皇冠体育app

This Section of the Rating Manual covers all film and TV studios whether converted buildings or purpose built. It also covers dedicated film sets.

皇冠体育app range of properties in this class is very diverse with substantial variations in the physical characteristics of film and television studios. 皇冠体育appy can range from purpose-built premises (with or without open air sets) through to adapted warehouse/factory or office accommodation or even a 鈥渞eal life鈥� complex. Permanent purpose built outdoor 鈥榝ilm sets鈥� are also included in this class.

In general there are two types of TV studio, production and non-production. Main production studios contain purpose-built and designed production studios where major film, television series and streaming content are created. Non-production studios tend to be more concerned with regional news programmes and do not have extensive studio accommodation. It should be remembered that height is a critical factor for lighting and production purposes and sound proofing is also a major consideration.

Purpose built outdoor film sets vary, a standard layout may be used for years, or the land used may be subject to regular remodelling between productions. It is in the nature of film and TV sets to be subject to such change and this constant remodelling has to be envisaged within this particular mode and category of use.

For film and TV studios, Special Category Code (SCat Code) 100 should be adopted. 皇冠体育app relevant suffix letter will be S, as film and TV studios are a 鈥榮pecialist鈥� class. Responsibility for ensuring effective co-ordination of SCat 100 assessments rests with specialists.

皇冠体育app Special Category Code (SCat), Primary Description Code (P Desc Code) and primary description available for Film and TV Studios are as follows:

• SCat Code: 100 鈥� Film;聽759聽鈥� TV Studios
• P Desc Code: CX, overwriting the description as appropriate. This overwritten primary description should describe the nature of the hereditament adequately; suggestions include: 鈥楩ilm Studio and Premises鈥�, 鈥楾V Studio and Premises鈥� or 鈥楩ilm Set and Premises鈥�

皇冠体育app default primary description associated with the CX primary description code must not be used. It must be overwritten.

Film and TV studios are a specialist class and the responsibility of specialists in the National Valuation Unit (NVU).

Film and TV sets should be considered with assistance from building surveyors and National Specialist Unit as considered appropriate, dependent on the size and complexity presented by the land in question.

4.1 Generally

皇冠体育app Film and TV Studio Class Co-ordination Team (CCT) has high level responsibility for the co-ordination of this class. 皇冠体育app CCT is responsible for examining the approach to making valuations for Film Studios, TV Studios and Film Sets. 皇冠体育app CCT will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

皇冠体育app framework for co-ordination is shown in Rating Manual Section 6 Part 1. Additionally, and where available, this class is subject to the co-ordination procedures outlined in the appropriate practice notes attached to RM Volume 2:1.

4.2 Specifically

皇冠体育app Film and TV Studio Class deals with the 鈥榩roduction鈥� sector of an industry that involves production, distribution and exhibition. All three sectors make up the 鈥楩ilm Industry鈥�.

With that in mind, it is recommended that caseworkers consider Rating Manual guidance in respect of cinemas at Rating Manual Volume 5: Section 240.

5.1 Generally

皇冠体育app guidance contained in Rating Manuals Volumes 1 to 4 should be consulted as appropriate. In particular, occupation and the hereditament at Rating Manual Volume 4: Section 2 and rental adjustment at Rating Manual Volume 4: Section 5.

5.2 Rateability

No difficulty should arise in establishing rateability of film and TV Studios and Sets. 皇冠体育app four tenets of rateable occupation as set out in J Laing & Son v Kingswood AC [1949] 1KB 344.

5.3 Film Studio Relief

Following an announcement on 6 March 2024, eligible Film Studios in England will, with effect from 1 April 2024, receive a 40% reduction on gross business rates bills until 2034. 皇冠体育app relief is administered by the Billing Authority, however the VOA will

a. notify billing authorities whether they have an eligible hereditament in their list; and b. Provide Clawback Certificates where appropriate

Notification to BAs and production of Clawback Certificates must only be undertaken by NVU specialists.

