Surrendered tenancy early - Additional Council Tax

[Deleted User]

I took out a AST tenancy on a property at the end of March, but then my circumstances changed at work resulting in me not being to cover the full rent going forward. I mutually agreed with the landlord to surrender the tenancy and I move out.

I've been told by the Council Tax people that I need to pay an additional 50% charge as the property apparently had been unoccupied for 2 years (news to me) before I took out the tenancy. Apparently as my occupancy was less than 6 weeks this doesn't count for council tax purposes.

Surely this is the landlord's problem if the property was unoccupied for 2 years prior to my tenancy?

00ec25

the empty homes 50% premium applies to properties that were unfurnished or substantially unfurnished after a period of 2 years

so was your property let as unfurnished and therefore before you moved in it probably met the above condition?

the legislation clearly states that in order to remove the 50% premium the property must be occupied for more than 6 weeks. Unless that occupation period is met, the 2 year clock is not reset to zero and a new 2 year countdown cannot start.

whilst you occupied the property you were legally liable for the council tax, but at the normal rate applicable to an occupied property. I think you have misunderstood if you think the council is charging you 50% for the weeks you lived there (you may in addition have claimed the 25% single person discount if that applied to you). However, once you moved out, the 2 year clock had not been reset, so the 50% premium was quite correctly resumed, but it applies only from the date the property resumed its empty and unfurnished status.

Crucially, you state that the tenancy has been mutually terminated. This is vital because the law says the tenant remains liable until the tenancy ends, even if the tenant is no longer resident. Therefore what you need to do is prove to the council that the tenancy ended on the date of your mutual surrender (assuming you moved out on or before then of course). That way the landlord then becomes the liable person after that date and would have to pay the 50% premium rate.

CIS

Can you clarify whether they're trying to charge it when you were resident or after you left ? I suspect there's been confusion in the message but I have known at least one local authority who tried to argue that occupancy of a property had to be for 6 weeks or more or it wasn't occupation. Which local authority is it ?

Assuming they're trying to charge you whilst resident (correct me if I assume wrongly and I'll put up a new post).

I would certainly argue with the local authority interpretation of the 6 week period - the 6 week period, as it was with the Class C, was designed to allow the adjusted charge to continue after the property became unoccupied again if the occupancy was for less than 6 weeks. This was to stop landlords moving in for a day or two and then re-setting the period used.

For occupancy of or residence in a property there is no minimum period required to make a property 'occupied'. Council Tax is calculated on a daily basis and for each day the property is someone's 'sole or main residence' then it is certainly occupied - a premium cannot apply for an occupied property.

Occupation and residence are defined separately in council tax and the two are often confused.

Craig

[Deleted User]

To clarify, I was charged standard council tax while I was occupying the property. The council are saying I need to pay an additional 50% for the month between me moving out until when the new tenant moves in as they are saying the property was empty for 2 years before I moved in. Which means the landlord lied to me as he said there was a woman living in the property and moved out supposedly because she was moving in with her BF just a few weeks before I moved in! Which brings me to wonder why would someone leave a property empty for 2 years when he could have been renting it out all that time.

getmore4less

Focus on your date of liability first.

do you have proof you mutually agreed to end the tenancy when you moved out and you stopped paying rent..

if yes, should be the end of your liability

if no, then you probably are liable, then work on the amounts

CIS

The council are saying I need to pay an additional 50% for the month between me moving out until when the new tenant moves in as they are saying the property was empty for 2 years before I moved in.

Right, that makes more sense.

Can you prove the tenancy ended early ?

Was the property unfurnished or furnished when you left ?

Even if the tenancy didn't end early via surrender, whether you remain liable or not depends on the situation regarding your tenancy agreement and exactly what terms it covered (the simplest clarification was that issued recently in Leeds v Broadley). Just because a tenancy existed doesn't mean council tax liability existed.

Which means the landlord lied to me as he said there was a woman living in the property and moved out supposedly because she was moving in with her BF just a few weeks before I moved in!

I'd suspect he never declared to the council that there was a tenant living in the property. I'd suspect, other than speaking with the council to advise them, there's not a lot you can do. The council, from their side, have just billed, as required in legislation, based on the information they have available.

Which brings me to wonder why would someone leave a property empty for 2 years when he could have been renting it out all that time.

Unusual for a landlord but it certainly happens - used to ask myself the same question when I saw them, why ?

