Stud farms

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

1.1 This instruction applies to all stud farms.

2. List description and special category code

Description in rating list: Stud Farm and Premises.

Special Category: Code 269

SCAT suffix: G

Bulk Class: M

3. Responsible teams

3.1 The Animal & Rural Class Co-ordination Team (CCT) has overall responsibility for the co-ordination of this class.  Each Regional Valuation Unit (RVU) has a representative on the team.  The team is responsible for the approach to and the accuracy and consistency of stud farms.

4. Co-ordination

4.1 RVU will be responsible for referencing, gathering facts and valuation.

4.2 The Animal & Rural CCT will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.  Caseworkers have a responsibility to:

• follow the advice given at all times – practice notes are mandatory
• not depart from the advice given on appeal or maintenance work without approval from the CCT
• seek advice from the CCT before starting any new work

5. Legal framework

5.1 General

For rating purposes, stud farms will include land and buildings used for the breeding and rearing of horses or ponies. The term should not be taken to include the breeding or rearing of any other animals.

Stud farming operations range widely.  Sites will include those which have an individual mare or stallion kept for breeding, to large scale/high value commercial breeders of racehorses, in bespoke yards with special veterinary facilities.

Although their levels of sophistication may vary, all stud farms will strive to provide a secure and quiet environment for their horses and ensure that they are isolated from disease.

The primary need for a stud farm is good grazing and outdoor paddocks, with an adequate water supply. The paddocks need to be well secured with materials that will not cause injury to the mares and foals. It is usual to find that timber post and rail fencing is employed to create a series of paddocks around the stud buildings. Mares and foals will spend most of the time in the outdoor paddocks, except during confinement, weaning and during periods of inclement weather.

The stud buildings are often considered by breeders to be of lesser importance (in contrast to racing, or livery yards).  The aim is to give the growing foals as much light, air and exercise as possible, and to allow the mares to produce their milk from grass whenever feasible. Buildings will still be present though, and are likely to include loose boxes (for resident or visiting mares), stallion boxes (these will be larger and are often better appointed), covering areas/yards (where the mating takes place), foaling boxes, tack and feed rooms, together with covered storage for hay and straw. Some studs will have an office, additional veterinary facilities or other specialist buildings. Quality can vary from poor, converted farm buildings to good quality purpose-built accommodation.

5.2 Agricultural Exemption

Buildings

It was confirmed in the appeals of Hemens (VO) v Whitsbury Farm and Stud Ltd (1988 RA277HL) that horses and ponies, other than those used for farming the land or reared for food, are not “livestock” within the definition in Section 1(3) Rating Act 1971, now paragraph 8(5) of Schedule 5 to the Local Government Finance Act 1988 (LGFA ‘88).

This means that loose boxes stabling horses and ancillary buildings, such as tack rooms, feed stores and such are not “agricultural buildings” and are therefore rateable.

However, there may be parts of the property which are used for an exempt purpose. An example being a hay barn used either to store a hay crop taken from the land occupied by the stud farm proprietor, or to store hay solely for livestock which are also kept by the proprietor of the stud enterprise. Exemption considerations should not be limited to a whole building but also to a separate part of a building that is solely used for an exempt purpose.

If there is property which is used wholly for exempt agricultural purposes at certain times of the year and wholly for non-exempt purposes at other times, provided all the parties are agreeable, there is no objection to valuers agreeing a level of assessment which reflects the proportion of time used for exempt purposes to non-exempt purposes throughout the year, although the technically correct approach must be to alter the list each time the circumstances change. 

 Land

“Agricultural land” is defined in paragraph 2 of Schedule 5 to LGFA ’88. This definition includes:

“Land used as arable, meadow or pasture ground only.”

However, paragraph 2(2)(d) of Schedule 5 goes on to state that agricultural land does not include:

“Land used mainly or exclusively for purposes of sport or recreation.”

In short, land used only for the grazing of horses should be treated as “agricultural land” within the meaning of paragraph 2(1)(a) of Schedule 5.

There may be varying degrees of use, in addition to grazing, that will not always lead to rateability. Where grazing land is used for the temporary erection of jumps for occasional casual recreational use, this should not affect exemption, but land used primarily or permanently as an outdoor exercise area does not fulfil the definition of use as “arable, meadow or pasture ground only” and will be rateable.

A full explanation of when other land and/or buildings used to keep horses qualify as exempt agricultural land or buildings is given in Rating Manual Section 2 – Valuation Principles Part 6: Exemptions Part D Agricultural Exemption.

5.3 Relief from Assessment, where applicable

Parliament legislated for partial rate relief from the payment of rates for farmers who also breed horses and ponies, by enacting Paragraph 2A.- (1) of Schedule 6 to LGFA 1988 (inserted by paragraph 38(11) of Schedule 5 to the Local Government & Housing Act 1989).

This relief from assessment applies to:

“…… any hereditament the whole or part of which consists in buildings which are:

1. used for the breeding and rearing of horses or ponies or for either of these purposes
2. are occupied together with any agricultural land or agricultural building.”

Paragraph 2A.- (2) provides that the relief for hereditaments described in paragraph 2A - (1) is to be the amount of rateable value of the hereditament, less the smaller of the following amounts:

“(a) such amount as the Secretary of State may by order specify for the purposes under this paragraph

(b) the amount which but for this paragraph would be determined under paragraph 2 above [i.e., paragraph 2 of Schedule 6 to LGFA 88] in respect of so much of the hereditament as consists of buildings so used and occupied.”

5.4  Summary of the Application of Relief

The relief will only apply to stables, foaling boxes, stallion boxes, and covered yards or any other buildings used for breeding or rearing horses and/or ponies, but not keeping them for any other purpose, where:
 

1. the stud operations are part of an otherwise exempt working farm, and/or
2. the stud buildings are occupied together with over 2 hectares of land which is used predominantly as exempt agricultural land other than for the pasturage of horses or ponies.

Any difficulties with interpretation of paragraph 2A of Schedule 6 to LGFA 88 should be submitted to the CCT in the first instance.

5.5 Examples of how this Stud Relief works

Practical examples of how stud relief works are set out in Appendix 1. 

5.6 Definition of Agricultural Land & Agricultural Building for the purposes of paragraph 2A -(1) of Schedule 6 LGFA 1988.

Paragraph 2A.- (3) provides that:- agricultural land for the purposes of paragraph 2A - (1) should be land of more than 2 hectares which is:

agricultural land within the meaning of paragraph 2 of Schedule 5 to LGFA 88 and is not land used exclusively for pasturage of horses or ponies

agricultural building in paragraph 2.A - (1) should be construed in accordance with Paragraphs 3 to 7 of Schedule 5 to LGFA 1988.

In order to ensure qualification under paragraph 2A - (3) and to ensure that land is not used exclusively for the pasturage of horses or ponies, it is not unknown for other grazing animals to be kept at, or imported for a time onto, stud farms. In the latter instance, visiting sheep are sometimes referred to as a “flying flock”.

