Council tax

[Fandangle]

Hi all. My partner and I have moved into a property that has been split into two. The landlord has said that he will pay the council tax and we pay him. We will pay a third of the tax and the tenants in the other part of the building will pay two thirds as their part of the building is much bigger. Does this sound legal and ok?

[Peridot]

Re: Council tax

Hi Fandangle,
Do you share amenities such as kitchen and bathroom facilities or are the flats self contained? If you share facilities the land lord should be responsible for the council tax. If you are in separate self contained flats then you are individually responsible. I suspect the landlord may not have declared the change in the structure of the building to self contained units (if they are) as the Valuation office may wish to recalculate the band the property is in and therefore the Council tax due.
Does your tenancy agreement clearly state what share of the council tax you would be responsible for? It may be worth checking with the landlord but the gov't website may assist you here: https://www.gov.uk/council-tax

[Fandangle]

Re: Council tax

Hi Fandangle,
Do you share amenities such as kitchen and bathroom facilities or are the flats self contained? If you share facilities the land lord should be responsible for the council tax. If you are in separate self contained flats then you are individually responsible. I suspect the landlord may not have declared the change in the structure of the building to self contained units (if they are) as the Valuation office may wish to recalculate the band the property is in and therefore the Council tax due.
Does your tenancy agreement clearly state what share of the council tax you would be responsible for? It may be worth checking with the landlord but the gov't website may assist you here: https://www.gov.uk/council-tax

Thank you for your reply. We share no amenities at all with the other flat and have separate gardens. We have no tenancy agreement.

[Fandangle]

Re: Council tax

There is no one in the other part of the property yet. If we pay the one third of the council tax and he pays the two thirds of the council tax until tenants move into the other part of the property does that cover us with the council tax ok? When the other tenants move in we will pay one third and they will pay two thirds to the landlord who will pay the total to the council.

[ploddertom]

Re: Council tax

I think you really need to speak to the Council and/or look up the property details on the Valuation Office Agency website.

https://www.gov.uk/council-tax-bands

[Diana M]

Re: Council tax

If we pay the one third of the council tax and he pays the two thirds of the council tax until tenants move into the other part of the property does that cover us with the council tax ok? When the other tenants move in we will pay one third and they will pay two thirds to the landlord who will pay the total to the council.

We have no tenancy agreement.

Well this is a mixture of good news and bad news.

If there's no written tenancy agreement how can the Landlord prove that you owe him a specific amount of rent let alone council tax payments?

As soon as you took possession (handed the keys) and started to pay rent then a tenancy agreement may have been created under s54(2) of the Law and Property Act even if there's nothing in writing.

This means the Landlord is bound by his statutory duties. This will make it hard (if not impossible) for him to evict you etc. How could he prove how long the agreed term was for? And how could he prove you broke any terms of the tenancy agreement if there are no terms?

The real question is why does he want you to pay him the Council Tax when it is you and your partner (as the occupants) who are liable?

If he doesn't pass your contribution to the council that won't prevent them from chasing you for it especially if you haven't got a written tenancy agreement proving that he accepts liability for the cost.

How was this 'tenancy' set up? Do you know your Landlord (directly or indirectly through family/friends) or did you find the property on the internet or through an ad somewhere?

Are you paying your rent in cash and if so do you have a rent book?

Did you pay a deposit and if so has it been protected in one of the Government backed schemes?

Do you have a gas boiler and if so have you been given a Gas Safety Certificate?

Are there smoke and carbon monoxide alarms?

I'm sure everyhting is fine, but it's not usual.

Di

[Wylderose]

Re: Council tax

As far as the council tax is concerned, please speak to your Council Tax department - please cover your back because you are liable for the council tax from the date that you agreed to rent the property and received the keys.

As your part of the property is self contained, then I assume that the other part is also self contained. In essence the landlord has split one property into two and each self-contained property requires it's own council tax bill.

Because you live there and because there are no shared facilities (eg kitchen, bathroom etc), you will be issued with a council tax bill in your name and the landlord would remain responsible for the council tax for the other half of the property until such time as it is let.

The Council tax department will arrange for the Valuation Agency to inspect the property and will then assign a rateable value and council tax banding to both "properties" according to the recommendation of the VA

[lgfa92]

Re: Council tax

Council Tax banding is the responsibility of the Valuation Office Agency - the council can advise them but you'd also be better contacting the valuation office agency yourself to ensure it's done correctly.

You will received a backdated council tax demand notice (usually from the date you became resident in the property) and the council will chase you for the monies - there is no provision within council tax legislation to alter council tax liability to another party, any arrangement which does that is purely between those parties and it has no bearing on the council. As mentioned above though these sorts of properties tend to have a lot more in the way of issues than just the council tax that needs to be looked at.

I have seen and dealt with many similar cases over the years and they quite often end in a mess - if the landlord pays the monies you've paid them to the council to be credited to the new council tax account then it's not so bad but if they don't then you'll have a potentially long and messy fight if you try to get any monies back from the landlord.