Former drive-on drive-off ferry, the Tuxedo Royale, which, from 1989 to 1999, was berthed on the River Tyne at Hillgate Quay, Gateshead, and used as a nightclub, restaurant and discotheque, has been declared to be a rateable property by the Court of Appeal.
Potter LJ had warned that the judgment would have widespread repercussions for a number of vessels moored along the Thames and used for similar purposes.
The occupier, Cinderella Rockerfellas Ltd, had argued that the Lands Tribunal had wrongly relied upon a previous decision in Felgate (VO) v Lotus Leisure Enterprises Ltd, which it claimed had been incorrectly decided.
Rejecting its claim, Potter LJ said that, in cases such as these, the horizontal attachment of the boat to the dock was intended to confine the vessel to the area above the land beneath (ie the seabed), thereby enhancing the land’s value. He said that, accordingly, there had been nothing wrong with the Lands Tribunal decision that the Tuxedo Royale was a ratable property.
Cinderella Rockerfellas Ltd v Rudd Court of Appeal (Potter, Chadwick and Tuckey LJJ) 11 April 2003.
David Widdicombe QC and Robert Walton (instructed by Richmonds, of Newcastle-upon-Tyne) appeared for the appellant; Timothy Mould (instructed by the solicitor to the Inland Revenue) appeared for the respondent.
References: PLS News 11/4/03