Council tax when leaving a rented house

Sintara

Hi,


Easy question (I think). I move out of my rented house on Friday, I'm on a rolling monthly contract but because of the notice period I will have to paying rent up until the end of September. I'm moving straight into a house in London. Will I have to pay council tax on both properties for the whole of September? I'm assuming so but hoping I might be wrong...


I spent 45mins on hold today to the council trying to check this before the customer service person accidently hung up when transferring me. Not very helpful!


Thanks

booksurr

you are liable on both as you remain higher than the owner in the hierarchy of liability whilst there is still a tenancy agreement in place or you, not the LL, are physically living there even after the expiry of the tenancy

every council website in the country should have something similar to this on it....
http://www.wandsworth.gov.uk/info/200267/about_council_tax/16/who_is_liable

Sintara

Perfect. Hadn't come across anything like that on our council website but that makes it very clear. Will put a few hundred extra aside for that then too :-/








Cheers.

G_M

Some councils have discounts (or exemptions?) for a period of time, where a property is empty. 'Empty' may well mean unfurnished/unfit to occupy, so check your council's policy.

I have also seen it claimed on ealier threads that a tenant's liability continues till any fixed term tenancy agreement expires, whether they live there or not, but this does not apply where the tenancy is periodic. I don't know if this is true......

Wassa123

You may be able to claim a discount if you are not living there

HappyMJ

You're liable for council tax either up to the day you move out and return possession to the landlord, the day before a new tenant moves in or the last day of your tenancy agreement or the day on which you no longer are liable for the rent. Lot's of different scenario's so speak to your council. If you return possession on Friday and gave notice today your tenancy still runs for at least another month and if no tenant moves in you may have to pay the council tax and you will also be liable for the standing charges on the gas, electricity and water supplies. If the landlord starts to use the property then you aren't liable for anything especially not the usage charges.

booksurr

HappyMJ wrote: »

You're liable for council tax either up to the day you move out and return possession to the landlord, the day before a new tenant moves in or the last day of your tenancy agreement (only if you move out on or before that date) or the day on which you no longer are liable for the rent not so, think squatters!

the last day of your tenancy agreement does not apply if you continue in occupation after that date even if you cease paying rent, under the hierarchy any resident (incl a squatter) is liable for CT before the owner (ie LL) becomes liable unless the property is an HMO for council tax purposes

a post tenancy end resident is such a resident and remains liable for the CT, not their landlord irrespective of whether the tenancy has finished or not. It is residency which is the prime driver unless the property is an HMO for council tax purposes.

HappyMJ

booksurr wrote: »

the last day of your tenancy gareement does not apply if you continue in occupation after that date even if you cease paying rent, under the hierarchy any resident (incl a squatter) is liable for CT before the owner becomes liable

a post tenancy end resident is such a resident and remains liable for the CT, not their landlord irrespective of whether the tenancy has finished or not. It is residency which is the prime driver.

I did say either and or. The day the tenant moves out would override the last day of tenancy. Whichever is the later date applies.

Tenancy agreement doesn't finish on the last date on tenancy agreement it continues until tenant moves out and returns possession.

Post tenancy would only really apply if tenant gave notice and didn't actually move out on the day they said they would and are paying mesne profits to the owner of the property.

If LL gave section 21 notice seeking possession tenancy agreement is still in force whilst tenant is in the property.

benjus

booksurr wrote: »

you are liable on both as you remain higher than the owner in the hierarchy of liability whilst there is still a tenancy agreement in place or you, not the LL, are physically living there even after the expiry of the tenancy

every council website in the country should have something similar to this on it....
http://www.wandsworth.gov.uk/info/200267/about_council_tax/16/who_is_liable

That's not quite correct as it's a periodic tenancy so less than 6 months fixed term - see this page for an explanation of why that's relevant: https://www.shropshire.gov.uk/council-tax/who-is-responsible-for-paying-council-tax/

However most tenancy agreements state that the tenant is responsible for paying council tax for the duraron of the tenancy, so if the tenant switched council tax liability to the landlord, the landlord could claim back the council tax from the tenant - via the courts if necessary.

G_M

benjus wrote: »

That's not quite correct as it's a periodic tenancy so less than 6 months fixed term - see this page for an explanation of why that's relevant: https://www.shropshire.gov.uk/council-tax/who-is-responsible-for-paying-council-tax/

Thanks for the link benjus. I think this is what I was referring to in post 4 above.

For the purposes of council tax, the Local Government Finance Act 1992 defines the meaning of ‘owner’ as:
An owner in relation to any dwelling is a person who satisfies the following conditions:
a) That they have a material interest in the whole or any part of the dwelling; and
b) That at least part of the dwelling (or as the case may be the part concerned) is not subject to a material interest inferior to their interest
It goes on further to explain the term ‘material interest’ as: "A freehold interest, or a leasehold interest which was granted for a term of six months or more."
Where a weekly or monthly tenancy (or a tenancy subject to notice of less than six months) the immediate landlord is the ‘owner’ for council tax purposes and liable for council tax when the property is no one’s main residence. Whereas if there is a six month or more shorthold assured tenancy the tenant will remain liable for council tax until this particular tenancy period expires.
Once the initial six month (or greater) shorthold assured tenancy has expired the landlord and tenant have three options:

• They can agree a further shorthold tenancy for an agreed period of time
• The landlord can seek a new tenant
• They can move to a periodic or rolling tenancy agreement.

Where an assured shorthold tenancy continues as a statutory periodic tenancy the landlord becomes liable for council tax for any period that the property becomes no one’s main residence until the tenancy ends. This is irrespective of whether the tenant has to give a notice period, or indeed handed the keys back.

jjlandlord

Council tax liability has nothing to do with a tenancy being a statutory periodic AST.
While the broad message is correct they managed to add several incorrect points.

For a discussion of the actual law, see:
https://lettingmate.uk/book/7-council-tax