A telecommunications network provider has failed in its bid to challenge the entry of its entire network in a rating list.
The Court of Appeal ruled that Vtesse Networks is liable for non-domestic rates on the entire network even if most of it is within areas that it does not own or occupy.
Running between Henley-on-Thames and Goswell Road, London, the network passes through Marlow, Slough, Ruislip and Stoke Newington, with spur extensions from Reading to Theale and Acton to Brentford.
The network extended over 147km, of which around 4km was via cables and ducts owned by Vtesse and 143km via cables and ducts belonging to third parties.
Consequently, the network consisted mainly of the use of spare capacity in other companies’ cables through agreement with them.
The valuation officer proposed to enter the entire network in the rating list for Slough, Berkshire, but Vtesse objected.
The Berkshire valuation tribunal upheld the objection, which as subsequently overturned by the Lands Tribunal..
Dismissing Vtesse’s subsequent appeal, Lloyd LJ said that the tribunal had been “entitled to hold that the network was a single hereditament and that Vtesse was in occupation of it for rating purposes.”
Bradford (VO) v Vtesse Networks Ltd Court of Appeal (Mummery, Sedley and Lloyd LJJ) 19 October 2006.
Derek Wood QC and Robert Walton (instructed by Field Fisher Waterhouse) appeared for the appellant; David Holgate QC and Timothy Morshead (instructed by the legal department of HM Revenue & Customs) appeared for the respondent.
References: EGi Legal News 23/10/06
