Upper Tribunal overturns President’s landmark decision
A landmark decision on business rates has been overturned by the Lands Chamber (Upper Tribunal).
In the case, which involved West London Aero Club, the Valuation Tribunal had held that once it had given its decision on the rateable value, that value couldn’t be amended by a valuation officer (VO) even where the officer believes he is correcting an error (regarding the size of a hangar, in this case). The airfield relied on the principle of res judicata or issue estoppel to argue that the officer was not entitled to ignore or impugn the tribunal’s decision.
Ruling in the airfield’s favour, the Tribunal President, Graham Zellick QC considered that “to countenance the valuation officer’s argument would be subversive of the rule of law, an affront to justice, repugnant to the statutory framework”. On appeal, however, the Lands Chamber has reversed the President’s decision ( Valuation Office Agency v West London Aero Club [2014] UKUT 0291 (LC)). It held that res judicata did not apply and a valuation officer can alter a rating list when he becomes aware of a material change in circumstances because he is under a duty to maintain an accurate list. Giving his judgment, Martin Rodger QC said: “A mistake of fact made by the Valuation Tribunal need not be perpetuated.”
Richard Jones, a property consultant who advised the airfield, commented that the Upper Tribunal decision was based “purely on the legalities” of the VO’s actions and powers.
“It also took into account a previous Valuation Tribunal ruling and the impact of this on the VO’s ability to alter the 2005 rating list. However, no consideration was given to the correctness or otherwise of the confirmed overall rateable value in light of comparable properties, nor to any quantum value reduction in relation to the increased areas of the hangars,” he added.
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