Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority.
Under rating legislation, the person liable for payment of rates is generally the person in occupation of a rateable property on the date of the making of the rate by the relevant local authority. The Local Government Act 1946 provides that where a rateable property is unoccupied on the date of the making of the rate, the owner becomes liable for payment of rates. However, the owner is entitled to a refund if the property is vacant for specified purposes, namely, where the premises are unoccupied for the purpose of the execution of additions, alterations or repairs; where the owner is bona fide unable to obtain a suitable tenant at a reasonable rent; and where the premises are vacant pending redevelopment. In most rating authorities, 100% of the amount paid is refundable to the owner.
Should an occupier commence his or her occupation of rateable premises after the date of the making of the rate in any given year, that person would not normally be primarily liable for rates for that year. I recognise that these are difficult economic times for many businesses and I am continuing to keep all matters relating to commercial rates under regular review.
