Council Tax exemption on inherited home. Selling.

[Deleted User]

I inherited my parents home earlier this year.  I currently live in a rented flat, and i get 100% reduction on my CT due to UC benefits.   The house has gone through probate , but remains in my parents name until it sells and transfers to the new owners, if sold.  The council has allowed an exemption (since my mother passed away), and the place is not lived in while it is on the market.   My question is, what happens if the house sits unsold for quite some time?  Will i be liable/responsible to pay 100% CT on that property?  And can further extensions be applied for this?     The council has been writing to me, as the executor, and asking about the house and if it remains unoccupied. I have filled them in on the selling intentions and so far that has satisfied them, as no CT bills as of yet.  How long will that last?    And what steps could i take to keep this as streamlined as possible?  Thanks. 

fatbelly

I didn't realise any councils gave 100% reduction any more. Can I ask which council that is?

I understood that exemption because of a death last until 6 months after probate is granted

Put your postcode in here and it should take you straight to the page

https://www.gov.uk/apply-for-council-tax-discount

gwynlas

If you are waiting to sell the house to settle the estate then the council will have to wait for the council tax. due.
They are used to this as often beneficaries have no money of their own to settle bills on deceased debts.

[Deleted User]

fatbelly said:

I didn't realise any councils gave 100% reduction any more. Can I ask which council that is?

I understood that exemption because of a death last until 6 months after probate is granted

Put your postcode in here and it should take you straight to the page

https://www.gov.uk/apply-for-council-tax-discount

Its in west wales.  I think the exemption is 6 months, and can roll out to 1 year if approved. (i.e. house unsold)  A ton of people in Tenby are "selling" their 2nd homes there because the loophole saves them paying 300% CT for a year.  Daft local council has shot itself in the foot, because no locals can afford the houses anyways.  So they are empty.

Sarahspangles

[Deleted User] said:

I inherited my parents home earlier this year.  I currently live in a rented flat, and i get 100% reduction on my CT due to UC benefits.   The house has gone through probate , but remains in my parents name until it sells and transfers to the new owners, if sold.  The council has allowed an exemption (since my mother passed away), and the place is not lived in while it is on the market.   My question is, what happens if the house sits unsold for quite some time?  Will i be liable/responsible to pay 100% CT on that property?  And can further extensions be applied for this?     The council has been writing to me, as the executor, and asking about the house and if it remains unoccupied. I have filled them in on the selling intentions and so far that has satisfied them, as no CT bills as of yet.  How long will that last?    And what steps could i take to keep this as streamlined as possible?  Thanks. 

It’s normally six months from probate. The estate is liable for the Council tax payments. If the estate has no cash reserves you may be able to make a case for deferred payments.

fatbelly

Thanks for the info on the 100% ctr. Maybe the Welsh government made up the shortfall. In England the funds for Council Tax reduction were cut 10% and each council had to come up with a plan to deal with the shortfall. 

lincroft1710

As an aside your inheritance will probably mean you are no longer entitled to UC

p00hsticks

As the property was and is unoccupied following the death, it qualifies for a Class F exemption from council tax until six months after probate has been granted. 

Once that exemption expires then the normal council tax is due from the estate - you need to speak to the council if there are not enough liquid assets in the estate to pay it and the house is in the market, and let them know that they need to wait to be paid from the house proceeds. 

My understanding (which may be incorrect) is that once probate has been obtained, the council can only charge the standard rate of council tax for twelve months, after which they may impose an empty house premium if the house remains unsold and still unoccupied. 

[Deleted User]

lincroft1710 said:

As an aside your inheritance will probably mean you are no longer entitled to UC

After the house sells, yes i wont be entitled to HB, or UC.  Im moving out of the country anyways once sold.  The outlook is grim in this country. 

[Deleted User]

p00hsticks said:

As the property was and is unoccupied following the death, it qualifies for a Class F exemption from council tax until six months after probate has been granted. 

Once that exemption expires then the normal council tax is due from the estate - you need to speak to the council if there are not enough liquid assets in the estate to pay it and the house is in the market, and let them know that they need to wait to be paid from the house proceeds. 

My understanding (which may be incorrect) is that once probate has been obtained, the council can only charge the standard rate of council tax for twelve months, after which they may impose an empty house premium if the house remains unsold and still unoccupied. 

I see. Swings and roundabouts.  If i decided to rent it out as a let / holiday let then its classed as a 2nd home i think, even if i rent in my current place.  That CT rate is 200%  in W. Wales, so £4K a year.  The welsh councils are really not doing any favours for the local economy.  2nd homeowners are basically getting out of Wales.  Local business already moaning there are no customers like before the council money grab attempt. 

Keep_pedalling

The exemption is 6 months from the date you obtain probate, after that you have to pay it. Does her estate have no other assets that can pay it?

Mind you if there are substantial liquid assets it should already be hitting your benefit payments.