Council Tax Bill

terrywilkinson

I don't know if anyone can advise me on this. My Father died in 2009 and his flat was mostly owned by a the company who manage the block for the tennants. We have not been able to sell the property as of yet and we are now getting Council Tax bills. My question is this, if the sale of the property when it happens does not cover the outstanding bills, there is no other money left, what happens to the debt. In other words are me and my brother in any way liable?

Terry

CIS

You wont be personnaly liable - the claim is against the estate not yourself.

If the property is jointly owned by the estate and a 3rd party then the 3rd party should also be liable - does the land registry show the company as joint owners ?.

terrywilkinson

Apparently the contract my father signed states that he is liable for the council tax not them.

CIS

The contract has no say in the matter when it comes to council tax liability - any agreement would be a personnal matter. Council Tax liability is decided purely by section 6 of the local government finance act 1992, the 'hierarchy of liability'.

Whilst your father was occupying the property then he was liable for the council tax however one he died he ceased to occupy it and the liability then falls on the owners for the period from that date

6 Persons liable to pay council tax.E+W

(1)The person who is liable to pay council tax in respect of any chargeable dwelling and any day is the person who falls within the first paragraph of subsection (2) below to apply, taking paragraph (a) of that subsection first, paragraph (b) next, and so on.

(2)A person falls within this subsection in relation to any chargeable dwelling and any day if, on that day—

(a)he is a resident of the dwelling and has a freehold interest in the whole or any part of it;

(b)he is such a resident and has a leasehold interest in the whole or any part of the dwelling which is not inferior to another such interest held by another such resident;

(c)he is both such a resident and a statutory [F1, secure or introductory tenant]of the whole or any part of the dwelling;

(d)he is such a resident and has a contractual licence to occupy the whole or any part of the dwelling;

(e)he is such a resident; or

(f)he is the owner of the dwelling.

(3)Where, in relation to any chargeable dwelling and any day, two or more persons fall within the first paragraph of subsection (2) above to apply, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(4)Subsection (3) above shall not apply as respects any day on which one or more of the persons there mentioned fall to be disregarded for the purposes of discount by virtue of [F2paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act] and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day shall be determined as follows—

(a)if only one of those persons does not fall to be so disregarded, he shall be solely liable;

(b)if two or more of those persons do not fall to be so disregarded, they shall each be jointly and severally liable.

(5)In this Part, unless the context otherwise requires—

*

“owner”, in relation to any dwelling, means the person as regards whom the following conditions are fulfilled—

(a)he has a material interest in the whole or any part of the dwelling; and

(b)at least part of the dwelling or, as the case may be, of the part concerned is not subject to a material interest inferior to his interest;

*

“resident”, in relation to any dwelling, means an individual who has attained the age of 18 years and has his sole or main residence in the dwelling.

(6)In this section—

[F3“introductory tenant" means a tenant under an introductory tenancy within the meaning of Chapter I of Part V of the Housing Act 1996;]

*

“material interest” means a freehold interest or a leasehold interest which was granted for a term of six months or more;
*

“secure tenant” means a tenant under a secure tenancy within the meaning of Part IV of the M1Housing Act 1985;
*

“statutory tenant” means a statutory tenant within the meaning of the M2Rent Act 1977 or the M3Rent (Agriculture) Act 1976.

If you look at section 2) a- f then it will help you decide who is liable for the council tax (in lieu of your father then it would be his estate who would be looked at). The person(s) who fall first in the list would be the liable person(s) for council tax.

The estate will likely be liable but its always worth checking as the company holder a large interest in the property.