Local Government Reform Act 2014

32.

Duty to inform rating authority of transfer of relevant property

32. (1) In this section—

“occupier”, in relation to property (whether corporeal or incorporeal), means every person in the immediate use or enjoyment of the property;

“owner”, in relation to a relevant property, means a person (other than a mortgagee not in possession) who, whether in that person’s own right or as trustee or agent for any other person, is entitled to receive the rent of the property or, where the property is not let, would be so entitled if it were so let;

“relevant property” shall be read in accordance with Schedule 3 of the Valuation Act 2001.

(2) Where relevant property, or an interest in relevant property, is transferred from one person to another person in circumstances that render that other person liable for rates on the property so transferred, then—

(a) it shall be the duty of the owner of the property (being the owner of the property prior to transfer) or such other person as the owner has authorised in writing to act on his or her behalf to notify, in writing, the rating authority in whose functional area the property is situated of the transfer not later than 2 weeks after the date of the transfer, and

(b) it shall be the duty of the person transferring the property being either the occupier or the owner, to discharge all rates for which he or she is liable for at the date of the transfer of the property or of an interest in it.

(3) Any rates due by an owner of relevant property and not discharged in accordance with subsection (2)(b) shall remain a charge on the relevant property, but that property shall not, as against a purchaser in good faith for full consideration in money or money’s worth or a mortgagee, remain charged with or liable to the payment of such unpaid rates after the expiration of 12 years from the date upon which the amount concerned fell due.

(4) The owner of relevant property shall be liable for a charge equivalent to no more than 2 years of the outstanding rates due from the previous occupier or occupiers where—

(a) the owner has not notified the rating authority in writing of a transfer of relevant property or an interest in relevant property in accordance with subsection (2)(a), and

(b) the requirements of subsection (2)(b) have not been met.

(5) Any charge due by an owner of relevant property and not discharged in accordance with subsection (4) shall remain a charge on the relevant property, but that property shall not, as against a purchaser in good faith for full consideration in money or money’s worth or a mortgagee, remain charged with or liable to the payment of such unpaid rates after the expiration of 12 years from the date upon which the amount concerned fell due.

(6) Any charge levied under subsection (3) or (5) does not affect—

(a) the liability of any previous occupier for outstanding rates in respect of which he or she is primarily liable, or

(b) the functions of the rating authority concerned under any other enactment to collect any outstanding rates from the occupier or occupiers primarily liable.