Taxation

ID #1082

Council Tax - I have let my property for less than 6 months and now the council are telling me that I, as landlord, am liable for the Council Tax, not the tenant. Can this be right? I would not have let for less than 6 months if I had known this.

You can let for less than 6 months with an AST, though you cannot then use the S.21 procedure until 6 months is up.

As an alternative, a short-term letting can be achieved if it is the landlord's main residence, when going abroad for example, if an Assured Tenancy (AT) is created with a ground 1 notice being served.

In these circumstance you should seek legal advice because if you create a full AT you could have trouble re-gaining possession.

The Local Government Finance Act 1992 - Ch1 P6 - applies to Council Tax liabilities:

There are some circumstances where the landlord may be liable for Council tax in the first instance - non resident tenant or less than 6 months letting.

However, this does not mean that the landlord cannot re-claim Council Tax he paid from the tenant:

1    by building a CT element into the rent

2     by a straightforward demand for payment where the agreement states that the Council Tax is payable by the tenant.

So the key point is having this clearly set-out as a clasue in your agreement - the tenant is responsible for Council Tax.

©LandlordZONE All Rights Reserved - never rely totally on these standard answers which apply primarily to England & Wales. Before taking action or not, always do your own research and/or seek professional advice with the full facts of the case and all documents to hand.

 

 

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Last update: 2009-08-13 08:14
Author: LandlordZONE
Revision: 1.2

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