5.3.1 Eligibility

Film studio rate relief is available for a hereditament which is:

a. Used (or if unused appears that when next in use would be used) for the production of films or television programmes and in whole or in part comprises sound stages or film sets, and b. Valued as a studio falling within one of the following VOA鈥檚 valuation categories for film studios: i. temporary or semi-permanent filming studio. ii. older filming studios, whether converted or purpose-built iii. modern industrial conversion filming studios (typically converted to film studios post 2010) iv. modern purpose-built filming studios (typically built post 2010) v. campus sites

皇冠体育app relief is not available on materially unaltered industrial premises (even if occupied by a studio).聽 Descriptions in the rating list or the 鈥淪cat鈥� code should not be used for this eligibility test.聽

皇冠体育appre are no occupation conditions for film studio relief.聽Relief is available where the above conditions are met irrespective of whether the property is occupied or whether occupation or ownership changes.

5.3.2 Clawback Certification

皇冠体育app level of support provided by the relief was determined on the assumption that the RVs in the 2023 rating list will reflect the outcome of the VOA鈥檚 January 2024 review and that the film studio sector will cooperate with the VOA in preparation of the 2026, 2029 and 2032 rating lists and discuss the valuation scheme prior to the draft lists being published.

皇冠体育app clawback principle was introduced to support these assumptions and ensure cooperation for the preparation of 2026, 2029 and 2032 prior to list compilation date. 皇冠体育app clawback principle allows billing authorities to recover some or all relief in the event that, following Checks, Challenges or Appeals by the ratepayers, or any other reason, the level of rateable value departs from the outcome of the January 2024 review or the draft 2026, 2029 or 2032 rating lists.

皇冠体育app VOA are instructed by the Ministry of Housing, Communities and Local Government (under section 10(1), (b) & (c) of the Commissioners for Revenue and Customs Act 2005) to issue clawback certificates, on the following basis, for the duration of the film studio relief scheme.聽

Following an amendment to the 2023 rating list or in compiling or altering later rating lists, the VOA shall certify what the rateable value would have been entered into the list for a chargeable day or days, adopting the matters listed in paragraph 2(7) of Schedule 6 to the 1988 Act as they existed at the material day for the list alteration (or for compiled lists the first day of the list) but adopting the 拢m2 values that would have been applied:

a. In respect of the 2023 rating list, at the conclusion of Film Studio review in January 2024, or b. In respect of the 2026, 2029 or 2032 rating lists, at publication of the draft rating list.

In effect, any valuation evidence or wider valuation scheme amendments that have been received or occurred since January 2024 or publication of the draft 2026, 2029 or 2032 rating lists (irrespective of whether that evidence exerts an upward or downward pressure on the valuations) will be disregarded. In most cases this will result in the 拢m2 adopted following the January 2024 review or the draft rating list being adopted for the purposes of certification.

皇冠体育appre may be instances, (for example where it鈥檚 accepted that the overall quality or location is poorer than assumed at the conclusion of review/draft list or a post compilation permanent MCC has occurred), that lead to an alternative 拢m2 to be adopted in the certificate. However, when certifying no consideration would be given to any evidence received post review/draft list and any alternative 拢m2 should fall within the value range adopted within the review/draft for that type of studio.

皇冠体育appre is no requirement to issue a certificate if, in respect of the chargeable day, the certified value is the same as the rateable value in the list.

皇冠体育appre may be a need to certify several values over the course of a list where the rateable value changes (such as for material changes in circumstances). A certificate may be amended or withdrawn where, for example, the facts have changed, the VO鈥檚 opinion has changed, or the certificate has been issued in error.

Where the effective date of an alteration has been limited to the date the list was altered then the claw-back certificate shall also take effect from the date of list alteration.

5.3.3 Film Relief Queries

All queries relating to Film Studio Relief should be directed to the National Film Studio CCT Lead.

