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Council tax bill from 4 years ago

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  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    It was your responsibility to inform the local authority that you'd vacated the property when you did. Any reduction in CTax liability due to the property not being occupied would have been for the landlord to apply for, not you. A new incoming tenant should have informed the council of their liability at the start of their tenancy but they might not have done. Which might explain why the council are now chasing you for the arrears for the four months left on your tenancy agreement.

    WRITE to the council giving the date you left the property, and enclose any correspondence you have to hand which confirms your CTax was paid by your new employer. Direct the council to check their records for when the new tenants moved in. You might get away with not having to pay for the four months which remained on your TA but you might not.

    Losing in court might mean an attachment of earnings, rather than being thrown in the clink but it could very well mean getting a CCJ on your credit-record and you definitely don't want that, so if it's a choice between contesting it in court and risk losing or paying up in full before the court-date I'd choose the latter..
  • ashp_2
    ashp_2 Posts: 416 Forumite
    Ninth Anniversary Combo Breaker
    edited 1 June 2015 at 3:59PM
    Thank you for your advice.

    I believe the property did remain empty for the remainder of the tenancy at least.

    I have been reading The Council Tax (Exempt Dwellings) Order 1992 and figured my property fits under this pretty well:

    Class C: a dwelling which is unoccupied and has been so for a period of less than 6 months since the last occupation day and which is substantially unfurnished and has been so throughout that period;

    No expert in law but surely that staement is in my favour!?!

    I am currently writing a carefully worded response to the council.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ashp wrote: »
    Thanks, Yes it is stated in my employment contract that my council tax will be paid on my behalf by my employer and that commenced the day after I left the rented property. I could prove this one way or another in court if neccasary.

    If I don't pay and end up in court will this work in my favour?

    I have spoken to the letting agents we rented from and they are also implying I am responsible for this bill.

    If you were resident then you are (except in specific circumstances) responsible for the council and no agreement with the employer can change this so it would have no bearing on the court. The same would apply for any period in which there is a tenancy agreement in your name.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It was your responsibility to inform the local authority that you'd vacated the property when you did. Any reduction in CTax liability due to the property not being occupied would have been for the landlord to apply for, not you. A new incoming tenant should have informed the council of their liability at the start of their tenancy but they might not have done. Which might explain why the council are now chasing you for the arrears for the four months left on your tenancy agreement.

    WRITE to the council giving the date you left the property, and enclose any correspondence you have to hand which confirms your CTax was paid by your new employer. Direct the council to check their records for when the new tenants moved in. You might get away with not having to pay for the four months which remained on your TA but you might not.

    Losing in court might mean an attachment of earnings, rather than being thrown in the clink but it could very well mean getting a CCJ on your credit-record and you definitely don't want that, so if it's a choice between contesting it in court and risk losing or paying up in full before the court-date I'd choose the latter..

    You will not get a CCJ for council tax arrears - the equivalent for council tax is a liability order and this has already been granted for it to get this far. Council tax non-payment cases are heard in the magistrates court, not the county court.

    The court will not issue an attachment of earnings order although the council could issue one themselves.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ashp wrote: »
    Thank you for your advice.

    I believe the property did remain empty for the remainder of the tenancy at least.

    I have been reading The Council Tax (Exempt Dwellings) Order 1992 and figured my property fits under this pretty well:

    Class C: a dwelling which is unoccupied and has been so for a period of less than 6 months since the last occupation day and which is substantially unfurnished and has been so throughout that period;

    No expert in law but surely that staement is in my favour!?!

    I am currently writing a carefully worded response to the council.

    If the property was unoccupied and unfurnished then a Class C exemption is an option as it was still in existence at that point in time.

    There is no restriction in council tax legislation to prevent the backdating of the exemption however if the council refuse to do so you would need to appeal to a valuation tribunal as it's not in the courts powers to consider this. Unfortunately, whilst any appeal is ongoing, the council can continue to take any legal action against you for the balance outstanding.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • ashp_2
    ashp_2 Posts: 416 Forumite
    Ninth Anniversary Combo Breaker
    CIS wrote: »
    Unfortunately, whilst any appeal is ongoing, the council can continue to take any legal action against you for the balance outstanding.

    Would be interested to know what happens if they commence legal action and the tribunal find in my favour afterwards?!

    I have spent the last hour reading tribunal appeals relating to council tax and found a situation similar to mine where the tenant moved out a few months early but actually kept the keys untill after the tenancy ended.
    The tribunal ruled in favour of the tenant. Stating that the Class C exemption started when she vacated and not when she gave the keys back.

    I vacated and gave the keys back 4 months early!

    From what I have read it would be highly unlikely if it went to a tribunal that it would go against me.
    I will write to the council and go to a tribunal if required I do not plan on paying this.

    Thanks again for the help.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Would be interested to know what happens if they commence legal action and the tribunal find in my favour afterwards?!
    The council tax charge is considered to be correct in this case until such time as any reduction is awarded. That being said, any court making a committal or bankruptcy order would likely suspend judgement if there was something going through that may make a major difference. By the time it gets that far down the line a person has had more than enough time in most cases to apply for any relevant reductions.
    The tribunal ruled in favour of the tenant. Stating that the Class C exemption started when she vacated and not when she gave the keys back.
    That's correct - any Class C would only applicable once the property met the relevant conditions . Bear in mind though that not all valuation tribunals always apply legislation correctly, they're not infallible, however I think you do have a good case with regards to the Class C providing you can demonstrate the property was unoccupied and substantially unfurnished.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • it seems you have at least two options here. Either , A - the property itself was exempt due to its being empty, or B - you were not in a valid tenancy ; not the tenant of that property at the material time and therefore not liable for the CT . You could write to the council stating that your position is that both A and B apply. They are less likely to argue if you have 2 sound arguments. However, do call them and explain your position and ask that the account is put on hold while you appeal. That should delay any court action which would be for a liability order in magistrates court. The point of this order is that it allows them to instruct the bailiffs which is a whole different issue. A good debt adviser should help you if need be. They are available for free so do not pay for advice.
  • ashp_2
    ashp_2 Posts: 416 Forumite
    Ninth Anniversary Combo Breaker
    Just updating this for anyone else in a similar situation

    I sent a letter to the council with evidence that I was paying council tax in another area and stated the property was empty and should have been class c exempt.

    The council replied stating they had backdated the class c exemption and I was no longer responsible for the bill so no prison and no big bill after all.

    Thanks all for the advice.
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