Council tax arrears on empty property; discretionary waiver for the Executors?

pinksprout

As Executor of my mother's estate I have recently received a huge tax demand for council tax arrears on her empty unsold property, back dated to September 2009.

I have been in touch with the Council to request clarification of the charges and to express my distress that such a irrealisable figure has accrued but, in the meantime, I am wondering whether anyone had any experience of acquiring any sort of discretionary waiver or reduced payment in this kind of situation? If, for example I offer to immediately pay the arrears for the current tax year is there any possibility that earlier arrears might be written off or am I being ridiculously optimistic and naive or just plain crazy?

Thanks!

Caz3121

There is a maximum of 6 months exemption can be applied for but not sure whether this can be backdated
http://www.adviceguide.org.uk/index/your_money/tax_index_ew/council_tax.htm

pinksprout

Thanks Caz for your prompt reply. Yes the 6 months exemption has been applied already (from March 2009 to September 2009) and the demand is for council tax from September 2009 to date. Thank you again.

CIS

The estate is obviously liable for the arrears and the monies must be paid as such. I have known arrears be written off if there was no money in estate but this is at the council's discretion.

agrinnall

CIS wrote: »

The estate is obviously liable for the arrears and the monies must be paid as such. I have known arrears be written off if there was no money in estate but this is at the council's discretion.

Why would a council ever do this? Clearly there is always money in the estate in this circumstance as the arrears relates to an unsold property.

CIS

Why would a council ever do this? Clearly there is always money in the estate in this circumstance as the arrears relates to an unsold property.

Which is why I've said it could be done if there was no money in the estate - obviously a property is certainly an asset especially where it is being sold soon.

Beetlemama

A property can have no value though, if the mother remortgaged or had negative equity it's easy for a property to effectively be worth nothing. We tend to think of "old" people (parents of adults) as having a fully paid off property, but times have changed and not all mothers are old or have had their houses long enough to have paid them off.

The property, if it is in the name "Exec of..." could be exempt from council tax still, if probate has not yet been granted and it has remained uninhabited.

When a property had been occupied by a single person, who either owned or rented the property and that person dies, the property is exempt from Council Tax payment for as long as it remains unoccupied, and until probate is granted.
Following a grant of probate, a further six months exemption is possible as long as the property remain unoccupied and has not been sold or transferred to someone else.
It is important that the executor(s) keep the council tax office informed of:

• the date probate is granted,
• details of the transfer or sale of the property or the end date of the tenancy,
• when the estate is settled.

These are the rules at our council.

John_Pierpoint

When the new owners take over a probate sale of a near derelict property, they can get in a tangle with the council tax, as the house may well already have had its 6 months tax holiday, especially in present market conditions.

Pennywise

Presumably, you can't pay the council tax out of the estate's funds which is why you're raising this question. If that's the case, i.e. the estate has no liquid assets such as bank balances, then ask the council to defer collection until the property is sold - they may wish to put a legal charge on the property - but should be happy that they'll eventually get their money out of the eventual sale proceeds of the property.

Have you also checked whether your council offer a discount for unoccupied properties, i.e. holiday homes or second homes, as you may be eligible for a discount with it being unoccupied, in addition to the standard six month exemption.