Arbitration United Kingdom

Eurotunnel Triggers Arbitration Against HMRC Valuation Office Over Channel Tunnel Rates

Published 2026-06-13 1 source Arbitration Award Claim Concession Agreement France Infrastructure Disputes United Kingdom United Kingdom

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TL;DR

  • Eurotunnel has triggered arbitration against HMRC Valuation Office over Channel Tunnel business rates.
  • The dispute concerns an increase in rateable value from £40m to £118m per year.
  • Arbitration will proceed under the Channel Tunnel concession agreement involving UK and France.
  • Eurotunnel has also appealed through internal and tribunal processes.

Overview

Eurotunnel has initiated arbitration proceedings against the HMRC Valuation Office, challenging a substantial increase in its UK business rates related to the Channel Tunnel concession. The proceedings are governed by the UK-France Channel Tunnel concession agreement, and will involve arbitration bodies in Brussels as well as domestic appeal mechanisms.

What Happened

Eurotunnel, part of Getlink, announced it would trigger arbitration under the Channel Tunnel concession agreement between the United Kingdom and France, contesting the Valuation Office's decision to raise its UK business rates rateable value from £40 million to £118 million per year.

The company claims the new valuation is unreasonable and based on flawed methodologies, particularly concerning the replacement costs of shuttle trains and cost of capital calculations.

Eurotunnel is also pursuing an internal complaint with the Valuation Office and may escalate to the Valuation Tribunal, taking a parallel dispute resolution approach.

The increase in UK business rates is described by Eurotunnel as disproportionate, highlighting a tenfold rise since 2017, in contrast to relatively flat French payments for Channel Tunnel properties.

Context

The Channel Tunnel concession agreement provides for special arbitration mechanisms involving both the British and French governments in case of disputes.

Eurotunnel is one of the UK's largest infrastructure operators, handling significant daily freight. The company has stopped all new UK investment pending dispute resolution.

HMRC states its valuation methods are long-established and notes that ratepayers can challenge and appeal assessments, especially in relation to large infrastructure assets.

Why It Matters

  • The case highlights the complexity of valuing unique infrastructure assets in a bi-national regulatory environment.
  • The use of both international arbitration and domestic tribunal procedures illustrates the layered approach available under the Channel Tunnel concession framework.
  • The outcome may influence future business rates assessments for large infrastructure and the use of arbitration in public concession disputes.

Sources

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