When is council tax due

MoneySaverLog

I am buying a new build that will not be ready to move in until the summer, though exchange of contracts is in January.

My question is when would I have to start paying council tax on the property? Is it at exchange, when I move in, or some other point?

fed_up_and_stressed

You will be the what is known as the "responsible party" from when you take ownership regardless of whether the property is still empty or not.

Local councils now have the discretion to decide their own discount criteria. Some councils no longer offer any discounts for empty propeties and may even charge a surcharge as they are empty. Suggest you check this out on the website of the council for the area you are moving to.

MoneySaverLog

I shall call them in the New Year and check, thanks.

forgotmyname

Unless things have changed we had an issue where they couldnt issue us with a council tax bill until they had valued the property.

We moved into the property in May/June and they didnt send us a bill until October.
Then they wanted it all paid by the 5th of January or something daft.

Something to ask about.

jamesd

Also check when you have to have insurance covering the property.

dancingfairy

As far as I know exchange doesn't mean you have the house, more that you promise to buy the house at a later date (completion date) at a set price. Therefore I can't see that you are actually liable for council tax until the house is actually yours (completion date).
If it is empty and unfurnished at this point and you aren't moving in for a few days/weeks etc then you may be able to apply for a discount/exemption but each council is now in charge of deciding their own level of discount.
Further to this you may find some delays as it is a new build. You will need to wait for the valuation office to band your property. I assume to do this they would need to actually visit but they may be able to do this from the plans and sale price. Once is has been banded by the VOA then the council will be able to bill you. It may take several months for all the bits to join up so once you complete I suggest you start putting away what you think will be due so you are not left with a nasty surprise 6 months down the line.
df

macman

Do you not own the house at exchange, but without the right to occupy it until completion?
It's academc anyway, as you won't be liable for CT on an unfinished property that is still being fitted out-it's not habitable.

noh

macman wrote: »

Do you not own the house at exchange, but without the right to occupy it until completion?
It's academc anyway, as you won't be liable for CT on an unfinished property that is stil being fitted out-it's not habitable.

No the ownership is transferred at completion.

shjo558

The property will have to be entered into the valuation list first once the Council Tax band has been decided.

At that point, you can claim an exemption for up to 6 months, or until you move in, based on it being a new build property.

Councils have the power to charge extra for empty properties but as far as I know this power does not extend the exemption specifically allowed on new build properties.

mjm3346

As already said it will depend on your council

One council give this on new builds

"100% discount for up to 1 month followed by full charge"

and another regards them as complete quite early on


"However, it is generally taken to apply to a property that is weatherproofed (roof on and windows and doors fitted), plastered internally and having internal walls and stairs.
The property does not have to be connected to utilities or to have a bathroom and kitchen plumbed and fitted"

mjm3346

From the Gov uk site

Completion notices

Local councils usually send completion notices to new homes and properties that have had major home improvements. A completion notice tells you the day the council thinks your property was finished.
You have to start paying Council Tax from this date.

https://www.gov.uk/council-tax/second-homes-and-empty-properties