5.7 Other terms

5.8 Breeding

In the larger scale operations, breeding stock may include barren mares (i.e., those not currently in foal) and new stallions to be used in the next season’s breeding programme, in addition to stallions or mares currently being used for breeding.

5.9 Rearing

It is considered that whether young stock is being ‘kept’ as opposed to ‘reared’ will depend upon when they have been completely weaned from the mare. Whilst horses and ponies do not fully mature until at least 4½ - 5 years old they will often be put to other work before this age.

The foal will normally be weaned from its mother after approximately 8 months, although domestic foals can be separated from the mare as young as 6 months. Foals experience mental and physical stress on separation. The foal’s digestive system must cope with the sudden removal of milk from the diet, which is mainly digested in the small intestine whereas forage is fermented in the hind gut. This is a major diet change. As well as eating grass or hay, the foal should be eating hard feed for at least a month before weaning so that the gut flora have time to develop. A foal’s immune system takes about a year to fully develop. The decision to wean will allow the mare to come back into work or to concentrate on the next foal.

A foal that has been weaned from its mother, and has an independent existence where it can run with a herd, away from its mother, can no longer be regarded as being reared as opposed to being ‘kept’. This is no different than with human beings. Potential ongoing training of a horse after this stage is distinct from rearing.

A foal that has been weaned but continues to be ‘kept’ will proceed to be handled (part of the training process) and halter trained to make subsequent handling easier. Horses bred for sale will also normally be offered when yearlings.

It should be noted that some racehorses can start racing as 2 year-olds.  Horses for, show jumping and riding, working or show ponies are not usually used for riding until 4 years of age. In the meantime, they might be used for breeding or showing in hand. These are matters associated with keeping equines after they are over one year old and is distinct from the ‘rearing’ process.

There are three main methods of weaning - paddock, box and fence.

Paddock weaning

This is a popular method on stud farms where a group of mares and foals will be separated by gradually removing the mares to a paddock some distance away and the foals will be initially distracted by grazing and playing with other foals.

Box weaning

Another method used on stud farms is for mares and foals to be paired/grouped and taken from a paddock to a stable. The foals are left in the stable whilst the mares return to the paddock. The following day the foals will be settled and can be turned out to a different enclosure.

Fence weaning

This is similar to paddock weaning except the mares are moved to an adjacent paddock. The fence prevents the foal from nursing but allows mare and foal to stay close together. Generally, this is the least stressful method of weaning.

It will often be argued that foals, yearlings are retained as ‘stores’ but this doesn’t automatically mean that buildings are required for this purpose. Apart from the short confinement process mares and stores will be happier if they are out in the paddocks with other horses.

6. Survey requirements

6.1 Inspections should be carried out in accordance with the Valuation Office Agency Property Inspectors Manual.

6.2 When inspecting a stud farm, property inspectors should record the location and description of to include the following:

• location
• site - size, shape, and topography
• buildings infrastructure - number and type of stables
• ancillaries – tack rooms, storage, arenas etc
• gallops – length, construction, and surface
• land – agricultural, turn out and domestic boundary
• services - heating energy source and water source
• car parking
• photographs of the main constituent parts of the site.

6.3 An inspection checklist is appended to this section (Appendix 2) and should be completed for all new properties, updated for maintenance work, and stored in the property folder of the Electronic Document Records Management (EDRM) system.

Stabling

It is important to record the number and type available, together with their size and mode of construction. Ancillary facilities will also need to be recorded. These will generally include tack rooms, feed stores, hay and straw barns or other storage areas.

Stables and ancillaries should be measured in accordance with the inspection checklist guidance.

Land

The area of land that is occupied together with the stud buildings will need to be established, as will the use of any other land and buildings within the hereditament. This may well involve looking at the wider picture and not just the immediate stud premises.

7. Survey capture

7.1 Rating surveys should be captured on the Rating Support Application (RSA). Plans and surveys should be stored in the property folder of Electronic Document and Records Management (EDRM).

7.2 Historically, many different sub-location codes have been used to value this type of property across the country. For revaluations 2026 onward, the national sub location of STUD should be used.

7.3 The common use codes used to record the various stables/boxes that may comprise a riding school or livery yard are outlined in the table below.  These should be recorded as units, e.g.,12 stables and not in square metres.

ACCOMMODATION USE CODE	DESCRIPTION	DEFAULT PERCENTAGE OF MAIN SPACE RATE (see section 8.3-8.6)	REMARKS
LBA	American Barn Stables	100%	Stables in purpose built or converted barn usually with a centre isle layout.
LBT	Timber Stables	100%	Stables situated outdoors and not in a barn made of timber.
LBB	Traditional Brick/Block Stables	100%	Stables situated outdoors and not in a barn made of brick/block.
LBC	Caged Stables	90%	Stables situated indoors. Older style set up of stables. These are accessed via narrow corridors with more limited light and air flow. Not to be confused with American Barns.
LBL	Larger Stables 20m2 +	110%	Stables that are 20m2 or greater and are not foaling stables.
LBP	Pony Stable 10m2 or less	90%	Stables that are 10m2 or less, commonly used for housing ponies.
FOL	Foaling Stable	110%	Stable used for foaling 20m2+.
STA	Stalls	50%	Area to tie up horses/ponies. Usually has divides either side of some form but no door.

Only stables or stalls should be captured as an accommodation use code.  Everything else should go in ‘other additions.’

The common use codes used to record the various ‘other additions’ are outlined in the table below:

