End of Tenancy Council Tax Question

End of Tenancy Council Tax Question

16:17 PM, 23rd August 2012, About 11 years ago 36

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Has anyone come across this end of tenancy Council Tax situation as I have for a property tenancy which recently ended?

The tenants left on the end day of a 6 month assured shorthold tenancy. They were responsible for Council Tax and received the demands and paid the Council direct and contacted the Council to end their liability as they obviously should. As Agent for the Landlord I then received a Council Tax demand in the Landlords name.

End of Tenancy Council Tax Demand

This demand started 31st July the day the tenancy ended – due to circumstances the key was actually returned by the tenant to my home address at 11.50pm on 31st July. I contacted the Council to state that 31st July was the end of the tenancy and the Tenants responsibility but they have advised that Section 2(1) and 2(2) give the Landlord the responsibility.

Looking this up I see that Section 2(1) says that Council Tax is determined on a daily basis and Section 2(2) says that it is assumed that any state of affairs subsisting at the end of the day has subsisted throughout the day – I assume that it is the latter point they are applying to say the Landlord is responsible for 31st July.

My interpretation is that the tenancy agreement gives the tenants the responsibility for paying Council Tax for the whole period – i.e. from 1st February to 31st July inclusive or does the LGFA1992 take preference. The difference in actual monetary sums is little but I wondered relevant the principal of the matter.

Any comments/feedback would be appreciated.

David – Northolt GB

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7:06 AM, 25th August 2012, About 11 years ago

Seriously, you're griping about 1 day for council tax payment! Focus on the big picture, one day's council tax is a pittance it is also tax deductible!

16:36 PM, 25th August 2012, About 11 years ago

It maybe a pittance but it is principal at stake here ! ...i would think your clock is 11 mins slow and the key was actually received at 12:01 am 1st august ... this is largely irrelevant anyway - if the contract ends on the 31st july then and was for 6months then it ends at 12am on 1st august - other wise the contract would be 6months less a day. Sections 2(1) and 2(2) will help you here as "it is assumed that any state of affairs subsisting at the end of the day has subsisted throughout the day –" ie it was under AST - let council rules lead them up their own backsides - this is very familiar territory to them !!! On principal i would not back down on this either !

17:40 PM, 25th August 2012, About 11 years ago

Further - if a tenant leaves on 31st and then new tenant comes on on 1st of the next month - are we to expect a one day CT bill on every t changeover ? Or is the legal advice to overlap AST with start and end dates being the 1st of the -then who gets the bill for the 1st the outgoing or incoming tenant - i think not !!!! I think a well worded string letter should sort this out - bolx!

18:42 PM, 25th August 2012, About 11 years ago

I have 32 properties which could roll every 6 months - that is 64 days council tax - 1. why should i pay it when it it is not my bill ? The big picture is to get the precedent set correctly.

21:46 PM, 25th August 2012, About 11 years ago

we have several properties and get this problem regularly, I just keep emailing them to say the liability is with the tenant till midnight, I will not be paying so if they wish to take it to court i will fight it, they always then cancel all charges-

David Main

1:03 AM, 26th August 2012, About 11 years ago

I had a similar argument with my local authority over 1-day council tax demands. It said it worked on the basis of beneficial use of the proprty, as represented by overnight stays, rather like hotels do. So, if one tenant moves out on 31st and a new one enters on 1st then the landlord has the beneficial use for that one night. Not sure whether that is pragmatism or has a legal base but it all cancels itself out since if a void ends on the 31st the landlord only pays council tax until 30th.

3:57 AM, 26th August 2012, About 11 years ago

Hi, I might be being a bit dumb here, but don't you get upto 6 months free if the property is empty?

5:01 AM, 26th August 2012, About 11 years ago

I had the same problem with my property with the council. They told me to send the copy of the AST to say that the tenancy ended on the 31st July. Also what I pointed out to them is that earliest day that I can not relet the property is 1st August. Therefore Landlord is liable for CT from 1st August.Then they agreed.

9:26 AM, 26th August 2012, About 11 years ago

If property is unoccupied AND unfurnished - also dependant on loc auth interpretation of CT legislation, yep can you believe it varies accross the uk ??!!!! Irrelevant anyway - why should LL cover someone elses liability - We have used the gregorian calendar for some time now - 6mths or 12mths has a definate beginning and a definite end - further qualified with midnight being the end of a time period defined as a day and the beginning of the next day. I honestly hope that my local CT dept do try this one on me, as i will take great pleasure discussing the bill!

10:31 AM, 26th August 2012, About 11 years ago

The only way a void ends on the 30th is if the new lease begins on 31st - in which case no liability for 31st (for LL)- so there is no cancelling out of a trumped up bill for a non existant day between the 31st and the 1st which have clearly identified liable parties ie outgoing T & incoming T . beneficial use of the property is clearly defined in the AST along with who has these benefits (THE T) until end of lease or notice period.

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