[2025] UKUT 104 (LC)

Should the rating list entry for a building undergoing a scheme of refurbishment be reduced to £1 for the duration of the works? This question arises from a 2017 rating list decision of the Valuation Tribunal for England (‘VTE’) in which it rejected the appellant’s case for a reduction of the entry to a nominal sum and dismissed their appeal.

This appeal from the VTE’s decision relates to a warehouse in Newcastle upon Tyne (‘the Property’) which was subject to works by its owners for a period starting on 28 November 2022 and culminating in practical completion on 24 March 2023. The purpose of the works was to put the Property into a state suitable for a new tenant to undertake works necessary for their own occupation.

Following the completion of the works the Property was occupied by McDonald’s Restaurants who fitted it out as a kitchen supplying items solely for delivery, commonly known as a ‘dark kitchen’. In view of the extent of the changes made to the Property and the nature of the issues, the Tribunal has not carried out an inspection, but we have been provided with detailed plans, specifications, photographs and a comprehensive schedule of works.

The appellant was represented at the hearing of the appeal by Mr Luke Wilcox and the respondent Valuation Officer (‘VO’) by Mr Matthew Donmall. We are grateful to them both.