OTHER ADDITION USE CODE	DESCRIPTION	RECORDED IN
ARI	Indoor Arena	M2
ARO	Outdoor Arena	M2
ARF	Floodlit outdoor arena	M2
ARG	Outdoor grass arena	ACRES
BLD	Residual building	M2
CAF	Cafe	M2
CAR	Caravans (reflected)	M2
CVN	Caravans	M2
CHA	Changing room	M2
CLB	Clubhouse	M2
CNP	Canopy	M2
CNT	Canter way	UNITS
CVY	Covering yard	M2
DUT	Dutch barn	M2
DUR	Dutch barn (reflected)	M2
EVI	Additional eventing income	UNITS
GLG	Grass Gallops	ACRES
GLP	Polytrack all-weather gallops	FURLONGS
GLW	Non Polytrack all-weather gallops	FURLONGS
HWI	Indoor horse walker	NUMBER OF HORSES WALKER TAKES
HWO	Outdoor horse walker	NUMBER OF HORSES WALKER TAKES
ITRN	Indoor turn out (loose barn)	M2
JMP	Grass jump paddock	ACRES
JUD	Judges box	M2
LFG	Rough surface, fenced land	M2
LFH	Hard surface, fenced land	M2
LFU	Unsurfaced, fenced land	M2
LOG	Rough surface, unfenced land	M2
LOH	Hard surface, unfenced land	M2
LOU	Unsurfaced, unfenced land	M2
LUN	Lunge ring	M2
MES	Staff room/kitchen area	M2
OFR	Office (reflected)	M2
OFF	Office	M2
OWN	Owners room	M2
OUT	Outdoor seating space	M2
PIT	Caravan pitch income	UNITS
PKR	Portable building (reflected)	M2
PKN	Portable building	M2
POL	Polo pitch	HECTARES
SCR	Storage container (reflected)	UNITS/M2
SCN	Storage container	UNITS/M2
SEA	Water walker	UNITS
SHR	Shed (reflected)	M2
SHD	Shed	M2
SHL	Field Shelter	M2
SOL	Solarium	M2
SOV	Shop/retail area	M2
SPC	Spectators stand indoor	M2
SPO	Spectators stand outdoor	M2
STR	Store (reflected)	M2
STO	Store	M2
SWM	Equine swimming pool	UNITS
TCR	Tack room (reflected)	M2
TAC	Tack room	M2
TRN	Turn out paddock (not grass)	M2
WDI	Indoor wash down area	M2
WDO	Outdoor was down area	M2
WCB	Toilets	M2
WKR	Workshop reflected	M2
WKS	Workshop	M2
XC1	Substantial cross-country course	UNITS
XC2	Cross country course	UNITS

8. Valuation approach

8.1 It is expected that sufficient rental evidence will exist to enable valuations to be carried out on a rental’s basis.  The Notice Requesting Statutory Information (Form of Return) for this class of property is typically obtained using VO 6003. 

8.2 Analysis of evidence

The analysis of evidence should be on an all-inclusive basis, to reflect tack rooms, food stores, admin offices, rug rooms, maintenance storage and hay barns within box/stable prices.  This inclusive basis must be in proportion to the number of stables on site. Where any non-standard features exist, such as disproportionate sized offices or hospitality suites, these must be stripped out.

The two main problems in analysis are the approaches to stripping out or apportioning the rent/value relating to domestic accommodation and areas of land.

Valuers should be aware that stripping out the full rental value of domestic accommodation (if based on other non-composite dwellings within the locality), may not be appropriate.

Where there is land, consideration should be given to stripping this out of the rental value.

It is recommended that advice on analysis and adjustment is sought from the Class Coordination Team where rents include amounts for domestic accommodation or land.

8.3 Stables

Construction and layout of the stables will vary. Traditional boxes will be brick built with a pitched tile roof with an overhang to provide shelter from the weather. Some older styles have what are termed ‘caged boxes’ where a run of boxes and a ‘corridor’ are within the structure of the building providing full protection from the elements but often at the expense of access difficulties. A modern version of this is the ‘American barn’ arrangement where typically a large ‘at cost’ type barn will be divided up by block partitions to have boxes running the length of both of the longest walls with back-to-back boxes down the middle of the barn.

These barns will often be open ended to provide the proper ventilation necessary to prevent the spreading of infections.

8.4 There may need to be an addition of up to 25% on ‘average/ standard’ stables to reflect additional quality/size benefits.  It would be expected that the maximum 25% addition would be appropriate for those stables which have additional outdoor pens attached to them.

8.5 Similarly, a discount from the ‘average / standard’ rate may be justified where the stabling provides a particularly low standard of accommodation compared with the average. For example, smaller pony stables or stalls.

8.6 Outdoor timber stables will not be discounted simply because of their construction. However, a discount from the standard rate maybe applicable for quality reasons following an exercise of valuer judgement.

8.7 Ancillaries

8.8 Tack rooms, hay/bedding stores, rug rooms, yard maintenance stores and admin offices should all be shown in the valuation.  These items will be considered as being reflected in the box/stable value, and shown as a nil value, but only in proportion to the number of stables on site.

8.9 Other ancillaries that maybe on site include horse walkers, indoor and outdoor arenas and lunge rings, which should be added to the valuation.

8.10 CCTV or other security systems installed for monitoring the health and well-being of the horses as well as for security protection should be valued.  Valuation guidance from the CCT should be referred to where this is the case.

8.11 Claims arising for discount due to damage or flooding of arenas or gallops should be considered under the normal repair principles.

8.12 Quantum allowance

The quantum scheme for stud stables starts at the 100th stable/box at 10% and increases by 0.2% for each stable until a maximum of 25% is reached.

8.13 Relativities

Relativities may require tuning to reflect individual circumstances following the exercise of valuer judgement.

9. Valuation support

Rating Support Application (RSA)

Survaid

Valuation Panel 1 (VP1) animal & rural class co-ordination team (CCT) members

SharePoint guidance for G class suffix

Appendix 1: Stud farms relief

Background

The Order referred to in paragraph 2A.- (2)(a) of Schedule 5 to the Local Government and Housing Act 1989 is contained in a series of Statutory Instruments:

The Non-Domestic Rating (Stud Farms) Order SI 1989/2331 came into force on 4 January 1990 and specified that the deduction to be made from the rateable value was to be £2,500 in both England and Wales.

For England only, the Non-Domestic Rating (Stud Farms) (England) Order SI 2001/ 2586 came into effect on 15 August 2001 and increased the rateable value deduction to £3000. The application of the 1989 Order to England was revoked after this date.

Again, for England only, the Non-Domestic Rating (Stud Farms) (England) Order SI 2004/3151 came into effect on 1 April 2005 and increased the rateable value deduction to £3500. The application of the 2001 Order was revoked after this date.

For the avoidance of doubt, the 2004 Order does not apply to the 2000 (or earlier) rating lists or any hereditament situated in Wales.

The statute has further been amended with effect from 1 April 2010, by the Non -Domestic Rating (Stud Farms) (England) Order 2009 SI 2009 No. 3177 which states that up to £4200 relief may be applied where appropriate. The position in Wales was not altered.

Article 5 of the Non-Domestic Rating (Reliefs, Thresholds and Amendment) (England) Order 2017 amended article 2 of the Non-Domestic Rating (Stud Farms) (England) Order 2009 to increase the amount of the rateable value deduction for stud farms from £4,200 to £4,700.  The position in Wales has not altered.

How the relief operates

The relief applies where the hereditament comprises, in whole or in part:-

a) buildings used for the breeding or rearing of horses or ponies, or for either of those purposes;

and

b) are occupied together with any “agricultural land” or “agricultural building”.

In this context, “agricultural land” means any land of more than two hectares which is agricultural land within the meaning of paragraph 2 of Schedule 5 to the Local Government Finance Act 1988 and is not land being exclusively used for the pasturing of horses or ponies.

“Agricultural building” is to be construed in accordance with paragraphs 3 to 7 of that same Schedule.