Craig

[Deleted User]

CIS wrote: »

Right, that makes more sense.

Can you prove the tenancy ended early ?

Was the property unfurnished or furnished when you left ?

Even if the tenancy didn't end early via surrender, whether you remain liable or not depends on the situation regarding your tenancy agreement and exactly what terms it covered (the simplest clarification was that issued recently in Leeds v Broadley). Just because a tenancy existed doesn't mean council tax liability existed.

I'd suspect he never declared to the council that there was a tenant living in the property. I'd suspect, other than speaking with the council to advise them, there's not a lot you can do. The council, from their side, have just billed, as required in legislation, based on the information they have available.

Unusual for a landlord but it certainly happens - used to ask myself the same question when I saw them, why ?

Craig

Although I surrendered the tenancy early and the landlord took the keys off me, I don't have it in writing. The property was let to me unfurnished.

I've had a reply from the council and they have clarified about the 50% additional tax. They are saying the property was unoccupied and unfurnished from 17th April 2015 until I took up the tenancy on 31st March 2017.

They say the 2 year premium came into force on 17th April 2017 and as I vacated the property on the 6th May (less than 6 weeks) they are billing the 50% premium from the day I vacated.

They want me to show proof I surrendered the property with agreement from the landlord wise I will be liable for the council tax until the new tenant moves in or when the original AST runs out in October if no tenant moves in.

Yes I know I have messed up but it also looks like the landlord is shafting me also as the council say they have spoken to the landlord and all he told them is that I vacated the property, but he didn't tell them about officially surrendering it.

He also never protected the deposit either.

G_M

Deleted_User wrote: »

I took out a AST tenancy on a property at the end of March, but then my circumstances changed at work resulting in me not being to cover the full rent going forward. I mutually agreed with the landlord to surrender the tenancy and I move out.

So you had a contract, and moved out without any evidence that the contract was ended.

An Early Surrender should always be agreed in writing, including the terms under which it is agreed.

Otherwise things can come back to bite you.........

But see also

* Deposits: payment, protection and return

CIS

Was it a standard AST agreement ? What was the minimum term (6 months, 12 months etc).

They say the 2 year premium came into force on 17th April 2017 and as I vacated the property on the 6th May (less than 6 weeks) they are billing the 50% premium from the day I vacated.

That would certainly be correct based on what the council know of.

They want me to show proof I surrendered the property with agreement from the landlord wise I will be liable for the council tax until the new tenant moves in or when the original AST runs out in October if no tenant moves in.

It's been certainly been the case in the tribunal decisions (and higher court) cases where surrender has been shown to have occurred via the actions of the landlord. In those cases there was a lot more evidence wise to show that their actions amounted to acceptance of surrender.

Craig

[Deleted User]

CIS wrote: »

Was it a standard AST agreement ? What was the minimum term (6 months, 12 months etc).


That would certainly be correct based on what the council know of.


It's been certainly been the case in the tribunal decisions (and higher court) cases where surrender has been shown to have occurred via the actions of the landlord. In those cases there was a lot more evidence wise to show that their actions amounted to acceptance of surrender.

Craig

The AST was for 6 months. I no longer have access to the property has the landlord took the keys when I told him I wanted to surrender and moved out. A few days later he told me that a new tenant was moving in at the end of May.

When the council contacted the landlord yesterday all he told them was that I told him that I vacated the property and that was all. As far as the council are concerned they think I still have possession of it.

00ec25

Deleted_User wrote: »

The AST was for 6 months. I no longer have access to the property has the landlord took the keys when I told him I wanted to surrender and moved out. A few days later he told me that a new tenant was moving in at the end of May.

When the council contacted the landlord yesterday all he told them was that I told him that I vacated the property and that was all. As far as the council are concerned they think I still have possession of it.

so you took a tenancy commencing on 31st March 2017 with a 6 month fixed term so it would end on 30th August 2017

the council is therefore acting quite correctly based on the only info it has available to it:

• no evidence of occupation prior to your tenancy, and
• both your and the landlord's statement that you ceased occupation less than 6 weeks after 31st March.

Therefore:
a) the empty homes premium has correctly resumed
b) council tax legislation regards you as the ongoing liable person for the remainder of your tenancy because there is no evidence the tenancy has ended, despite your occupation having ceased.

those are the facts as they stand to the council, you need to have evidence to show that is not the case. You currently lack any decent evidence.