Mayor and Commonalty and Citizens of the City of London v Robinson Webster (Holdings) Ltd

This is an appeal by way of case stated under s.111 of the Magistrates’ Court Act 1980 brought by the City of London (“CoL”) against the decision of District Judge Law in the City of London Magistrates’ Court on 28 November 2024. The judge decided that the respondent, Robinson Webster (Holdings) Limited (“RWHL”) was not liable to pay non-domestic rates (“NDR”) under s.45 of the Local Government Finance Act 1988 (“LGFA 1988”) on an unoccupied shop comprising the basement and ground floor, 44 Bow Lane, London EC4M 9DT (“the shop”) for the period 1 April 2021 to 31 March 2024.

The central issue is whether the judge erred in law in deciding that the effect of the company voluntary arrangement (“CVA”) made in respect of RWHL under Part 1 of the Insolvency Act 1986 (“IA 1986”) was that RWHL ceased to be the “owner” of the shop for the purposes of s.45(1)(b) of the LGFA 1988 and therefore was not liable to pay NDR on the unoccupied premises.

The freehold of the shop was owned by two companies, CEP CBRE UK Property Nominee 1 Limited and CEP CBRE UK Property Nominee 2 Limited (“CBRE”). On 7 February 2017 a CBRE company granted to RWHL a lease of the shop for a term of 10 years commencing on 5 September 2016.

RWHL occupied the shop trading under the name “Jigsaw”. In 2019 the premises formed part of a portfolio of 84 shops operated by the company under that brand. But by then RWHL had identified the shop as loss-making. Subsequently, during the Covid-19 pandemic RWHL closed all of its Jigsaw shops.

CoL is the billing authority under the LGFA for its administrative area. It is responsible for sending notices requiring payment of the NDR due in respect of each hereditament shown on the local rating list for that area and for taking proceedings to recover any unpaid rates. A notice is sent to the rateable occupier of each occupied hereditament for NDR due under s.43 of the LGFA 1988 and to the owner of each unoccupied hereditament for NDR due under s.45.