The three or six-month period of rates relief for empty properties begins to run from the moment the property becomes unoccupied – even if there is a T in administration or liquidation in occupation (who is, in any case, exempt from rates liability). For instance, suppose a T goes into liquidation and vacates an industrial property, with the liquidator then disclaiming the lease five months later. In that situation L will benefit only from the remaining one month of the six-month rates relief window. Likewise, if the disclaimer occurs after the relief window has expired, then L will immediately be liable to pay rates from the date of the disclaimer.

The possibility of L being hit by a rates liability immediately following the disclaimer of a lease by a liquidator, makes it worthwhile for L to examine carefully the liquidator’s notice of disclaimer for any possible flaws that might render the disclaimer invalid. Although the liquidator could then simply try to disclaim the lease a second time, the later date of the valid disclaimer will nevertheless defer the beginning of L’s rates liability.