year lease renewed for another 21 years and break clauses for the tenant at 7 and 14 years. In this decision the court confirmed that the hypothetical tenancy was not to be seen as restricted to only a year but to be of a similar length to that expected for the type of property being valued.

1.7

There may be situations where the tenant cannot or will not remain in occupation for a year, for example where redevelopment is anticipated within the forthcoming year, but the assumption in the legislation is that the tenancy will continue. If there is a change in any of the mentioned matters, see paragraph 4.3 below, then the valuation should be reviewed to see whether it requires amendment.

2. The hypothetical tenancy

2.1

This term relates to the tenancy upon which the notional rent is established. The hypothetical tenancy is the arrangement between the hypothetical landlord and the hypothetical tenant on the terms of the assumptions set out above. It exists regardless of the tenancy in place or even whether the hereditament is owner occupied. The hypothetical tenant can include the actual tenant or the actual occupier e.g. in a limited market or unique property (R v London School Board [1886] 17 QBD 738).

3. Dates of valuation 1 – Antecedent Valuation Day (AVD)

3.1

For most valuation purposes there is a requirement for a fixed valuation date e.g., in the case of inheritance tax or rent review the valuation date is set out respectively in statute or in the lease. In the same way for rating, in order to arrive at the appropriate rateable value for a specific hereditament it is necessary to establish the date of valuation. For rating the legislation requires that two elements are to be considered when establishing the valuation. The first is the Antecedent Valuation Date which sets the date for non-physical factors such as levels of rental value, economic factors, fashions and tastes etc. The second is the Material Day which is considered below.

3.2

Revaluations are undertaken in order to reflect altered market conditions and the relative changes of value across locations and property types. After 1 April 2023, a revaluation is scheduled to take place on 1 April in every third year.

3.3

Each revaluation sets a new valuation date. Historically this was the date the lists came into force so that for the 1973 lists this was the 1st April 1973. However, following the House of Lords case of K Shoes Ltd v Hardy (VO) and Westminster City Council [1983] 1 WLR 1273 the difficulty in estimating rental values ahead of time became clear, and so for the modern rating lists the valuation date is two years before the new rating list comes into force. This is known as the Antecedent Valuation Date or AVD. This means that the actual valuation date for the 2010 lists was 1st April 2008, for the 2017 lists it was 1st April 2015 and for the 2023 lists the AVD is 1st April 2021.

3.4 Statutory Basis

The basis for an AVD is set out in paragraph 2(3) of Schedule 6 of the 1988 Local Government Finance Act which allows the Secretary of State (or the Welsh minister in Wales) to specify a date. Successive orders have set the AVD for each revaluation which is also the valuation date for alterations under paragraph 2(4).

The AVD for the 2017 lists was specified in Regulation 2 of The Rating Lists (Valuation Date) (England) Order 2014 (SI 2014/2841) and Rating Lists (Valuation Date) Wales Order 2014 (WSI 2014/2917).

For the 2023 lists this has been set out in Regulation 2 of Rating Lists (Valuation Date) (England) Order 2020 (SI 2020/832) and the equivalent for Wales (WSI 2020/1378).

3.5 Application of the AVD

The AVD is fixed for the life of the revaluation and so applies both to the compiled List valuations and valuations for List alterations. The date on which certain “relevant matters” are to be taken into account depends on the reason for the valuation and this date is termed the “material day” which is explained in more detail below.

The combination of these dates means that, for example, while the physical presence of an extension completed in during the life of a List can be considered in a valuation from the date it is completed, the rental value of the enlarged hereditament must be based on rental values for similar properties as at the AVD.

4. Dates of valuation 2 - Material Day

4.1

The Material Day provisions are contained in the Non-Domestic Rating (Material Day for List Alterations) Regulations 1992 [SI 1992 No 556 (http://www.legislation.gov.uk/uksi/1992/556/contents/made)] which came into force on 1 April 1992.

These have been amended in both England and Wales.

