The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
Business rates are a tax on property used for business purposes. They are charged on most non-domestic properties, such as shops, offices and pubs.
Business rates are also payable if you use part of a building for non-domestic purposes. For further information on business rates generally, see Overview: Business rates and Practice Note: Liability for business rates.
In an insolvency context, the occupier of a property is liable to pay business rates.
For a company to be rateable as an occupier, it must be in ‘actual possession’ and have a ‘sufficient measure of control to prevent strangers from interfering’. A company in an insolvency process may be considered to be in occupation depending on the actions of the officeholder—for example, it may be trading from the business while looking for a buyer.
For further information on what constitutes occupation, see Practice Note: Liability for business rates.
Where a property is empty, business rates are still payable. However, the following are not liable for business rates:
a company in administration within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 (IA 1986) or is subject to an administration order made under the former administration provisions within the meaning of
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