Property held in a Will Trust and liability for council tax - Class F Exemption

[enaid]

That is how it worked for us when my dad died we got 6 months after probate the house was sold within the 6 months.
New rules in 2013 allowed councils to make their own rules on empty properties a little about this on this link http://www.bbc.co.uk/news/business-21814039

[lgfa92]

Thank you for your reponse. I am seeking a reduction under the class F exemption as I understand that Council's can use their discretion to exempt properties which remain unoccupied and substantially empty of furniture. I also note that there is an article in public law today which states:-

“A further exemption is under class F (Council Tax (Exempt Dwellings) (Amendment) Order 1994 in situations where the owner has died, the property is unoccupied, and the dwelling is held on trust by the executor or administrator. The dwelling then will be exempt until the grant of probate or letters of administration for a further 6 months thereafter. Beyond the 6 months though, the liability will fall to the executor or administrator as trustee, until such time as the dwelling is disposed of or transferred to the beneficiary”.

This appears to fit our circumstances exactly. I am seeking further clarification on this. I would appreciate your comments on this.

There is no discretion in legislation for a Class F exemption, it's a case of either it meets the criteria or it doesn't. The only facility in council tax legislation for a discretionary relief is under s13A(1)(c) of the LGFA 1992.

In respect of the general issue of unoccupied property councils do have the powers to set the discount (within certain limits - the exemption for unoccupied and substantially unfurnished property was removed and replaced with a discount in England in 2013) at their choice however the rate set under the delegated powers has to be fixed no later than 21 days prior to the start of the tax year, they have no powers to vary it in year.

[lgfa92]

That is how it worked for us when my dad died we got 6 months after probate the house was sold within the 6 months.
New rules in 2013 allowed councils to make their own rules on empty properties a little about this on this link http://www.bbc.co.uk/news/business-21814039

The 6 months after probate under the Class F exemption is still in place (it's not yet a delegated power) - the reason it wouldn't apply in this case is that it is meant to cover the deceased estate against costs for up to 6 months after probate but only where the estate is still the sole owner. It is a very handy exemption where it can be claimed.

[Sarahbea]

Hi, sorry to jump in on this thread but can the Class F be applied to an account once probate has been granted if there is only one beneficiary. The Class F on my late parents house has been stopped from day of probate and they say I cant have a further 6 months as i was sole beneficiary. The house was unoccupied and on the market. It was sold 10 months after probate and was never transferred into my name. In fact I wasnt able to change estate agents without my fellow exor signing paperwork abd so it didnt feel like i owned it.THANK YOU

[enaid]

Hi, I would firstly check your LA website see what their rules are on council tax empty properties they do vary.

[lgfa92]

Hi, sorry to jump in on this thread but can the Class F be applied to an account once probate has been granted if there is only one beneficiary. The Class F on my late parents house has been stopped from day of probate and they say I cant have a further 6 months as i was sole beneficiary. The house was unoccupied and on the market. It was sold 10 months after probate and was never transferred into my name. In fact I wasnt able to change estate agents without my fellow exor signing paperwork abd so it didnt feel like i owned it.THANK YOU

At the moment the Class F exemption isn't a delegated power so local authorities should all be working with the same legislation but the actual issues can be complicated and that's what causes the issues. There may be other discount s available for the time in question and these can vary by local authority.

Once probate has been granted then the Class F will cease to apply on the property if there is someone with a beneficial or legal interest in the property who falls to the owner for council tax purposes - whether or not the land registry deed was transferred or not is not particularly relevant. That being said, the Class F exemption is badly worded and that is what leads to all sorts of issues.Ultimately, the only way to push the issue would be to take it to a tribunal and let them decide.

[TJL1988SBC]

Hello and sorry for bumping old thread. Our local council is billing my sister and I the tax for our late father's property, however everything I seem to be reading on the internet suggests there should have been nothing to pay until after probate? They are stating that we were liable from the point of death because we are named beneficiaries on the will, and they are quoting a clause in the 1925 Law of Property Act to that effect. Is this correct?

[Peridot]

Hi,
the class F exemption is only for 6 months after the date of death provided property is not lived in. You need to contact the council and check whether the 6 months has lapsed. If the property is on the market and empty they may extend the 6 months but not always.
If there is council tax owing from when the person was alive then the estate is liable. The council tax will still be payable after the exemption period has expired.
hope this helps.

[TJL1988SBC]

The property isn’t lived in, they are claiming we not eligible for class F exemption

[Peridot]

When did the person die?
you need to check the local authority website for the property. They do vary. If there was unpaid council tax prior to the person dying then the estate will be liable as I mentioned above.
I’d check the particular local authority rules first.

[TJL1988SBC]

He died May last year and probate was granted in November

[Peridot]

So if the class F exemption applied it would have ended in any event by November, 6 months after he passed.
you need to ask for the period dates you are being charged for and also check the local authorities policy on class f exemptions following a death.

[TJL1988SBC]

Well there policy on their website is an exemption should be granted until probate, but they are disputing this

[TJL1988SBC]

edit: here is the e-mail they sent me quoting a different law to the person on the phone

"As you have advised that you and your sister are the sole beneficiaries, you have an equitable interest in the property from the date your mother passed away. This equitable interest equates to a freehold interest and, in accordance with the council tax Hierarchy of Liability contained in Section 6 of the Local Government Finance Act 1992, you are both jointly and severally liable"

The lady on the phone said something to the effect of because we were named as beneficiaries on the will we have an equitable interest in the property and are liable, and if in fact there was not a will then we would have been eligible for the exemption. Does this sound right?

Can anyone help me??

[TJL1988SBC]

I just want them to recalculate the bill in line with the death exemption but if we're not eligible so be it