UK Valuation Office Agency (HMRC)
Advisory Services
The Situation
The UK Valuation Office Agency (an executive office of HM Revenue & Customs) sets business rates (non-domestic property taxes) for UK businesses including telecommunications operators. In order to calculate business rates for BT it requires forecasts of BT’s future cash flows for its network business.
NERA's Role
NERA critically reviewed the assumptions and modeling put forward by BT and, where necessary, derived alternative assumptions to be used to forecast BT’s future cash flows over the period 2008/9 to 2012/13. NERA has previously performed similar tasks for the same client for earlier periods (which also involved expert testimony by NERA Special Consultant Nigel Attenborough), and more recently has extended existing models to take account of local loop unbundling (LLU) and next generation access (NGA).
The Result
NERA's inputs were used by the Valuation Office Agency to establish the valuation of BT's assets.
