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Council Tax - Renting and owning overlap

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BradZ
BradZ Posts: 21 Forumite
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in House buying, renting & selling
Me and my partner currently rent and have just exchanged contracts on a property we are buying, We are due to complete on the 19th of January and we have our flat until the 9th of Febuary. We will be moving things from the flat to the house (both properites are covered by different councils) as soon as we get the keys on the 19th, more then likely we will be living there from the 19th. We will then use the few weeks left on the flat tenancy to clean the flat etc. I pay our current council tax monthly by DD on the 3rd of the month. Me and my partner are both listed on it. Will we be able to both be named on both for the short period it overlaps? Ive also just looked online and when moving it asks for things like end of tenancy, date moved out and date furniture is moved out, does this mean the price will increase or decrease if we move out before the end of tenancy? i dont want to pay more then we are. Worst case i can take my partner off of it and put him on the new one.

I hope this makes some sort of sense!

Thanks
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  • G_M
    G_M Posts: 51,977 Forumite
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    You will be responsible for the rented property's council tax till the tenancy ends. If you are not living there and the property is empty, you may be entitled to an Empty Property discount. Check with your council as policies vary.

    You will be responsible for the new property's council tax from the date you Complete. If you remain in the rented property and the new one is empty, you may be entitled to an Empty Property discount. Check with your council as policies vary.

    But you must inform both councils of tthe relevant dates (tenency end and Completion of your purchase. If there is an overlap you will be liable on both.
  • CIS
    CIS Posts: 12,260 Forumite
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    Whether or not you are liable under s6 of the LGFA92 for the council tax on the property you are vacating early (between the date of vacation and the end of the tenancy) depends on the terms of the tenancy agreement. In most cases you would remain liable for the council tax charge on the property which you have vacated early but it's not always a given that it will be the case.

    If you vacate early and you remain liable for the council tax charge then the property would be given whatever the reduction is in your area for an unoccupied and unfurnished property - for many local authorities the reduction has now been reduced to 0%.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • BradZ
    BradZ Posts: 21 Forumite
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    Great - thank you for the response, we will be letting both councils know. We didnt know about the empty property discount so thanks for that, ill look into :)
  • CIS
    CIS Posts: 12,260 Forumite
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    BradZ wrote: »
    Great - thank you for the response, we will be letting both councils know. We didnt know about the empty property discount so thanks for that, ill look into :)

    Assuming you do vacate before the end of your tenancy agreement. Until the actual end of your tenancy agreement...

    If you are still within the fixed period of the contract then you would remain liable for the council tax charge until the end of that fixed period.

    Where the fixed term has ended you will then cease being liable for the council tax charge unless the tenancy continued from the fixed term under a contractual term.

    A common error is to assume a liability for rent and a liability for council tax are one and the same - they aren't as it should be remembered that council tax liability is governed specifically by council tax legislation.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    CIS wrote: »

    If you vacate early and you remain liable for the council tax charge then the property would be given whatever the reduction is in your area for an unoccupied and unfurnished property - for many local authorities the reduction has now been reduced to 0%.

    Is the tenant allowed to apply for that reduction, or only the property owner? And how unfurnished does it need to be? Most rental properties will include some items, such as white goods, even if they are let as unfurnished.
  • CIS
    CIS Posts: 12,260 Forumite
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    agrinnall wrote: »
    Is the tenant allowed to apply for that reduction, or only the property owner? And how unfurnished does it need to be? Most rental properties will include some items, such as white goods, even if they are let as unfurnished.

    If the tenant is liable for a period where there is no resident then they can apply. The wording of the regulations is 'Substantially unfurnished'. This is not defined in legislation but in the general interpretation for council tax appeals etc is that fixed white goods are not taken to be furniture for the purposes. The general rule of thumb is that 'furnished' would be enough furniture to make the property liveable at a basic level - so a few chairs would not be but a bed and settees probably would be.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • Dave_®f©
    Dave_®f© Posts: 228 Forumite
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    You live in the flat for the overlap and hubby lives in the house for the overlap. Apply for 25% single person discount on both until you move in together. It is money saving site after all. ��
  • theartfullodger
    theartfullodger Posts: 14,661 Forumite
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    Dave_®f© wrote: »
    You live in the flat for the overlap and hubby lives in the house for the overlap. Apply for 25% single person discount on both until you move in together. It is money saving site after all. ��
    Sounds like fraud to me: I could of course be wrong...
  • Dave_®f©
    Dave_®f© Posts: 228 Forumite
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    Of course you could be. You don’t know the living arrangements of the original poster. Me neither. Or the council. Just a suggestion for practical arrangement temporary. Cheapest option at an expensive time for op.
  • CIS
    CIS Posts: 12,260 Forumite
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    theartfullodger wrote: »
    Sounds like fraud to me: I could of course be wrong...

    In this case it can be quite permissible under the council tax system.

    If one person moves out and has no intention to return then the property ceases to be their 'sole or main residence'. This means that Person A could vacate, Person B would then remain with a 25% discount at the old property. Person B has never been resident (yet) in the new property so Person A is the sole resident on the new property and could claim a 25% discount.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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