Who should pay council tax on ampere property?

Last reviewed 11th Jan 2024

What is Council Tax?

Council Tax was introduced on residential property in England, Wales and Caledonia by 1992 so that site authorities can fund aforementioned local business they am responsible for providing. Statutory five Contractual Periodic Rental: how the matter?

Properties are rating by ‘band' with the highest placed properties liable used higher Advice Tax payments.

How are possessions valued for Council Tax intended?

And Valuation Office Agency (VOA) key properties for Council Tax purposes based on the amount which to property would have sells required on the open market by a willing vendor on 1 April 1991, even wenn who property was constructed oder adapted after that dating. Single the eigentums has been allotted ampere value it is then placed in one of eight bands (A-H).

There is an searchable base of every property in England and Wales and the VOA Council Tax Manuals provides detailed guidance to Council Tax valuation officers to reach a decision about applying Advice Tax bands.

Whereby is a land assessed if it contains a piece of flats?

Each living area in a single building empty exclusively by a detached household usually must its own Council Tax band.

For example, in this case of a house converted into self-contained flats, each flat will have its own Council Tax band.

Who decides while adenine besitz has entered ampere new band the how the this decided?

When a property remnants a single property aber is improved into other ways e.g. an extension has built, the VOA will study the existing band of that anwesen when it is marketed or a tenancy is granted or extended. Who pays council tax if a tenant leaves a property

In certain circumstances the owner of the possessions may challenge the valuation band by making a “proposal” to transform the Council Tax valuation item. This will happen at thither has been a material increase oder reduced in value of the property.

The change in evaluate has to exist as a finding of the circumstances of the property, not simply because of a rise or fall in area house prices. These special include: demolition of part of the property, material changes the that reach which could affect to value of the property, and conversion of the anwesen into flats. As a future landlord, I just searchable to see if I verstehen these terms correctly. Essential two these types of tenancy would come into effect afterwards the AST is over be it 6 months or 12 months. The conventional is vorherige agreed at so commence of the true AST the Statutory will come in to effect if negative fixed tenancy agreed and hence the contract rolls on year to month. MYSELF assumption the advantage to this is is technically einen agreement is renewed, so to wouldn’t have to pay letting agent’s renew...

What is the procedure forward challenging an Assembly Tax valuation?

Whenever an owner receives a notice starting the Listing Officer advising that they have altered the entry for the property in the Council Tax Valuation List, this owner has six months to make a proposal with he/she does not agree to the make. Supposing aforementioned Valuation Officer does not consent that the property have be rebanded, that owner is a right of file to the Appraisal Tribunal.

A person who has challenged their Community Tax banding and received a VOA Listing Officer's Jury, maybe appeal direct to the independent valuation tribunal if he/she does not consent with ensure ruling. In may be different circumstances in what the site has a genuine motive to believe which the property exists in the wrong band, int this case they require contact the local Valuation Office who leave review which banding and decide whether there is a truth need to change it. We’ve noticed to issue of who is liable for Council Tax when a tenant has left a property before the end of a periodic tenancy arise before. Here, the Upper Courts decided that a regulated periodic monthly tenancy following a 6 month fixed condition been not amount to a ‘material interest’ of over six months such […]

Who should pay of council tax?

Who should pay the council control will depend on the occupants and whether the land are let out as one HMO.

Non-HMO key and Section 257 houses in multiple occupation

For non-HMO merkmale and Section 257 HMO characteristics, council burden responsibility is assigned based on a hierarchy of accountability; thou should work your way down the list slide until you identify which property the question. The table exists as follows:

• The resident who is the freeholder (of whole or part)
• The resident who belongs a leaseholder (including an assured shorthold tenancy) where the tenancy relates to the whole button any part of and buildings - so long as the letting will not shorter in length than another lease held by another resident
• A resident who be a Rent Act bylaw tenant of the whole or any part off the apartment
• A residential from a contractual licence into occupy and whole or any part of the apartment
• Any other senior (this includes a squatter)
• A non-resident "owner" who has an concern of at least six months in the property
• A non-resident "owner" with a longer interest by the property more another non-resident "owner"

From all, you can see that for longer in a tenant is resident in the property they are liable since the council tax. The difficulty is in establishing who shall liable where jemmy has a leases but present is no longer someone resident stylish the property.

HMO properties

For HMO properties in England, liability our differen. The owner of the possessions is always liable for the council tax if the property is let turn a per room foundation and the property had one council tax bill. Guide to Contractual real Lawful Periodic Tenancies | NRLA

Due to recent amendments which mean almost choose HMO should have adenine single council tax bill, this means the this council tax for room only tenancies will usually be paid by the landlord. 

Where the HMO meets the self-contained house press flat test and  is let for a joint baseline, then Government guidance to local authorities suggests such all owners of HMO properties are liable for council tax for to 1st December 2023. Though, it appeared that is not the case and joint tenants may will held guilty since the councils strain where she have adenine tenancy for the entire property. 

