Who pays Council Tax?

Whilst the vast majority of tenancy agreements specify the tenant is responsible for Council Tax, this is not correct.

The tenant is liable for council where the property in entirety is under their exclusive control. This means if you rent rooms or split a rental unit by issuing multiple tenancy agreements in respect of the same dwelling, then you as the Landlord could [should] be liable for council tax.

The Landlord may [should] be held liable for Council Tax in these circumstances:

  • Where the property is occupied by more than one household where the people living there pay rent separately for different parts of the building.
  • Premises that have been altered or specifically built to provide accommodation that people of different households can reside in(known as Houses In Multiple Occupation or HMOs).
  • You let for less than six months to a tenant whose main residence is elsewhere.
  • Where a Landlord lets a property but specifies that they retain use of part of the building for their use [such as storage, office etc].
Just because your tenancy agreement says the tenant is liable for Council Tax, this is not
 
 
the case. What experience teaches us is that Councils have a tendency to pursue Council Tax debts and are quite aggressive. They will issue court proceedings against 'The occupier' even though the tenant has left, they prefer to put the burden on you to prove you are not liable. This is why you need to have:
  • A copy of the signed tenancy agreement showing the named tenants.
  • A copy of the letter you sent to the council - saying Mr Smith now occupies the premises from date X. You could [but would be breaching confidentiality] give the Council the tenants forwarding address and mobile phone number, if this means you deflect debt recovery away from you and your property.
  • Your tenancy application form and vetting process should verify who the person is, DOB, next of kin etc.
  • You do not want to be accused of colluding with somebody who defaults on bills and potentially damages your personal credit rating.
 
If you feel your the Council Tax Band for your property may be to high this article shows you how to have it reviewed click here
 
  • Find historical House Prices in you street click here
  • Find out what Council Tax Band your neighbours property is in click here