Magell Ltd v Dumfries and Galloway Regional Assessor [Court of SessionLands Valuation Appeal Court]
| Jurisdiction | Scotland |
| Judgment Date | 22 July 2005 |
| Date | 22 July 2005 |
| Docket Number | No 44 |
| Court | Lands Valuation Appeal Court (Scotland) |
Court of Session Lands Valuation Appeal Court
Lord Justice-Clerk (Gill), Lord Nimmo Smith, Lord Kingarth
Valuation - Property let at market rent 20 months after valuation date - Whether valuation to be on basis of that rent or of comparison with rents obtained for other properties - Valuation and Rating (Scotland) Act 1956 (cap 60), sec 6(8)
Section 6(8) of the Valuation and Rating (Scotland) Act 1956 provides that subjects are to be valued at the rent at which the subjects might reasonably be expected to be let on statutory terms at the valuation date.
A complex of industrial buildings was entered into the valuation roll at a rateable value of 142,000. The owner appealed to the Valuation Committee. The owner argued for a figure of 75,000, which had been fixed in an open market transaction in 1999 about 20 months after the revaluation date. The assessor argued that his valuation scheme produced a more reliable result, and tendered 15 comparisons. The committee preferred the assessor's argument.
Held that: (1) the statutory question for the committee was to determine the rent at which the subjects might reasonably be expected to be let on the statutory terms at the valuation date (para 15); (2) the 1999 rent was primary evidence bearing directly upon the statutory test (para 17); (3) the assessor's scheme was unreliable in the valuation of subjects with special features and the importance of this should have been clear to the committee from case law which it appeared to have ignored (paras 18, 19); (4) without specific findings by the committee about the comparison properties the court could not know in what way the committee regarded them as comparable (para 20); (5) the committee failed to understand that on the issue of location the parties' witnesses were talking about different things (para 21); and appealallowed and figure of 75,000 substituted.
Magell ltd appealed to the Valuation Committee against an entry in the valuation roll in respect of buildings on the Edingham Industrial Estate, Dalbeattie. The committee refused the appeal on 24 September 2003. The appellants appealed to the Lands Valuation Appeal Court, which on 15 July 2004 allowed the appeal (2005 SLT 453) and remitted the case to the committee. On 17 November 2004 the committee adhered to its previous decision and refused the appeal. The appellants appealed to the Lands Valuation Appeal Court.
Cases referred to:
Debenhams plc v Assessor for Grampian 1992 SLT 309
Magell Ltd v Assessor for Dumfries and Galloway 2005 SLT 453
Simmons Furniture Store Ltd v Assessor for Dumfries and GallowaySC 1988 SC 212; 1989 SLT 4
The cause called before the Lands Valuation Appeal Court, comprising the Lord Justice-Clerk (Gill), Lord Nimmo Smith and Lord Kingarth.
At advising, on 22 July 2005-
Lord Justice-Clerk (Gill)-
[1] This is a 2000 revaluation appeal relating to a complex of industrial buildings owned by the appellant on the Edingham Industrial Estate, near Dalbeattie. The subjects were entered in the roll at a rateable value of 142,000. The valuation date was 1 April 1998.
[2] The subjects are a substantial group of buildings occupying a site of about 8.5 acres. The site was developed at least 60 years ago as a munitions factory. It is about 13 miles from Dumfries and about 1 mile north of Dalbeattie. Some of the original buildings remain. The main buildings form a unit about 300 metres long with ancillary storage accommodation. The total floor area is 13,984 square metres.
[3] The issue in the appeal concerns the significance of the rent of 75,000 per annum at which the subjects were let in December 1999. The appellant submits that that rent is the best evidence of the rateable value and that it reflects the disadvantages of the isolated location for subjects of this size. The assessor valued the subjects under his revaluation...
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