Cinderella Rockerfellas Ltd v Valuation Officer

The Court of Appeal dismissed the appellant's challenge to the Lands Tribunal's decision that a permanently moored floating nightclub (the Tuxedo Royale) was a rateable hereditament. The court applied the well-established principle from London County Council v Wilkins and Field Place Caravan Park Ltd v Harding that a chattel may be rateable when it is placed on or enjoyed with land and, with that land, forms one unit of occupation. The statutory framework (Local Government Finance Act 1988 and the definition of "hereditament") and the four ingredients of rateable occupation (actual occupation, exclusivity, benefit to the occupier and sufficient permanence) were applied to the facts.

The court concluded that the vessel, although a floating chattel, was permanently moored under licences, enjoyed with the licensed riverbed and adjacent quay, provided substantial benefit to the occupiers and was exclusive in fact; these features satisfied the test of rateability. Scottish and Hong Kong authorities to the contrary were considered distinguishable and not persuasive for the English law applied by the Lands Tribunal and the Court of Appeal.

Background and parties: Cinderella Rockerfellas Ltd operated a nightclub aboard the Tuxedo Royale, a vessel moored at Hillgate Quay, Gateshead. The Valuation Officer entered the vessel and associated riverbed/quay areas in the rating list. The Tyne & Wear Valuation Tribunal directed deletion of the entries on the ground that the vessel was not rateable. The Valuation Officer appealed to the Lands Tribunal which allowed the appeals; the proprietor then appealed to the Court of Appeal.

Nature of the claim / relief sought: The appellant sought to have entries in the non-domestic rating list deleted on the ground that the floating nightclub was not a rateable hereditament.

Issues framed:

• Whether a floating vessel moored over and enjoyed with part of the riverbed and quay can be a rateable hereditament under English rating law;
• Whether English law diverged from Scottish or Hong Kong authorities on the rateability of floating structures;
• Application of the statutory definition of "hereditament" in the Local Government Finance Act 1988 and the four conditions of rateable occupation.

Court's reasoning: The court accepted the Lands Tribunal's application of the principles in London County Council v Wilkins and Field Place Caravan Park v Harding: a chattel may be rateable when, enjoyed with land and sufficiently permanent, it forms a unit of occupation with that land. The Court of Appeal examined the four ingredients of rateable occupation (actual occupation, exclusivity, benefit and permanence) and held that they were satisfied on the facts: the Tuxedo Royale had been moored in the same licensed position for around nine years, was secured by strong horizontal connections to the quay, excluded rival use in practice, generated substantial benefit for the occupiers and enjoyed main services. The court distinguished Scottish and Hong Kong authorities which applied different statutory or conceptual tests and emphasised that the question is one of fact in each case. The appeal was dismissed.

Appeal dismissed. The Court of Appeal upheld the Lands Tribunal's application of the established test (LCC v Wilkins and Field Place Caravan Park): although a vessel is a chattel, when it is placed and enjoyed with land with sufficient permanence, exclusivity and benefit it may form, together with that land, a rateable hereditament. The Tuxedo Royale satisfied those conditions on the facts and Scottish/Hong Kong authorities were distinguishable.

Appeal to the Court of Appeal (Neutral Citation: [2003] EWCA Civ 529) from the Lands Tribunal (decision dated 13 June 2002, President George Bartlett QC). The Lands Tribunal had allowed consolidated appeals by the Valuation Officer against decisions of the Tyne & Wear Valuation Tribunal which had directed deletion of rating list entries. Permission to appeal to the House of Lords was refused.