The requirement is that the agricultural land should not be exclusively used for the pasturing of horses or ponies. This should be interpreted to mean that other animals should graze the land, but not necessarily at the same time. Sometimes, agents acting for ratepayers may refer to this as the “over-grazing” requirement. If, instead of being grazed, the land is used for some other purpose that still enables it to qualify as “agricultural land” (as defined), then the requirement will still be met.

The relief does not apply to any land, which is used for stud farm purposes. Unless the land is exempt under paragraph 2(1) of Schedule 5 to LGFA 1988, it should be assessed and relief must not be set against it. (This restriction does not, of course, apply to land which comprises the site of stud farm buildings.)

The following examples illustrate how the relief applies to the 2023 rating lists in England after 1 April 2023. For rating lists in Wales, simply substitute the lower RV relief of £2500. In each of the examples it is assumed that the statutory requirements are complied with and the stud premises are occupied together with more than 2 hectares of agricultural land.

Example 1

In this case, the land is used as a hard standing for motor vehicles and storage relating to the stud farm, the value of which is not reflected in the value of the buildings.

		RV in £
Stud Farm Buildings		6000
Land (hard standing and storage)		500
	Total RV	6500
Deduct “specified amount” for Stud Farm buildings		4700
	Entry in list	1800

In this case the rateable value of the buildings exceeds £4700 and so the valuation is reduced by the full specified amount.

Example 2

In this example, the land is also used as hard standing for motor vehicles and storage relating to the stud farm, the value of which is not reflected in the value of the buildings.

		RV in £
Stud Farm Buildings		3000
Land (hard standing and storage)		500
	Total RV	3500
Deduct value of stud farm buildings		3000
	Entry in list	500

NB: In this case the value of the buildings is less than £4700, so the deduction is restricted to the actual value of the buildings.

Example 3

Here the occupier of the stud farm also occupies contiguous buildings that are used for another purpose, which is rateable. However, for the sake of this example, a separate assessment is not justified.

		RV in £
Stud Farm Buildings		3000
Storage building		4000
	Total RV	7000
Deduct value of stud farm buildings		3000
	Entry in list	4000

NB: Once more, only if the value of the stud farm buildings was £4700, or more, would the valuation be reduced by the full specified amount of relief.

Example 4

Here the only rateable property is the stud farm itself.

		RV in £
Stud Farm Buildings		4000
	Total RV	4000
Deduct value of stud farm buildings		4000
	Entry in list	Nil

NB: In this case an entry for £ Nil would be made in the rating list.

Description in the Rating List

When altering the rating list, valuers should endorse the description with the letters “(PR)” immediately after the words “Stud Farm”. This removes the need to inform occupiers that partial relief has been applied and will also be a helpful indication for persons who might otherwise seek to use the assessments as comparables for some other class of property.

Appendix 2: Equestrian properties inspection guide

Please remember that horses can be unpredictable and sometimes dangerous animals, so always have Health & Safety considerations in mind. These include:
  * Wear safety footwear and appropriate clothing. * Do not enter a stable or loose box occupied by a horse. * Do not enter an arena or indoor school without making sure it is safe to do so. * Do not use laser measuring devices near people and animals.

BEFORE LEAVING THE OFFICE

• Print out from VMS a site plan, showing buildings and surrounding fields.
• Always run an internet search on the address or name of the site for up-to-date information and what you may expect to find.
• Download any useful information relating to the property off the internet.
• Ensure that your scheduler is up to date and shows your itinerary.

ON SITE

a) Identifying the hereditament

Using the site plan that was prepared in the office before the inspection:

• Mark the boundaries of the whole hereditament - include any domestic and agricultural elements.
• Identify and mark up on the plan any domestic occupation within the hereditament - these will be subject to Council Tax and will need to be banded.
• Identify and mark up on the plan any parts that will qualify for agricultural exemption - identify field by field, building by building.

The remainder may be subject to non-domestic rates (NDR)

b) Photographs

Whilst on site take plenty of photographs for evidential purposes and to minimise the risk of needing to re-inspect. These should include:

• Each of the dwellings, buildings, arenas, facilities, and yards.
• General views, showing the relationships between the buildings and other elements and their proximity to each other, e.g.  views from stable door to arena or domestic property, and vice versa.
• Any physical boundaries and their juxtaposition with buildings.

c) Use

Identify the main equestrian uses of the property. 

• Private stables. See Domestic Checklist (Appendix 2.1)
• Livery Yard
• Riding School
• Competition Yard / Equestrian Events / Shows
• Stud Farm. See Stud Checklist (Appendix 2.2)
• Racing Stables. See Racing Stable Checklist (Appendix 2.3)
• Dealer’s Yard
• Trekking / Hacking Centre
• Riding for the Disabled. See RFTD Checklist (Appendix 2.4)
• Agricultural Horses (often Shire horses) used on land. See Agricultural Checklist (Appendix 2.5)

There may also be other uses, e.g., shop; club; self-catering holiday units; caravan storage; kennels & catteries; machinery storage; agricultural engineer’s workshop, etc.  These may be ancillary to the equestrian use, or part of another enterprise, and perhaps rateable occupation, altogether.

INSPECTING

EQUESTRIAN PROPERTIES

INSPECTION CHECKLIST

Inspections should be carried out in accordance with the Valuation Office Agency Property Inspector Manual.

Measure to GIA and remember to inspect the hereditament.

Occupier/ Name of establishment
Address including postcode
Planning Restrictions
Location Rural/ Edge of town/ central. Any restrictions on access, difficulties in manoeuvring a horse box Hacking out - Is there access to bridleways or open country, or problems with main roads? Good out riding will add value to the stables. Does an affluent residential or holiday hinterland feed in clients?
Site - size, shape and topography (identify any potentially exempt areas on site plan)
Competition Is there competition from similar businesses in the locality? If so, record addresses, and approximate distance away
Car Parking Provision of car parking The value is reflected but we need details to check that it is sufficient: Dimensions Note surface Is it adequate for visitors attending events? Is there adequate space for ‘resident’ horseboxes? Is there ample lorry parking [and turning area] for those attending competitions or to allow for out-riding.
Services - heating energy source, water source Fire Precautions. Security CCTV
What is the tenure of the property? Owner occupied, managed, or rented (if rented obtain details of the tenancy on-site, and follow up by sending an FOR when back in the office)
Rental information - What buildings are included? What are tenants’ improvements? Obtained signed copy of lease. Date of commencement of this level of rent. Incentives Amount of land included (is amount of rent for this part alone known?) Any domestic accommodation included (is amount of rent for this part alone known?) Contact details
Ext. Photographs Stables, land, domestic boundary, outdoor facilities e.g., gallop, horse walker, pool
Internal photographs Tack rooms, offices, hospitality suites, storage, indoor stables, and facilities etc

