council tax on voluntary vacant possession

Goldendolphin

Hi,

My house was tenanted until April 2014. it was put up for sale 3 months before that. I handed the keys over to the mortgage people on 7/5/14 in a voluntary vacant possession.

No one has lived in the house since the last tenants and I have never lived there.

It finally got sold the beginning of December and I have just received a letter from a debt collection about council tax owed saying enforcement process commenced. The total amount it £430 but I think some of that is charges.

I'm assuming the council tax is for this last few months but should I be paying it if the property has been vacant and the keys were handed to the bank?

Also, I've only just received any notice of this. Never heard from the council before this, I guess because they were writing to the property address.

Any advice welcome

Thanks

G_M

Vacant property discount varies between councils. Ask them their policy, then put in a written statemet giving the vacancy dates.

I'm not sure how "voluntary vacant possession" works with morgage lenders, but I'm guessing that from the date you handed back the keys (assuming the lender accepted them), the lender took 'ownership' and therefore was liable for CT from that date.

But I may be wrong and you may be liable up to the date of the sale.

davidmcn

The lender should be responsible from the date of possession as they're the occupier (and I think may be due an exemption while the property is empty). Obviously, it helps if you tell the council tax office at the time (though the lender should also do that).

theartfullodger

Did you write (yes, WRITE! - keeping a copy) to council tax people & electric, gas & water people with meter readings when last tenant left & when mortgage lender took possession?

If so check the bill against the dates & see if it looks correct.

Paying valid tax is a kinda fundamental for any patriot..

CIS

davidmcn wrote: »

The lender should be responsible from the date of possession as they're the occupier (and I think may be due an exemption while the property is empty). Obviously, it helps if you tell the council tax office at the time (though the lender should also do that).

The lender's very rarely notify the council as the have no legal interest in doing so - the actual owner of the property remains liable for any council tax charge (although there is a Class L exemption for an unoccupied and re-possessed property).

davidmcn

CIS wrote: »

The lender's very rarely notify the council as the have no legal interest in doing so - the actual owner of the property remains liable for any council tax charge (although there is a Class L exemption for an unoccupied and re-possessed property).

Our firm does it as standard when we take possession.

The lender's interest is in taking reasonable steps to mitigate the borrower's liabilities - they get a bit paranoid about such things these days.

CIS

davidmcn wrote: »

Our firm does it as standard when we take possession.

The lender's interest is in taking reasonable steps to mitigate the borrower's liabilities - they get a bit paranoid about such things these days.

They must be one of the few who do - the number of times I've had to chase lenders or get the information 2 or 3 years down the line is ridiculous.

Goldendolphin

Thanks all those that replied.

I contacted the council and thought it was all settled.

However had another letter through my door the other week. Since then I've sent the vacant voluntary repossession notice to the council which has a date of the 7/5/2014 on it. They told me over the phone they are charging council tax for a month (30 days) through may/14.

They have sent me a letter from the bank saying the repossession happened on the 13/05/14. However I handed the keys over to the bank on the 7/5/2014. So when should council tax be paid until?

Secondly, my management company at the time say they forwarded my address to the council. The council are saying that all notices have been served correctly as they didn't have a forwarding address and they served all notices to the property that I never have lived in or even near and it was vacant and in the banks hands.

I only heard anything about this when I got the letter as mentioned at the beginning of this thread. They are charging me £400+ for council tax, that if I'm legally entitled to pay, (the property was vacant since tenants moved out) should equate to about £20.

I dont have £400 to pay them so would like to try and get this sorted without having to pay all the fines etc they've put on top.

What should I do next? I have tried to argue that notices weren't served correctly as they were sent to the wrong address and they are trying to charge my (now they say to the 13th May) when the notice from the bank to them say the repossession happened. Also note the date on this bank letter is Oct last year, so several months after.

Thanks

CIS

They have sent me a letter from the bank saying the repossession happened on the 13/05/14. However I handed the keys over to the bank on the 7/5/2014. So when should council tax be paid until?

The Class L exemption applies from the date that the company formally took back possession of the property.

Secondly, my management company at the time say they forwarded my address to the council. The council are saying that all notices have been served correctly as they didn't have a forwarding address and they served all notices to the property that I never have lived in or even near and it was vacant and in the banks hands.

You would have to show that the council received the information and did not act on it otherwise they are correct in that they sent docs to the last address held. To be perfectly honest I'd be rich if I got a £1 for every time a managing agent had already 'sent the information' only for it to get 'lost' on the way.

Goldendolphin

ok thankyou,

So are you saying if I dont have evidence of the councils receiving of the forwarding address that I will have to pay all the fines even though I had no knowledge?

I'm a single parent and currently studying with £20k to pay as the property was in negative equity.

I can pay them the 2 weeks council tax if I'm eligible no problem, but they'll be waiting a long time for £400 as I have so much else to pay off first..

lincroft1710

Goldendolphin wrote: »

I can pay them the 2 weeks council tax if I'm eligible no problem, but they'll be waiting a long time for £400 as I have so much else to pay off first..

Council Tax is a priority debt, the council will try to set up a payment plan where there is hardship, but if they cannot, it will be the bailiffs.