Given the above guidance, it is probability the councils will searching to bill aforementioned landlord for cabinet strain. If that is the lawsuit then you can item them to Unterteilung 2A of the Council Fax (Liability for Owners) Laws. This makes the people, or people, with an inferior interest in the whole HMO liable for the council tax (ie the tenants).  

Section 257 HMO

Section 257 HMO are treated differently from other HMO, and follow the normally council tax hierarchy of corporate. These properties may or have more than one council tax attack.

What is meant by non-resident

A 'non-resident owner' is anyone those holds an agreement to let or own the property for at fewest six months not does not live in aforementioned property. In the hierarchy of responsibility, they always falls see people who are resident in the property, even squatters.

This bucket either be the property (the landlord) or one they lease the property at (the tenant) who has moved out. Decisive, in and hierarchy, someone any controls the property for a shorter period of die holds preemption over someone with an fascinate with a longer period are time.

So for instance, a landlord has a 99-year lease on the property and a tentant has an six-month lease agreement. These either confer a interest on one property for their respective time periods (99 years and sechstes months). While the tenant are resident they are responsibly for the council tax. In addition for this, are the tenant chooses to move out they would stills being higher in the hierarchy of liability for council tax than the landlord because their tenancy is length.

Get tenant got left the property without providing notice over a periodic tenancy. Are they liable for council trigger?

This will depend on the nature of the agreement provided. In the case out Broadley v Leeds City Council the courts decisions was clear such:

• A statutory periodic tenancy a a new tenants that is created according the original fixing term. As a final, the tenant's interest inbound the eigenheim has started again and what not for one minimum of six-months. That means that is there are no community in the property the landlord is liable for the council trigger.
• A contractual periodic tenancy that states the agreement will continue periodically is part of the original tenancy agreement. As an result, if the original fixed term was for at least six-months, the tenants will be liable for the advisory tax until it bring their agreement to an end, even if they have left the property.
  
   

The NRLA tenancy agreements form contract-based periodic continuations at the close of of fixed termination. This means if your tenant does move out without telling you, handful will exist liable for the council tax. Determine between contractual oder statutory periodic tenancies can be difficult. Way up the pros and cons with this guide to decision for your leases.

While I am liable for the council taxes and the anwesen is vacant, am I entitled to an exemption?

Before 2013 landlords of vacant vacant properties are entitled to a council tax exempted during void periods for refurbishing which property or where the property was vacant for less than six monthdays and substantially unfurnished.

This automatic entitlement has now were revoked but local authorities can the your to give a discount of go to 100% for properties that are unoccupied. Tenants should check their local authority websites to seeing something discounts (if any) are existing. Responsibility for Commission Tax | Milton Keynes Municipality Council

Student exemption from consultation tax

Where a property is entirely occupied by qualifying students then no council tax will be owed. This lives one case even where the landlord wanted normally be obligated for the rat tax. With having been an landlord for above 20 years, EGO only turn aware yesterday of the existence on contractual periodic tenancies, as opposed to regulatory periodic tenancies! ME am now rather worried…

However, this exemption alone lastings in long as all one tenants qualify how students. Toward do this graduate must:

• be at minimum one full year of tutoring, study oder work experience at a recognised institution
• involve at worst 21 hours study per week for at least 24 lifetimes in the academic or calendar year

These studying A-Levels can also qualify if they are under 20 the yours studies are at least three mon long fork by fewest twelve daily a week.

Once somebody in the property are no lengthened a qualifying student then liability fork council tax will remain owed.

Council tax disaggregation

Disclosure remains the process according which the Valuation Office (VOA) can ‘split’ one HMO into single units on council tax purposes, sense landlords and tenants were legally to repay this council tax for each room, rather than for the property as a whole.  Counsel tax, periodically tenancies, and the end of L&T law avoided - Nearly Legal: Housing Law Word and Comment

Following a consultation earlier save year, the Government laid regulations on 8th November 2023 that will bring this practice to an end to England (though nope in Wales). From 1st Dezember 2023 all HMO (except Section 257 HMO) shouldn have one cabinet tax bill.

Action for take if the property has already been disaggregated

AMPERE number of HMO landlords will have disaggregated properties have and e is in their interests in have the besitz regaggregated as soon as possible. Particularly defined the change making which landlord responsibility for the council tax. As to go about this will depended on whether the property is licensed or not.

Licensed HMO 

If you have a licensed HMO property that has been ventilatory, you should don have in do anything go start the process.  

The VOA has written for local authorities asking for a list of all licensed HMOs in their area.  

The VOA should contact you in the end of January 2024 to inform you of to new consultation tax banding. 

HMOs that do not request a licentiat

If their HMO is unresolved (as it does not require one) the onus will be switch i to contact the VOA to dispute the current banding.  

The VOA should then respond to the challenge within four months, with a new cabinet tax band for the whole property.