For England, the 1992 Regulations have been amended by the:

Non-Domestic Rating (Material Day for List Alterations) (Amendment) (England) Regulations 2005 [SI 2005 No 658 (http://www.legislation.gov.uk/uksi/2005/658/contents/made)] which came into force on the 1 April 2005

The Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2017 [SI 2017 No 155 (http://www.legislation.gov.uk/uksi/2017/155/contents/made)] which came into force on the 1 April 2017

For Wales, the 1992 Regulations have been amended by the:

Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005 [WSI 2005 No 758 (http://www.legislation.gov.uk/wsi/2005/758/contents/made)] which came into force on 1 April 2005

The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 which came into force on 1 April 2023

Examples in this section are used to illustrate the application of the regulations relevant to the 2017 lists unless otherwise stated.

4.2 Relevance of Material Day

The Material Day is the day on which certain “relevant matters” are taken into account for valuation purposes when considering an alteration to a list (See table in Appendix 1 - What are the appropriate material days?)

The Material Day adopted will vary depending on the type of alteration being undertaken, and whether the alteration arises from a proposal or not.

4.3 Material Day and the Local Government Finance Act 1988

The concept of material day was introduced by the 1988 Act. Schedule 6 para 2(6) (https://www.legislation.gov.uk/ukpga/1988/41/schedule/6) says-

“Where the rateable value is determined with a view to making an alteration to a list which has been compiled (whether or not it is still in force) the matters mentioned in sub-paragraph (7) below shall be taken to be as they are assumed to be on the material day”.

For the 2023 lists, there is an exception to this general rule.

England

In England, this was introduced by the Valuation for Rating (Coronavirus) (England) Regulations 2023 which came into effect 1st April 2023 and established that certain factors concerning coronavirus are assumed to remain the same as they were on 1st April 2021.

Factors are:
- legislation *provisions made under and given effect by legislation
- advice or guidance given by a public authority
Anything done by a person on or after 1st April 2021 with a view to complying with such legislation, advice or guidance, should be assumed not to have occurred.

Where any of those factors affect the physical state of the hereditament or its locality; the quantity of minerals or other substances extracted from the hereditament; or the quantity of refuse or waste material which is brought onto and permanently deposited on the hereditament, these may be taken into account when considering if a material change of circumstances has occurred.

The Non-Domestic Rating Act 2023 amended Schedule 6 of the Local Government Finance Act 1988 for the purposes of 2023 and later lists. The effect was to amend the mentioned matters so as to split 2(7)(a) and 2(7)(d) recreating separate matters for physical enjoyment of the hereditament under 2(7)(aa) and physically manifest in the locality under 2(7)(da).

The Act also inserted a new paragraph 2ZA containing provisions such that any change to the following matters:
- 2(7)(aa) matters affecting the physical enjoyment of the hereditament
- 2(7)(da) matters which, though not affecting the physical state of the locality in which the hereditament is situated, are nonetheless physically manifest there
- 2(7)(e) the use or occupation of other premises situated in the locality of the hereditament
must be disregarded if that change is directly or indirectly attributable to:
- legislation of any country
- provision made under legislation of any country
- advice and guidance by a public authority of any country
- anything done by a person to comply with the above
This provision applies to any such change to a 2023 or later list.

For the 2026 and subsequent lists, any such changes after the AVD must be disregarded.

Wales

In Wales, The Valuation for Rating (Prescribed Assumptions)(Wales) Regulations 2023 [SI 2023 No. 255 (W.34) (https://www.legislation.gov.uk/wsi/2023/255/regulation/2/made)] came into force 1st April 2023. These go further than the counterpart regulations in England in that they also cover the mode or category of occupation of the subject hereditament. They provide that any change to the following matters:
- matters affecting the physical enjoyment of the hereditament
- the mode or category of occupation of the hereditament
- matters which, though not affecting the physical state of the locality in which the hereditament is situated, are nonetheless physically manifest there
- the use or occupation of other premises situated in the locality of the hereditament
must be disregarded if that change is directly or indirectly attributable to:
- legislation of any country
- provisions made under legislation of any country
- advice or guidance given by a public authority of any country
- anything done by a person to comply with the above
The Practical Impact of the Changes in England and Wales

Where legislative changes, or advice and guidance etc have resulted in a change to any of the mentioned matters detailed above, we have to take those matters as they were at the AVD.

