Who is liable for Business Rates?
Occupied property
A person (or company, etc.) is subject to rates in respect of an occupied hereditament, if he/she is in occupation of all or part of it. In rating terms, occupation of part of a property is treated as occupation of the whole. In these circumstances, the bill is calculated on the basis of full 100% liability.
It was established in a rating case in 1949 that there are four essential 'ingredients' to rateable occupation:
- There must be actual occupation;
- The occupation must be exclusive to the occupier;
- The occupation must be of some benefit to the occupier; and
- The occupation must not be for too transient a period.
Each element of rateable occupation has been tested on numerous occasions by the Courts over the years. If there is any aspect of rateable occupation which you require advice about, please contact the Business Rates Section.
Unoccupied property
The owner (or person entitled to possession) may be liable to pay rates on unoccupied property. Rates are charged at 50% of the amount which would be payable if the property was occupied.
Liability begins three months from the day after the property ceases to be occupied. If a new person becomes entitled to possession either during, or after, this three months period, a further ‘free' period cannot be given.
Joint and several liability
There can be more than one liable person. People (or companies) who are joint occupiers or joint owners are jointly and severally (i.e. individually) liable for the one Business Rates bill for the hereditament.
Reliefs and exemptions
As stated above, Business Rates are payable on both occupied and unoccupied properties. However, there are a number of reliefs and exemptions which apply to Business Rates. In the case of exemptions, these particularly apply to unoccupied properties.
If you disagree with the Council's decision about liability, you can contact us explaining what you object to and why.
