皇冠体育app

1.1 This guidance applies to distilleries, describes the distilling process, survey requirements and valuation approach.

1.2 Distilling is essentially the process whereby a liquid made of two or more parts is separated into smaller parts of desired purity by the addition and subtraction of heat from the mixture. Distilled spirits are produced from agricultural raw materials such as grapes, other fruit, sugarcane, molasses, cereals etc.

Whilst there are subtle differences in the creation of different spirits, the basic production process for a cereal based spirit is as follows:

• step 1: milling - the raw material is ground into a coarse meal, freeing starch in the process
• step 2: mashing - the starch is converted to sugar, which is mixed with water and cooked. This produces a mash
• step 3: fermentation - the sugar is converted to alcohol and carbon dioxide by the addition of yeast. 皇冠体育app yeast multiplies and produces carbon dioxide and a mixture of alcohol, particles and congeners (the elements which create flavour to each drink)
• step 4: distillation - the liquid is heated. 皇冠体育app alcohol vaporises first, leaving the water, particles and congeners in the boiling vessel. 皇冠体育app vaporised alcohol is then cooled (condensed) to form clear drops of distilled spirits. Some distilled spirits go through 2 more stages:
• step 5: ageing - some distilled spirits (rum, brandy, and whisky for example) are matured in wooden casks where they gradually develop a distinctive taste, aroma and colour
• step 6: blending - some spirits go through a blending process whereby 2 or more spirits of the same category are combined

3.1 Responsibility for this class is driven by size. Distilleries under 20,000m2 are an RVU responsibility. Those over 20,000m2 will be dealt with by the National Valuation Unit.

4.1 皇冠体育app Industrial class co-ordination team has overall responsibility for co-ordination of this class. 皇冠体育app team are responsible for the approach to and accuracy and consistency of valuations.

4.2 皇冠体育app team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

4.3 Valuers and Property Inspectors have a responsibility to:

• follow the advice given at all times

• not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team

A distiller鈥檚 licence is required from HMRC, together with written approval of the plant and the process. If the intention is to produce spirits at more than one premises, then a licence must be obtained for each of the premises.

A licence may be refused if the largest distilling still has a capacity below 18 hectolitres (1 hectolitre = 100 litres). 皇冠体育appre are a number of 鈥渕icro distillers鈥� in England and Wales operating with stills below this size.

皇冠体育app basis of measurement for this class is Gross Internal Area (GIA).

6.1 Adequate information regarding all items of plant and machinery should be recorded, including those frequently found, such as compressors, electrics, air conditioning, support steel work, bases for machinery, bunds and tanks, fire protection, security camera systems, etc. 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 relevant statutory provisions. Reference should also be made to Rating Manual: section 6 part 5.

7.1 Rating surveys should be captured on the Rating Support Application (RSA).

7.2 Plans and surveys should be stored in the property folder of the Electronic Documents Records Management (EDRM) system.

7.3 Plant and machinery should be recorded on the Non Bulk Server plant and machinery template.

8.1 Buildings

Each property to be individually valued having regard to local industrial tones with appropriate adjustments to reflect inherent characteristics. Similar underlying issues to other industrials such as age, modernity, layout etc. need to be considered.

All valuations of distilleries should be individually reviewed to ensure consistency and quality.

8.2 Plant and machinery

In addition, rateable plant and machinery will be valued on the Contractors Basis with costs being derived from the Valuation Office Cost Guide. Reference should also be made to plant and machinery guidance found in Rating Manual: section 6 part 5.

皇冠体育app statutory decapitalisation rate must be used.

9.1 Valuations are supported by the Rating Support Application (RSA), Survaid and the Non Bulk Server (NBS) plant and machinery template.

9.2 Advice in respect of rateable P&M is available from the Industrial Class Co-ordination Team.

1. Market appraisal

皇冠体育appre has been a decline in alcohol consumption in the UK due to increased levels of health consciousness. However, industry analysis shows distilled spirits have increased in popularity since 2015 at the expense of fermented alcohols including beer and wine.

皇冠体育app impact of the Covid pandemic on industrial property values was marked by considerable variation between sectors. In the distilling industry, media comment around the Antecedent Valuation Date (AVD) focused on the fall in demand from the on-trade sale of alcohol due to the closure of licenced premises during 2020 and 2021. 皇冠体育app increased demand for the off-trade sector did not make up the shortfall from the on-trade business. 皇冠体育appre were, however, positive signals from the sector as restrictions were being lifted during the summer of 2021.

Official statistics report there are over 560 registered distilleries in the UK with 311 in England, 214 in Scotland and the remainder in Wales and Northern Ireland. This represents a marked increase since the last market appraisal in 2015 which reported the number of distilleries at 213. A significant number of these nationally will be 鈥榤icro鈥� or 鈥榗raft鈥� distilleries fueled by the boom in gin.

皇冠体育appre are currently less than 20 properties identified as distilleries with the special category code (SCat) 087 in the Rating List. Smaller 鈥榗raft鈥� or 鈥榤icro鈥� distilleries are often located in general industrial buildings which have not been included in this class as there will be little (if any) specialist adaptation nor specialist rateable plant and machinery. 皇冠体育appse should remain as a Generalist class with a SCat suffix G.

2. Changes from the last practice note

皇冠体育app market appraisal has been updated. 皇冠体育app Rating Manual has been updated to reflect the change in responsible teams.

3. Ratepayer discussions

皇冠体育appre have been no discussions with the distilling industry.

4. Valuation scheme

皇冠体育appre is no bespoke scheme of valuation for this class. 皇冠体育app preferred method of valuation is by rental comparison having regard to similar properties in the locality.

In addition, rateable plant and machinery will be valued on the Contractors Basis with costs being derived from the Valuation Office Cost Guide. Reference should also be made to plant and machinery guidance found in Rating Manual: section 6 part 5.

1. Market Appraisal

皇冠体育appre are currently less than ten Distillery hereditaments identified by SCAT code 087S in the Rating List. 皇冠体育appre are a much larger number of 鈥渕icro鈥� or 鈥渃raft鈥� distilleries in general industrial buildings which may not have been picked up as there will be little (if any) specialist adaptation and no rateable P&M. 皇冠体育appse should remain as a Generalist class with SCAT code 096G. Research suggests there are actually 213 registered distilleries in the UK, although a large number of these are located in Scotland, and a significant number of these nationally will be micro or craft distilleries.

Both nationally and globally, the demand for distilled spirits has increased over recent years, with particular growth in the UK in 2013 and 2014 for craft distilled products as well as investment from larger established distillers. Spirits are becoming especially popular with younger drinkers and this trend is expected to continue.

Whisky (which is mainly produced in the Scottish distilleries), Vodka, flavoured spirits, Rum and Gin dominate the market share of UK distilled spirits.

皇冠体育appre is no rental evidence for distilleries .

2. Changes from the last Practice Note

皇冠体育appre was no 2010 List Practice Note for this class of property.

3. Ratepayer Discussions

皇冠体育appre have been no discussions with ratepayers.

4. Valuation Scheme

皇冠体育appre is no full scheme of valuation for this class and therefore valuation will be by direct comparison with other similar industrial properties. 皇冠体育app method of valuation for this class will usually be a rental approach based on the prevailing local industrial tone. In addition, separately valued plant and machinery is to be assessed on a contractors basis in accordance with the VOA Cost Guide.