Council Tax, 'Unoccupied unfurnished' property & free month

[LocknKey]

Hi all, this is my first post in this forum so be gentle with me LOL

I've got a recurring query about when my free month starts..

My tenant's tenancy ran until July 31st but my tenant moved out on the 15th taking their furniture with them naturally.

I say the free month runs Aug 1st to 31st as the tenancy was still in place up to July 31st- and them not physically being there after the 15th is immaterial- but the council is trying to say the free month runs from July 16th to August 15th, effectively charging me two weeks before they should..

Any thoughts on this would be appreciated, thanks

[Richlist]

Firstly all councils are free to operate slightly differently. Yours may give a 'free' month, many don't.

It does depend on wether the tenancy was in its fixed term or had become periodic.

Fixed Term Tenancy....if the tenant left early they remain responsible for costs of c/tax. Landlord should pay & claim deduction from deposit.

Periodic Tenancy

This situation was discussed on another forum recently......I've copied some of the thread below

Council Tax law states that on a periodic tenancy an occupier may only be held liable for the Council Tax charge until they change their main residence. Council Tax can only be charged where there is a ‘material interest’ and this is defined as having ownership of the property or being bound by a minimum of a 6 month tenancy.

With regard to Oyston vs Leeds City Council , this was a tribunal decision in 2011 which went against Leeds City Council. Leeds City Council thought that the tribunal was wrong in law. Tribunal decisions are not binding on other tribunals and so the Oyston case did not set precedent.

Since then, the High Court has clarified the position in the QBD case MacAttram vs LBC 2012. High Court decisions are binding, and this case confirmed that tenants on periodic tenancies do not have a material interest, unless the rent is payable every 6 months or more (very rare, as rent is usually paid monthly).

Unless the MacAttram case is overturned by a Court of Appeal decision in the future, this will remain the position in English law.

[Grampa]

When a property is empty and unfurnished the person responsible for the council tax is the person who has a "material interest" and if the tenancy was longer than 6 months the material interest is the tenant as long as the tenancy is still in the fixed term.

I suggest you write back to the council and state the tenant MR XXX had a tenancy up to 31ST July and therefore had a material interest until that date regardless if he was living there or not. I would also advise them to read their own rules and regulations under section 6 of the local government finance act which clearly states the "hierarchy of liability"

That should put them straight.

Let us know how you get on.

st

[Melboy]

Good solid advice from Grampa and Richlist.

Personally I have not had to deal with CT officials for a number of years but I am aware it can be a nightmare dealing with them sometimes as they never seem to know there own rulings on council tax payments when it comes to tenants and landlords.

[kerbut]

We are obviously lucky on the South Coast as we get 3 months before we have to start paying CT.

[Melboy]

We are obviously lucky on the South Coast as we get 3 months before we have to start paying CT.

It was not that long ago here in my location when it was 6 months....... now it's nothing.

[Richlist]

For unfurnished property, my local council was initially free for 6 months, then it changed to 50% discount for 6 months followed by no discount.

Furnished is worse, only a 10% discount during voids.....consequently my local council have all but eliminated any furnished property in the borough as landlords refuse to pay the sharply increased council tax bills.

As local authority budgets continue to be sqeezed expect all discounts around the country to eventually disappear completely.

[Grampa]

My council was 6 months free for unfurnished but is now nothing which seems unfair as a one person occupier would get 25% discount. So it has been suggested a a landlord "moves" in to the property during the empty period to at least get some discount.

My other council still give 50% discount for unfurnished.

[Richlist]

So it has been suggested a a landlord "moves" in to the property during the empty period to at least get some discount.

1. That wouldn't be allowed under many buy to let mortgage terms & conditions.

2. Moving oneself in seems a little drastic only to save what is likely to be around £100 per month.......hopefully voids for most of us aren't often longer than that.

The bigger issue for me is an extended void such as when a property is being sold....I've just had a property empty from February to July whilst the legal work completes.