Valuation Office Agency contests rates award
Nine New Bond Street retailers awarded rate rebates of 50% for the three months following 9/11 are to have their awards challenged in court.
Retailers including Miu Miu, DKNY and Armani were granted 50% rebates from 11 September to 31 December 2001 — amounting to a total of around £250,000 for the group — to reflect the decline in tourist trade (EG, 13 December, 2003).
The Valuation Office Agency is appealing against the decision by the Central London Valuation Tribunal last December.
Hundreds of other London retailers are awaiting the outcome of this test case, which is due to be heard in the spring.
The VOA said: “The basis of the appeals was that [9/11] had caused a reduction in the number of tourists visiting London and the UK, and that this constituted a material change in circumstances, which should be reflected in rateable value.
“The VOA considers that this evidence is unsubstantiated and does not consider this type of factor as justification for a reduction in the rateable value.”
The retailers will use the case to argue that they should have been awarded reductions of only 15% , but spread out over 12 months to better reflect the impact of 9/11.
The Lands Tribunal will also hear an appeal by nine other New Bond Street retailers — including Chanel and Burberry — which failed to win rebates because their appeals were lodged after 31 December.
Blake Penfold, joint head of rating at GL Hearn, who is representing the retailers, said it was “illogical” to grant rebates to one group and not another.
