William Eichler 17 January 2020

Court finds in favour of museum in ‘landmark’ business rates case

A long-running battle over how museums are valued for business rates has come to an end with a court ruling that they should be valued based on net income.

In the case of Stephen G Hughes v Exeter City Council the Upper Tribunal decided that the Royal Albert Memorial Museum in Exeter should not have been valued based on the cost of rebuilding, which is the Valuation Office Agency’s (VOA) preferred method.

The court ruled instead that the museum buildings should be valued based on Receipts and Expenditure, which means the rateable value will be reduced to £1, effective from 1 April 2015.

‘This is the third appeal of this kind that we have taken to the Upper Tribunal and, in all cases, the court has found in our favour,’ said Colin Hunter, director of business rates at Lambert Smith Hampton who advised Exeter City Council on the appeal.

‘However, what is interesting about this case compared with the others is that it makes it clear that the choice of valuation method isn’t a matter of legal principle but rather should be based upon fact and evidence.

‘The result is therefore likely to have a significant impact on the way English and Welsh museums are valued in the future, particularly older museums situated within historic buildings which would have substantial rebuild costs.’

‘Whether the VOA decides to appeal or not remains to be seen. However, either way, we’re keen to bring the VOA together with representatives from the various museum bodies across England and Wales in order to agree a way forward,’ Mr Hunter added.

‘We will also have discussions with the Valuation Tribunal for England to establish how best to clear the appeals against the 2010 rating list that are still outstanding, paving the way for the 2017 Rating List to be appealed or corrected.’

SIGN UP
For your free daily news bulletin
Highways jobs

Graduate Trainee Electric Vehicle Infrastructure

North Yorkshire Council
£25,183 - £30,559
Could you help us deliver Electric Vehicle infrastructure to support this new transformation mode of transport. Greenwich, London (Greater)
Recuriter: North Yorkshire Council

Contracts and Strategy Officer

Royal Borough of Greenwich
£41,442 - £44,331
Royal Greenwich is on the up! Having achieved a 3.8% increase in our recycling rate this year Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Senior Developer

Royal Borough of Greenwich
£52,584 - £69,068
Royal Greenwich is a vibrant borough, with a rich history and diverse community. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

SEND Operations Assistant - 2 year FTC

Essex County Council
£25081 - £26679 per annum + + 26 Days Leave & Local Gov Pension
SEND Operations AssistantFixed Term, Full Time£25,081 to £26,679 Per AnnumLocation
Recuriter: Essex County Council

Welfare Benefits & Money Advice Caseworker

Sandwell Metropolitan Borough Council
Band E SCP 18-25 (£30,559 - £35,235 per annum
We have an exciting opportunity for a skilled individual to join our Welfare Rights Team Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner