Kent-based egg producer Fridays Ltd has won the main court of appeals courts after confirming that the three storage and packaging buildings are exempt from the business rate. This is a notable victory in modern agricultural practices.
The ruling concludes a long, four-year legal dispute over the interpretation of agricultural exemptions from business rates.
The court confirmed that the building in question is exempt due to “functional connections” with egg production that took place on other farms operated by Friday.
NFU President Tom Bradshaw welcomed the results and said: “This not only will be offered on Friday, but will prevent unfair taxation of hundreds of thousands of pounds, but will prevent clarification of the exemption application.”
The dispute occurred in 2021 when Friday challenged a 2017 non-international rating list, which includes three buildings used for egg storage and packaging.
The assessment court dismissed its first assignment in September 2022. Friday then appealed to the superior court (Land Chamber of Commerce) that was in favour of control in 2024.
The decision was appealed by the assessment officer to the Court of Appeal.
The decision is expected to set important precedents on how agricultural exemptions apply to diversification and integrated agricultural operations across the UK.
The suit was supported by the NFU and its Legal Support Scheme (LAS) on legal representation provided by Barister Cain Ormondroid of the NFU legal panel company, Sling, and Francis Taylor Building Chambers.
Nick Hammer, chairman of the union’s legal committee, emphasized the broader implications of the case. “This incident clearly demonstrates the value of the NFU and its LA in supporting members in times of difficulty.”
NFU member Andrew Friday Director, director of Friday, said the ruling provides much-anticipated certainty for agricultural businesses operating in line with modern practices.
“The results recognize the reality of modernized agricultural practices and provide long-term clarity for our business,” he added.
“We were unable to proceed with this lawsuit, so we are grateful for the careful consideration and for providing NFU and its overall support and more important funding.”
