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Microgeneration: Valuation

Volume 487: debated on Monday 2 February 2009

To ask the Secretary of State for Communities and Local Government what methodology the Valuation Office Agency uses to calculate the value of microgeneration equipment within (a) a domestic and (b) a non-domestic dwelling. (252462)

The basis of valuation for domestic dwellings is market value. For a new dwelling, the degree to which such fixed equipment would affect a band would be an estimation as to what effect, if any, such equipment would have on the market value, and hence banding, of the dwelling. No improvement will affect a valuation band on an existing dwelling unless:

(i) there is a subsequent sale, and

(ii) any such measurable increase is significant enough to move the value to a higher band.

There is, strictly, no such thing as a non-domestic dwelling in local taxation.

The same principles, however, would apply to the domestic part of a composite dwelling (a part domestic/part non domestic property), where the microgeneration equipment was provided for the domestic portion.