Council tax charges for vacant property

inglorius55

Was looking for a bit of advice please, basically about 3 years ago myself and my sibling inherited a property, at the time we decided that we should spend some money renovating it before selling it on, which has been a slow, painful process with many lapses. As my sibling is an accountant we agreed that they look after the financial side of matters being the point of contact for the local council and dealing with probate, myself dealing with property insurance and bills.

To say I was surprised to hear at the weekend that the council have written to them saying she is now liable for back council tax on the property since probate was granted is the understatement of the year, especially to the tune of £6,000 - before I go jumping in with both feet am looking for advice as to why suddenly the local council has decided that they are going to charge council tax for a vacant property and backdate it, or whether they are entitled to do this at all?

ognum

Was it reported to the council as vacant? Do you have an agreement in writing as to how long it will be nil rated?

Most councils will agree no payment until probate is granted and then maybe 6 months free and then full payment.

Some councils charge a penalty for empty property and also penalties for late payment. You or your relative need to get a breakdown of from the local authority.

Since April may councils have since April eliminated some nil bands.

scottishblondie

Council tax is still due on a vacant property. Some councils provide an exemption for properties which are uninhabitable or vacant, but this varies and is at the council's discretion, and is usually only for a few months. Many councils have now done away with it altogether in an attempt to cut down on the number of empty properties.

TBH it sounds like there has been some mix up at the council if they haven't been in contact with you in all that time, but as far as I understand they are well within their rights to charge the owners or the owner's estate as far back as the liability goes.

Werdnal

Up until April this year, uninhabited and unfurnished properties qualified for up to 6 months nil council tax. This was abolished by most councils from April, although on their discretion, they can grant 6 months 50% discount, or 1 month nil charge - depends on your area.

Did you apply for any discount/reduction? It is not granted automatically, you have to ask for it. Not sure why you think the place can be left completely vacant and you pay nothing; were you given misinformation at the time, or any written exemption? Three years is a long time to renovate and sell it!

Get it sorted, sold or rented to give someone a home, rather than leaving it empty!

Chippie

If you haven't replaced either the kitchen or bathroom yet, take it out and get the council to inspect it. Tell them it's uninhabitable and they then can't charge council tax. However, whether this will wash after this long I am doubtful. When we refurbish properties the first hing we do, on day of completion is take out bathroom or kitchen (they're normally coming out anyway) and get the council to inspect it to confirm its uninhabitable. That way you normally get 6 months CT free which is more than enough for most refurbs.

scottishblondie

Chippie wrote: »

If you haven't replaced either the kitchen or bathroom yet, take it out and get the council to inspect it. Tell them it's uninhabitable and they then can't charge council tax. However, whether this will wash after this long I am doubtful. When we refurbish properties the first hing we do, on day of completion is take out bathroom or kitchen (they're normally coming out anyway) and get the council to inspect it to confirm its uninhabitable. That way you normally get 6 months CT free which is more than enough for most refurbs.

I don't think this will help them now that the property has already been empty for 3 years? Especially if they've already had an exemption applied previously, as I believe the property has to be occupied for an amount of time to eligible for another exemption.

embob74

Council tax funding has changed dramatically and councils now have to claw money in so that they can distribute it to those entitled to a discount.
In our area the information given out was that a discretionary discount may be given for an empty property but only for a maximum of 6 months and thereafter there is a possibility it will actually be 150% of the usual council tax bill.

CIS

Was looking for a bit of advice please, basically about 3 years ago myself and my sibling inherited a property,

Any Class F exemption regarding a property awaiting probate would have ended at this point.

To say I was surprised to hear at the weekend that the council have written to them saying she is now liable for back council tax on the property since probate was granted is the understatement of the year, especially to the tune of £6,000 -

An incorrect discount or exemption can be removed retrospectively- back to the start of council tax if required.The liable party ( the person named on the bill) is responsible for ensuring that they claim discount & exemptions correctly.