Three year Council Tax bill?

Three year Council Tax bill?

8:00 AM, 15th February 2019, About 6 years ago 34

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My friend had tenants in a property for three years, but they did not pay any council tax during that time. The council said that he should have sent the Assured Tenancy Agreement to them and that they were not aware any tenants were living in the property. He ended up paying £8,000 in Council Tax!

I was very surprised by the council’s stance as I never thought the landlord was responsible for tenants bills, be it council tax or utilities.

I have a couple of properties and I do inform the council, gas, water and electricity providers, but I never get a confirmation so I am now a little concerned. Could the council do the same to me?

Many thanks

Sash


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Richard of York

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17:47 PM, 19th February 2019, About 6 years ago

On the subject of council tax ( our new AST's state that the tenancy becomes a 'contractual periodic tenancy' at the end of the fixed term so the scenario below will no longer occur ) - do we have a definitive answer as to who is liable for council tax where:

1) a tenant outside the fixed term ( statutory periodic ) gives notice, pays rent up to the end of the notice period, but moves out before the end of the notice period?

I have been assured by the council ( of course ) that the landlord is responsible as after the fixed term the tenant does not have a 'material interest' in the property and whether they give notice or not the landlord is responsible for council tax as soon as the property is vacant. The RLA confirmed this.

If the tenant does not have a material interest in the property at the time they vacate, can they be pursued through the courts by the landlord for reimbursement of council tax paid by the landlord up to the end of the notice period?

Any thoughts?

TheMaluka

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6:03 AM, 20th February 2019, About 6 years ago

Reply to the comment left by Richard of York at 19/02/2019 - 17:47
An AST which continues as a Statutory Periodic tenancy is considered to be a new tenancy of less than six months (except after Superstrike for deposit protection purposes). This is the default situation if nothing to the contrary is said in the AST. In a tenancy of less than six months the tenant is only responsible for the council tax whilst in occupation.

An AST which continues as a Contractual Periodic, a condition which must be defined in the tenancy, is not considered to be a new tenancy but a continuation of the original tenancy. The tenant is responsible for council tax whether or not in occupation.

Richard of York

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9:37 AM, 20th February 2019, About 6 years ago

Thanks for the clarification on 'statutory periodic' situation. It does seem rather one sided - so even if the tenant has paid rent to the end of the notice period he can leave beforehand and be off the hook for council tax purposes? I'm sure if it worked in favour of the landlord it would be deemed an unfair contract.
So, if the tenant is not legally responsible for council tax once they vacate, there is no point in pursuing them for it.

Happy days!

TheMaluka

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9:49 AM, 20th February 2019, About 6 years ago

Reply to the comment left by Richard of York at 20/02/2019 - 09:37
Easily overcome by specifying that the AST continues as a 'Contractual Periodic' after the initial fixed period. As far as I am aware this is not considered an unfair contract term - but who can guess the mind of a judge!

Richard of York

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10:43 AM, 20th February 2019, About 6 years ago

Reply to the comment left by David Price at 20/02/2019 - 09:49
We do that on new tenancies now. We just have a few old ones in the system - it's frustrating when the council is right!

TheMaluka

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12:10 PM, 20th February 2019, About 6 years ago

Reply to the comment left by Richard of York at 20/02/2019 - 10:43
I am in the same situation with legacy tenancies and yes it is infuriating when the council is right. The only saving grace is that the older tenancies belong to the better behaved tenants, the ones who we have not evicted.

Robert M

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11:01 AM, 21st February 2019, About 6 years ago

Reply to the comment left by Richard of York at 20/02/2019 - 10:43
There is presumably some legal mechanism whereby terms and conditions of a tenancy can be varied, (like when you want to increase the rent), so perhaps you could send the tenants a notice to vary the terms of the AST so as to include the "contractual periodic" condition? Or just offer them a new 6 month tenancy, with the new condition in it?

Susan Bradley

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11:37 AM, 21st February 2019, About 6 years ago

Could anybody please let me know what the precise words are that I need to insert into my contracts to make it a contractual one at the end of the 6 months as I’ve got a new tenant moving in a a week or so

TheMaluka

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12:13 PM, 21st February 2019, About 6 years ago

I can only quote the words in my tenancy agreement, words which have survived many Local Authority challenges.

"If the Tenant does not leave at the end of the fixed term, the tenancy hereby created shall continue, still subject to the terms and conditions set out in this agreement, as a contractual periodic tenancy from month to month until terminated in accordance with the provisions of this agreement. For the avoidance of doubt the continuing tenancy shall not be a statutory periodic tenancy. "

I have found it necessary when dealing with the Local Authority to be overly pedantic, just to ensure that the message gets through.

Susan Bradley

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12:40 PM, 21st February 2019, About 6 years ago

Reply to the comment left by David Price at 21/02/2019 - 12:13
Thank you

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