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Do Landlords Pay Council Tax? A Clear Guide for UK Landlords and Tenants

Writer's picture: Elliot LeighElliot Leigh



"Who pays the council tax?" It's a question that often causes confusion for both landlords and tenants in the UK. After all, council tax is an essential charge that funds vital local services like rubbish collection, street lighting, and schools.


At Elliot Leigh, we get asked this question regularly. With over two decades of experience in property management, we understand the ins and outs of council tax and want to clear up any misconceptions. This guide will break down who is responsible for council tax in various scenarios, including those tricky void periods.



The General Rule: Tenants Foot the Bill

In most standard tenancy situations, the responsibility for paying council tax falls squarely on the tenants' shoulders. This applies when a property is occupied under a legally binding tenancy agreement. You'll usually find that the council tax bill is addressed directly to the tenants residing at the property.



When Do Landlords Pay Council Tax?

While tenants are typically liable for council tax, there are specific circumstances where the responsibility shifts to the landlord:


●     Empty Properties (Void Periods): If a rental property is empty and has no tenants living in it, the landlord becomes liable for the council tax. This applies during void periods between tenancies or when a property is undergoing renovations.


●     Council Tax Exemptions and Discounts:

-Uninhabitable Properties: If a property is deemed uninhabitable, perhaps due to major repairs or renovations that make it unsafe for occupation, landlords can apply for an exemption from council tax.

-Houses in Multiple Occupation (HMOs): The rules around HMOs can be a bit more complex. If each tenant has an individual tenancy agreement for their room, they are usually responsible for their own council tax. However, if there's a joint tenancy agreement for the whole property, the tenants are jointly liable.

-Student Accommodation: Full-time students are generally exempt from paying council tax. In purpose-built student accommodation or properties where all tenants are full-time students, the landlord may be liable for the council tax.



Council Tax and Different Tenancy Types

Let's clarify how council tax liability works with different tenancy types:


●     Single Tenancy Agreements: As mentioned earlier, if there's a single tenancy agreement covering all occupants, the tenants are collectively responsible for the council tax.


●     Joint Tenancy Agreements: Similar to single tenancies, all tenants named on a joint tenancy agreement share the responsibility for paying the council tax bill.


●     Individual Tenancy Agreements (Common in HMOs): In this scenario, each tenant has a separate agreement for their room or individual space within the property. Each tenant is then individually liable for the council tax for their portion.



Landlords: Your Council Tax Responsibilities

Even when tenants are primarily responsible for council tax, landlords still have important obligations:


●     Inform the Council: Keep the council informed about any changes in tenancy, including new tenants moving in or existing tenants moving out. This ensures accurate billing.


●     Provide Information: Provide your tenants with clear information about council tax, including how to pay and who to contact with any queries.


●     Understand Exemptions: Familiarise yourself with the rules around council tax exemptions and discounts to ensure you're not overpaying during void periods or for eligible properties.


●     Address Issues Promptly: Deal with any council tax-related issues or disputes promptly and professionally to maintain a good relationship with your tenants and avoid potential legal complications.



Tenants: Your Council Tax Responsibilities

As a tenant, you also have key responsibilities when it comes to council tax:


●     Register with the Council: When you move into a new rental property, register with the local council to ensure you receive the correct council tax bill.


●     Pay on Time: Make your council tax payments on time to avoid penalties and potential legal action.


●     Inform the Council of Changes: If your circumstances change, such as becoming a full-time student or if a housemate moves out, inform the council immediately as this may affect your council tax liability.



Council Tax Disputes: Finding Resolutions

Disagreements about council tax can sometimes arise. Here's what to do:


●     Communication is Key: If a dispute occurs, try to resolve it amicably through open communication with your landlord or tenant.


●     Valuation Office Agency (VOA): If you believe your property is in the wrong council tax band, you can contact the VOA to challenge the valuation.



In Conclusion: Clarity, Communication, and Guaranteed Rent Solutions

Understanding council tax responsibilities is crucial for both landlords and tenants in the UK. By being aware of the rules and communicating effectively, you can avoid confusion, disputes, and unnecessary stress.


But what if you could eliminate the hassle of council tax altogether? With Elliot Leigh’s Guaranteed Rent Scheme, landlords can enjoy complete peace of mind. We take on full responsibility for managing your property, including council tax payments, whether the property is occupied or vacant. This means no more chasing tenants for rent or worrying about void periods affecting your income.


If you're a landlord seeking a hassle-free rental experience, our Guaranteed Rent Scheme offers a comprehensive solution. We handle everything from property maintenance to council tax payments and legal compliance. Contact us today to learn more about how our Guaranteed Rent Scheme can simplify your life and maximise your rental income.

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