Council Tax liability under BR

Unremarkable

Myself & husband were declared BR mid-April, and as expected our council tax bill for the 2020-21 year was written off.
However, due to an adjustment of benefits, they have reassessed now for the period from Sept and as a result are billing us for that period Sept-April. Upon enquiry they have informed me that because the bill has been produced since the BR, we are liable to pay.
However, I was led to believe by the OR that the council tax liability for the WHOLE financial period is classed as an asset, and therefore not payable by us?

Could someone please clarify so I can either pay or take it further.
Thanks

Fighter1986

Your bill hasn't been adjusted, your benefit entitlement has. 

The council aren't entitled to anything from you towards this tax years council tax bill. They reduced the amount they were willing to pay towards your council tax bill, that's fine, but the bill itself hasn't changed, you were billed for the full amount at the start of April 2020.

I suggest you re-iterate this to the council and also forward their "revised" bill to the OR - he will directly have words with them too. 

Unremarkable

Fighter1986 said:

Your bill hasn't been adjusted, your benefit entitlement has. 

The council aren't entitled to anything from you towards this tax years council tax bill. They reduced the amount they were willing to pay towards your council tax bill, that's fine, but the bill itself hasn't changed, you were billed for the full amount at the start of April 2020.

I suggest you re-iterate this to the council and also forward their "revised" bill to the OR - he will directly have words with them too. 

Is there an official source anywhere that states this that I can forward to the council? I have tried to search but struggling.

Minkym00

Just to clarify, you weren’t getting any council tax support after the debt was written were you?

fatbelly

And you didn't move address later last year?

The full council tax for the present year is what's called a 'provable debt', following a court case in 2013

This version of the technical manual is not current but it's clearly stated there

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.50

Fighter1986

fatbelly said:

And you didn't move address later last year?

The full council tax for the present year is what's called a 'provable debt', following a court case in 2013

This version of the technical manual is not current but it's clearly stated there

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.50

Thank you Fatbelly, OP - the section you might wish to highlight to the local authority I've emboldened for you

"40.53 Council tax – provable debts

All outstanding liabilities (that is, all arrears and future instalment payments) for council tax for the year in which the insolvency commences are provable debts [note 42] [note 43].

This applies whether or not the company/bankrupt was in arrears at the date of insolvency."

Unremarkable

Minkym00 said:

Just to clarify, you weren’t getting any council tax support after the debt was written were you?

We were billed in March for 2020-21 which stated the full CT, a deduction for CT support and the balance owing.
We then went BR in April.

We then had an adjustment bill in August again stating the full CT, a higher CT support deduction and then taking off the March billed amount (the amount after CT support deduction) leaving a negative balance owing.

The OR just told me that we won't pay any CT this year, end of. Surely the full bill amount is what should be taken into consideration in the BR?

Unremarkable

fatbelly said:

And you didn't move address later last year?

The full council tax for the present year is what's called a 'provable debt', following a court case in 2013

No, not moved. We moved in here Oct 2019, went BR mid April 2020

Fighter1986

Unremarkable said:

Minkym00 said:

Just to clarify, you weren’t getting any council tax support after the debt was written were you?

We were billed in March for 2020-21 which stated the full CT, a deduction for CT support and the balance owing.
We then went BR in April.

We then had an adjustment bill in August again stating the full CT, a higher CT support deduction and then taking off the March billed amount (the amount after CT support deduction) leaving a negative balance owing.

The OR just told me that we won't pay any CT this year, end of. Surely the full bill amount is what should be taken into consideration in the BR?

Exactly, the full bill amount is what should be taken into consideration in the BR, since you haven't moved or in any other way enacted a change that generates a "New" liability. 

The original council tax bill amount hasn't changed, just the amount of support you were getting. The original invoice amount is a provable debt included in your bankruptcy. 

Unremarkable

Fighter1986 said:

Unremarkable said:

Minkym00 said:

Just to clarify, you weren’t getting any council tax support after the debt was written were you?

We were billed in March for 2020-21 which stated the full CT, a deduction for CT support and the balance owing.
We then went BR in April.

We then had an adjustment bill in August again stating the full CT, a higher CT support deduction and then taking off the March billed amount (the amount after CT support deduction) leaving a negative balance owing.

The OR just told me that we won't pay any CT this year, end of. Surely the full bill amount is what should be taken into consideration in the BR?

Exactly, the full bill amount is what should be taken into consideration in the BR, since you haven't moved or in any other way enacted a change that generates a "New" liability. 

The original council tax bill amount hasn't changed, just the amount of support you were getting. The original invoice amount is a provable debt included in your bankruptcy. 

Even if the "original invoice" also took off the CT support?

CIS

The council tax charge debt due at any point in time, for billing purposes, is the gross charge less any discounts or council tax support (the 'chargable amount') .
Where council tax support is removed it creates a new debt that wasn't due previously for council tax purposes, the only debt that ever exists is the 'chargeable amount' and this only exists as far as the next council tax adjustment is made to an account.

At the time of the bankuprtcy it wasn't part of the 'chargeable amount# and so couldn't be part of the bankruptcy as it wasn't a debt. It's a new debt generated post bankruptcy in the same way as any other retrospective adjustment that creats a new debt.

It's not a question of liability, it's a question of a 'chargeable amount' being due and when.