For the 2023 Lists, this will include restrictions in place at the AVD relating to preventing the spread of Coronavirus. The restrictions would have affected some of the above mentioned matters.

Examples would include restrictions on the physical enjoyment of some properties which were prevented from opening; the use or occupation of other premises in the locality because some properties were closed; and matters physically manifest in the locality which would include lower footfall. The restrictions had been lifted by the List compilation date of 1 April 2023 and so some of the mentioned matters had changed, but these matters must still be taken as they were at the AVD.

This means it is necessary to interpret the market in terms of the hypothetical landlord and tenant, standing at the AVD, and looking into the future and anticipating events based upon matters at the AVD and what can reasonably be foreseen. Rental bids are not based upon the circumstances which exist on one day, instead they are set having regard to expected future trading potential.

For Example, at the AVD the following was known:

The English Government’s roadmap which existed at the AVD set out the following expectations:
- 12 April 2021: outdoor hospitality to open
- 17 May 2021: indoor due to open
- 21 June 2021: legal limits on social gatherings to be lifted
On 31 March 2021, the First Minister announced the intended relaxation of restrictions in Wales including the following:
- 12 April 2021: all non-essential retail to be able to open; children and students back to face to face education; travel allowed out of Wales into the rest of the UK.
- 26 April 2021: reopen outdoor attractions and outdoor hospitality including cafes, pubs and restaurants.
This knowledge would have been available to the hypothetical landlord and tenant at the AVD and would have been reflected in the rent agreed between them.

It is reasonable to assume that rental levels at 1 April 2023 reflected the anticipated events in the roadmap.

The above valuation approach is inherent within the 2023 compiled List assessments and applies to all 2023 List alterations including mid list MCCs and amendments to compiled List assessments. No further adjustment to reflect the effects of Covid on rental values would therefore be necessary.

Paragraph 2(6A) of Schedule 6 LGFA 1988 gives the authority for making the material day regulations. These are contained in SI 1992 No 556 (http://www.legislation.gov.uk/uksi/1992/556/contents/made) as amended by SI 2005 No 658 (http://www.legislation.gov.uk/uksi/2005/658/contents/made) and SI 2017 No. 155 (https://www.legislation.gov.uk/uksi/2017/155/contents/made) for England and WSI 2005 No 758 (http://www.legislation.gov.uk/wsi/2005/758/contents/made) and The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 .

“For the purposes of sub-paragraph (6) above the material day shall be such day as is determined in accordance with the rules prescribed by regulations made by the Secretary of State.”

Paragraph 2(7) of Schedule 6 of the 1988 Act deals with matters to be considered as they are on the material day. These are “relevant matters”.

“(7) The matters are—

(a) matters affecting the physical state of the hereditament,

(aa) matters affecting the physical enjoyment of the hereditament,

(b) the mode or category of occupation of the hereditament,

(c) the quantity of minerals or other substances in or extracted from the hereditament,

[(cc) the quantity of refuse or waste material which is brought onto and permanently deposited on the hereditament,]

(d) matters affecting the physical state of the locality in which the hereditament is situated

(da) matters which, though no affecting the physical state of the locality in which the hereditament is situated, are nonetheless physically manifest there, and

(e) the use or occupation of other premises situated in the locality of the hereditament.”

4.4. What does all this mean?

When thinking about altering a list you must consider these relevant matters as they existed on the material day. To do this, you need to understand when the material day is for a given set of circumstances.

SI 1992 No 556 (http://www.legislation.gov.uk/uksi/1992/556/contents/made) sets out what the appropriate material day is for each of the different reasons why a list alteration is made with amendments made by SI 2005 no 658 (https://www.legislation.gov.uk/uksi/2005/658/contents/made) and (http://www.legislation.gov.uk/uksi/2009/2268/contents/made)SI 2017 No 155 (https://www.legislation.gov.uk/uksi/2017/155/contents/made) (England) and WSI 2005 No 758 (http://www.legislation.gov.uk/wsi/2005/758/contents/made) and the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023. See Appendix:1 for a summary of the different circumstances and corresponding material days.