6.1 Basis of Measurement - Overall GIA/NIA

For Film Studios, the basis of measurement is Gross Internal Area (GIA). For TV Studios the basis of measurement is Net Internal Area (NIA). land used for film sets should be measured overall as appropriate. Where measuring to GIA or NIA, reference should be made to the relevant Code of Measuring Practice for Rating Purposes in England and Wales.

6.2 Value Sensitive Aspects

All features likely to have a bearing on value should be recorded in sufficient detail. Prominence of position is of particular relevance to the valuation. Also of significance are:

• the age and type of the particular building, and of its surroundings
• the size and shape of the film sets, sound stages, workshops and offices
• the amount and position of the workshops relative to the sound stages or film set
• the age, of the sound stages and the external height and internal clear working heights
• the nature of the construction of the sound stages, including the quality of insulation, power supplies, lighting, lighting support rigs and other structures
• the age, construction type and quality of any workshops
• the age, construction and quality of any offices
• the convenience of the access/loading facilities and the ease and adequacy of parking, for both loading, trailers, cars and associated movement of large items of film sets
• individual characteristics which need noting include storage heights, varying floor levels, and the position of pillars or any other obstructions

6.3 Surveys

Whilst carrying out the survey, the general inspection checklist should be used. Special attention should be given to the following features:

6.4 Plant and Machinery

Adequate information regarding all items of Plant & Machinery should be carefully recorded. 皇冠体育appre are particularly specialised wall, floor and ceiling finishes, together with other supports and structures that are found extensively in this class. 皇冠体育appse should be taken into consideration.

Details will be required not only to assess their effect on value but also in the event of particulars being sought by the ratepayers or their agents under the appropriate Plant & Machinery Regulations. Further information is provided in Rating Manual Volume 4: Section 3 and the appropriate VOA Rating Cost Guide.

All relevant notes, plans and inspection checklists should be captured on EDRM as appropriate. Photographs should be placed on RSA.

8.1 General

Whilst there are a wide range and type of studio and set, the preferred valuation approach is the rentals basis.聽

Whenever possible filming studios should be valued using the rental basis and comparing like-with-like studios. Generally film studios should be compared with other film studios, and TV with similar TV studios. 皇冠体育appre is sufficient rental evidence available for the comparable method to be considered the appropriate starting method of valuation for filming studios.

Within these categories premises often fall into those which are more in the nature of offices, and those which are more akin to warehouses. In the absence of reliable rental evidence for this class, it may be necessary to have regard to rental values relating to the more appropriate of these two uses (based upon the prevailing characteristics of the聽hereditament聽and to the 鈥渞ebus sic stantibus鈥� doctrine).

An uplift may be applied to reflect any additional rateable improvements made to benefit the use of the premises as studios (or the land as a Film or TV 鈥榮et鈥�).聽

8.2 Rentals method

8.2.1 TV Studios

It is anticipated there will be adequate rental evidence to enable all TV Studios to be valued on the rental comparison valuation basis. 皇冠体育appse are expected to be comparable with typical offices.

In respect of TV Studios, requests for Information should be made on聽forms of return聽(FOR) as appropriate; FOR VO 6003 is sufficient to seek the information needed to make valuations, but follow-up with VO 6005 may be required to seek further and better particulars about fitting out, including specialised floor and wall finishes and other聽plant and machinery.

8.2.2 Film Studios

It is anticipated there will be adequate rental evidence to enable all Film Studios to be valued on the rental comparison valuation basis. Care should be taken to compare 鈥榣ike with like鈥�.

In respect of Film Studios, requests for information on FOR may be of assistance, both rental and in respect of the costs of construction of sound stages and other specialised rateable elements. Assistance may be required from building surveyors where appropriate, and this should be considered by the Specialist responsible.

