Local authority rates?

Freiheit

Can the authorities be flexible in outstanding rates? About to take over a family business, following a death and there is outstanding Council rates, nearly two years of them. Look I will speak with my solicitor but I'm just wondering whether anyone can say from experience whether Councils can/would accept a reduced payment as part of a settlement?. Have they the authority to accept less in certain circumstances, such as that of succession here?.
Tanx
F

antoinolachtnai

Was the business open for the two years?

Is the business incorporated, i.e., is it a limited company?

Is this the only debt?

Freiheit

It's been closed for over a year.....inheritance tax will soon beome a debt...but no, local authority charges for water and rates are the only pre-existing debt.

antoinolachtnai

You might get a break on the rates for the period the business was closed.

Beyond this, I don't see how the council could have much discretion. Even if they did, what reason is there not to collect the rates? Can you borrow to clear the rates bill?

There might be other options depending on how ownership of the property is structured and how the business is structured.

Freiheit

Am writing to authorities today. Do you think then that I would be on solid ground in asserting that I am not liable for any payment while the business was closed. Should I assert this or grovel and ask them whether they would accept this position?.
Thanks
F

antoinolachtnai

I think grovelling will be the order of the day. You might not strictly speaking fit in the parameters, but they might decide to be friendly. Also, the refund is only for half the rates. (See below, the property should be up for rent to get the refund on rates.)

Have you talked to a county councillor? I would, as well as writing to the LA.

There are some notes here that might help (don't know what LA you are dealing with but they are all pretty much the same I think) :

http://www.galwaycity.ie/AllServices/Finance/AccountsReceivable/CommercialRates/

http://www.dublincity.ie/BUSINESS/COMMERCIALRATES/Pages/WhoPays.aspx#default_property

At the end of the day, I think you are going to have to pay up most of it, it's just a matter of deciding terms. Like I say, if there is no debt, and you are the outright owner of the property you should be able to sort it out.

DubTony

Watch out for that inheritance tax. I don't think you'll be able to lump it onto the business/company. There are thresholds, but that "debt" will be all yours, I'm afraid.

edit: Unless you're a sole trader, which won't make any difference anyway.

Freiheit

Thanks, I'm preparing a grovelling letter as I speak, well have a first draft composed. Had been told that expenses that I encounter in relation to the property could be deductable against inheritance tax? Again I'll try I suppose.

antoinolachtnai

outstanding rates from before your relative died are a debt for the estate so I'd say they'd be straightforwardly deductible. After the death, much more arguable, and after probate has been granted, very unlikely.

Anyway, these debts are just a debt you have to pay off.