Business Rates (also known as Non-Domestic Rates) are payable on most non-domestic (commercial) properties such as shops, offices, warehouses, industrial units, advertising rights, land used for storage and other commercial purposes.

In addition, any part of a property used for commercial rather than domestic purposes may be rateable (for example, a small office attached to a house). Rates are payable on most occupied and some unoccupied (empty) properties.

Business Rates legislation states that the person entitled to possession of a property is liable to pay business rates charges. The person entitled to possession will usually be the leaseholder or the owner of the property.

Occupied property

In the case of occupied property, the person or company occupying it is liable to pay the rate.

Sometimes a landlord may charge an occupier a rent which is inclusive of rates. Even in these cases the occupier is still the person liable for payment, and the bill is sent in his/her name.

If you have a business agreement with a third party (such as your landlord) to pay your rates, you are still responsible for payment.

If the Business Rates Team is required to take recovery action for non-payment of rates, then legal proceedings will be taken against you and not the third party.

What is 'occupation'?

'Occupation' means occupation by goods or stock. Your occupied rate charge will start on the date you move goods into the premises, not the date you open for business.

A person or company occupying a non-domestic property should pay full rates unless they qualify for Business Rates Relief.

Unoccupied property

All unoccupied properties are subject to business rates charges unless a Business Rates Relief applies.

In cases where empty Business Rates are due, the person or company entitled to possession will be liable for the empty charge.

Business Rates will not be payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties.

After this period rates are payable in full. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs.

In addition, there are a number of exemptions from the unoccupied property rate. For more information see Business Rates Relief.

Business Rates Completion Notice

The primary legislation is contained in s46A of Local Government Act 1988 and Schedule 4A of Local Government Finance Act 1988 and states that where it is considered that a commercial premises is structurally complete, or that the works remaining can reasonably be expected to be completed within three months, a completion notice will be served on the 'owner' of the commercial premises.