Non-domestic ratesThe legal positionSpecial featuresChecklist for actionNon-domestic rates (business rates) are charged on most commercial property by local authorities. They are based on a national valuation and fixed amounts are charged across England and Wales in proportion to this.The legal positionNon-domestic rates are payable under the Local Government Finance Act 1988. Special featuresArrears are recovered through a liability order in the magistrates’ court. If bailiffs are used by a local authority after it has obtained a liability order, there is no exemption for tools, books, vehicles or goods which are necessary for use in the client’s business (as there is for council tax arrears).1Reg 14(1A) Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989, No.1058 Once a business ceases trading, it may be able to claim local discounts or reliefs from non-domestic rates and advisers should check with the local authority what is available. If the business is renting premises under a lease, it continues to be liable for the non-domestic rates for as long as the lease exists.Local authorities can reduce or write off arrears of non-domestic rates in situations of severe hardship.2s49 LGFA 1988 This is most appropriate in cases of business failure and should always be sought before considering payment. 1 Reg 14(1A) Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989, No.1058 »2 s49 LGFA 1988 » Checklist for actionAdvisers should take the following action.•Consider whether emergency action is necessary (see Chapter 8).•Check liability for the debt, including any associated bailiff’s charges. Consider whether there are any grounds for a complaint.•Assist the client to choose a strategy from Chapter 8 as this is a priority debt if there is a risk of the client losing essential goods. Otherwise, the arrears are a non-priority debt. Assist the client to choose a strategy from Chapter 9.