Council Tax Exemption during Probate

arjc

My father died in December and I've recently received a Council Tax bill for the full amount for 16/17 plus repayment of his single occupant allowance for the period between his death and the end of FY 15/16. I understood that this should be exempt under Class F1 while I await probate (and subsequently for 6 months after grant under Class F2), but the council are claiming that, because I am the sole beneficiary in the will and also the sole executor that this doesn't apply. I can't find any evidence of this in the 1992 legislation as amended in 1994, but perhaps I'm missing something. Can anyone here shed any light please.

Thanks in advance...

Yorkshireman99

arjc wrote: »

My father died in December and I've recently received a Council Tax bill for the full amount for 16/17 plus repayment of his single occupant allowance for the period between his death and the end of FY 15/16. I understood that this should be exempt under Class F1 while I await probate (and subsequently for 6 months after grant under Class F2), but the council are claiming that, because I am the sole beneficiary in the will and also the sole executor that this doesn't apply. I can't find any evidence of this in the 1992 legislation as amended in 1994, but perhaps I'm missing something. Can anyone here shed any light please.

Thanks in advance...

The fact that you are the sole executor is irrelevant. I cannot find anything that allows the exemption in your case. AIUI the exemption is intended to allow the executor to deal with and distribute the estate. However in your case you are already the beneficial owner so as far as I can see you are liable.

SevenOfNine

It is your Council who are missing something! I assume you are not living in it?

We are beneficiaries of our son's estate & my husband (his dad) is executor. Our council have been very helpful, the account was suspended immediately & following probate we DO have 6 months before anything will be due. They have been polite & helpful, though the countdown has started now.

Do everything in writing, copy in the councillor for the area your dad lived & tell him to investigate.
https://www.gov.uk/council-tax/second-homes-and-empty-properties

SevenOfNine

Loosely speaking Y99 could be correct, though not until probate has been granted. Even then, it appears that different Local Authorities may interpret more generously!

Yorkshireman99

SevenOfNine wrote: »

Loosely speaking Y99 could be correct, though not until probate has been granted. Even then, it appears that different Local Authorities may interpret more generously!

Remember the beneficial owner is already the OP. Probate is a mere formality and does not alter the ownership.

getmore4less

what egislation are hey using to override the 1992 class F exemption that is pretty clear...

an unoccupied dwelling in relation to which a person is a qualifying person in his capacity as personal representative, if either no grant of probate or of letters of administration has been made, or less than 6 months have elapsed since the day on which such a grant was made;

if the councils are trying to use 5.2 of the finance act 1992 that potentially makes no property exempt as there will always be a beneficial interest that lies with at least one beneficiary which would be sufficient to scupper the class F exemption in all cases.

Multiple executors or beneficiaries should make no difference.

The beneficiary is a separate legal entity to the executor even when they are the same person.


It my lie with the wording within the wills, if a property is specifically given to one or more people than the beneficial interest is clear.

if the property is held in the estate trust(fairly typical) for one or more beneficiary then presumably the estate holds the interest till disposed of or transferred to specific people.

this shouldstill apply even if there is just one.

konark

I know that ,with regards to ownership of capital, a house that has been specifically bequethed becomes the property of the beneficiaries at death, whilst one that is simply part of an estate is only deemed to change hands when the estate has been distributed. I don't know if councils are also allowed to make this distinction.

Weary_soul

Some councils have been known to try this one on.

Have a look at this thread.

https://forums.moneysavingexpert.com/discussion/5401738

SevenOfNine

konark wrote: »

I know that ,with regards to ownership of capital, a house that has been specifically bequethed becomes the property of the beneficiaries at death, whilst one that is simply part of an estate is only deemed to change hands when the estate has been distributed. I don't know if councils are also allowed to make this distinction.

We are dealing with Milton Keynes Council. At no time have they asked who the beneficiaries of our son's home are, they only asked & acknowledged who the executor is & sent him a zero council tax bill (with the word "executor" on it) to our own home.

While waiting for the Grant they were told (everything in writing so there's no margin for error) that the property was on the market, they still didn't ask about beneficiaries.

When we got the Grant/Letters of Administration they were sent a copy which they have acknowledged & returned. Still no questions about beneficiaries..........& no payments have been requested, absolutely nothing further has been said regarding payment expectations.

Your thread is interesting, & I'll use 'plan B' if MK decide to charge us - we live locally as well so hubby can 'move in' & we'll claim single occupancy in ours & son's property! His band is C & ours is F - should go some way to covering the cost.

I wonder if individual councils can & do put their own interpretation on this? If so good luck with yours.

CIS

I wonder if individual councils can & do put their own interpretation on this? If so good luck with yours.

They shouldn't but the wording of the legislation is not the clearest. The Class F exemption defintion has not been altered for a few years.

Your thread is interesting, & I'll use 'plan B' if MK decide to charge us - we live locally as well so hubby can 'move in' & we'll claim single occupancy in ours & son's property! His band is C & ours is F - should go some way to covering the cost.

The council would be well within their rights to reject the single person discount application on the basis he has intention to return back to another property and that this property would only be a temporary residence for council tax purposes - advising the council he is 'moving in' if he doesn't would be fraud and some council's will prosecute.

Weary_soul

I wonder if individual councils can & do put their own interpretation on this?

No they can't. Just read above link. No probate, no council tax bill.