8.2.3 Film Sets

Wherever rents are available, the rent should be adjusted as appropriate. A rental analysis should be performed using the appropriate areas (factorised where necessary). Care should be taken to compare 鈥榣ike with like鈥�.

8.2.4 皇冠体育app factorised approach

Factorisation may prove to be helpful where the comparable rents providing the best assistance are somewhat dissimilar so as to require detailed adjustment before a proper comparison can be made.

8.3 Rental Evidence

It is anticipated that a rentals approach will establish a relationship or pattern in comparable Film and TV Studios and Sets that confirms or underpins a locally derived scheme of valuation.

皇冠体育app VO is ascertaining a聽rateable value聽and there is a body of litigation to assist in marshalling the available evidence and attaching to it the appropriate weight. 皇冠体育app following should also be considered:

8.3.1 Field of Rental Evidence

Evidence in respect of TV Studios varies between locations, but in the main there is expected to be a correlation with the local offices basis. For Film Studios being considered on the rental comparison approach, the starting point will be industrial values, but there has to be a significant upwards adjustment to reflect the fact that this is the valuation of a Film Studio, which is a specialist property.

Valuers may also find 鈥榬ate cards鈥� to be of use when valuing. Whilst they are not direct rental evidence, they should be requested whilst on site or when valuing.

8.3.2 Full Facts Needed

Rents which do not on first sight appear to support the levels of other comparables should be carefully investigated so as to ascertain the reason; they should not be discarded too readily.

8.2.3 Rental Adjustment

皇冠体育app adjustments required to the rent, if any, are covered in more detail in the appropriate Rental Adjustment Practice Note, at聽section聽4 - Part 1聽of the Rating Manual. 皇冠体育app adjusted rent is expected to be analysed adopting the appropriate area (in terms of main space) to produce a 拢/m2. This will allow comparability with similar properties to be explored.

8.3.4 Car Parks/Parking

In making valuations, the importance of adequate parking facilities will need to be borne in mind. Any incremental value arising from the parking being within the same occupation may need to be isolated when comparison is being made with other occupations without such facilities.

Where comparable to offices, valuations of TV Studios should be performed on the Rating Support Application (RSA). 皇冠体育app local (or generalist) approach to offices is expected to form the basis of any Valuation Scheme, but it is essential that specialists remain ultimately responsible for the valuations of TV Studios.

Film Studios valued by reference to Industrial values should be performed on the Rating Support Application (RSA). 皇冠体育app local (or generalist) approach to industrials is not expected to be appropriate. Whilst it may form the starting point for a Valuation Scheme, a significant uplift is anticipated to take into account of not only the specialised nature of the sound stages in particular but also the particular mode and category of occupation. This requires the direct involvement of specialists.

Film Studios valued by reference to costs (contractor鈥檚 basis) should be valued on the Non Bulk Server (NBS). 皇冠体育app specialised nature of the sound stages should be properly reflected in the costs employed, and a sensitivity check should be made at Stage 5 to take into consideration the positive and negative factors affecting the Film industry at the antecedent valuation date and material day as appropriate. This requires the direct involvement of specialists.

1. Market appraisal

1.1 Introduction

At the antecedent valuation date (AVD) of 1 April 2021, Film and TV production in the United Kingdom has competed well on a global stage. Factors include:

• a wide variety of desirable outdoor locations and buildings for film shooting
• well-equipped studios with easy access to visual effects and post production facilities
• a pool of well-qualified technicians
• the exchange rate

This practice note concentrate on the production sector, but it is important to appreciate how the film industry in the UK works as a whole.

1.2 皇冠体育app British Film Industry

皇冠体育app film industry can be divided into three distinct but interdependent sectors: production, distribution and exhibition. Film and TV Studios are firmly in the 鈥榩roduction鈥� sector, but an appreciation of the whole industry is provided to place 鈥榩roduction鈥� in context.

