UK EV Charging Point Site Rating Guidance: Valuation Officers Detail Approach

• Guidance for Valuation Officers clarifies the rating of electric vehicle charging bays within existing car parks in the UK.
• The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022 exempts specific EV charging plant and machinery, but not the charging bay sites themselves.
• EV charging bays often form a separate rateable hereditament, identified by delineated spaces and branding.
• Valuation factors include the number of bays, charge points, and the location and setting of the host property.
• For public land, case law indicates that the absence of a clear rateable occupier can prevent EV charging bays from being considered rateable hereditaments.

A pivotal aspect of determining whether EV charging bays on public land constitute a rateable hereditament involves the "rateable occupier" test.

The UK's approach to the valuation and rating of electric vehicle (EV) charging point sites is detailed in specific guidance primarily intended for Valuation Officers. This framework focuses on charging bays situated within the car parks of existing properties, particularly those that necessitate a distinct entry in the rating lists. It is crucial to differentiate these from dedicated EV forecourts or larger charging hubs, which fall under the purview of the Transport Class Coordination Team (CCT) for specialized valuation advice.

When EV charge points (EVCPs) and their associated bays are deemed an integral part of an existing property and do not warrant a new rating list entry, their valuation implications are assessed using the relevant individual rating manual entries and practice notes for that specific hereditament. The overall coordination for this class of property is managed by the Transport CCT, which is also responsible for issuing practice notes that outline the valuation basis for revaluation and providing ongoing guidance throughout the life of each rating list. Regional Valuation Units (RVUs) are tasked with the assessment and valuation of these EVCP bay sites, which are formally categorized under the Primary Description Code "CX" with the List Description "ELECTRIC VEHICLE CHARGING BAYS AND PREMISES." This comprehensive EV charging point site rating guidance UK ensures a consistent approach to property tax liabilities in this rapidly evolving sector.

The identification of an EV charging bay as a distinct rateable hereditament is generally straightforward, typically comprising one or more clearly marked or delineated bays within a car park designated for electric vehicle charging. These bays are usually contiguous and easily recognizable through their markings and branding within the parking area. The Automated and Electric Vehicles Act 2018 defines a charge point as any device used for supplying electricity to an electric vehicle, forming the core of these installations.

A significant development in this area is the Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022. These regulations introduced an exception for specific plant and machinery primarily or exclusively utilized for EVCPs, covering components involved in power storage, transformation, and transmission. However, it is vital to note that this exemption does not extend to the physical site of the EV charging bays themselves, which frequently constitute a separate rateable hereditament. While charging equipment should be documented, often displaying the EVCP brand, the brand owner may not necessarily be the designated rateable occupier for property tax purposes. This distinction is key for understanding HMRC electric vehicle charging valuation.

Accurate valuation of EV charging sites requires the collection of specific data, including the total number of charging bays and the individual EVCPs, noting that a single charge point might serve multiple bays. Further critical information involves the location and environmental context of the host property, such as whether the EVCP bays are situated on a primary or secondary route, or the nature of the car park setting—for instance, a prime retail park, a restaurant, a convenience store, or a hotel. These details are paramount, as they directly influence the value if the EV charging bays form a separate rateable hereditament. Any other plant and machinery not directly linked to the EVCP function, such as CCTV systems, should also be recorded, though in most instances, these will not necessitate inclusion in the rating lists.

A pivotal aspect of determining whether EV charging bays on public land constitute a rateable hereditament involves the "rateable occupier" test. Based on an analysis of contractual agreements, particularly those between local authorities and EVCP operators, and established legal precedents like Milton Keynes Council v Alexander (VO) [2018] UKUT 366 (LC) and Dorset County Council v Mr J. Reeves (Valuation Officer) [2014], the absence of a clear rateable occupier often leads to the conclusion that these sites are not rateable hereditaments. This is because public authorities do not possess traditional ownership of highways; their vesting is limited to control, protection, and maintenance for public use. Therefore, even where delineated charging bays exist, the lack of a distinct rateable occupier can prevent the classification of rateable hereditament EV charging on public land.

This guidance clarifies the complex rating and valuation rules for electric vehicle charging point sites in the UK, including when they form a separate rateable hereditament and exceptions for associated plant and machinery. Lawyers advising property developers, EV infrastructure operators, or local authorities must understand these distinctions to accurately assess property tax liabilities and ensure compliance with the latest valuation regulations, particularly regarding the 'rateable occupier' test for public land.

Source: Original reporting via UK government guidance