Liable for tenants rates charges?
Discussion
I own a small shop that has been tenanted for the last 6/7 years. Its low value, £150 pcm, and the shops gets 100% rates relief.
However I've just received a bill from the council for nearly £7k for 2016 and 2017. The tenant hasn't filled the form for rates relief last year and is refusing to saying it's not their problem.
Council says I can't fill in the rates relief forms on their behalf and I'm responsible for the rates if the tenent doesn't pay or apply for relief.
I'll pay it if this is correct but I've always known tenents to be responsible to pay rates.
However I've just received a bill from the council for nearly £7k for 2016 and 2017. The tenant hasn't filled the form for rates relief last year and is refusing to saying it's not their problem.
Council says I can't fill in the rates relief forms on their behalf and I'm responsible for the rates if the tenent doesn't pay or apply for relief.
I'll pay it if this is correct but I've always known tenents to be responsible to pay rates.
Rates are an Occupational tax. If the tenant is in occupation the legal liability falls on them to pay.
In writing confirm that the Tenant was in occupation for that period and ask under what legislation the council feel that you have become liable.
Councils sometimes do get a bit stuck in the middle in these scenarios. One that comes to mind was a government building which had a car park in the assessment. The car park was not part of the lease and not under their control (it was a sore point as it was meant to be until the landlord got cute). The Landlord was not happy when he got a rate bill for 6 years worth of rates when the assessment was split. He then told them to send it to the government, until it was again redirected....
Be firm.
In writing confirm that the Tenant was in occupation for that period and ask under what legislation the council feel that you have become liable.
Councils sometimes do get a bit stuck in the middle in these scenarios. One that comes to mind was a government building which had a car park in the assessment. The car park was not part of the lease and not under their control (it was a sore point as it was meant to be until the landlord got cute). The Landlord was not happy when he got a rate bill for 6 years worth of rates when the assessment was split. He then told them to send it to the government, until it was again redirected....
Be firm.
Business rates are a tax on occupation, and the occupier or person entitled to occupation, is liable irrespective of what the lease says. Usually of course the parties will respect what the lease says but in the event of a dispute the Council is entitled to go against the occupier.
In this case it seems plain that the tenant is liable and even more odd if all he has to do is complete the forms and get the relief.
In this case it seems plain that the tenant is liable and even more odd if all he has to do is complete the forms and get the relief.
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