Before making any list alteration you must first identify the reason for doing so since this is the key to ascertaining the correct material day. Within the life of a rating list the material day may vary significantly. For example, in the 2017 list it may be any day between and including 1 April 2017 and 31 March 2023, depending on the circumstances.

It is the circumstances existing on the material day that must be reflected in any list alteration so wrongly identifying the material day can have a significant effect on value.

4.5. Applying the material day provisions in practice

Identification of the material day is only the first step when considering a list alteration. Every list alteration has both a material day and an effective date - see No. 5 (below) for advice on effective dates. When considering any alteration of the list both material and effective days must be identified.

To ensure a correct list alteration is made you should follow a sequential thought process. This can be achieved by answering the following questions in this order.

1) What type of list alteration is being contemplated?

2) What is the correct material day to adopt? (See Appendix 1 below)

3) What are the relevant circumstances existing on that day? These are the relevant matters to be considered for valuation purposes which are specified in Schedule 6 paragraph 2(7) - see paragraph 4.3 above.

4) What is the RV taking account of those circumstances using values as applicable to the AVD? A valuation should be carried out using values appropriate to the AVD following the tone of the list provision as contained in Schedule 6 paragraph 2(4) LGFA 1988 (more on the AVD at 3 above).

5) What is the day from which all those circumstances and value applied, i.e. what is the correct effective day to apply? (see more on this at 5 below).

Care must be exercised where there are restrictions on effective date because of the operation of Regulation 14 of the Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2009 and the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005. For the 2023 Lists and onwards in Wales, the equivalent regulation is Regulation 27 the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023. See No. 5 below for guidance on effective dates.

6) Is there any further action to be taken?

Having dealt with the list alteration in hand you should then consider whether any associated further action is necessary. This may be to deal with:

(i) another list alteration, the need for which has become apparent through dealing with the first alteration. For example, in settling a compiled list appeal you may have become aware of a material change of circumstance warranting a further alteration in the list.

(ii) issuing a transitional relief certificate.

4.6. Dealing with cases where several factors are in play

It often happens that when you are considering making an alteration there are several different sets of circumstances that need to be considered. It should be remembered that a list alteration can only ever have one material day. Each different set of circumstances should be considered and if each would have a different material day then it is likely that more than one list alteration will be necessary.

Some illustrative examples will be helpful in explaining the principles (2017 lists) See examples (a), (b) and (c) below:

(Please note reference to the 1992 Regs are to SI 1992/556 as amended) –

Example (a) - Inaccuracy in the compiled list tone value and an extension has been built at the hereditament post compilation day

Here there are two different sets of circumstances; these have to be dealt with separately since there are two different material days involved. Two list alterations will be needed.

(i) MCC

The extension is a material change of circumstances (MCC) and the material day for an alteration to a list compiled on or after 1 April 2017 to take account of the extension will be the day when the extension was completed if the day is reasonably ascertainable and where the alteration is not made in pursuance of a proposal (Regulation 3(7)(b)(ii)(aa) of the 1992 Regs). The circumstances to be considered are all the relevant matters contained in Schedule 6 para 2(7) of the LGFA 1988 (see para 3.1.3 above) existing on the day the extension was completed, and the valuation is to reflect all these factors. Consequently, the value should not only reflect the new extension but also reflect the correction in tone value.

(ii) Compiled list error

The compiled list correction has a material day of compilation day (Regulation 3(2) of the 1992 Regs) and therefore only circumstances as they existed on that day can be considered for valuation purposes. Consequently, the subsequent extension must be ignored as it did not exist on that date.

For alterations of the 2023 list to reflect the above two circumstances, different options for the effective date are applicable depending on whether the alteration to correct the compiled list entry results in a decrease or increase in RV and whether it was due to ratepayer error or default.

