In one of the very few recent decisions dealing with the valuation for rating of a minerals hereditament, the Upper Tribunal has dismissed the ratepayer’s appeal in Cemex (UK) Operations Ltd v O’Dwyer (Valuation Officer) [2019] UKUT 106 (the Deputy President Martin Rodger KC and Peter McCrea FRICS).

The case concerned Cemex’s South Ferriby cement plant on the banks of the Humber estuary. The hereditament included cement works, a quarry, and a 1.5km conveyor linking the two.

The Upper Tribunal upheld the Valuation Officer’s valuation of £1,660,000. Of significance is the Tribunal’s consideration of the proper approach to valuation of a minerals hereditament and the Tribunal’s finding that paragraph 2(7)(c) of Schedule 6 to the Local Government Finance Act 1988 does not involve a statutory fixing of mineral extraction rates. The Tribunal’s reflections on the contractor’s basis of valuation are also likely to be of interest to those involved in valuation for rating.

The decision can be found here.

Hugh Flanagan acted for the successful Valuation Officer.