1.2.1 Production

皇冠体育app British film industry is production led. This involves:

• development of the idea (script)
• pre-production (budget, locations and casting)
• production- which involves filming and ensuring everything runs to budget/schedule
• post-production- editing with addition of visual and sound effects

皇冠体育app British Film Industry is heavily dependent on inward investment, almost exclusively from the United States, and the major productions which this brings.

皇冠体育app UK鈥檚 ability to attract inward film investment depends on several factors. Arguably, the four most important are:

• the availability of tax relief
• the high quality of the workforce
• the exchange rate. 皇冠体育app value of the Pound can impact on production costs for foreign companies
• wealth of outdoor scenic filming locations

1.2.2 Distribution

皇冠体育app distribution sector has always been comprised largely of the American multi-national film companies. This is a characteristic of the British film industry.

Films are distributed and consumed in a variety of ways: cinema release, retail sales of DVDs, rental of DVDs, films on television and video on demand. 皇冠体育app first revenue from a film comes from cinema presentation, but this accounts for only a small proportion of the total. Cinema revenues grew significantly in the late 1990s, but have levelled out since then. Distribution remains dominated by the UK-based subsidiaries of the American studios.

Few if any films make a profit from cinema revenues alone. Instead, they rely on the remaining sources, or 鈥榯ail鈥� revenues, including merchandising, for real returns. Whilst overall revenue has been stable, at AVD the retail sales of physical video retail and physical video rental (DVDs) had declined, whilst digital video on demand and pay TV was increasing and is now the leading method for people to access content in their own homes.

1.2.3 Exhibition

皇冠体育app exhibition sector is similarly characterised by a few large companies, though in this sector they are not American-owned.

1.3 Film studios

皇冠体育app UK has three large film studios, all in the south east of England. All have world class facilities and are able to accommodate the filming of large budget films at any one time. 皇冠体育appre is a wide variety of studios around the country from old aircraft hangars to modern purpose built studios in rural areas. 皇冠体育appy all carry out film work as well as other activities, such as television and advertising.

A lot of film studios in the UK are in, or in very close proximity to London. 皇冠体育appre are certain areas of the UK which are seen as preferred and this may be due to a concentration of production expertise.

It is acknowledged there is a supply shortage of large purpose-built film studios in the UK to satisfy market demand. 皇冠体育appre are multiple proposals for new studio developments across the UK, however these are unlikely to make up the current supply shortfall and are long term projects that may take years to complete.

皇冠体育app supply shortage for purpose-built studios has seen new studios being created out of existing large shed warehouses. 皇冠体育app conversion to studio will either be undertaken by the studio operators but it is not uncommon to see specialist companies convert the warehouse to studio market specification before letting the space on short or longer term leases.

In addition to these potential new studio projects, many of the UK鈥檚 existing major studios are in the process of expanding their sites/buildings on site.

1.4 Production companies

皇冠体育app British production sector contains several large international companies making films and series with substantial budgets for cinema viewing or home streaming. 皇冠体育appre is also a long tail of smaller companies competing in the market.

1.5 Post-production

皇冠体育app post-production sector is an integral part of the film production process, though it also serves other industries, n tably television and advertising. Post-production companies in the UK tend to cluster around centres of production, this is the South East of England, with activity predominantly in and around London.

Post-production work is easily tradable: firms can work for clients anywhere in the world, regardless of distance. That means firms that produce high quality work are well placed to compete successfully for export business.

1.6 UK Film tax relief

Tax relief continues to be available for film making in the UK. As at summer 2021:

• for all British qualifying films of any budget level, the film production company can claim a payable cash rebate, being a proportion of UK qualifying expenditure
• the tax relief is capped
• tax relief is available for British qualifying films.
• films must either pass a cultural test or qualify as an official co-production
• films must be intended for theatrical release
• films, including those made under official co-production treaties, must reach a minimum UK spend requirement
• the UK has to date used a specialist government team to deal with the corporation tax affairs of companies which are eligible for Film Tax Relief
• from a valuation viewpoint it is necessary to understand the fact that the UK film industry has tax relief affects the attraction or otherwise of making films in the UK

1.7 UK employment market

Approximately 239,000 people were employed in the film and TV industry in 2021, according to the Office for National Statistics data. This is an increase from 196,000 in 2015, with the majority of growth coming in the film production sector. 皇冠体育app workforce is heavily concentrated in London and the South East, with the BFI estimating that 57% of film industry employment is in this region.

