Council Tax and Periodic Tenancy

Thinking of buying in Bristol? South Gloucestershire Council expect full Council Tax on empty properties (furnished or unfurnished ). No exemptions. My property has been empty for 6 months and under offer for nearly 4 . I don't even know if I can claim any of it against tax as we are now in a new tax year and this is my only property!

Reply to the comment left by "Mrs Kennedy" at "27/05/2014 - 10:46":

This trend will only get worse: property is a cash cow for councils. Such is the outrage over "1 million empty homes", no one has sympathy for people trying to sell their houses or landlords facing voids. And councils can't be bothered employing people to check whether your house is unfurnished or furnished: it's far simpler for them to remove all exemptions and tax everything. The Government has given councils much greater powers to alter exemptions, with the results you see.

The next step will be 100% or 200% premiums if a house is declared empty, which means you might as well declare yourself as resident, even if it's only for one night a month.

The next thing to go will be the 100% exemption for students, and probably the 25% single-person exemption too.

Reply to the comment left by "Industry Observer " at "29/04/2014 - 13:58":

So can you or anyone shed light on how to make an AST "Contractual" rather than "Statutory"?

In a comment to the post that Industry Observer linked to, it is suggested this can be done with the inclusion of the condition "unless the tenant wishes to terminate the tenancy at the end of the fixed term (by giving notice) the tenancy hereby created shall continue as a contractual periodic tenancy from month to month until terminated". Will that do the job?

Also, does making the AST Contractual have any other repercussions landlords might need to take into account when deciding?

So far the advantages seem to be:
- landlord not liable for council tax between the tenant leaving and the end of the notice period
- can use S21(b) notice
- no need to issue Statutory Information about deposit again when the fixed term ends.

Are thare any disadvantages?

Reply to the comment left by "John Frith" at "08/08/2014 - 12:02":

Hi John,

The aim is not just to create a contractual periodic AST as opposed to a statutory periodic AST, but to create a periodic tenancy that starts with a fix term of at least 6 months.
This is indeed achieved with careful wording of the tenancy agreement. I'd suggest you get such an agreement from a reputable source as contract drafting can easily go wrong. E.g. Tessa Shepperson may have such agreements available.

As there would be a single tenancy you would not need to reprotect the deposit or give the PI again.
The tenant would also remain liable for CT to the council even if no longer residing at the property.

You would also be able to require more than 1 month notice from the tenant.

But you would never be able to use s.21(1) and would have to use only s.21(4) after the end of the fixed term.

Reply to the comment left by "Romain " at "10/08/2014 - 08:10":

Thanks Romain for the clarification.

This is all a bit to much for my limited brain.

Does that mean that a Periodic Tenancy with an initial fixed term of 6 months is not an AST?

If there are no downsides, I'm wondering why all landlords aren't using a Periodic Tenancy with an initial fixed term of 6 months?

Reply to the comment left by "John Frith" at "10/08/2014 - 14:00":

They are all ASTs. Usually you have a fixed term AST, followed by a statutory periodic AST.
Assured Shorthold Tenancies are a legal type of tenancy. Then, the agreement can defined the term of the tenancy: fixed or periodic.
Lastly, a periodic AST can be created by explicit contract, a contractual periodic AST, or implicitely by law after a fixed term AST, a statutory periodic AST.

A periodic tenancy starting with a fixed term is a bit exotic, IMHO, and probably not the first setup one would come up with. I guess that's why it can be attractive these days: because the law has focused on standard fixed term and periodic tenancies more exotic tenancies can wiggle through the net 😉
As long as you get the drafting right and you know what you are doing, that is.

Reply to the comment left by "Romain " at "10/08/2014 - 14:19":

Thanks Romain,

"Knowing what you are doing" probably excludes me!

But in the area where I rent, HB tenants with rent arrears bigger than the deposit are common, so chasing HB for council tax seems a better option than chasing a broke tenant, so I'll have to investigate further. Thanks for your help.

My tenants informed the council that they had left on May 18,2014 I was then billed for council tax. The tenancy was now on a periodic tenancy and the landlord had not been paying rent. I went up to the property and the side door was unlocked with a key inside. I entered the property and changed the locks. There were no furnishings apart from an old settee and what looked like bags of rubbish strewn around. The tenant is now suing me for unlawful eviction, material interest and his goods - electrical items were put in a summerhouse and the rubbish was put outside covered with a carpet for collection. Who had the material interest? I have evidence from the council to say that he left and the bill that was sent to me saying that the liability was now mine.

Reply to the comment left by "Heatherjustin Mcfadden" at "06/10/2015 - 21:14":

It's just not worth being a landlord when this kind of conduct is not treated as criminal and leads to grief for landlords.