Council tax for deceased person

Jotey

Hi

I don't know if anyone can help, or has had a similar situation, but my mum died recently. She was the sole occupant of a shared ownership property. The Local Council she was within are saying that even though she is deceased she has to pay until her flat is sold. This is because they are classing her flat as "Tenants in Common". From the invoice they have sent she is also liable to pay at the full 100%, whereas she used to get a single occupancy discount previously.

Can I ask, why does someone have to pay council tax when they are not going to be using any of the council-offered facilities?

I don't understand why a shared ownership property puts her as a tenant in common, because the other party within the shared ownership has no influence/control over her flat. They are classed in the lease as Landlords, but have never paid anything towards to the council tax.

Am I mising something?

Many thanks

theartfullodger

Mum doesn't (clearly can't) have to pay the council tax. However the owner of the property (sole or joint owners) are (almost always) liable for council tax in such circumstances. If she were sole owner then the owner would now be "Estate of Mrs xxxxx". Suggest this is handled by whoever else has a share in the flat & whoever is sorting out the probate & will & executors etc...

Is it shared-ownership with a human being or with council or housing-association, please?

Sorry to hear of your loss.

VintageHistorian

First of all, sorry for your loss.

Second, councils nowadays don't generally let you have discounts or months off from council tax when a property is empty, even if it's empty due to someone passing away. It's to prevent the property sitting empty for months or years.

The 100% cost will probably be because it's an empty property, again it's to discourage people from just buying a house and leaving it empty. Councils used to let you have a certain number of months with a discount if the property was empty (especially if it was uninhabitable due to no working bathroom or kitchen) but on-going funding cuts and the housing crisis mean that they can't afford to give anyone any leeway nowadays.

marliepanda

First, not using any council services... If it sets on fire, would you/whoever is going to own it soon, like the fire brigade to turn up? If it is being vandalised of robbed, would you like the police to attend? Etc etc.

Anyway, my local council offers full exemption until probate is granted, and then a further 6 months after probate. However each council can decide what level of discount, if any, they offer. Some actually charge a premium, ie MORE than the normal charge for an empty property. Vintage Historian explains the reasons for that well. You would do well to actually discover what your councils policies are with regards to empty properties after a death,

If she has an estate, then that estate is liable for any charges the council levy. If she does not, then they can't claim what she doesn't have. Bluntly put, your deceased Mum isnt having to pay anything, her beneficiarys are. if theres nothing there, then the council cant be paid, the estate is insolvent.

I dont know about the tenants in common situation, or the shared ownership issue, however shared ownership is usually all the responsibility for all of the property with none of the bonuses of actually owning all of the property. I imagine the HA is totally irrelevant in terms of the council tax and your mothers estate is for all intents and purposes the only liable part for council tax.

davidmcn

Jotey wrote: »

Can I ask, why does someone have to pay council tax when they are not going to be using any of the council-offered facilities?

Because it's not a charge for services used. It's a tax levied on the property. Similarly the estate potentially has to pay other types of tax despite your mum not personally benefiting from them. That's just the way it is.

I don't understand why a shared ownership property puts her as a tenant in common, because the other party within the shared ownership has no influence/control over her flat. They are classed in the lease as Landlords, but have never paid anything towards to the council tax.

I think the "tenant in common" thing is a red herring, the housing association (assuming that's what it is) never pay the council tax anyway.

getmore4less

Find a student(handy if you have kids in the family) and make it their main residence(no rent) then it becomes exempt.

have you applied for the Class F exemption

CIS

In respect of unoccupied properties the question over liability in shared ownership cases is always a pain as it depends on who has what level of ownership of the property - the person(s) with the inferior level of ownership are the ones who are liable for the council tax charge (ie. a leaseholder has a lower interest than a freeholder so the leaseholder would be liable).

G_M

I don't know if the following is council dependant, or is the same for all councils - check the relevant council website.

When my mother died, we (Executers) did not have to pay CT till 6 months after Probate was granted, by which time the property was nearly sold. See

Barnet CT Exemptions

Class F - It is vacant (unfurnished or furnished) because the liable person to pay Council Tax has passed away and probate or letters of administration have not yet been granted. There is a further exemption for up to six months after probate or letters of administration are granted.

Your case is little different due to the Shared Ownership. However I assume the other party (Housing Association?) was never the 'liable person', though CIS would know better than me.

Appeal?

CIS

G_M wrote: »

I don't know if the following is council dependant, or is the same for all councils - check the relevant council website.

When my mother died, we (Executers) did not have to pay CT till 6 months after Probate was granted, by which time the property was nearly sold. See

Barnet CT Exemptions
Your case is little different due to the Shared Ownership. However I assume the other party (Housing Association?) was never the 'liable person', though CIS would know better than me.

Appeal?

The Class F exemption applies to all local authorities currently - it's not (yet) a delegated power.

It's more than likely that the HA aren't now liable but without knowing the details of ownership it's not possible to say for certain - the 'inferior' owner would now become liable in most cases, whether that be the estate or the HA.

A Valuation Tribunal appeal can be lodged if there's a disagreement over the exemption/liability. More people seem to be lodging appeals these days, I'm certainly seeing an increasing number of clients asking me about it.

Jotey

Thank you for your replies. I am glad that I have persisted with this, as a matter of principle, rather than money (as mums flat is in the process of being sold).

I had a reply from the Council. To decide the matter they checked on the Land Registry as to who was listed as the owner(s) of the property. My mum was listed as the sole owner, which meant it wasn't actually applicable for Tenants in Common after all. So she is exempt.

I hope others who might be in the same position ask to check the land registry listings as this might help.

Thanks again!

poppasmurf_bewdley

When my late Mum died in 2010, she lived in a shared ownership property, and we didn't pay council tax on the property for six months.

Check on the back of the council tax bill, which should list the exemptions from council tax and see if any of them apply. My Mum's house came under the 'unoccupied for up to six months' section.