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Ending fixed tenancy early and Council Tax

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I have ended a fixed tenancy contract early and going through the utilities to cut those costs because they are expensive. I rang up the Council to cancel the Council Tax and they have refused without a signed letter from the letting agency or landlord to show the contract has ended.

Have they got any leg to stand on here? I don't mind paying for the gap as I am ending the contract early. I supplied them with that information that I was only going to be there for a few months max but this could change.

What happens when someone moves in and I don't have a signed letter. I'm not happily paying Council Tax for someone else to sit in the property particularly if they are due to pay it as well.

This is in England.
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Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I have ended a fixed tenancy contract early
    You cannot.

    If your post said "My landlord and I have agreed to end a fixed tenancy contract early" that would be fine.

    If you have
    * just moved out without notice and retunred the keys, or
    * written giving insufficient or premature notice

    then your tenancy has not ended, and you are still liable for utilities and council tax.

    Please explain exactly whet has happened.
  • Wail
    Wail Posts: 265 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 24 May 2016 at 5:36PM
    We (LL, LA and myself) have come to an agreement to end the contract. The agreement has a get out clause if a tenant was not in place advising that I was still liable for the rent as of 24th if no tenant is in place. I have paid This. Obviously, we will be annoyed if they take rent next month but there isn't much we can do if this happens. They will be formally served notice.

    I handed the keys back yesterday to support a swift movement. My understanding is that a tenant is in place to start shortly.
  • booksurr
    booksurr Posts: 3,700 Forumite
    so what documentary evidence have to got that your tenancy has ended as the council won't base it on your word v the LL? It would appear that you have merely agreed terms for a mutual surrender but those terms have not yet been met, and so your tenancy continues until you/they find a replacement tenant who actually moves in.

    as you know CT is based on who is resident. Whilst your tenancy continues that is you.

    if/when a replacement for you moves in then they will be the liable person
  • Seems pretty clear to me, you are liable for the council tax until the tenancy ends, which is when new tenant moves in, as that's the date you will paying rent until.
    Council Tax is worked out on a daily basis, so you won't lose out financially by direct debits being taken etc. Keep touch with LL, and an eye on the property, once someone moves in settle with landlord for the rent, before sending him the cheque/transfer say you need a letter confirming date tenancy ended (I.e. date new tenant started tenancy - may be few days before tenants moved in) landlord will be happy to give you the letter, as then you will give him the rent.

    The Landlord will NOT give you the letter before the new tenant moves in, as then HE will be liable for the council tax until a new tenant moves in. Council Tax is not a tax on residency, but a tax on the building existing, someone always has to pay (or have an exemption)
    Unless it is damaged or discontinued - ignore any discount of over 25%
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    These sort of things cause no end of problems for councils - I always ask for confirmation from the landlord/agent either in writing (preferred) or verbally before an earlier date than the end of tenancy is used. If confirmation isn't obtained then there's no proof for any party and things then start to get messy.
    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.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    If you have not surrendered the tenancy and continue to pay rent, you owe council tax. Simple as that. (as well as the standing charges on utilities)
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    booksurr wrote: »
    in simple terms (as was only required in my comment above) it is a tax on residency, but you are correct that in reality it is a tax on both residency and existence because if there is no one resident then the building's owner picks up the tab as the final person at the bottom of the Hierarchy of Liability on which CT is based

    the hierarchy refers to who is resident and in what order they are resident .... but, as you say, they are resident (or ultimately not) of an actual building (or some other forms of residences!)

    The addition to this is that if you hold a tenancy for more than 6 months then you are treat as the owner as far the regulations go (until such point as the tenancy ends) so that, if you hold the tenancy and are no longer resident, you remain liable until the end of the tenancy.
    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.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    CIS wrote: »
    The addition to this is that if you hold a tenancy for more than 6 months then you are treat as the owner as far the regulations go (until such point as the tenancy ends) so that, if you hold the tenancy and are no longer resident, you remain liable until the end of the tenancy.

    Actually it's the opposite. Once the fixed term expires, if you leave you are no longer liable for the council tax to the council. Contractually you still owe it to the LL, once he/she pays it.
  • Miss_Samantha
    Miss_Samantha Posts: 1,197 Forumite
    CIS is, of course, correct. If the tenant has a tenancy for 6 months or more then she remains liable during the duration of the tenancy even if not resident.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Guest101 wrote: »
    Actually it's the opposite. Once the fixed term expires, if you leave you are no longer liable for the council tax to the council. Contractually you still owe it to the LL, once he/she pays it.

    A nice summing up of the situation can be found in this VT decisions - http://info.valuation-tribunals.gov.uk/decision_document.asp?Decision=liability&appeal=%2Fdecision_documents%2Fdocuments%2FCT_England%2F3245M131738%2F176C

    Para 22 confirms the situation where a 'material interest' is deemed to occur. S6(5 & 6) of the LGFA 1992 are what defines the holder of the 'material interest' as the 'owner' for billing purposes (assuming a leasehold of 6 months or greater). The regs don't actually differentiate between fixed term and short term tenancies, they both fall under the catch-all of 'leasehold'.
    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.
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