1.8 Future trends

皇冠体育app Film and TV production sector is strong in the UK at the time of writing, and this looks set to continue. 皇冠体育app clear advantages the UK has to offer in terms of creative expertise, English language, production facilities, attractive outdoor locations and favourable tax environment are positive aspects of British film and TV production.

皇冠体育app COVID Pandemic did impact on the ability of filming to continue in the UK but it also increased the demand for content that could be streamed at home.

2. Changes from the last practice note

As at the AVD of 1st April 2021, there was huge demand for film studio space in the UK. Alongside a severe supply shortage, it is anticipated that rental values have increased significantly and that rateable values will increase in the same manner between the 2017 and 2023 lists.

As at the AVD of 1 April 2021 COVID was in existence. It was anticipated that the vaccine rollout which commenced in December 2020 would reduce its impact on society.

3. Ratepayer discussions

Discussions with industry representatives commenced in September 2021 and are ongoing.

4. Valuation scheme

4.1 General

4.1.1 A prescribed 鈥榲aluation scheme鈥� for film studios, TV studios and film sets does not emerge from the information and evidence that is available.

Instead, there is guidance provided to assist the Valuation Officer in making his or her valuation for 2023 purposes. 皇冠体育app guidance provided below should be considered on the understanding that Film Studios (and to a lesser extent TV Studios) represent a particular use or purpose that is distinctive and distinguishable from other uses and often requires particular features and adaptations. It is important not to lose sight of this when using information (rents or otherwise) available in respect of premises which, whilst similar in basic construction to Film or TV Studios, are in fact used for other purposes, such as industrial and office uses. 皇冠体育app effect on rental value at AVD will be different if the economic circumstances impacting on the Film and TV industry at AVD is not in line with the economic circumstances impacting normal industrial or office hereditaments.

4.1.2 Whenever possible studios should be valued using the rental basis and comparing like-with-like studios. Generally film studios should be compared with other film studios, and TV with similar TV studios.

4.1.3 Within these categories, certain premises often fall into those which are more in the nature of offices, and some which are more akin to warehouses. In the absence of reliable rental evidence for this class, it may be necessary to have regard to rental values relating to the more appropriate of these two uses (based upon the prevailing characteristics of the hereditament and to the 鈥榬ebus sic stantibus鈥� doctrine). An uplift should be applied to reflect any additional rateable improvements made to benefit the use of the premises as studios (or the land as a Film or TV 鈥榮et鈥�). However, for the 2023 Rating List, the VOA are of the opinion that given the lack of supply and huge demand at 1st April 2021 AVD, a greater uplift is required than just for the rentalised cost of the additional rateable improvements and the Valuer must have regard to rental evidence for studios fitted to a comparable standard.

4.2 Film studios

皇冠体育appre is no 2023 scheme of value recommended in respect of film studios. Comparisons should be made to other classes with caution. 皇冠体育app specific physical characteristics of the property, such as the quality of buildings and the location, must be taken into consideration. In addition to this, it is important to 鈥榮tand back and look鈥�, to ensure the particular physical attributes and economic forces that impact on the British Film Industry are reflected. Finally, co-ordination between case workers at National Valuation Unit and Regional Valuation Units is essential.

4.3 TV studios

It is anticipated that generally TV Studios will be valued by comparison with the prevailing office values in the locality.

4.4 Film sets

Film sets come in all shapes, sizes and configurations and each must be looked at on its own merits, taking coordinated specialist guidance in each case.