A decrease in RV: The list may be altered to reflect the compiled list correction (to reflect the matters on the material day of compilation day), followed by another alteration to reflect the extension MCC at a material day later than the compilation date. Alternatively, the MCC alteration may be dealt with first followed by the compiled list correction although great care must be taken to ensure that the relevant cases are correctly linked so that the MCC alteration becomes the current assessment.

An increase in RV: Where the original inaccuracy is not as a result of an error or default by the ratepayer, the effective date would be restricted to the day on which the alteration is made, so a single alteration to reflect both the compiled list correction and the extension as a material change of circumstances should be made with effective from the date of the MCC. Where the original inaccuracy does arise from an error or default of the ratepayer, see the table at paragraph 5.5 below for action to take. Advice should be sought from the Technical Adviser via the Team Leader in case of uncertainty.

Example (b) - List alteration to reflect an extension but a previous, un-assessed, post-compilation extension is found on inspection.

Here there are two different material changes of circumstance that have not yet been reflected in the list entry. However, for an alteration to a list compiled on or after 1 April 2017, for a list alteration not made in pursuance of a proposal to take account of an MCC, the material day is the day on which the circumstances giving rise to the alteration occurred. In this example, there are two material days for the respective two extensions. The regulations allow the two extensions to be actioned by two separate alterations reflecting two different material dates with corresponding effective dates.

For alterations to the 2010 List made to give effect to a proposal and in Wales for the 2017 List, the material day is the day on which the proposal was served on the valuation officer. For England and the 2017 and subsequent Lists the material day is the day on which the valuation officer received confirmation under regulation 4C of SI 2009/2268 as amended (as stated by the VO in their acknowledgement) i.e. confirmation of check. For Wales and the 2023 Lists the material day is the day on which the valuation officer received confirmation under regulation 7 of the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023.

On that day, in the scenario noted above the extensions to be considered are all those existing on that single day where the Check confirmation has been submitted after the completion of the second extension. Both extensions would have to be reflected in a single alteration even though the regulations on effective day applicable to the 2010 and 2017 Lists provide for separate effective dates for separate events. All those matters existing on the material day must be reflected in any settlement of the proposal, which can only have effect from the day the latest MCC occurred. If the VO believes that a previous MCC had an effect on the value for an earlier day the list may be altered subsequently by means of a VOR case.

It should be noted that references to MCCs in this example do not include changes to the identity of the hereditament itself that are specifically dealt with in Reg 3(4). Reg 3(4) covers the hereditament coming into existence/ceasing to exist; ceasing to be/becoming domestic property or exempt property; ceasing to be/becoming required to be shown in the central list; or ceasing to be/becoming part of a Billing Authority’s area through boundary changes. The material day for these types of changes is the day on which the circumstances giving rise to the list alteration occurred whether giving effect to a proposal or otherwise.

Alterations made to the rating list as part of the Check decision will be by VO notice.

Example (c) - List alteration required for an MCC but on inspection an earlier merger of hereditaments is noted

Here there are two different situations to be considered, each with a different material day. Firstly, deal with the merger and then deal with the subsequent MCC. The material day for the merger is the day it occurred (Reg 3(4) and 3(8) refer) and the subsequent MCC is not to be taken into account in this list alteration. The second list alteration will reflect the effects of the later MCC.

The fact that there has been an MCC after the merger has occurred, but before the list has been altered to take account of it, does not prevent the valuation officer dealing separately with the two events.

5. Effective Dates

5.1

The determination of the effective date of an alteration of a list is the final step when considering any list alteration. It is inextricably linked with the concept of material day.

5.2

Stages in the thought process to determine the effective date

It is convenient to restate the sequential process described at [No. 4.5] which should be gone through and of which determination of the effective date forms an integral part. The effective date stage is stage 6 in the sequence shown below.

What type of list alteration is being contemplated?

For example, is it a compiled list alteration, changes in domestic/exemption, split /merger, completion notice, MCC change as a result of VO notice or proposal or other alteration (increases due to ratepayer error) etc.

What is the material day? [See 4 above]

What are the circumstances existing on that day? [See 4.3 for the relevant matters]

What is the RV taking account of those circumstances but using values as applicable to the AVD? [See 3.3 for consideration of this and the relevant AVD for the list being considered.]

