The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class/ Sub Class/ Type for Non-Domestic Revaluation 2023 and subsequent entry in the new Valuation List which becomes effective on 1 April 2023.
The basis of valuation for new entries in the Valuation List, and Rating Revision cases after 1 April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.
This Practice Note refers to property classified as:
Class: Commercial Unclassified
Sub Class: Airfield
Hangars generally allow for the repair, maintenance, manufacture, assembly or storage of aircraft. They also provide protection from weather.
Hangars have the characteristic of industrial or warehouse properties. However additional considerations may be required including the provision of additional height or door width dependent upon the type of aircraft the hangar is anticipated to store.
This Practice Note does not apply to hangars which are occupied as part of an airport or airfield. These should be valued in line with the methodologies adopted for Airports & Airfields, a separate Practice Note.
Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.
“Subject to the provisions of this Schedule, for the purposes of this Order the net annual value of a hereditament shall be the rent for which, one year with another, the hereditament might, in its actual state, be reasonably expected to let from year to year, the probable average annual costs of repairs, insurance and other expenses (if any) necessary to maintain the hereditament in its actual state, and all rates, taxes or public charges (if any), being paid by the tenant”.
Valuation approach for 2023
The Comparative method of valuation is to be retained as the approach for this type of hereditament, with a greater acknowledgement and examination of the distinct characteristics of this property type in comparison to warehouses.
Rent and lease questionnaire
For this class of property Rent and Lease Questionnaires (RALQs) were not issued.
For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.
More useful links