Council tax underpayment ?

conners100

Before moving back to Ireland about ten years ago, my parents purchased a property in London. They wanted to buy something for me and also somewhere for themselves to stay on their frequent visits back to the UK.

They purchased a house in which much DIY had been carried out prior to their purchase.

Basically, they bought something which had pretty much been converted into two separate flats (including separate gas, electric etc) although some work remained to have the the separation completed. The idea was that we could both have our privacy when in the property at the same time.

Anyhow, I lived in the downstairs part for a few years whilst my parents used the upstairs for storage and occasionally came back and stayed there themselves for a few weeks at a time. All along we were paying council tax as a house.

Approximately four years ago, i got married and moved out. I put some tenants in the downstairs flats and on a few occasions also had tenants in the upstairs flats (as my parents visits had become less frequent), although very little overlapping (i,e, people there at the same time). I continued to pay the council tax as a house and from the tenants perspective that was included as part of the rent.

Anyhow, the properies are now in need of some repair and i am wanting to invest some money in them. I will be seeking permission from my local council to convert the properties officially into two flats, thus meeting all the building regs now in place.

Hopefully that will all go ok, however, my concern remains with the council tax issues. Will they try and say that even though they didn't recognise the property up until this point as two flats and wouldn;t have done so given the way the work had been completed, that i should have been playing the council tax for two flats all along, even though both flats were rarely occupied at the same time ?

Just to add the reason that i didnt bring this to the attention of the council sooner is that i did not have the money to put the house back into its original state and was concerned that this may be requested of me.

Anyhow, any advice would be appreciated.

CIS

Hopefully that will all go ok, however, my concern remains with the council tax issues. Will they try and say that even though they didn't recognise the property up until this point as two flats and wouldn;t have done so given the way the work had been completed, that i should have been playing the council tax for two flats all along, even though both flats were rarely occupied at the same time ?

The decision would be that of the Valuation Office - the council don't band properties. From the date the Valuation Office band the property then council tax will be due for it.

From what you have said it does look like it should have already been banded seperately but again only the Valuation Office can make the decision.

conners100

CIS, thanks for that answer. Yes I kind of agree, it probably should have been banded as two separate properties, however, there is no way that the council would have passed it off as two separate flats given the state it is currently in. It doesn't meet the many regs which i am sure they have in place.

I'm trying to get it all done properly but will probably feel pretty harshly treated if i end up getting punished as a result of trying to do that.

Anyhow, I appreciate your feedback.

conners100

CIS, i think i missed one key point of your reply. You mentioned the valuation office. Are they not part of the council ?

CIS

The Valuation Office are part of HMRC and are independent of the council in England & Wales. In scotland its the scottish asessors office but their linked more closely with the council.

The properties may have been incomplete but that doesn't always prevent them from being banded as seperate properties for council tax purposes.