Council Tax - Student Exemption

AndyPP

Hi All,

I've reposted this here after putting it in the wrong section....

For the last 4 years I've been a mature full time student at uni, and been enjoying full exemption from Council tax at 2 properties I lived in, 1 I own in London I stay at 3 days a week, and 1 I rented from a friend in Southend where I stayed 4 days a week. I was the sole occupier of both. The only issue I've had up until now, was last summer (2017) my uni was slow with getting out our exemption letters, which meant despite me telling them what was happening, Southend Council (where I rented) got to the point of getting a liability order for me to pay, and then Newlyn started chasing me. Very shortly after however, I got my exemption letter, sent it to the council, and they sent me the revised bill, saying I had full exemption and owed nothing.

I heard nothing else, until 4 weeks ago, 2 council people turned up at my door at 8 in the morning, saying they're investigating an allegation of fraud. They asked about 2 things, the first being why I'm registered at 2 addresses (all my mail has always gone to the other property, and my exemption letters have always been addressed to the other property) and if I live on my own, which I do. They left saying I might be called in for interview. Obviously worried, I went later that day to the CAB, who confirmed that the 2 homes isn't a problem, it's the property that's exempt if it's solely occupied by students, it's not means tested.

I've since moved out of the rented property in Southend as my course has finished and told them to send anything to my other address, which they've always used. They have now sent me a final bill for the full amount of last years Council tax, £1,300 odd, and now Newlyn have sent me a letter saying they are chasing the same amount, quoting the liability order from last summer!

Can anyone point me to what I should do?

Thanks for your help,
Andy

CIS

Many councils have become more proactive when it comes to potential council tax fraud and are investigating cases which they think may potentially be incorrect. Often the problem however can just be down to crossed wires - I see it often where the tax payer and the council are trying to communicate the same thing but it becomes garbled and causes no end of issues.

Obviously worried, I went later that day to the CAB, who confirmed that the 2 homes isn't a problem, it's the property that's exempt if it's solely occupied by students, it's not means tested.

Not sure why CAB are mentioning 'means testing' as that is not applicable to students for council tax purposes.

Living between two properties (or more) in itself isn't an issue - a council tax disregarded applies to a person that is a full time student, it's not tied any particular property. Where multiple properties may cause problems is down to whether a discount or exemption actually applies - this is linked to a disregard but there are more issues at play.

Although you have been living at two properties a council tax exemption can only be claimed under specific circumstances. I suspect I may already see where this has gone wrong but can you confirm ....

Where is your university and what was the purpose behind renting the property in Southend ?
When did you start renting in Southend ?

AndyPP

Thanks for your quick reply.

My university is UEL in east london, where my flat is. I started my course 5 years ago, and during the first year I realised that I didn't need to be in London much and was offered a big cheap house in Southend, by the sea, so 4 years ago I thought it would be good while I'm studying to rent that house, and come back up to my London flat when I needed to for my part time work. Officially it's a Distance Learning course, so I rarely have to go into campus.

Sorry it was me mentioning means testing not the CAB, I was meaning that I checked with them that it was the property that's exempt, no matter whether it was my main home or not. The council people at my door said I could only claim on one property.

Hope that makes it clearer?

Thanks again,

CIS

Sorry it was me mentioning means testing not the CAB, I was meaning that I checked with them that it was the property that's exempt, no matter whether it was my main home or not. The council people at my door said I could only claim on one property.

The council aren't specifically correct neither are CAB. It will all come down to a legislative argument over 'lives' (the full phrase used is 'occupied' but that is defined as a property in which 'someone lives') - a term which is not specifically defined in legislation but it is a far lower threshold than 'resident' (which is defined and can only apply to one property). There are some arguments which I think could be constructed for you although ultimately it would be a valuation tribunal to decide.

The Class N exemption could be argue to apply to both properties in my opinion.

Distance learning isn't a problem providing the requirements for a council tax student are met (although some councils will still argue). It doesn't seem that the student status is being disputed here though ?

AndyPP

Thanks again.

They're not as far as I can tell disputing my student status, the course fulfills their requirements of minimum weeks and hours per week etc., and both councils have accepted it for all this time. I was informed by my uni at the beginning of the course that it qualifies for student exemption and my peers get it.

All I have to work with now though is a final bill from the council with no other communication about why, and now Newlyn starting to chase me using the 2017 liability order.

Can I somehow pause both of them from chasing me and say I want it decided by tribunal then?

I'm in no way rich but I work, and at no point have I rang the council pleading poverty or demanding exemption. I rang Southend council when I moved in, told them my exact circumstances including both homes, and they told me I was exempt. I can afford to pay it if I have to, and if I do owe anything I will happily pay it, but I want to make sure I'm not paying when I shouldn't.

CIS

You cannot force the council to stop in the meantime, the current decision remains correct and enforceable until it is revised.

Before a tribunal can be used there is a statutory process to go through - you'll need to ensure you follow this.

You'll also need to be fully aware of particular legislative point you're arguing and any case law / valuation tribunals as the council will usually argue on that point at any tribunal (although some of the council's arguments that I have seen can be very poor). With the amount of money that can be involved it's always best to be prepared.

The fact that the council may have been aware of information previously does not stop them correcting or revising a decision.

AndyPP

Just to add, I did know they were looking into me last year, because after I sent them my exemption letter (late), they emailed my uni asking them to confirm all the details, I'm guessing to check I hadn't forged the letter. I know this because they sent the email to me rather than my uni!

Also, when they turned up at the door, they first asked about my addresses then about if I lived on my own, so I assumed it was maybe a neighbour saying someone else was living there with me. They asked to come in but I refused.

CIS

Just to add, I did know they were looking into me last year, because after I sent them my exemption letter (late), they emailed my uni asking them to confirm all the details, I'm guessing to check I hadn't forged the letter. I know this because they sent the email to me rather than my uni!

Certainly sounds like they were checking it for some reason.