Who is liable when a tenant vacates the property?
Council Tax legislation advises that on any day that a property is unoccupied it is the owner of the property that is required to be held as the liable party for Council Tax charges.
For Council Tax purposes the owner of the property is defined as a person(s) who holds a material interest in the property.
A material interest is defined as a freehold interest, or a leasehold interest which was granted for a term of six months or more.
In most cases, when taking out an initial tenancy on a property, tenants are granted an assured shorthold tenancy usually for a period of six or twelve months. This assured shorthold tenancy would mean the tenant holds the material interest in the property for its duration and therefore if they vacate the property prior to the end of this period, the tenant would be deemed the liable party for Council Tax for the full term of the assured shorthold tenancy.
A statutory tenancy (often referred to as a rolling tenancy) is created when a tenancy agreement ends and the tenant remains in residence. In this situation the tenant no longer holds a material interest in the property so from date of vacation it is the property owner who is required to be held liable for Council Tax charges.
Example scenarios and questions
The tenant has remained in occupation beyond their period of the assured shorthold tenancy, they have now moved out of the property, and have agreed a tenancy end date with the owner for one months time – what date does the owner become liable for Council Tax?
As the tenant no longer holds a material interest in the property their Council Tax account will end on the date they physically move out of the property, not the date of the agreed tenancy end.
The tenant has signed an initial six month assured shorthold tenancy but has moved out of the property after three months, for what period is the tenant liable?
As the tenant hold a material interest in the property, they will be liable for Council Tax for the full duration of their tenancy, in this case six months.
I am an owner who has evicted a tenant, is the tenant liable until the date of eviction?
If the tenant is beyond the date of their initial assured shorthold tenancy then they will only be the liable party for Council Tax until the date they physically moved out of the property, not the date of eviction.
What if the property remains furnished whilst it has been unoccupied?
If the tenant is beyond the date of their initial assured shorthold tenancy then they will only be the liable party for Council Tax until the date they physically moved out of the property.
West Lindsey District Council offers a two month 100% discount for a property that is unoccupied and unfurnished – as the owner of the property does this mean I will get the full two month discount from the start date of my account?
No, you may get the full two month period, but the discount is applied from the date that the property first becomes unoccupied and unfurnished and runs until the property becomes substantially furnished, or re-occupied, or the two month period expires. Therefore if a previous occupant has vacated the property and removed furniture prior to the end date of their account, then the discount will be applied over more than one Council Tax account.
Example
Tenant moves out of the property two weeks prior to the end of their initial six month assured shorthold tenancy and removes furniture. The tenant will remain liable for Council Tax charges for the full six month period of their tenancy, and will be entitled to the empty property discount for a period of two weeks, meaning that the next Council Tax account will be entitled to a maximum period of six weeks empty property discount should the property remain unoccupied and unfurnished for that length of time. This could be the landlord if a new tenant does not move in within 6 weeks of the vacation of the previous tenant.