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,
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