Moved out, still named on tenancy, council tax?

investme

Hi folks,

I did do some searching but couldn't see an example of the situation I (or rather my girlfriend) is in to compare.

She has moved out of a rental (shared tenancy agreement) as of the 31st of March and is still paying rent. She informed the council by writing she was leaving.

The tenancy runs until August and the two other tenants are still present.

She has moved in with me, and is named on my council tax bill now.

Is she still legally liable to pay council tax at the rented property?

CIS

Once a person ceases to be resident but other joint tenants remain resident then the person who has moved out is no longer liable for the council tax charge from that point.

If all of the tenants were then to vacate before the end of the tenancy the situation would need to be looked at again and a joint liability for all tenants may occur for the unoccupied period.

investme

CIS wrote: »

Once a person ceases to be resident but other joint tenants remain resident then the person who has moved out is no longer liable for the council tax charge from that point.

If all of the tenants were then to vacate before the end of the tenancy the situation would need to be looked at again and a joint liability for all tenants may occur for the unoccupied period.

Great, thanks.

theartfullodger

Just moving out does not end tenancy nor liability for rent. Has landlord agreed any changes to tenancy related to girlfriend?

investme

theartfullodger wrote: »

Just moving out does not end tenancy nor liability for rent. Has landlord agreed any changes to tenancy related to girlfriend?

I am aware and have clarified in the first post, but thanks for checking. She is still paying rent until the end of the tenancy (unless she is succesfully able to find someone to replace her - a whole separate issue covered in another thread)

buggy_boy

Check your tenancy agreement, chances are there will be a clause in there stating something along the lines of you are liable for all bills, this includes council tax.

Does each tenant have a separate agreement or are all 3 on one agreement? If she wishes to move out she can given notice to the landlord, she will still be liable for her portion of any bills.

If the agreement is 3 separate agreements then her giving notice means the other two carry on and she can leave, if as I suspect all 3 are on one tenancy then by her giving notice it ends that tenancy. It is then up to the other 2 to either move out or ask for a new tenancy in just their names, or find a new third.

investme

buggy_boy wrote: »

Check your tenancy agreement, chances are there will be a clause in there stating something along the lines of you are liable for all bills, this includes council tax.

Does each tenant have a separate agreement or are all 3 on one agreement? If she wishes to move out she can given notice to the landlord, she will still be liable for her portion of any bills.

If the agreement is 3 separate agreements then her giving notice means the other two carry on and she can leave, if as I suspect all 3 are on one tenancy then by her giving notice it ends that tenancy. It is then up to the other 2 to either move out or ask for a new tenancy in just their names, or find a new third.

I have a separate thread discussing the whole tenancy / new person moving in scenario. It is a complex situation. I am treating these questions as per the description in this thread - her having moved out and no longer a resident, but still paying rent and on the tenancy until the agreement ends.

It is a shared tenancy yes. I don't know if it has a bills clause. Strictly in terms of council tax, what CIS said makes sense, but not everyone seems to be agreed...

CIS

Any clause in the contract regarding council tax payment is purely between the landlord and the tenants - it doesn't affect who is responsible for payment under council tax legislation.

investme

CIS wrote: »

Any clause in the contract regarding council tax payment is purely between the landlord and the tenants - it doesn't affect who is responsible for payment under council tax legislation.

Thanks. That was my impression to. It's effectively to protect the landlord as the owner of a property is liable before tenants, so on renting a property you effectively pass the buck to the tenants instead of yourself. The landlord won't care who pays it, as long as it is paid. I may have worded that poorly but that's how I always believed it worked, correct me if i am wrong

CIS

investme wrote: »

Thanks. That was my impression to. It's effectively to protect the landlord as the owner of a property is liable before tenants, so on renting a property you effectively pass the buck to the tenants instead of yourself. The landlord won't care who pays it, as long as it is paid. I may have worded that poorly but that's how I always believed it worked, correct me if i am wrong

In most cases legislation makes the tenants directly liable for the council tax charge so the council, legally, will bill them. In cases where the landlord falls liable (usually a council tax HMO) they will often add a clause so that they can bill back to the occupiers a fee to cover the council tax charge the landlord has on the property, that of course is a clause only effective between landlord and occupier.

00ec25

investme wrote: »

Thanks. That was my impression to. It's effectively to protect the landlord as the owner of a property is liable before tenants, so on renting a property you effectively pass the buck to the tenants instead of yourself. The landlord won't care who pays it, as long as it is paid. I may have worded that poorly but that's how I always believed it worked, correct me if i am wrong

yes that is poorly worded as it is unsurprisingly somewhat more complex than that

there is a fixed "hierarchy of liability" laid out in law which lists who is liable in what order, with no 1 being the first person liable and no 6 being the last person liable. The person with the lowest number (ie nearest to 1) is the person who legally has to pay the tax. As has already been mentioned, the relationship between LL and tenant over "who pays" is a totally separate issue around cash movements to ensure the LL is not out of pocket if they are liable in law

the hierarchy
1. A resident freeholder (so for owner-occupied property the owner is liable, and not, for example, any lodger that the resident owner may have)
2. A resident leaseholder (this includes assured tenants under the housing act 1988)
3. A resident statutory or secure tenant
4. A resident licensee
5. A resident (eg a squatter)
6. The owner (eg LL of a property during a void period)

Note however that there are specific rules about tenants v owner in relation to residents physically moving out before the end of their tenancy or having given notice under a periodic tenancy

there are also other, very specific rules, where the hierarchy does not apply, the obvious one being in respect of HMO where the landlord is liable, not the tenant