MR AND MRS N DENNETT v VICTORIA JOANNE CRISP MRICS (Valuation Officer)
Decision date: 24 January 2013
Neutral citation: [2013] UKUT 35 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Mr and Mrs Dennett appealed a 2010 rating assessment for Talehay, a rural self‑catering complex, contesting the fair maintainable trade (FMT) used in a receipts & expenditure (R & E) valuation. The Tribunal accepted that the actual takings were inflated by exceptional management/marketing and reduced FMT to about £50,000, using comparables, and amended the 2010 Rateable Value to £7,550. No costs were awarded.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal’s reasoned decision indicates that where actual turnover is materially influenced by exceptional management or marketing, an appropriate downward adjustment should be made in R & E valuations to reflect the trade of a reasonably efficient operator; closely similar local comparables can be decisive in assessing FMT when actual accounts are unrepresentative.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The decision contains observational comments that it was surprising the Valuation Officer resisted overtrading adjustments in holiday cottage valuations given prior practice, and that “tone of the list” comparables and unappealed assessments have limited weight unless tested on appeal.