SSE Plc v Jo Moore (Valuation Officer)
Decision date: 3 February 2022
Neutral citation: [2023] UKUT 24 (LC)
Overall AI summary confidence: medium
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: medium
This appeal concerned whether long-term mothballing of Keadby Power Station amounted to a material change of circumstances altering its mode or category of occupation (MCO) for rating on the Material Day (11 June 2013). The Tribunal held the MCO did not change: the hereditament remained a power station in rateable occupation despite being unable to generate electricity while mothballed, so the 2010 list rateable value of £5,340,000 was upheld. The appeal was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The Tribunal applied the reality principle: identify the MCO by reference to the principal characteristics of the use on the Material Day. Temporary, reversible cessation of activity for economic mothballing does not, without more, create a new MCO; broad categories of use should be preferred over finely divided sub‑categories. Applying that approach, mothballing as part of the business’s operational cycle did not change the hereditament’s MCO from a power station.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal indicated it would be inappropriate to create narrowly specialised sub‑categories of occupation and drew a distinction between reversible mothballing (preserving the operational character) and decommissioning/demolition, which may amount to a different valuation/treatment.