Lord Hewart CJ said: ‘When one turns to the Third Schedule of the [1925] Act, it is apparent that it enumerates that type of machinery and plant which is conveniently described in the case as motive machinery; it is the machinery without which the mill could not begin to work, as, for example, the generation of power, heating and cooling, lifts and elevators, railways, tramlines and tracks, and other things, the foundation of that which was to become the work of the mill. When the machinery and plant referred to in the Third Schedule are eliminated, what is left is the kind of machinery which is concisely described in this case as process plant and machinery, operative plant and machinery, working and manufacturing plant and machinery.’
and ‘ . . the effect of this [1925] Act, intended to be an Act beneficial to those interested in the carrying on of industry, was to get rid of all the doctrine of enhanced value and to lay it down that what is called process plant and machinery must henceforth be disregarded where the problem is to ascertain the rateable value of the hereditament where plant and machinery are used. It is nothing to the purpose, in my opinion, to say apart from the use of the machinery and plant, there may be buildings called warehouses which for other commercial purposes do store or keep dry machinery and plant. It is not to be said that they are not to be rated because they contain machinery and plant. Of course, that could not be said. We are concerned with the rating of a hereditament which contains machinery and plant for the purpose of the carrying on of the work in that hereditament. The statute, in my opinion, makes it quite plain that in such a case and for such purposes, process plant and machinery are to be excluded.’
Judges:
Lord Hewart CJ, Hawke, Lawrence JJ
Citations:
[1936] 1 KB 585
Statutes:
Rating and Valuation Act 1925 24
Jurisdiction:
England and Wales
Cited by:
At Divisional Court – Townley Mill (1919) Limited v Oldham Assessment Committee HL 1937
Section 24 of the 1925 Act was considered.
Held: The House re-instated the decision at divisional level. The court described the basis upon which a property was to be valued for rating purposes. Viscount Maugham said it concerned: ‘ a . .
Cited – Iceland Foods Ltd v Berry (Valuation Officer) SC 7-Mar-2018
Air System plant excluded from Rating value
The court was asked whether the services provided by a specialised air handling system, used in connection with refrigerated merchandise in the appellant’s retail store, are ‘manufacturing operations or trade processes’ for rating purposes.
Cited – Iceland Foods Ltd v Berry (Valuation Officer) CA 23-Nov-2016
The court was asked whether the air handling system used by Iceland Foods Limited in its retail store at Liverpool was plant or machinery ‘used or intended to be used in connection with services mainly or exclusively as part of manufacturing . .
Lists of cited by and citing cases may be incomplete.
Rating
Updated: 21 July 2022; Ref: scu.605770