Advice NI Specialist Support provides advice on Rates liability
An Advice NI debt adviser had a client who received a rates bill for £4,000. The bill was four years of rates liability on a property which the client had purchased and rented out.
The property is worth £150,000 and has been lying vacant for four year. The client is disputing that he is liable for the rates.
The Debt adviser discussed the various exemptions that apply to vacant properties and rates liability. However, none applied to the client because he was not a trustee under a deed of arrangement, a company in administration, a liquidator, the Foyle, Carlingford and Irish Lights Commission, in care (nursing home, residential care or hospital), in detention, and the home is not empty due to flooding.
The adviser asked Specialist Support for clarification on liability.
Specialist Support contacted Land and Property Services, and confirmed to the debt adviser that unless exemptions can be applied such as: the empty home cannot be legally occupied by anybody, the empty home cannot be occupied by anybody due to the actions of a public body, the empty home is a listed building, the empty home is an historic monument, the empty home is in the possession of the personal representative of a deceased person or there is a bankruptcy order against the owner, the client is liable for rates even though the property is vacant.
They advised that the client should contact the rates office and let them know the property was vacant and they did not realise they were still liable.
In a case such as this, an agreement for the liability to be paid by instalments may be arranged. If the amount exceeds £5,000 then the rates office can get a judgement and make the person who is liable for the rates bankrupt. If the client enters into a repayment plan they must pay the full amount of the monthly rates plus an additional amount towards the arrears as agreed.
If this is not specified, the rates office will take the full amount of monies paid off the arrears, and the client will be falling into arrears for the incoming rates year.
The NI Specialist Support Service offers free, confidential second tier expert support to money and debt advisers on complex cases. SS also offers Ask the Expert sessions and Shadowing opportunities to enhance learning. Ongoing support and information, including relevant podcasts and vlogs, is accessible through the Specialist Support Portal.
The service is available to money and debt advisers and their managers/supervisors.
SS operates Monday to Wednesday from 10am to 4pm and Thursday and Friday from 8.30am to 3pm via email, specialistsupport@adviceni.net and telephone, 02890645919.
The service also manages a webchat facility, which is available daily from 1pm to 3pm.
The Debt adviser discussed the various exemptions that apply to vacant properties and rates liability. However, none applied to the client because he was not a trustee under a deed of arrangement, a company in administration, a liquidator, the Foyle, Carlingford and Irish Lights Commission, in care (nursing home, residential care or hospital), in detention, and the home is not empty due to flooding.
The adviser asked Specialist Support for clarification on liability.
Specialist Support contacted Land and Property Services, and confirmed to the debt adviser that unless exemptions can be applied such as: the empty home cannot be legally occupied by anybody, the empty home cannot be occupied by anybody due to the actions of a public body, the empty home is a listed building, the empty home is an historic monument, the empty home is in the possession of the personal representative of a deceased person or there is a bankruptcy order against the owner, the client is liable for rates even though the property is vacant.
They advised that the client should contact the rates office and let them know the property was vacant and they did not realise they were still liable.
In a case such as this, an agreement for the liability to be paid by instalments may be arranged. If the amount exceeds £5,000 then the rates office can get a judgement and make the person who is liable for the rates bankrupt. If the client enters into a repayment plan they must pay the full amount of the monthly rates plus an additional amount towards the arrears as agreed.
If this is not specified, the rates office will take the full amount of monies paid off the arrears, and the client will be falling into arrears for the incoming rates year.
The NI Specialist Support Service offers free, confidential second tier expert support to money and debt advisers on complex cases. SS also offers Ask the Expert sessions and Shadowing opportunities to enhance learning. Ongoing support and information, including relevant podcasts and vlogs, is accessible through the Specialist Support Portal.
The service is available to money and debt advisers and their managers/supervisors.
SS operates Monday to Wednesday from 10am to 4pm and Thursday and Friday from 8.30am to 3pm via email, specialistsupport@adviceni.net and telephone, 02890645919.
The service also manages a webchat facility, which is available daily from 1pm to 3pm.