In 2012, Virgin Media, one of the world’s leading communications providers, appointed Telereal Trillium to investigate the rating valuation of its telecoms network and determine whether a better approach could be adopted. It was Telereal Trillium’s view that, in the rating revaluation in 2010, the Valuation Office Agency and Scottish Assessor had vastly overvalued Virgin Media’s network.
Based upon their extensive experience of valuing such networks, Telereal Trillium’s rating experts identified the potential for substantial business rate savings, and the possibility to change the existing valuation method that was used for Virgin Media’s network, to a Receipts and Expenditure basis.
In order to succeed, Telereal Trillium needed to persuade the Valuation Office Agency and the Scottish Assessor of the benefits and appropriateness of this approach. This was achieved by:
Identifying the failings of the current approach.
Showing how the new Receipts and Expenditure approach overcomes those failings.
Working collaboratively with the Valuation Office Agency and the Scottish Assessor to determine the structure of the valuation.
Demonstrating that the complex data needed for this approach was available and reliable.
Ensuring that the results of the new valuation approach passed a creditability test.
Telereal Trillium applied its expert knowledge of the Receipts and Expenditure basis of valuation to deliver a 28 per cent reduction in rateable values applied to Virgin Media’s network and a consequent substantial reduction in their business rates liability.
Telereal Trillium will continue to represent Virgin Media to ensure fair rating valuations are applied to its client’s network using the Receipts and Expenditure basis.