Liability for business rates

Copyright © 2025 LexisNexis
Produced in partnership with Alan Murdie of Council Tax Legal Services
Practice notes

Liability for business rates

Copyright © 2025 LexisNexis

Produced in partnership with Alan Murdie of Council Tax Legal Services

Practice notes
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This Practice Note covers who is liable for business rates, the three categories of taxpayer identified by the Local Government Finance Act 1988 (LGFA 1988) (occupiers, owners and persons named in central rating lists), the definition of ‘hereditament’, rateable occupation and the position regarding tenant’s fit out works.

LGFA 1988 identifies three categories of ratepayer:

  1. •

    occcupiers

  2. •

    owners, and

  3. •

    persons named in central ratings lists

Occupiers

An occupier is a person who, on any day in a chargeable financial year (ie a period of 12 months beginning 1 April), is in occupation of all or part of a hereditament that is shown for the day in a current local non-domestic rating list.

Owners

An owner is the person entitled to possession of the hereditament. They are rateable if:

  1. •

    the hereditament is unoccupied

  2. •

    they own the whole hereditament that is shown for the day in a current local non-domestic rating list, and

  3. •

    the hereditament falls within a class prescribed by the Secretary of State or the national authority (Wales) by

Alan Murdie
Alan Murdie

Council Tax Legal Services

Alan Murdie is a specialist in council tax, housing and debt law issues dating back to 1989, including many test cases in the lower and higher courts. He is director of Council Tax Legal Services and Nucleus Legal Advice in Earl's Court, London. He has been involved with the Council Tax since its inception in 1992, editing eight editions of the Council Tax Handbook since 1998 and co-author of The Enforcement of Local Taxation (2001) with Ian Wise QC. He was a co-founder of the Zacchaeus 2000 Trust in 1996 and its senior lawyer between 2007-2013 and worked with the Ministry of Justice and Welfare Bill Committees in Parliament on law reforms. He taught intellectual property at the University of West London 1995-1998 and provides advice and training services to a wide range of public sector bodies, companies and charitable organisations.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
ACT definition
What does ACT mean?

Association of Corporate Treasurers.

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