In January 2021, Fridays Ltd, an NFU member and egg producer based in Kent, challenged the 2017 non-domestic rating list in respect of the entry of three buildings used in connection with storage and packaging of eggs for distribution.
The difference between the buildings falling within the exemption or not is worth more than £200,000 to Fridays.
The Valuation Officer at the Valuation Tribunal dismissed this challenge in September 2022. Fridays appealed the Valuation Officer’s decision to the Upper Tribunal (Lands Chamber), which was successful in 2024.
After four years of proceedings, the judgment confirms that the three buildings in question, which were used for storing and packing eggs, are exempt from business rates.
It states this is because of the “functional connection” between the three buildings on Fridays’ farm and the production of eggs on the land at a number of other farms owned by Fridays.
This judgment comes after the Valuation Officer appealed the Upper Tribunal’s decision to the Court of Appeal.
Significant outcome
Fridays was supported by funding from both the NFU and its LAS (Legal Assistance Scheme) and was represented by the NFU’s Legal Panel Firm, Thrings, and Cain Ormondroyd from Francis Taylor Building Chambers as Legal Counsel.
Responding to the news, NFU President Tom Bradshaw said: “This is a significant outcome which not only delivers for Fridays Limited, preventing it from being unfairly taxed hundreds of thousands of pounds, but clarifies the application of the exemption.”
Nick Hamer, chair of the NFU's Legal Board, added: “This case clearly demonstrates the value of the NFU and its LAS in supporting members in times of difficulty. I’d also like to thank our Legal Panel Firm, Thrings, for their representation.”
Andrew Friday, Director of Fridays Ltd, said: “This outcome recognises the reality of modernised farming practices and provides long-overdue clarity for our business. We are grateful to the court for its careful consideration and to the NFU and its LAS for its overall support and, more importantly, the significant funding, without which we wouldn’t have been able to progress this case.”
