Query on business rates on leased premises.

Hi,

I wonder can someone give me some advise on an issue I have with business rates.

I recently relocated my business as a trader and signed up on a lease on a premises. No probs there got a good deal on the lease. So here goes the prob.

I got a bill for almost €5,000 on outstanding rates for previous tenants whereby I went to the Council and put my case forward to them. Silly me, they said it was my problem and I will have to pay or they will take legal action. So I went back to the owner of the premises and he told me the previous tenants were a registered charity. When I went back to the Council they told me I would have to get the charity's details and supply them to them as it was not their problem to persue previous tenants.

Fine but there was a gap in between my lease beginning and they leaving the premises of 5 months so the Council are insisting I pay the rates for this period. I spoke with the owner and he informed me he had supplied a letter to the Council stating when the premises became vacant and the Council are still insisting I pay these rates.

Does anyone have any ideas to help me out as the Council are now threatening to take legal action if I do not pay.

Thanks in advance for any advice.

From my experience rates are done yearly, usually in 2 lots.
So if you take this year, you should be able to get the rates from Jan-Jun sent to the previous tenant.
But if you moved in Dec you are liable for the rates from Jul-Dec even though you have only been there a month.

Play hard and offer the rates for December, personally I'd let them start legal proceeding and not back down. If they do go all the way to court, just turn up at the rates office a few days before the court day, pay the rates and that's it done. Or offer 50% of the bill.

You should have checked it out before you moved in, happened to me once so now I always do it when moving office.

patftrears said:

From my experience rates are done yearly, usually in 2 lots.
So if you take this year, you should be able to get the rates from Jan-Jun sent to the previous tenant.
But if you moved in Dec you are liable for the rates from Jul-Dec even though you have only been there a month.

Play hard and offer the rates for December, personally I'd let them start legal proceeding and not back down. If they do go all the way to court, just turn up at the rates office a few days before the court day, pay the rates and that's it done. Or offer 50% of the bill.

You should have checked it out before you moved in, happened to me once so now I always do it when moving office.

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I have gone through this with the Council and they say once you are the tenant that you are responsible for any debt in rates.

In addition to what I have posted they are also looking for 580 euro from arrears 2003 for a business that has relocated to another unit and is still trading. They are too lazy to follow that up themselves.

Believe me I will make sure in future to check unpaid rates.

The council are very clear on this in all their literature, it is the new tenant's responsibility to make sure rates are paid up before taking over a premises, otherwise you assume previously unpaid rates. I think they take this attitude because in many cases, rate bills are split between multiple businesses and the councils have no way of knowing who should be paying what. So they simply transfer all responsibility to the tenants.

Your solicitor should have checked the rates situation as part of the lease signing process...

My experience as a landlord is that the bill travells with the landlord; not the tenant; i googled this one time and i think it was clare co co who had a Q and A confirming this;

Yea its under the index R for rates; gives good info; however at the end of the day its whatever the act rates are colleceted under is what counts:

thanks very much for that sean but can you tell me
whare i can find this written down ill need it for court
they have now issued me with a 6 day notice
and i want to get my stuff together

vin, did you use a Solicitor in this transaction. It is up to the legals to do it correctly and then in the apportionment account, sort the matters out. The old arrears is the landlord's problem not yours. As already mentioned, the rates are issued twice a year. When did you move in ?? This is important to work out the entire.

If you solicitor has made a bags of it then its up to him to sort it out.

no unfortunately i used the landlords lease
but it does not state anything about rates
i moved into the premises in may

The lease might be fine but there is to much past messing going on. The rates prior to you signing the lease should not be your problem. It must say something about the rates / outgoings you are obliged to make. I would suggest you find a solicitor to act on yiur behalf.

ill have to have a really good look at it
its just if i get a solicitor involved it may just be cheaper to pay the arrears
the amount in dispute is about 1200 euros