Accommodation	Code	Basis Of Measurement	Description
Indoor Arena	ARI	GIA of whole building M2	A building housing a riding area, at least 20m by 40m (minimum dressage size). Usually, portal framed construction under asbestos or profiled metal sheet roof. Some are converted agricultural buildings. Record: -The surface (wax coated, fibre mix, dry sand, and rubber, or other), and presence of a watering system -Look out for spectator stands and / or judges’ stand/boxes – see later -Floodlighting -PA System -Mirrors -Sprinklers -Collecting Ring -Kick boarding
Outdoor riding arena / manège	ARO	M2	An enclosed outdoor riding area, commonly either 20m x 40m or 20m x 60m. Considerable groundwork will have been carried out including extensive drainage and surface material to provide an all-weather surface suitable for purpose. Do not confuse with a jump paddock or turn out - see later. Record: -The surface material (wax coated, fibre mix, dry sand and rubber, shredded plastic, grass or other). Does it have drainage, and does it appear well maintained or rough / waterlogged -Look out for spectator stands, and / or judges’ stand/boxes – see later -PA System
Outdoor riding arena / manège	ARF	M2	As ARO but with floodlighting
Grass outdoor arena	ARG	ACRES	An outdoor riding arena that is grass rather than an all-weather surface. Do not confuse with a jump paddock or turn out - see later. Note if floodlit.
Residual buildings	BLD	M2	Buildings housing indoor horse walkers, treadmills, and swimming pools. Do not take area of facility it houses out.
Cafe	CAF	M2	Building used a café/refreshment area. Note quality of finish.
Canter way	CNT	Units e.g., x1 Canter way	A track typically 4m wide and 300m at least in length, circular or oval in shape, may be covered with an overhead roof or structure to provide shade or shelter, or may be open. Record the surface material, and whether watering system.
Caravan	CAR or CVN	M2	Caravan that is not used as a sole/main residence. Maybe used a temporary overnight accommodation, office, storage, changing area. Note its use. Not to be confused with caravan pitches used for holidays or self-catering holiday accommodation.
Covering Yard	CVY	M2	An area where mating takes place.
Dutch Barn	DUT or DUR	M2	Common on many farms, relatively cheap to construct, and designed to allow ventilation whilst giving protection from the rain. It is usually open on all sides and used for the storage of hay or straw.
Eventing income	EVI	Receipts	Additional eventing income for regular substantial events on site. Request 3 years receipts for this income only.
Store	STO or STR	M2	This includes a broad spectrum, from small stores in traditionally constructed buildings, to fully enclosed purpose-built structures. Sometimes stables have been created in part of the barn [it may be referred to as an American barn], and the remainder is a general utility area, perhaps with a secure tack room or feed store created. In these circumstances record the number of loose boxes and calculate the total area GIA of the remainder. Building used for offices, storage, tack room etc. Note use and quality of finish.
Gallops – 8 furlongs = 1 Mile, 1 Furlong = Approx. 220 yards/200 metres. Record if grass or all weather.
Grass Gallops	GLG	Acres	Despite appearances, considerable effort and time (upwards of 8 years!) goes into creating a gallop. The best gallops are uphill or have uphill sections. Grass gallops may be sown with moss to a density not found in the average meadow to provide a safe area underfoot on which it is safe to gallop a thoroughbred racehorse without injury.
All weather gallops – non Polytrack	GLW	Furlongs	All weather gallops can be used in all year round and are less affected by bad weather. Note surface e.g., sand, woodchip, and construction.
All weather gallops – Polytrack	GLP	Furlongs	As above, but with a Polytrack surface.
Outdoor horse walker	HWO	Number of horses walker takes	A structure that exercises several horses at once. The horse walks around a central pivot powered by an electric motor. They are of differing sizes and have different bases, concrete or earth and they may be open or enclosed. The base and fencing and any surrounding structure are rateable, whereas the electric motor and turning frame are not rateable.
Indoor horse walker	HWI	Number of horses walker takes	If indoor please measure the building it is housed in – do not take out area of the walker.
Indoor turn out (loose barn)	ITRN	M2	Barn area used for turnout of horses. Do not confuse with stables or indoor arena.
Indoor spectators stand	SPC	GIA M2	Usually found in indoor arenas, providing a viewing area for spectators to watch events, competition etc.
Outdoor spectators stand	SPO	GEA of base M2	As described above but found near outdoor arenas.
Cross country course	XC1	Record length (in miles) Number & types of jumps.	Not to be confused with ‘hacking out’. This will be an area of land forming a course of basic jumps, such as logs and portable equine fences. Obtain receipts for the course if possible.
Substantial cross-country course	XC2	Record length (in miles) Number & types of jumps.	As described above, but generally larger with more substantial and permanent obstacles, such as water jumps. Obtain receipts for the course if possible.
Equine swimming pool	SWM	Units e.g., x1 pool	Various types, either indoor or outdoor: -Simple underwater treadmill, no more than 10m long including ramps at either end. More substantial pool comprising an “O” shaped pool where a horse can swim around in a circular motion. If indoor please measure the building it is housed in – do not take out area of the pool.
Lunge Ring	LUN	M2	An area similar to an outdoor arena but used for exercising horses on a lunge rein. Note the surface and whether ring is floodlit.
Grass jumping paddocks	JMP	ACRES	Fields used primarily for jumping or other horse exercise, so not exempt as agricultural land. Basically, grass fields, or maybe an area fenced off from a larger field. Do not confuse with: outdoor arenas, non-grass turn out areas or fields fenced to create smaller enclosures for horses to graze -these are likely exempt as agricultural land.
Field Shelter	SHL	GEA M2	Provides shelter for horses in fields. Typically, timber construction and lower specification to looseboxes. Part open sided.
Judges box	JUD	M2	Area for judging events competitions. Frequently sited near indoor and outdoor arenas.
Staff room/kitchen area	MES	M2	Area used as staff room/mess/kitchen area. Note quality of finish.
Office	OFF or OFR	M2	Area used for administration of site. Note quality of finish. Not to be confused with owners’ suites/hospitality areas.
Owners Suite	OWN	M2	Area used for hospitality and visiting owners. Note quality of finish. Not to be confused with offices for admin purposes.
Outdoor seating space	OUT	M2	Area used for outdoor refreshments. Likely with tables and seating. Not to be confused with more modest outdoor spectator areas.
Caravan pitch income	PIT	Receipts	Area used for caravan pitches (holiday income). Not to be confused with caravans for other purposes.
Portable building	PKN or PKR	M2	Building used for offices, storage, tack room etc. Note use and quality of finish.
Polo pitch	POL	HECTARES	Grass area used for playing/practicing polo. Note quality, drainage, high goal or low goal.
Storage container	SCN, SCR or SCL	Units e.g., x1 container and M2	Storage container. Maybe used for storage, retail, office, tack etc. Note use, number of containers and size of each container.
Water walker	SEA	Units e.g., x1 water walker	Cross between an equine swimming pool and a horse walker. The horse walks around a central pivot but the structure is filled with water. If indoor please measure the building it is housed in – do not take out area of the water walker.
Shed	SHD or SHR	M2	Wooden building used for offices, storage, tack room etc. Note use and quality of finish.
Solarium	SOL	M2	Area with a heat lamp for warming up/drying off of horses.
Tack room	TAC or TCR	M2	Area for secure storage of tack – saddles, bridles etc.
Turn out paddock (not grass)	TRN	M2	Fenced paddock area for turnout of horses. These will not be grass but maybe woodchip, sand, or rough soil areas. Not to be confused with jump paddocks or outdoor arenas. Note surface.
Indoor wash down area/bays	WDI	M2	Indoor area used to wash down horses Note quality of finish.
Outdoor wash down area/bays	WDO	M2	As above but outdoors.
Toilet block	WCB	M2	Building used as toilet block.
Workshop	WKR/WKS	M2	Building used as works shop area/farriers bay/forge etc. Note use and quality of finish.
Stables: Record number and different types of stable / foaling boxes. The average size of a stable is 13m2 / foaling box 20m2, so measure any that might be below 10m2 or above 20m2
American barn stabling	LBA	Number of stables	Stables in purpose built or converted barn usually with a centre isle layout. Note quality and any stables above 20m2 or below 10m2.
Timber stabling	LBT	Number of stables	Stables situated outdoors and not in a barn made of timber. Note quality and any stables above 20m2 or below 10m2.
Traditional/brick/block stabling	LBB	Number of stables	Stables situated outdoors and not in a barn made of brick/block. Note quality and any stables above 20m2 or below 10m2.
Caged stabling	LBC	Number of stables	Stables situated indoors. Older style set up of stables. These are accessed via narrow corridors with more limited light and air flow. Note quality and any stables above 20m2 or below 10m2.
Larger stables	LBL	Number of stables	Stables that are 20m2 or greater and are not foaling stables. Note quality.
Smaller/pony stables	LBP	Number of stables	Stables that are 10m2 or less, commonly used for housing ponies. Note quality.
Stalls	STA	Number of stalls	Area to tie up horses/ponies. Usually has divides either side of some form but no door. Note quality.
Foaling stables	FOL	Number of stables	Stable used for foaling 20m2+. Note quality.
General Remarks:
Date of Survey:		Survey By:

