Council tax question

poppysarah

Single person gets 25% discount on their council tax

If they take in a lodger who is signing on - will they lose their council tax discount - or does the lodger get any CT benefit?

RAS

Depends on the situation - CIS answered a few queries on this recently.

As I recall, if the lodger has a permanent address where they would pay CT elsewhere (in short-term lodgings, Mon-Friday for example), then there is no CT liability at the lodging, so the occupier retains their single person discount.

If the lodger has no other permanent abode then they are liable for CT at the lodging, the occupier loses the discount and there is a potential to claim CT benefit.

poppysarah

Thanks

I have tried searching for posts by CIS but haven't managed to find any yet.

So how much CT benefit can the person claim? Half the CT?

I'll have another search
Thanks

I have found CIS now and am ploughing through posts!

HappyMJ

poppysarah wrote: »

Thanks

I have tried searching for posts by CIS but haven't managed to find any yet.

So how much CT benefit can the person claim? Half the CT?

I'll have another search
Thanks

Is the lodger paying rent?

poppysarah

They will be - will have to apply for LHA though until he gets a job (at which point he knows he'll be paying for everything himself)

salau2

Council tax can be considered as "registered to the property and the liability for it depends on who is the occupier of the property.


If the landlord lives in the house they would be liable and should collect a portion of the liability from the lodger. However, if the landlord lives in a house where there is more than one tenant who occupies a flat which is individually assessed for council tax, then the tenants may be liable directly to the local authority.



Therefore, a tenant who occupies a house or flat as an exclusive tenancy will almost certainly be liable to pay the CT direct to the council, and the landlord would only have liability if the house has been empty and ceased to attract a “zero charge”. If the individual was liable for CT then they could have a “at first instance” claim for CTB.



Moreover, there are exemptions for students and persons under 18, discounts for single occupancy etc. The definition as to who is liable for CT is laid down in law and the definitive answer should come from the local authority for the area.

For tax purpose the Government has a rent a room scheme which allows you to receive up to £4,250 a year tax-free You have one month to appeal a council tax decision.

poppysarah

It's a lodger in a room... not a tenant.

I think I'm more confused than ever. Should I just tell them to contact the council tax dept at the council and assume they'll know for sure what they want?

Red_dog_Sam

If your lodger pays you rent then you will lose your single discount and they won't get any CT benefit.

Second adult rebate (SAR) can apply to lodgers but is only awarded if the person sharing your home does not pay you rent. In those circumstances, you can claim a second adult rebate based on the other person's low income and still get up to 25% reduction through the SAR award.

As indicated in earlier posts, this also assumes that the lodger is over 18 and that this becomes their sole or main residence.

RAS

Red_dog_Sam wrote: »

If your lodger pays you rent then you will lose your single discount and they won't get any CT benefit.

Wrong

poppysarah post up on the renting forum, where CIS inhabits often.

And try this thread for starters https://forums.moneysavingexpert.com/discussion/3589707

CIS

In respect of CTB there fact that the person is a lodger/tenant/ 'resident friend' is a moot point as the resident landlord is always liable for council tax and any CTB claim would have to be made by the landlord.

The lodger will affect the single person discount only if the property is their 'sole or main residence', i.e they live there as their home. In that case the single person discount will no longer be claimable *.

If the property is not the lodgers 'sole or main residence' then they have no affect on the single person discount.


* if the lodger is a student/apprentice etc there may be a discount which can be claimed.

Red_dog_Sam

Not wrong. The post by CIS actually backs up my comments.