MICHAEL BERNARD BLUM v HER MAJESTY’S REVENUE & CUSTOMS
Decision date: 23 July 2013
Neutral citation: [2013] UKUT 304 (LC)
Overall AI summary confidence: medium
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: medium
This appeal concerned the open‑market value on 31 March 1982 of a converted small office property at 48 Station Road, Harrow for CGT re‑basing. The Tribunal accepted HMRC’s valuer’s rental relativities and an 8% yield, fixed the annual rent at £11,000 and determined the freehold value at £137,500 as at that date. HMRC were awarded their costs from 5 January 2013.
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: medium
Where comparable evidence does not show a consistent difference between floors in small office buildings without lifts, a tribunal may treat ground and first floors as having no material rental differential; and, in cases with limited comparable yield evidence, a tribunal may select an appropriate yield from the best available but limited comparables and adjust the valuation accordingly.
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 judgment indicates that auction sale evidence and dissimilar mixed‑use investment comparables may have limited usefulness when assessing yields for small office investments, and that zoning or retail comparables should be translated appropriately before informing office rent assessments.
Warning
The chunk contains repeated and duplicated passages of the judgment which may affect flow. Notes contain repeated and duplicated passages which may affect completeness and flow.