Who is liable for rates

It remains a private matter between the landlord and occupier to decide who is responsible to make payment, however the bill will remain in the name of the occupier, and if it is not paid, action will be taken against the occupier, not the landlord, to recover the amount due. Whoever has the right to occupy the property needs to pay any charge that is due e.

If a tenant moves out of a property but does not surrender the lease for a further six months, the tenant remains liable to pay any unoccupied rate charge that becomes due. However, if the tenant's lease ends, the landlord needs to pay the charge.

Unoccupied property rates are charged at the full amount after an initial three-month exemption. This exemption period is extended to six months for industrial properties such as factories, workshops and warehouses. The exemption is based on the property's circumstances, rather than the liable person's.

Therefore if a new owner takes over a property that has already been unoccupied for over three months or six months if industrial and keeps it empty, the per cent unoccupied rate is charged immediately. Where appropriate, you should consult your own lawyer for legal advice. Practical Law's employees are not practising solicitors or barristers. The Ask scope and rules apply. Anonymous Public sector. Add reply. Related Content.

In a claim for a liability order for non payment of non domestic rates the defendant is stating they are not liable because they are the tenants and they vacated the premises by returning the keys to the landlord. The landlord has not accepted surrender of the tenancy as the lease, 3 years fixed term, has no break clause.

The tenant claims they wanted a break clause and always thought they were giving notice pursuant to the break clause - even though they signed the lease and now accept there was actually no break clause in the written lease.

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Generally, the occupier of the property is liable to pay the business rate charge. If the property is empty and not an exempt property, then liability is that of the person entitled to possession, usually the owner or leaseholder.

As the legislation states that the occupier is the liable party, tenants paying rate inclusive rent should take care. If the landlord does not pay the rates to the council then the tenant will be held liable and may need to take action against the landlord to recover monies paid. Agreements between landlords and their tenants are a matter between themselves and are not binding on a local or billing authority in the event of any dispute between those parties.

Non-domestic rates also known as business rates is an increasingly important revenue stream for local authorities, who are duty bound to ensure that the public purse is properly protected.