Duty to notify and digitisation
The Valuation Office Agency (VOA) has been tasked by government to introduce a new duty to notify. Avison Young recommends the new government to take stock to ensure the proposed system is fit for purpose.
The proposed duty to notify system will require ratepayers to notify the VOA when there are physical changes to the property, extensions, refurbishments etc., as well as changes to tenure, new lettings, lease renewals, freehold sales etc.
There are two main reasons for introducing duty to notify:
1. To improve the quantity and quality of evidence held by the VOA as they work towards annual revaluations.
2. To push all data research and gathering responsibilities away from the VOA and billing authorities onto business.
The problem is timescale with the VOA initially intending to introduce the scheme by 2026. The responsibilities on business will be considerable, and understanding what needs to be declared, say with large or multi building sites or multi occupied short term licence arrangements, will be highly complex. At what point does a ratepayer need to understand what needs to be declared in terms of minor and non-value significant site changes. Often across large or complex portfolios data is not held in one set or may be in hard copy and will prove extremely onerous to gather.
This is the time to take stock and undertake a cost benefit analysis. Consultation with the Agency suggests business will receive no inherent benefit from duty to notify but at the cost of a far higher administrative burden. If the quality and quantity of VOA data significantly improves as a consequence of duty to notify then in return businesses need a real commitment from the VOA that they will be transparent as to how they value and in reaffirming the evidence they have used to support their valuations.
We urge government to ensure the VOA undertakes a detailed testing and roll out phase. We consider that full implementation must be delayed until at least 2027, which should provide the VOA with the necessary data gathering requirements to value for the 2029 revaluation.
We would also like to see commitment from the government to digitalise billing authority processes.
This would mean that at long last we have joined up approach where ratepayers can from one site;
- Provide the VOA with necessary data (duty to notify).
- Understand their VOA valuation and the evidence used to support the valuation.
- Challenge the valuation if excessive.
- Pay their bills (balance on account etc) across multiple billing authorities.
- Understand the reliefs they can claim.
- Make enquiries of both the VOA and the billing authorities and in doing so expect a reasonable response time.
Provide the VOA with necessary data (duty to notify).
Understand their VOA valuation and the evidence used to support the valuation.
Challenge the valuation if excessive.
Pay their bills (balance on account etc) across multiple billing authorities.
Understand the reliefs they can claim.
Make enquiries of both the VOA and the billing authorities and in doing so expect a reasonable response time.