Previously, companies in administration were liable for rates in respect of empty properties. The result, of course, will be to increase the assets available to the administrator and it will be one less ‘expense of the administration’ (such items are paid in priority to the remuneration of the administrator). The logic behind this change in the law is to put companies in administration in the same position as insolvent companies in liquidation (who are already exempt from paying rates on empty properties). Thus, this change will remove the significance of rates liability when deciding whether to enter into administration or to wind up a company (the point being that administration is actively encouraged these days as an alternative to insolvency). © Practical Lawyer