What is the date from which all those circumstances and value apply?

Only at the fifth and final stage should we be determining the effective date for the list alteration.

Care must be exercised where t restrictions apply to the effective date to be adopted e.g. regulation 14(7) of the Appeal Regulations (date of schedule increases).

Under Reg 38(4) of the Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009 (https://www.legislation.gov.uk/uksi/2009/2269/regulation/38/made), a valuation tribunal is constrained in the alteration it may order by the provisions of, or provisions made under, the Local Government Finance Act 1988. This is however, subject to Reg 38(5) which allows the effective date of a list alteration to be the date of the tribunal’s decision in circumstances where the decision is that the disputed rateable value is greater than both that shown in the list at the date of the proposal and the amount proposed by the appellant. Similar provisions apply to Welsh appeals under regulation 34(4) of the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005 (https://www.legislation.gov.uk/wsi/2005/758/contents/made). From 1 April 2023, the same provision applies under regulation 52 of the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 (https://www.legislation.gov.uk/wsi/2023/350/contents)

5.3 Is there any further action to be taken?

Having dealt with the list alteration in hand, one should consider whether any associated further action is necessary. This may be to deal with:

(i) another list alteration, the need for which has become apparent through dealing with the first alteration. For example, in settling a compiled list appeal one may have become aware of a material change of circumstance warranting a further alteration in the list. This will include considering whether dual list maintenance is needed, see the Rating Manual, Section 3, Part 4 for more information on dual list maintenance. The VO can make alterations to the 2017 List up until 31 March 2024, after this date the List can only be amended to give effect to proposals or appeals.

(ii) issuing a transitional relief certificate. The certificate regulations and various work aids to assist in determining whether a certificate is required are available from the Section 3 Part 4 of the Rating Manual. Note a certificate can only be produced via RSA if there is an existing case. If a manual certificate is produced a copy should be retained within EDRM.

5.4. Statutory Basis

Regulation 14 (Appeals Regulations) applies to alterations made to the 2005 Lists after 1 October 2009 and subsequent rating lists. For Wales the equivalent is The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2005 [WSI 2005/758] and the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 for the 2023 and subsequent rating lists.

5.5

Regulation 14 of SI 2009 No 2268 (England 2010 and subsequent rating lists), and WSI 2005 No 758 (Wales 2005, 2010 and 2017 Lists) and regulation 27 of SI 2023 No. 350 (W.51) [Wales 2023 and subsequent rating lists].

The regulations provide that the effective date of an alteration to a list will generally be the day on which the circumstances giving rise to the alteration first occurred. [Reg 14 (1B) for England 2017; otherwise Reg 14(2)]. The exceptions are:

a. where an alteration is made to give effect to a completion notice, the alteration shall have effect from the day specified in the notice [Reg 14 (3) and for Welsh Lists after 2023, Reg 27(3)] or a different day being substituted, agreed or determined under Schedule 4A to the Local Government Finance Act 1988 [Reg 14 (4) and for Welsh Lists after 2023, Reg 27(4)]

b. where the day the circumstances arose is not reasonably ascertainable, the effective day will be the day the list is altered or the day the originating proposal was served [Reg 14 (5) and for Welsh Lists after 2023, Reg 27(5)]

c. a correction of the inaccuracy in the compiled list that will increase the RV shown in the list shall have effect from the day on which the alteration is made [Reg14 (7)(a) for England, Reg (6)(a) for Wales and for Welsh Lists after 2023, Reg 27(6)(a)]

d. a correction arising from an earlier alteration that will increase the RV shown in the list for the hereditament to which the inaccuracy relates shall have effect from the day on which the alteration is made [Reg (14)(7)(b) for England, Reg 14(6)(b) for Wales and for Welsh Lists after 2023, Reg 27(6)(b)]

e. no alteration can be made to a past list after the 31 March in the year following the end of that List other than to give effect to proposals or appeals ((reg 14(8))

Where the original inaccuracy did not arise as a result of an error or default by the ratepayer and the assessment is increasing, the increased RV will be limited to the date of list alteration, i.e., Date of Schedule. If the error giving rise to the correction was the result of ratepayer error, then under these circumstances the increased RV can be backdated to the date that the List became inaccurate.

