04 December,2009 07:43 AM IST | | Agencies
A 242-year-old English toll bridge, whose owner can earn tax-free income, was sold at auction yesterday for u00a31.08 million (Rs 7.6 crore).
The Swinford Toll Bridge, which spans a stretch of the River Thames near Oxford in southern England was bought by an anonymous bidder.
The guide price for the picturesque stone bridge had been u00a31.0-1.25 million (Rs 7 crore-Rs 9.5 crore), according to auction house Allsop.
"The auction price is the market price," said Michael Hawley, sounding disappointed, even though the price rose from a starting price of u00a3800,000 (Rs 6 core).
"We had got interest from America, Australia, Europe and even Jamaica," said Neil Mackilligin of Allsop.
An Oxfordshire County Council spokesman said the authority, which covers the area where the bridge is, "was not financially in a position to buy the bridge."
Built in 1767, the bridge carries just under four million vehicles a year with toll charges starting at five pence for cars. Critics launched a "Scrap the Toll" campaign, claiming that the tax-free provision is unfair and that traffic back-ups caused by the toll waste time and money.
"I'm not surprised, but I am disappointed for the bridge users who face a generation of frustration," the campaign's Jane Tomlinson said.
The winning bidder will avoid income and business taxes on revenues from the toll under a 242-year-old act. A few bridges in England retain a tax-free status.
But the owner is not meant to make a profit: outstanding income after running costs and an undisclosed management fee is expected to be put aside for repairs.
In 1994, when authorities allowed the minimum toll charge to rise from two pence to five, the bridge owners were ordered to begin a repair fund. Repairs under way are expected to cost u00a3670,000 (Rs 5.95 cr) by 2020.
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Following operating costs, annual income nonetheless recently totalled almost u00a3114,000 (Rs 80.6 lakh).
