Council tax rebte-landlords perspective

marc3

Our tenants have just left the property.
tenancy agreement ends mid dec, but went on 30 nov albeit paid up until mid dec so no rent issues.
they also accepted were responsible for council tax until end of tenancy.
all ok so far

that is until local council stepped in.
tenants notified council had physically left property on 30 november-fine.
as landlords-we accept under new rules-we are now responsible for council tax-albeit we get 100% discount in month one and 25 % months 2-6.
again all ok so far.
However, the 100% discount is apparently applied only for 14 days:-
as tenants physically left on 30 november, even though they initially accepted thay are resonsible for it, the council has told them they are not,and advised myself ,that as landlords we only get 100% rebate from 15 december until 30 december,as the property is physically empty between 30 november and 30 december.
everyone keeping up!

whats more-apparently the outgoing tenants get the benefit of the first 15 days rebate off their new property.

Nothing surprises me-and whilst perhaps many will agree this is morally wrong, is it actually correct info that the council are telling me.
It just seems completely illogical to me.

why do we as landlords simply not get a full month one (28 day) discount ?

If someone could confirm that the council are correct in the way the have handled it-fine-i'll just kick the cat and move on;but i just cannot follow the logic;and do just hang on to a glimmer of hope that maybe the council have go this wrong

replies and guidance appreciatd.

thank you

nidO

If i'm understanding your situation correctly, i'm not sure what you feel the council have done wrong.

Your property can benefit from a 100% council tax reduction for a period of 1 empty month (presumably in any given council tax year).

This benefit is on the property not the person living in it/responsible for its tax, so if the tenants left the property on 30/11/2013 and retained the lease on the property until 14/12/2013, then they are entitled to claim their rebate from the council during this period as they were responsible for the tax, and weren't in the property.

This then leaves a remaining half month's rebate available which you're then claiming from 15/12/2013 until 30/12/2013, as the council tax became your responsibility as of the 15th.

LittleMax

Consider yourself lucky you get any discount, our council completely removed class c exemption ;-)

But the rules have been applied correctly by the Council, as nidO has explained above.

whalster

I have thought about this a lot as we have been in the same situation.
Firstly as I understand your post the tenants will not be able to carry forward exemption to a new property however they can claim the full month exemption on their/your property .

Either way you will be bitten by this ,if you were in an area that charged full council tax you can deduct it from the deposit for the perid u to the end f the tenancy just like you would electricity or gas however as soon as they move your hit with council tax .

In an area like yours and mine at least you have the month giving a fair chance of re letting after turn around ,even like your situation I have let them again within two weeks , ask the tenants if it is ok to show prospective tenants around so you have a running start they may say no bit none of mine ever have .

Remember there are some charged at 150% which is like nicking your watch while shaking your hand certainly as housing associations who have the most empty property still get a six month exemption as thy are ' registered charities '

Kynthia

The tenants are liable for CT but that liability in £0 between end of Nov and mid-Dec as they are entitled to claim the empty property discount. Then you get to claim the remainder of the discount once you become liable for CT. The same has happened to other landlords and new buyers who expected to claim the discount but found it had been used already.

jamie11

Hang about! Ain't CT paid in 10 monthly installments? so they would have paid the whole year by now? Or is this only my council?

katejo

jamie11 wrote: »

Hang about! Ain't CT paid in 10 monthly installments? so they would have paid the whole year by now? Or is this only my council?

It is paid in 10 installments but that is just the way it is organised. A solo occupant who takes in a lodger in February or March still has to inform the council and an additional payment to cover those months will be added to their bill for the following year. I have just had an adjustment as my lodger moved out last week but I will have to declare any new lodger who moves in before April. Feb and March aren't void months.

Zoology_Dragon

Why would the tenant be liable until the end of January when their tenancy finished in mid-December?

Also what katejo said about the installments, CT isn't free in Feb and March it's just the way it's set up. If you live in a property from only April-December (for example) you would receive a CT rebate to take into account that you weren't there during the "free" months. I should know, I've moved house and done this often enough

paddedjohn

You can have your council tax spread over 12 months now.