Differing values

Article Abstract:

According to British accounting standards, properties held by property investment firms should not be depreciated over time, but should instead be revalued each year, while being reported in the investment company's balance sheets at open market value. Depreciation would be difficult to calculate since the useful lives of investment properties are difficult to determine. The accounting practices followed by several British property companies are briefly summarized and explained, including the accounts of Evans of Leeds, Boscombe Property, Sheafbank Property, Property Security Investment Trust, and McKay Securities. Most of these companies also project the continued holding of investment properties (rather than their sale) and consequently do not provide taxes for the revalaution surpluses, but choose to instead disclose what would otherwise be deferred taxes as a contingent liability (with a note to the financial statements to this effect).

Real estate agents and managers, Accounting and auditing, Real estate industry, Real estate investment, Real estate investments, Real estate development, Assets (Accounting)

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Debatable rateable values

Article Abstract:

Commercial properties in the UK are being revalued and tenants must take steps to keep their rating assessmentsat a minimum. This can be done by filling out the questionnaires to be distributed by the Valuation Office Agency of the Inland Revenue in April 1993,since data from these questionnaires will be the basis of the new Rating List. In addition, questionnaires do not inquire about the non-financial incentive packages in lease agreements. Thus, complete information about leases and financial arrangements must be disclosed to the Valuation Officer to ensure that even if the existing headline rents exceed true rent values, the payment of expensive rates after 1995 can be prevented. Appeals against new assessmentscan also take up to three years to resolve. Cooperating with the Valuation Officer ensures correct assessments from the start.

Buildings and facilities, Commercial buildings

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A rate to reflect market values

Article Abstract:

Great Britain is in the process of setting new rental values for industrial and commercial properties in England and Wales. This will the first time since 1973 that property has been re-valued. The rental re-valuation will also form the basis of the new Uniform Business Rate which will be levied by the national government, rather than by the local councils. Owner-occupiers will not be greatly affected by the new rates, but renters and leaseholders may pay considerably more than they need to if they neglect to provide accurate rental information or fail to minimize their assessments. Procedures for surveying commercial properties and appealing assessments are discussed.

Commercial leases, Rents (Property)

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