APPENDIX 2.1 Domestic Checklist

Are there any other dwellings on site?	- If yes, please show the positions of the dwelling(s) and their curtilage(s) on the plan and note who lives there.
Ownership of horses	- How many horses does the occupier own for private use or for use by family who also live permanently on site? If necessary, ask to see horse passports to corroborate info.
What are the horses used for?	- Leisure use by the occupier (or family). This would include amateur competition use, hacking, hunting, etc. - Is there a business, e.g., riding school, livery?  - Is the occupier a semi-professional / professional rider, e.g., a showjumper, event rider, polo-player, etc.
What Planning Permissions / Restrictions are there?	- Make full notes, or if possible, obtain a copy of the planning permission

APPENDIX 2.2 Stud Checklist

Stud buildings are rateable, but in certain limited circumstances some relief from rate payment is available (see LGFA 1988 Schedule 6). 

Broadly, this relief will only apply to stables, foaling boxes, stallion boxes, and covering yards or any other buildings used for breeding or rearing horses and/or ponies, where:

(a) The stud operations are part of an otherwise exempt working farm, and

(b) The stud buildings are occupied together with over 2 hectares of land which is used predominantly as exempt agricultural land other than for the pasturage of horses or ponies.

Generally, the key element for the operation of a stud farm is the availability of paddocks, not the stabling.  Mares and foals will, except in bad weather, spend all day in the paddocks in the spring and be out at night as well in the summer and autumn.  A stallion may spend more time in its stable.

Are any buildings used for the breeding or rearing of horses or ponies?
Stud relief will only apply to the buildings directly related to the stud use, such as the appropriate number of stables or loose boxes, foaling boxes and stallion boxes	- Identify each building used for the breeding or rearing of horses or ponies on the site plan - Get a general overview of this business e.g. - Do they own any stallions, or do they use AI? - Do they own any mares, or are they brought on site for covering? - Up to what age do they rear the foals?
Are the buildings which are used for the breeding or rearing of horses or ponies also occupied with any agricultural land or agricultural buildings	- Identify on the site plan any agricultural land, i.e., land used for arable, meadow or pasture ground only, or agricultural buildings  - Is this agricultural land used for grazing horses or ponies?  If so, is it also used for any other agricultural purposes as well?
What is the nature of the agricultural enterprise?	- e.g., dairy, fattening cattle, sheep, pigs, poultry, arable.  If farming is taking place refer to the inspection checklist for agricultural exemptions.
Does the occupier have any British Horse Society approval?	- If necessary, ask to see the BHS certificate, which will certify a certain stated use, e.g., stud farm, riding school, or livery stables.
Are there any Planning Permissions or Restrictions?	- Make full notes, or obtain a copy of the planning permission
Items to look out for during inspection	- Covering Yard - Foaling boxes / Extra-large loose boxes >20m2 - Hospitality areas / bars for entertaining owners

APPENDIX 2.3 Racing Yard Checklist

Trainers of racehorses vary from those with a permit to train a few horses for themselves and immediate family to fully licensed trainers who may have over 200 horses in training on behalf of many owners.  In all cases they must satisfy the Jockey Club’s strict requirements that they are suitably qualified to train racehorses and that their premises, known as a Yard, meet the standards expected for the proper care of racehorses.  There is a requirement for the trainer or one of his staff to be resident on site or very close to it at all times.  Without a licence or permit, a trainer is unable to enter horses for races on any racecourse.

Are there any Planning Permissions / Restrictions?	- Make full notes, or obtain a copy of the planning permission
Is there also an agricultural enterprise?	- e.g., dairy, fattening cattle, sheep, pigs, poultry, arable.  If farming is taking place refer to the inspection checklist for agricultural exemptions.
Items to look out for during inspection	- Canter ways, grass and / or all-weather gallops, horse walkers, indoor and / or outdoor swimming pools, solariums, lunge rings, hospitality areas / bars for entertaining owners - The following should be fully referenced but are reflected in proportion to number of stables on site.  Tack rooms, feed rooms and hay barns, small office used by trainer. - Is there any domestic accommodation, and is it in CT list?

APPENDIX 2.4 Riding for the Disabled Checklist

Disabled exemption is a complex area of rating.  Section 2, part 6 of the Rating Manual should be referred to when queries of this nature arise.

