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									                                IRRV EXAMINATIONS JUNE 2003
                                                  LEVEL III



          VALUATION FOR LOCAL TAXATION
                                                Scotland

All candidates must answer Question 1 (120 marks)
Candidates should then answer THREE further questions
(60 marks each)


(Maximum marks 300)

    Additional information may be assumed where necessary but this should be
                                     clearly stated in your answer.


     FOR THE PURPOSE OF THIS PAPER, UNLESS OTHERWISE STATED, IT
SHOULD BE ASSUMED THAT QUESTIONS RELATE TO THE CURRENT LISTS.
            REFER TO ANY STATUTE AND CASE LAW AS APPROPRIATE


    The following question is compulsory


    1. The properties described below are situated in a coastal town with a
         population of approximately 20,000.
         Provide a valuation for each of the following and state the entries to be
         made in the Valuation Roll or the Council Tax List.


         a) A shop unit in the main shopping street is occupied by a firm of estate
              agents. The ground floor has a frontage of 9 metres and a depth of 25
              metres and the upper floor comprises offices of 150 square metres and
              a staff room of 50 square metres. A nearby shop with a frontage of 12
              metres and a depth of 30 metres has recently been agreed at rateable
              value £125,000.                                             (25 marks)




Valuation for Local Taxation, Scotland, Level III, June 2003

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         b) A newly constructed Community Hall with over walls area of 1500
              square metres occupying a site with a frontage of 80 metres and a
              depth of 100 metres. Within the site there is a small car park for 50
              cars.          (25 marks)


         c) A dental surgery on the ground floor of a former terraced house. The
              accommodation comprises a surgery, waiting room and ancillary
              accommodation with a total net internal area of 115 square metres.
              Similar subjects in the terrace are occupied as offices.      (20 marks)


         d) A flat on the first floor above the dental surgery. Similar flats sold in
              1993 for £75,000 and are now worth in the region of £135,000. The
              property is in a poor state of repair.
                   (15 marks)


         e) At the end of the main street, a shop, which ceased trading two years
              ago, is now occupied by the owner (former shopkeeper) and his family
              as a private residence. Counters and shop fittings were removed when
              the premises were refurbished and redecorated but the shop front
              remains in situ. The dimensions of the premises are similar to the shop
              at (a) above.
                   (15 marks)


         f)   A small industrial unit close to the harbour occupied as a fish
              processing plant. The over walls area is 500 square metres of which 50
              square metres is used as offices.
                   (20 marks)




Answer THREE of the following questions



    2. Explain FOUR of the following quoting appropriate case law where
         relevant:


         a) Relevant decision

Valuation for Local Taxation, Scotland, Level III, June 2003

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         b) B & Q plc and Others v Central Scotland Assessor
         c) Material increase in value
         d) Decapitalisation rate
         e) Consideration other than rent.                            (4 x 15 marks)




    3.   Your clients are the owner-occupiers of industrial premises, the valuation
         of which has been agreed on appeal at £280,000 rateable value.


         On 1st April 2000 the premises comprised:


                   Manufacturing space with over walls area of 4000 square metres
                   built in 1933 of brick to a 5 metre eaves height and finished to a
                   good quality.


                   A three-storey office block built in 1955 having a total over walls
                   area of 600 square metres open plan on each floor.


                   A warehouse built in 1920 with a total over walls area of 1500
                   square metres. The construction is brick with a slate roof. The eaves
                   height is 3.5 metres, there are many pillars within the building,
                   access ways are narrow and heating is poor.


         The warehouse has been demolished following a fire and it is now
         proposed to build a new warehouse on the same site. The construction will
         be similar to the existing manufacturing space but with an eaves height of
         7 metres. The bulding will be well heated and access ways will provide
         facilities for modern vehicles.


         During the period of rebuilding, which will be about 10 months, your
         clients will rent 1750 square metres of space in a vacant warehouse of
         4000 square metres (over walls). This building is of slightly better quality
         than the destroyed warehouse but is located about half a mile away. The
         rent to be paid is £7000 per month. This rent is high but storage space is



Valuation for Local Taxation, Scotland, Level III, June 2003

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         essential. The vacant warehouse has been entered in the Valuation Roll at
         RV £85,000.


         You are asked to advise on the overall effect on your client’s rating liability
         of the proposed scheme, during the construction period and on
         completion of the works.




    4.    a) Explain with reasons which method or methods of valuation you would
              use to arrive at the rateable value of EACH of the following heritages:


              (i) A large department store located in a major town
              (ii) A modern 100- bedroom hotel with conference facilities.
              (iii) The central library in a large town
              (iv) A modern privately-operated health club in a city centre having a
                   25-metre swimming pool, fitness rooms and refreshment areas.
                                                                     (4 x 5 marks)


          b) Provide an example valuation of ONE of the subjects described above
              with fully detailed calculations, explaining any assumptions you make.
                                                                             (40 marks)




     5. The respective ratepayers and council tax payers of the following
         properties have requested your advice as to the possible effect on their
         valuations and/or Council Tax Bands having provided certain information.
         Describe any enquiries you would make or further information you require
         and explain the advice you would offer in any THREE of the following four
         cases:


          a) Due to the proposed construction of a wind farm approximately half a
              mile away, the work on which will commence next year, the occupier of
              a Band G house anticipates a reduction in the value of his property.

Valuation for Local Taxation, Scotland, Level III, June 2003

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          b) The occupier of a rural shop with a small filling station has recently
              closed the filling station as he cannot purchase fuel at a price which
              enables him to compete with larger outlets on the main trunk roads.


          c) The owner occupier of a 1960’s detached house informs you that his
              house, which is in disrepair and has neither been modernised nor
              extended, is in Band F. He states that this is the same as originally
              similar houses in the locality which are in good repair, modernised and,
              in some cases extended. He thinks the Banding of his house should be
              amended to Band D.


          d) An industrialist proposes to take a lease of a 5000 square metre
              factory but will use only 75% of its area for the next two years after
              which he hopes to expand manufacturing and gradually bring the
              other 25% into use.




     6. Prepare a fully detailed contractors basis valuation of a local authority Art
         Gallery and Museum of Local History situated centrally in a market town
         with a population of about 50,000.


          The main Art Gallery, is a Listed Building constructed in 1895 with two
          main floors each of which has an over walls area of 1750 square metres.
          The first floor of the building is air-conditioned and displays an excellent
          collection of works by important artists. The ground floor, used for
          temporary exhibitions, contains restaurant, shop and reception areas.
          There is also a basement of 500 square metres, providing good storage
          space with an area for the preparation and restoration of exhibits.


         Within the same curtilage, the adjoining Museum of Local History, built in
         1985, is of a plain but traditional design and construction. It has exhibition
         areas extending to 725 square metres (over walls) on each of the ground
         and first floors, with offices of some 250 square metres on the second
         floor.



Valuation for Local Taxation, Scotland, Level III, June 2003

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         There is shared parking of 60 spaces, 5 of which are for disabled persons,
         15 for staff and the remaining 40 for visitors.




Valuation for Local Taxation, Scotland, Level III, June 2003

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