The deal with reposession, council tax, utilities etc

CIS

Not exactly 100% true. The council tax is only exempt for six months. We went bankrupt in November 2010, and applied for exemption on the property that we lost in the bankruptcy. We then stopped paying the council tax.

Your mistaken - most likely you were given a 6 month Class C exemption (unoccupied and substantially unfurnished). The Class L exemption remains in place until the property is otherwise disposed of or occupied (e.g. it is not time limited).

When a property is taken by a trustee in bankruptcy a Class Q exemption is applied with the same criteria as the Class L exemption.

The appropriate regulations are the council tax (exempt dwellings) order 1992 as amended but here's a quick summary of the various exemptions - http://www.gateshead.gov.uk/Benefits%20and%20Council%20Tax/Council%20Tax/discounts/EmptyPropertyExemptions.aspx

davetheman

We had 6 months exemption and not repossessed yet, so paying tax on both, should it be sold by next council tax year can we apply for 6 month exemption again

I thought once repossessed that we would not long be liable for this

CIS

hould it be sold by next council tax year can we apply for 6 month exemption again

Not unless there's a 6 week period of occupancy between the Class C applications.

I thought once repossessed that we would not long be liable for this

A common confusion is between council tax liability and having a charge to pay. You remain liable once repossessed (as you're still the legal owner) but you can claim a Class L council tax exemption.

davetheman

Sorry mention if not sold by next council tax year

So class L is not 6 months exemption then?

CIS

So class L is not 6 months exemption then?

A Class L is not time limited, as long as the criteria are met is can run indefinitely.

Sorry mention if not sold by next council tax year

Its not one 6 month exemption every council tax year - the exemption (and any qualifying criteria) run without regard to the council tax year - for example (a bit extreme but it illustrates the point) if a property became unoccupied and unfurnished in April 2000 it would be exempt for 6 months until October 2000. After this no more exemption could be awarded until the property was occupied. So if it remained empty from then until now it still wouldn't be entitled a further 6 month exemption until it has been occupied for 6 or more weeks, even though its 12 years later.

davetheman

Ok understand so need to push NRAM to reposses ASAP as secured loan took us to court in Sept and even though granted they no longer want, not paid mortgage since feb

CIS

From a purely council tax point of view the best thing is for the repossession to take place if the property is unoccupied.

davetheman

Has been empty since march, i did inform NRAM, am thinking sending keys to them and also saying no longer insured, but not signing voluntary repo as went BR 2009 and discharged 2010

Lou67

CIS wrote: »

Your mistaken - most likely you were given a 6 month Class C exemption (unoccupied and substantially unfurnished). The Class L exemption remains in place until the property is otherwise disposed of or occupied (e.g. it is not time limited).

When a property is taken by a trustee in bankruptcy a Class Q exemption is applied with the same criteria as the Class L exemption.

The appropriate regulations are the council tax (exempt dwellings) order 1992 as amended but here's a quick summary of the various exemptions - http://www.gateshead.gov.uk/Benefits%20and%20Council%20Tax/Council%20Tax/discounts/EmptyPropertyExemptions.aspx

Class L is where a property has been repossessed and there is an exemption for the building society or official receiver. If someone goes bankrupt (like me and several members on this thread and a couple of others on a couple of other threads,) and the house is still not repossessed after 6 months, then the bankrupt person is responsible for the council tax after that six month deadline.

So I am not 'mistaken.' I do believe though, that you are actually giving people misleading information, by implying that a class L exemption is available to them, when it isn't.. The Class 'L' only applies when the property has already been repossessed... so the building society or OR does not have to pay council tax. Someone who is still responsible for the property (like I was, and like the OP is,) cannot apply for class L, and if the property is still not repossessed after six months; they will have to pay council tax on that property until it IS repossessed.

Here is a list of the classes. It's for southwark council, but they all go by the same rules.

https://m.southwark.gov.uk/ShowForm.asp?fm_fid=625

And here are a couple of links that confirm that class L is only applicable when the property has already been repossessed, and not when the original owner is still responsible for it.

http://www.harrow.gov.uk/info/200028...council_tax/14

http://www.canterbury.gov.uk/main.cfm?objectid=17

People like the OP and myself are/were class C. And as I said, the exemption would only be for six months for the OP and anyone else who was still responsible for that property after that time, because it had still not been repossessed.

PippaGirl_2

Lou67 wrote: »

So I am not 'mistaken.' I do believe though, that you are actually giving people misleading information, by implying that a class L exemption is available to them, when it isn't.. The Class 'L' only applies when the property has already been repossessed... so the building society or OR does not have to pay council tax. Someone who is still responsible for the property (like I was, and like the OP is,) cannot apply for class L, and if the property is still not repossessed after six months; they will have to pay council tax on that property until it IS repossessed.

The OP clearly stated their property would be repossessed and was asking about liability for council tax, CIS was giving accurate clear NOT misleading information to the OP about their liability. Indeed YOU were the one deviating from the topic by bringing in a totally different scenario to this thread by talking about vacant houses not repossessed which could mislead people reading.