Council Tax and Students - I am letting a student house (which is an HMO) to students. Everyone in the house is a student, so do I need to pay Council Tax?
With normal (not student) HMO tenants the landlord is responsible to the Council for paying Council Tax.
So in effect the landlord becomes a tax collector by adding this to his rent and passing it on to the Council.
The landlord must therefore keep detailed records of when tenants come and go and carefully calculate Council Tax liabilities.
Council Tax and Students - In the case of Council Tax and Students it’s different. They are fully exempt Council Tax, so providing all the residents are students, the whole house is exempt (paragraph 4 of Schedule 1 to the Local Government Finance Act 1992).
However, if just one resident is not a student, the the whole house may become a taxable residence and the landlord then becomes liable to pay the Council Tax for all the residents, students or not.
Speak to your local council in the above situation to see if the Council Tax liability can be apportioned.
By Tom Entwistle,
If you have any questions about any of the issues here, post you question to the LandlordZONE® Forums – these are the busiest Rental Property Forums in the UK – you will have an answer in no time at all.
©LandlordZONE All Rights Reserved – never rely totally on these general guidelines which apply primarily to England and Wales. They are not definitive statements of the law. Before taking action or not, always do your own research and/or seek professional advice with the full facts of your case and all documents to hand.©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law; always seek professional advice. Legislation changes, so check dates on these articles. If you have questions go to the LandlordZONE® Forums