Bacup firm's rates charge appeal fails

5:30pm Sunday 31st August 2008

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AN engineering firm boss has failed in a fight with the taxman after claiming his business rates were ‘morally wrong’.

Craig Heywood, of A&G Precison Engineering, Newchurch Road, Bacup, complained after getting an £11,000 non-domestic rates charge for premises at the Toll Bar Business Park.

He protested because the ratings for four units combined – F1, G, G1 and H – only originally amounted to £17,500.

But a revised estimate, later drawn up by the Valuation Agency, bumped the price up to £21,450.

Agency officials claimed it was because the different units had varying rental values – the engineering firm had lower rents as a larger unit than its smaller neighbours.

And when this was taken into account the higher bill had been reached, according to the agency.

But Mr Heywood said that because of the revisions, his company could no longer claim small business rate relief and he dubbed the decision ‘morally wrong’.

He appealed to the Valuation Tribunals service, which oversees council tax and business rate disputes, but has seen his application rejected.

Tribunal chairman John Bosson, after hearing the case in Preston, said it was reasonable for Mr Heywood to assume that a property, split into separate units, would have the same rates as the combined premises.

But larger units often attracted more attractive rents than smaller neighbours and the appeal had to be dismissed.