Exeter City Council has won a landmark ruling on the valuation of museums for business rates purposes.
Last week, the Upper Tribunal (Land Chamber) ruled that rates for the Royal Albert Memorial Museum in Exeter should have been valued on net income, rather than the cost of rebuilding.
Colin Hunter, director of business rates at law firm Lambert Smith Hampton (LSH), which advised the council on the appeal, said: “This is the third appeal of this kind that we have taken to the Upper Tribunal and, in all cases, the court has found in our favour.
“However, what is interesting about this case compared with the others is that it makes it clear that the choice of valuation method isn’t a matter of legal principle but rather should be based upon fact and evidence.”
He said the result is likely to have a significant impact on the way English and Welsh museums are valued in the future, “particularly older museums situated within historic buildings which would have substantial rebuild costs”.
The Valuation Office Agency has until 7 February to appeal against the decision.
