Simon Earle Racing Limited v Dal Virk

Rating valuation of racing stables requires assessment of the hypothetical annual rent at the antecedent valuation date, applied to the physical circumstances at the material day. Rental evidence must be weighed for timing, reliability and the extent to which it includes residential, exempt or ancillary elements. A valuation based solely on county location is insufficient where racing yards differ materially in facilities and disadvantages. The valuer may use a stable-based method, making appropriate adjustments for construction, ancillary facilities, grazing, access and operational disabilities. An American Barn may warrant an allowance against traditional stable comparables, and the absence of on-site accommodation or independent access may justify further deductions.

Simon Earle Racing Limited appealed against the Valuation Tribunal for England’s determination of a rateable value of £13,750 for racing stables and premises at Lower Barn, The Beeches, Sutton Veny. The appeal concerned the correct valuation of a racing yard for the 2017 Rating List, including the weight to be given to the property’s later rent, comparable rents and other assessments, and appropriate adjustments for the American Barn, grazing, gallops, horse walker, access and lack of residential accommodation.

The appellant sought a rateable value of £12,000. The respondent sought £15,000. The central issue was the proper rateable value applying the statutory valuation assumptions.

1. Appeal allowed. The rateable value was determined at £12,200, with no order as to costs.
2. Rateable value had to be assessed by reference to the hypothetical rent at the antecedent valuation date of 1 April 2015, while reflecting relevant physical circumstances at the material day of 1 April 2017. The rent agreed for the appeal property in October 2018, and the rent for The Beeches, therefore had limited utility because they post-dated the valuation date.
3. The preferred approach was to analyse rents by reference to value per stable, while separately adjusting for ancillary accommodation, horse walkers, grazing, gallops and other elements. Evidence was to be weighed according to the reliability of the underlying facts and the extent to which the rent included residential or non-rateable elements. Major’s Farm and Conkwell Grange carried little or no weight because of unresolved or materially uncertain evidence.
4. A stable tone could not be determined wholly by county boundaries or location. The surrounding evidence supported a starting value of £550 per stable. A 5% reduction was appropriate for the modern American Barn, followed by allowances of 10% for the absence of on-site accommodation for a required staff member and 2.5% for access over the neighbouring yard’s land.
5. The horse walker was valued at £50 per compartment. The four unlicensed loose boxes were valued at 50% of full stable value. Applying those adjustments produced a total of £12,215, rounded to £12,200. The respondent’s proposed increase could not arise on the evidence and the determination was below the existing assessment.

• Upper Tribunal (Lands Chamber) — appeal from the Valuation Tribunal for England allowed; rateable value determined at £12,200.
• Valuation Tribunal for England — determined the rateable value at £13,750 with effect from 30 October 2018.