Menu Home Search

Upper Tribunal Ruling on Business Rates and Premises Valuations

Updated on Tuesday, 7 April 2015, 1194 views

In January 2015, the Upper Tribunal (Lands Chamber) made a ruling (accessible here) that has implications for how business rates are calculated for practices occupying purpose built GP premises. The ruling has implications for practices in England and Wales. The tribunal examined the way in which purpose built GP surgeries are valued and what kind of valuation methodology should be applied.

The impact of the ruling is that surveyors evaluating purpose built premises must now adopt a valuation methodology which could considerably reduce the valuation of the property for business rates purposes.

As business rates are reimbursable under the Premise Costs Directions, any reduction in business rate should have no impact on the practice. However, as it is reimbursed cost, this is an area where NHS England (or the Health Board) can recoup costs.

There are a number of important points to note.  It may transpire that Area Teams attempt to pressure practices into appealing their current business rates. Any appeal to the Local Authority regarding business rates may only be made by the practice. As such it is entirely at the discretion of the practice and they are under no obligation to comply.  

Although it hasn’t been explicitly stated, please be aware that any rates rebates from the local authority to the practice will almost certainly be clawed back by NHS England or the Health Board (for Wales). We are also aware that some legal firms are approaching practices about applying for a rebate. Given the reimbursable nature business rates practices would receive no financial advantage in doing so but may be left with subsequent legal fees.

GPC is also unclear about the broader implications of this ruling. One of our concerns is that a reduction in rates could impact upon subsequent reviews of notional rent.  Whilst it’s believed that the risk of this is minimal we are in the process of acquiring further professional advice as to any potential impact. We will update LMCs about this shortly.



 

Related guidance...

Legal ruling puts dramatic new cost on holidays

Tuesday's ruling in the Employment Appeal Tribunal has confirmed that holiday pay should include overtime pay, even if undertaken...

Premises Review

Full Document Recognising “ongoing issues around” general practice premises, NHSE led the General Practice Premises Policy Review...

24 Hour Retirement for GPs

Introduction In 2006 the NHS Pensions Agency reviewed the then current Regulations and clarified the arrangements that enable General...

Template lease for GP premises

Things you need to know and actions you need to take The template lease download here The template lease has been developed to cover a...

Role of Education Welfare Officer

If a child has a very poor attendance record an Educational Welfare Officer may be asked to investigate. EWOs are employed by the local...

Staff Holiday Update

Aren't Holidays Supposed to Be Restful?! Adrian Poole, Partner at Porter Dodson Solicitors, updates you as to the legal position over...

Living Wills, Enduring Powers of Attorney and Lasting Powers of Attorney

Enduring Power of Attorney An Enduring Power of Attorney was an instrument used by a person to nominate someone to look after their...

Police requests for medical notes from general practice

There is clear guidance regarding the obligations that GPs have with respect to copying and/or release of the GP record. For your...

Certification - Child Performers

Most children taking part in non-commercial performances do not require a licence to perform and, even if a licence is required for...

CQC Next Phase Methodology (2017)

Operating Model area: Inspection and rating Sector: Primary Medical Services Product title: V0.5 Draft sector specific guidance for GP...