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Gradual move in - Council tax?

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Comments

  • AlexMac
    AlexMac Posts: 3,067 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    To reply to a Q you have not (quite) asked; ignoring your liability for the CT on the rental property (which I cannot comment on), do as a couple of people suggest, above, and try for a discount or exemption on the newly purchased one.

    Policies vary from Council to Council, and none I know discount simply because a property is empty, but some give discounts if vacant and unfurnished, or if undergoing building works. We got a (I think) 3-month exemption from one County authority when renovating a newly purchased holiday flat, but the CT officer did visit to check.

    I think we even got let off water rates too?
  • If you REALLY want to save a few quid, why not just one of you officially move into the new property, attracting a 25% single occupancy discount whilst the remaining person attracts the same discount in the old property?

    I can't see it would be worth the hassle though.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 12 November 2019 at 3:49PM
    A council tax class c discount (which replaced the class c exemption in England) requires that the property be unoccupied and substantially unfurnished. There is also a Class A or B discount which covers unoccupied but furnished property. In either case the council tends to set the discount to 0% as far as they can.
    We never heard anything else, so I presume we are indeed on Statutory? We would have had to sign something for contractual, yes???
    A contractual tenancy in this case just means that you have agreed to vary the default statutory terms regarding the tenancy (specifically with regards to the term of the tenancy). A tenancy of 3 years or less does not have to be in writing, it can be entirely verbal, so there's no requirement for anything to have been signed (obviously something in writing is far easier to quantify).


    It does sounds like you've probably got a statutory periodic but that would depend on what the initial tenancy was structured like.
    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.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you REALLY want to save a few quid, why not just one of you officially move into the new property, attracting a 25% single occupancy discount whilst the remaining person attracts the same discount in the old property?

    I can't see it would be worth the hassle though.


    It probably isn't. The council are likely to look carefully at it although it is certainly an option - it depends on how much the council want to argue on the technicalities of it.
    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.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    OK - one more (probably dumb) question re contractual and statutory periodic. Our fixed term ended in July. We received an e-mail from the agent to say that the landlord wanted a 2 month notice period going forward, but he'd advised her that would be a contractual periodic and come with a fee, and she would most likely accept a statutory periodic instead. We never heard anything else, so I presume we are indeed on Statutory? We would have had to sign something for contractual, yes???
    Dig out your original tenancy agreement and read it (as suggested in the link provided).


    What does it say, if anything, will happen after the fixed term expires? As I can't read it, I can't advise yet.
  • G_M wrote: »
    Dig out your original tenancy agreement and read it (as suggested in the link provided).


    What does it say, if anything, will happen after the fixed term expires? As I can't read it, I can't advise yet.


    I have read it - it doesn't say anything. Just a reference to rent increases if the tenancy becomes "periodic" - no mention of contractual or statutory.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 12 November 2019 at 3:57PM
    I have read it - it doesn't say anything. Just a reference to rent increases if the tenancy becomes "periodic" - no mention of contractual or statutory.
    Then you have a SPT.

    As per my original link:
    We now seem to have some fairly settled case law on who is liable where a property is unoccupied but the tenancy is not at an end. Crucially, it depends on whether the assured shorthold tenancy goes statutory or contractual periodic at the end of the fixed term.
    In order to ensure the tenant remains liable during any periodic term, the following criteria must be met:
    • the initial fixed (or minimum) term must be at least 6 months or more, and
    • the tenancy agreement must contain a term that it continues upon expiry of the term.
    If the tenancy agreement remains silent as to what happens at the end of the fixed term, a new statutory periodic tenancy by way of section 5 Housing Act 1988 will arise. In this case, because it is a new tenancy of less than 6 months, the landlord will normally be liable for the period whilst the property is empty, even if the tenancy is not at an end (see CT v Horsham District Council (HB) [2013] UKUT 617 (AAC)).
    However, where the tenancy contains a provision that it will continue, then, the tenant will usually be liable until the tenancy has been properly ended.
    https://www.landlordsguild.com/how-to-ensure-your-tenant-is-liable-for-council-tax-at-the-end-of-term/
  • kinger101
    kinger101 Posts: 6,788 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    CIS wrote: »
    Policy regarding liability cannot change, it's a statutory process without local discretion. The only discretion the council have is what rate of discount they apply.

    I never said, or implied it could.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    panterka wrote: »
    I would suggest to phone the council.
    When I was in a similar situation, even though still liable for both, then offered a discount on a property I was moving out of, as it was no longer furnished.

    Yes, we spoke to our Council and they gave us a freebie on the new house for 3 weeks until we actually moved in (as it was unfurnished until that point) so we had no overlap on the CT.
    :heartpuls Mrs Marleyboy :heartpuls

    MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote

    :) Proud Parents to an Aut-some son :)
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