Valuation Glossary Page
This Glossary is designed to explain some of the terms used in the Valuation presentation. It is not an exhaustive attempt to explain individual valuations and has no force in law. Further details of how properties are valued can be found in the various Practice Notes available on this website and which may be linked to individual Valuations.
If you cannot find an explanation below or in a Practice Note you should contact your local Assessor using the link information provided. You should also contact your Assessor if you disagree with the detail of the Valuation, eg a described part or building has been demolished or is no longer part of the property which you lease from your landlord.
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1. Access
+—This term may be used to describe an area of floor space, external land or yard space providing access to other areas or to describe an addition or allowance within the valuation to recognise good or bad access arrangements.
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2. Adjustment for Size
+—In calculating *NAV/RV (*see below) for rating purposes many subjects are valued on the basis of the Comparative Principle. This means that values are compared with actual rents. Usually very large properties are let at lower levels of value per unit of area than smaller properties. When the basic level of value (*Rate/m²) is derived from “normal sized” properties end values can be adjusted to recognise the size differential of smaller or larger properties. This adjustment is also referred to as Quantum.
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3. Adjustments
+—When calculating the value of an individual property the Assessor may make adjustments to recognise a disability or advantage in the subject property (or parts of it) compared to other broadly similar properties.
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4. Area (m²)
+—This is the measured area of the part of the property described, expressed in square metres (m²). One m² is equal to about 10.7639 square feet.
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5. Building
+—Where a property consists of several different individual buildings the Assessor may describe each building by number which refers to their detailed records about the property. Individual buildings may also be subdivided for valuation purposes with each part being identified by a separate building number.
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6. Contractor's Basis
+—This is a method of valuation where the *NAV/RV (*see below) or part of it, is calculated by reference to the depreciated cost of construction.
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7. Description
+—This term appears twice on a property’s valuation. In the heading it is used to describe the property as entered in the Valuation Roll eg “Shop”, “Office” etc. and describes the use, in general terms, of the property as a whole. In the tabular layout of the valuation the Assessor may describe various parts of the property in relation to physical factors and/or particular use e.g. ‘Ground Floor Workshop’, ‘Store’, etc. In neither case is an error in the Description fatal to the status of the Valuation Roll entry or the actual valuation of the property.
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8. Effective Date
+—This is the date that the value becomes effective and rates based on the value become chargeable. For the purposes of the 2023 Revaluation all values for existing properties are effective from 1 April 2023. New or altered properties coming into existence after 1 April will have different effective dates.
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9. End Adjustment
+—When calculating the value of an individual property the Assessor may make a final adjustment to recognise a disability or advantage affecting the whole property compared to other broadly similar properties.
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10. Final Value
+—This is the arithmetical total of the values of the various parts of the property including additions or deductions for any overall or end allowances or adjustments. The *NAV/RV (*see below) will be determined from this figure and may be “rounded” upwards or downwards from the Final Value.
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11. Floor
+—This describes the floor level of individual parts of the property. Some parts of properties may be described in full (Ground Floor) or by initials only (GF = Ground Floor, 1F = First Floor etc).
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12. Inverse Quantum
+—In calculating *NAV/RV (*see below) for rating purposes many subjects are valued on the basis of the Comparative Principle. This means that values are compared with actual rents. Usually smaller than average size properties are let at higher levels of value per unit of area than normal sized properties. When the basic level of value (*Rate/m²) (*see below) is derived from “normal sized” properties end values can be increased to recognise the size differential. This is referred to as “Inverse Quantum”. (See also Quantum below).
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13. m²
+—This is the notation used to describe measured areas in square metres.
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14. NAV/RV
+—NAV means Net Annual Value and RV means Rateable Value. In most cases they are the same. NAV is defined in law as the rent which might reasonably be expected to be paid if the property was let as at 1 April 2022. RV is the figure used to calculate rates payable to the local council. It will be used by the council in the non domestic rates bill or rates demand notice issued to you each year.
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15. Pertinents
+—Where a property comprises buildings and other items, such as car parking etc, the other items are often referred to as “Pertinents”. They can also include other (usually smaller) buildings. “Pertinents” may be used to describe several items which are included in a single figure of value within the property’s valuation although each item is valued separately in the calculated NAV/RV (*see above).
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16. Plant
+—Items of Plant and Machinery found in a range of properties can attract separate value in accordance with the law. Where this is the case the total value ascribed to such items is referred to as “Plant” although each item is valued separately in the calculated NAV/RV (*see above).
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17. Quantum
+—In calculating *NAV/RV (*see above) for rating purposes many subjects are valued on the basis of the Comparative Principle. This means that values are compared with actual rents. Usually larger than average size properties are let at lower levels of value per unit of area than normal sized properties. When the basic level of value (*Rate (£/m²) (*see below) is derived from “normal sized” properties end values can be reduced to recognise the size differential. This is referred to as “Quantum”. (See also Inverse Quantum above). It should also be noted that the term “Quantum” may be used in some instances to describe either an addition or deduction to recognise size.
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18. Rate (£/m²)
+—To allow comparison between properties of differing size etc values are expressed in terms of a rate (in pounds and pence) per square metre of floor area. Adjustments or allowances may then be made to recognise the characteristics or size of particular properties or parts of them. The Rate (£/m²) shown in a property’s valuation is derived from analysis of the relevant value shown for the individual part of the property and may therefore include recognition of allowances/adjustments not shown in detail.
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19. Value
+—This is the Value for individual parts of the property which is analysed to show the Rate(£/m²) produced by dividing the Value by the Area of the relevant part and may therefore include recognition of allowances/ adjustments not shown in detail. (See also Rate (£/m²) above).
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20. Zone
+—Shops are broken down into “Zones” to facilitate comparison between different properties. Zone A is the front (and usually the most valuable) part of the shop with Zones B, C & D (where appropriate) behind. Zone A normally attracts 100% of the rate applied with Zones B, C & D attracting 50%, 25% & 20% (or less). Other allowances for disabilities etc may also be applied.
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21. Zone Depth
+—Traditionally Zones are measured in standard depths from the frontage and may vary between Assessors’ areas. Typically, Zones are 9.14 metres (30 feet) deep in normal unit shops.
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22. Zone A Rate
+—This is the Basic Rate (£/m²) applied to the Zone A part of a shop (see Zone above) before any allowances/ adjustments are made.
