Complicated Case - Student Council Tax

lincroft1710

anselld wrote: »

That depends on the answer to the other questions you have asked.

Only if the annexe were let to 3 or more tenants on separate tenancies could it be a HMO

http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Repairsandstandards/DG_189201

anselld

lincroft1710 wrote: »

Only if the annexe were let to 3 or more tenants on separate tenancies could it be a HMO

http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Repairsandstandards/DG_189201

I meant if it were not in fact classed as a separate residence to the main house, as the council records would seem to indicate.

LL is then responsible for the CT and may have a nasty surprise downstream if that has not been allowed for in the rent.

Equally, if it turns out to be a separate residence I can't see the Council being too happy with the LL claiming "nothing to do with me it has been rented for the last n years".

Either way it could open up a can of worms for the LL.

lincroft1710

But as I pointed out in a previous post the effective date of the annexe cannot be backdated, so LL won't receive any backdated CT bills for this. The existing tenants of the main house are all students, so whether main house is HMO or not, no CT is currently payable.

From the VOA Council Tax Manual

http://www.voa.gov.uk/corporate/Publications/Manuals/CouncilTaxManual/council_tax_man_s2/o-ct-man-s2-app2.9.html

Effective Dates

Disaggregation Issue (1):

Original compilation error

Incorrectly shown as one, where hereditament should have been shown as 2 or more dwellings under Article 3 CT (Chargeable Dwellings) Order.


Date Of Schedule*

* The date on which the CT band is entered into the Valuation List and council and occupier are notified.

anselld

lincroft1710 wrote: »

But as I pointed out in a previous thread the effective date of the annexe cannot be backdated, so LL won't receive any backdated CT bills for this. The existing tenants of the main house are all students, so whether main house is HMO or not, no CT is currently payable.

From the VOA Council Tax Manual

http://www.voa.gov.uk/corporate/Publications/Manuals/CouncilTaxManual/council_tax_man_s2/o-ct-man-s2-app2.9.html

Effective Dates

Disaggregation Issue (1):

Original compilation error

Incorrectly shown as one, where hereditament should have been shown as 2 or more dwellings under Article 3 CT (Chargeable Dwellings) Order.


Date Of Schedule*

* The date on which the CT band is entered into the Valuation List and council and occupier are notified.

Ok thanks. I had not read the backdating bit before posting my last.

Hopefully for the OP the LL will not mind being enlightened on the CT issues then. We will see what tomorrow brings.

benham3160

Thank you all very much everybody, useful stuff to go armed with. Am a little anxious about the LA saying "I don't know a lot about council tax really...." but we shall see what happens.

I shall go in armed with this information, then advise them to either make a free appointment and get us a true council tax bill (yes, we actually want one lol) or stay with the voided property.

The loopholes you have to jump through to actually pay tax!! We just want to be honest and pay an honest reflection within the rules, not pay 75% of a house we only actually inhabit 25% (don't worry, we'd walk away if that actually happened)!

I'm not being picky here for demanding that they get the council tax affair sorted before we agree am I? If they don't seem helpful I shall gently remind them it's a legal obligation for the annexe to be treated as a separate property anyway.

Regards,
Andy

anselld

Not picky, absolutely correct to address it all up front. Good luck!

CIS

I'm not being picky here for demanding that they get the council tax affair sorted before we agree am I? If they don't seem helpful I shall gently remind them it's a legal obligation for the annexe to be treated as a separate property anyway.

The banding of a property is the decision of the Valuation Office - the council can pass information to the VOA but cannot force them to make a decision. Council Tax can only be charged once a property has been banded.

jennifernil

Very interesting discussion.....could I ask a question of the experts on here?

We are in Scotland, built our house to our own design in 1988, it is in the top band for Scotland.

On the ground floor we have front door, hall, double integral garage, 4 bedrooms, box room, utility room with door to outside, 2 bathrooms, and various cupboards. Upstairs we have a lounge/dining room with patio doors to sun room and balcony, kitchen/living room with patio door to outside deck, and toilet.

Then we have another living room with door to shared sun room, kitchen, bedroom and bathroom, this "granny flat" was originally used by my Mother, but she died in 2001. Now our daughter has moved into this area, and the kitchen has become mainly a storage area.

This has never been banded as a separate dwelling, must say it never crossed my mind that it might be considered a separate dwelling, we just use it as part of the house now. There is no separate access from outside (not allowed under planning conditions), no direct access to outside at all, no door between the main house and the part my Mum used.

So what defines a separate dwelling?

dimbo61

To answer your question Jennifernil this is part of your property and not a seperate annexe.

If I owned the student property and you asked me if you could rent the annexe and contact the council to arrange a VOA and have the annex put into a seperate council tax banding I would say NO
This gives the Landlord an ongoing council tax problem he/she would not want

lincroft1710

dimbo61 wrote: »

If I owned the student property and you asked me if you could rent the annexe and contact the council to arrange a VOA and have the annex put into a seperate council tax banding I would say NO
This gives the Landlord an ongoing council tax problem he/she would not want

It is not what a landlord wants or does not want, it is what the relevant legislation says.