Consider the extent of the premises utilised for Disabled Riding: Are the premises ‘wholly’ used for the qualifying exempt purpose	- Identify the loose boxes and other areas used for this purpose (for example stores for specialised equipment etc).  Obtain full details - Note the days and times when disabled riding takes place – what occurs at other times? - Note whether any other activity takes place on part or the whole of the premises  - Note the Buildings used for non-qualifying purposes.
Do all the persons have a physical or mental impairment that has a ‘substantial’ and ‘long-term’ negative effect on the ability to do normal daily activities.	Consider sending a request for information for clarification of the impairments suffered who are using that part of the premises – a specialist form of return is attached to the relevant exemptions Rating Manual section.
Who owns the horses and ponies: Are the horses and ponies used only for RDA or are they used also for other uses.	- Obtain full details – Check Horse/Pony Passports - Identify which looseboxes are kept specifically for horses used for disabled riding - Are the horses and ponies wholly used for this purpose - Note any horses kept for non-qualifying purposes including total number used for each purpose.
Does the occupier have any British Horse Society approval?	If necessary, ask to see the BHS certificate, which will certify a certain stated use, e.g., stud farm, riding school, or livery stables.
Are there any Planning Permissions / Restrictions?	Make full notes or obtain a copy of the planning permission.
Identify how the horses are used	- Are they used for training or for occupational use – make full notes as to use - If they are used entirely for recreational purposes – is this in respect of persons over the age of 18?
Technical Guidance	Should any queries arise following the inspection advice should be obtained from the relevant CCT Equine Specialist or the relevant technical advisor.

APPENDIX 2.5 Agricultural Checklist 

Are any fields used for grazing horses? Are any fields used for riding horses, exercising horses, horse jumps etc?	- Identify each field on the plan.  - Is the field ever used for any other purpose?  There may be varying degrees of use in addition to grazing use that will not always lead to rateability.  Grazing land used for the temporary erection of jumps for occasional casual recreational use will be exempt.  Land used for permanent jumps or as a permanent outdoor exercise area will not fulfil the definition of use as ‘arable, meadow or pasture ground only’ and will be rateable
What is the nature of any agricultural business?	- e.g., dairy, fattening cattle, sheep, pigs, poultry, arable.
Are any fields used for the agricultural business?	- Identify on the plan the current use of each field
Are any buildings occupied together with agricultural land and used solely in connection with agricultural operations on the land	- Identify on the plan the current use of each building - A hay barn will qualify for agricultural exemption if it is used either: - to store a hay crop taken from the land occupied by the equestrian proprietor (NB a hay barn will be rateable if it is used to store hay to feed the horses), or - to store hay solely for livestock (other than horses) which are also kept by the occupier.
Are any buildings used for keeping or breeding of livestock (excluding horses, ponies etc)	- What livestock is kept in the buildings - Is the building contiguous to 2 or more hectares of agricultural land
Are any of the fields or buildings that are used for the equestrian uses ever used for the agricultural business?	- Obtain full details, e.g., what kind of agricultural use, how often, when?
Are the fields or buildings used for agricultural also put to equestrian use?	- Obtain full details e.g., what kind of agricultural use, how often, when?
Does the occupier have any British Horse Society approval?	- If necessary, ask to see the BHS certificate, which will certify a certain stated use, e.g., stud farm, riding school, or livery stables.
Are there any Planning Permissions / Restrictions?	- Make full notes, or obtain a copy of the planning permission
Is there any other business activity?	- Please take full details, as these will be rateable.

Practice note: 2023 - stud farms

1. Market Appraisal

1.1 As an industry overall there has been a reduction in foal production. This decline however is generally limited to those breed for personal recreational use, in that less people now ride as a pastime and existing horse owners are keeping animals longer. This trend of horse ownership does not apply to those classing themselves as ‘professionals’ where numbers have risen.

1.2 Demand for thoroughbred racehorses has remained relatively static in terms of volumes but is showing increases in prices paid. Statistics from one of Britain’s largest auction houses shows continued increases in the average price for thoroughbred racehorses, with major auctioneers reporting record breaking amounts paid for the best thoroughbreds at recent sales.

1.3 Auction houses clearance rates remain constant and report a consistent demand for top quality horses from overseas buyers, particularly from Middle Eastern countries/ states. Many of these horses remain in the United Kingdom for training, whilst others are exported as far as Australia.

1.4 New statute, The Horserace Betting Levy Regulations 2017 (SI2017/589) introduced a revised levy system taking effect from 25 April 2017 which will maintain demand for good quality thoroughbreds, therefore benefitting stud farms which specialise in breeding racehorses. This legislation, increased prize money in 2018 to £160 million, from £95 million in 2012, and ensures previously lost revenue is now captured from bets placed online and offshore.

1.5 In conclusion, it is clear that largescale, well-appointed stud farms breeding professional standard horses/ racing thoroughbreds are performing markedly better than smaller enterprises predominately supplying horses and ponies for recreational use.

2. Changes since the last Practice Note

2.1 There are no significant changes in approach, although to ensure consistency across the network, it is vital that advice is sought from CCT members when undertaking adjustment and analysis of rental information.

3. Ratepayer discussions

3.1 No discussions have been held with the industry.

4. Valuation scheme

4.1 There is no agreed scheme for this class.

4.2 It is vital to note the operational differences between a stud farm and other equestrian operations such as racing stables. For stud farms adequate pasture land is critical as horses and foals tend to be outside grazing for the majority of time, whereas the opposite is true for racing stables where thoroughbreds generally remain stabled. So, in effect availability of suitable land is paramount to that of stabling unlike racing stables where the opposite is true. Comparison of values between these classes is therefore inappropriate.

4.3 Box (or stable) values are determined by prevailing rental levels within any locality and are generally used as a ‘unit of comparison’ for studs where no direct rental evidence exists. It is acknowledged that in some regions, rents may be limited or require such significant adjustment to hold little weight. It is therefore vital that initial analysis and adjustment is overseen by the Equine Class Coordination Team.

4.4 Allowances for fragmentation are considered inappropriate, on the basis that having bloodstock in several different yards is beneficial for disease control.

4.5 To ensure consistency, advice should be sought from the Class Coordination Team on appropriate deductions to be made when stripping out domestic accommodation for the purposes of rental analysis. Information should be sought as to the type/ style of dwelling occupied as it could potentially range from a mobile home to a substantial dwelling. Details should also be sought as to other accommodation on site, such as groom’s quarters.

4.6 For analysis purposes, land rental values should be adopted within the range of £150 to £400 per acre. Regard should be had to local demand, size and quality (for example sloping site/ suitability for grazing). Conversely for valuation purposes, where such land is used as grazing/ pasture, it will be treated as exempt under Schedule 5 of the Local Government Finance Act 1988

4.7 National tables for ‘other additions’ not reflected within box prices, have been devised to ensure consistency. Values are based on replacement costs, then amortised to produce an annual equivalent. It is acknowledged however that in limited circumstances further adjustment may be required to reflect quality and other specific factors.

4.8 In accordance with Paragraph 2A(1) Schedule 6 LGFA 1988, the application of stud relief should be considered as an end stage adjustment once the Rateable Value has been determined. It is essential that relief is only be applied to actual buildings used for ‘stud purposes’. Buildings at stud farms utilized for other equine purposes do not qualify. The Rating Manual Section 6 Part 3 Section 1005 - Appendix 1 provides worked examples of how the relief should be applied, which is in effect the lesser of that determined by statute or the sum of buildings used for stud purposes.