The relevant effective dates for the 2017 lists are shown in Appendix 1, these follow the rules in the paragraphs 5.5 above.

5.6

A new occupier is not a reason to limit effective date

The effective date of a list alteration made to give effect to a proposal made by a new occupier is not limited to the date from which the present occupier took up occupation. Once a valid proposal has been made the only limitations on the effective date of an alteration to give effect to the proposal are those provided by regulation 14 (Appeal Regulations) and regulation 27 (Wales, 2023 lists onwards) and the appropriate Material Day.

5.7 List alteration after a series of un-reflected value-significant material changes of circumstances (MCCs)

Confusion can arise where a list needs to be altered but there have been a number of individual MCCs which are not reflected in the current assessment. The key to the problem is to remember that any list alteration can only have one material day and one effective date. Where there are circumstances requiring list alterations for situations having different material days consideration must be given to whether it is appropriate to make one single alteration or more than one list alteration. In cases of uncertainty, advice should be sought from the Unit Technical Leads and escalated to Chief Valuer Group if necessary. See also Paragraph 4 above regarding Material Day.

Following the process set out in paragraph 5.2 the first thing is to identify the type of list alteration (here we know we are dealing with a number of MCCs) and then identify the material day according to SI 1992/556, as amended, for MCCs which would result in an alteration of the list compiled on or after 1 April 2005,

Having identified the material day, identified the relevant matters existing on that day and carried out a valuation, consideration must be given to the effective date of the list alteration. (see paragraph 5.5 above)

The rateable value determined as appropriate on the material day can only apply for as long as the circumstances (matters mentioned in LGFA Sched 6 para 2(7)) on the material day continued to exist. When there is a change in those matters then a different rateable value may be appropriate.

It is possible for the rating lists to reflect a series of earlier MCC’s by way of additional separate Valuation Office notices by virtue of regulation 14 (1B) of SI 2009/2268 in England for the 2017 rating lists or regulation 14 (2) WSI 2005/758 for Wales (2005, 2010 and 2017 lists) and regulation 27(2) for 2023 and subsequent Welsh lists.

It should be noted that references to MCCs in this example do not include changes to the boundaries of the hereditament, for example, splits and mergers as these are specifically dealt with in Reg 3(4) of the Non-Domestic Rating (Material Day for List Alterations) Regulations 1992 [SI 1992 No 556].

This regulation covers situations such as the hereditament coming into existence/ceasing to exist, ceasing to be/becoming domestic property or exempt property, ceasing to be/becoming required to be shown in the central list or ceasing to be/becoming part of a Billing Authority’s area through boundary changes. These type of changes have as their material day the day on which the circumstances giving rise to the list alteration occurred, both for proposals and VO report (VOR) and BA report (BAR) cases.

5.8 List alteration after a series of un-reflected value-significant and non-value-significant MCCs

Where there has been a value significant MCC in respect of which the list has not been altered and this is then followed by a value insignificant MCC the VO will still be able to alter the list pursuant to a proposal with an effective date of the value significant MCC. The most recent MCC is not a limitation on the effective date if it is of no value effect on the hereditament.

The same process as described at paragraph 5.6 above applies. Support for the argument that it is only value significant MCCs which limit the effective date is taken from the wording of regulation 14 and regulation 27 (Wales, 2023 lists onwards) . Therefore, there must be circumstances giving rise to an alteration and only value significant circumstances give rise to an alteration.

For alterations other than by settlement of a proposal, a series of MCC’s may be reflected in sequence by VO alteration even if this does not happen until after the last event takes place.

See Appendix 3 for details of effective dates to be adopted for the 2017 lists and Appendix 4 for the 2023 and subsequent lists.

6. Dual List Maintenance

Please see Section 3 Part 4 (https://www.gov.uk/guidance/rating-manual-section-3-valuation-principles/part-4-valuing-vacant-property) of the Rating Manual.