4.9 The non-domestic rating (Stud Farms) (England) Order 2009 SI 2009 No. 3177 as amended by the non-domestic rating (Reliefs, Thresholds and Amendment)(England) Order 2017, states that up to £4,700 relief may be applied where appropriate. The position in Wales has not altered. This will need updating with revised thresholds once the R23 SI is published. Historically provided just before publication of draft list

4.10 Class Coordination Team members should be approached when dealing with both Check, Challenge, Appeal and maintenance work on this class.

Practice note: 2017 - Stud farms

1. Market appraisal

As an industry the breeding of race horses has suffered the effects of the economic downturn, through falls in the value of bloodstock sales and a reduction in foal production.

Between 2008 and 2012 Britain’s thoroughbred production dropped by a significant 22%, this decline has since stabilised. The impact on the lower quality, often part-time end of the sector was most apparent with the larger professionally organised studs faring better.

Volumes and average price of horses sold at public auctions are considered to be key indicators of the health of the market. Britain’s two largest auction houses (Tattersall’s and Doncaster Bloodstock Sales) reported significantly reduced sales between 2008 and 2011, but an upturn in the market from 2011 onwards. The average sale price per lot of £47,000 reached in 2012 is on par with pre recession levels but total volumes sold are still significantly lower.

Demand for top quality thoroughbreds remains strong, with approximately 70% of sales to non-British buyers. The largest source of finance is from the UAE states, Saudi Arabia and more recently Qatar, and whilst some horses are exported the majority remain to be trained and raced in Britain.

Whilst it is clear the lower end of the market is challenging, as with other leisure pursuits - top class sport is increasingly funded by wealthy individuals/ organisations. Such investors appear increasingly willing to develop showcase facilities further widening the gap between the best and more modest facilities.

2. Changes since the last practice note

There are no significant changes in approach, although to aid consistency across the network, advice on analysis and adjustment is reemphasised within Section 4 of this practice note.

3. Ratepayer discussions

No discussions have been held with the industry.

4. Valuation scheme

There is no agreed scheme for this class.

The purpose of this practice note is to provide costing information and other valuation material appropriate for this class of property in respect of the R2017 Revaluation. This PN should be read in conjunction with the main section.

Determination of stud relief: Paragraph 2A(1) Schedule 6 LGFA 1988

It is essential that relief should only be applied to actual buildings used for ‘stud purposes’. Buildings at stud farms used for other equine purposes do not qualify for relief.

The principal guidance on Stud Farm Relief is given in Rating Manual: section 6 part 1 - section 1005:3 and within Appendix 1.

For R2017 there is currently no published intention to alter the current arrangements, which are as follows:

• The non-domestic rating (Stud Farms) (England) Order 2009 SI 2009 No. 3177 which states that up to £4,700 relief may be applied where appropriate. The position in Wales has not altered.

For the avoidance of doubt, this 2009 Order does not apply to the 2005 (or earlier) rating lists or any hereditament situated in Wales (where the lower limit of £2500 rateable value applies).

Analysis and adjustment

For analysis purposes, land rental values should be adopted within the range of £120 to £200 per acre. Regard should be had to local demand, size and quality (for example sloping site/ suitability for grazing).

When stripping out residential accommodation for analysis purposes, it is incorrect to deduct the full ‘open market value’ of comparable dwellings. An adjustment is required to reflect that rent paid on the domestic part will be lower as it forms part of a larger commercial operation. Moreover, any comparable residential rent will not be arrived at on the same basis i.e. residential lettings require the landlord to carry out external and internal repairs, regular inspection of electrical and gas installations and higher landlord’s insurance costs.

In the absence of better evidence a judgement needs to be made on the facts of the amount to be deducted from the residential element, to reflect any disadvantage of being sited within a commercial operation, for example a 50% deduction may be appropriate. This should reflect these matters together with any planning restrictions in place or noise/ disruption from the adjacent commercial activity.

It is acknowledged that in some locations rental evidence may be limited or require significant adjustment for this class. To ensure a consistent approach across the network, analysis and adjustment has been undertaken by the Class Coordination Team.

The relevant Specialist Equine Caseworker for the unit should be approached when dealing with both maintenance and settlement of this class.

Practice note: 2010 - Stud farms

1. Co-ordination

Stud Farms are a Group co-ordination class and, as such, responsibility for ensuring that the appropriate co-ordination takes place lies with individual Groups. As there is known to be only limited rental evidence for this class, it is important that Groups co-ordinate across boundaries, using fully the procedures described in RM Section 6 - Part 1 and Practice Note 1 - Revaluation 2010.

The Special Category Code 269 should be used. As a Group Class the appropriate suffix letter should be G.

2. Valuation Guidance

Reference should be made to Rating Manual section 6: part 3 - section 1005, which refers to the method of valuation for this class. It should be remembered that the fundamental business requirements for stud farms differ from those of other equestrian enterprises (eg racing stables, riding schools and livery stables) and care is required not to confuse rental evidence from these differing markets.

Further valuation guidance may be issued by way of a later Appendix to this Practice Note if a clear pattern emerges from analysis of rental evidence across the country.

3. Determination of the extent of Relief: Paragraph 2A(1) Schedule 6 LGFA 1988

The principal guidance on Stud Farm Relief is given in Rating Manual section 6: part 3 - section 1005 and Appendix 1 thereto.

For R2010 there is no published intention* to alter the current arrangements, which are as follows:

The Order referred to in paragraph 2A. - (2)(a) of Schedule 5 to the Local Government and Housing Act 1989 is contained in a series of Statutory Instruments:

• Non-Domestic Rating (Stud Farms) Order SI 1989/2331 came into force on 4 January 1990 and specified that the deduction to be made from the rateable value was to be £2,500 in both England and Wales.

• England only, the Non-Domestic Rating (Stud Farms) (England) Order SI 2001/ 2586 came into effect on 15 August 2001 and increased the rateable value deduction to £3000. The application of the 1989 Order to England was revoked after this date.

• for England only, the Non-Domestic Rating (Stud Farms) (England) Order SI 2004/3151 came into effect on 1 April 2005 and increased the rateable value deduction to £3500. The application of the 2001 Order was revoked after this date.

• statute has further been amended with effect from 1 April 2010, by the Non -Domestic Rating (Stud Farms) (England) Order 2009 SI 2009 No. 3177 which states that up to £4200 relief may be applied where appropriate. The position in Wales has not altered.

For the avoidance of doubt, this 2009 Order does not apply to the 2005 (or earlier) rating lists or any hereditament situated in Wales.

*But it should be noted that late changes immediately prior to the compilation date of a new rating list are not unknown.