Overview
Tenant pays during occupation — landlord pays during voids
In a standard single-occupancy tenancy, the tenant is liable for council tax during the tenancy. The landlord becomes liable during void periods between tenancies. HMO rules differ — the landlord is typically always liable.
Standard tenancy — who pays council tax?
- During the tenancy: the tenant is the liable person for council tax. The landlord has no council tax liability while a tenant is in residence under a standard single-household tenancy
- During void periods: the landlord becomes the liable person from the day the tenancy ends to the day a new tenancy begins
- On tenant departure: notify the council as soon as the tenancy ends — provide the outgoing tenant's departure date and your details as the new liable person
- On new tenant moving in: notify the council of the new tenancy start date and the incoming tenant's details — this ends your void period liability
- Keep records of all tenancy start and end dates — councils can backdate council tax liability and may assess the landlord for periods incorrectly attributed to a departed tenant
HMO council tax — landlord always liable
- For licensable HMOs (broadly: properties with 3 or more occupants from 2 or more households who share facilities), the landlord is the liable person for council tax — not the individual tenants
- This applies even if the tenants would otherwise be adult residents — the HMO regime overrides standard liability rules
- The landlord can recoup council tax from tenants via the rent (often included as part of an all-inclusive rent)
- Non-licensable HMOs (small shared houses with 2 occupants from 2 households): standard rules apply — tenants are jointly and severally liable
- Check with your local authority whether your property is treated as an HMO for council tax purposes — the council tax classification does not always match the HMO licensing classification
Void periods — reducing council tax liability
- Standard void period: landlords are liable for council tax from the first day of the void. No automatic exemption applies
- Empty and unfurnished discount: properties that are empty and substantially unfurnished may qualify for a local authority discount — typically 100% discount for the first month, then a charge applies. Policies vary by council
- Furnished void: most councils charge full council tax on a furnished empty property from day one of the void — there is no standard furnished void discount
- Planned renovation: some councils offer an exemption for properties undergoing major structural works — apply in advance and provide evidence of works
- Notify the council at the start of the void — do not wait until you receive a demand
Student exemptions
- A property occupied solely by full-time students is exempt from council tax — the council issues a council tax exemption certificate when all occupants qualify
- Students must be on a course lasting at least one year and attending at least 21 hours per week
- Mixed occupancy (some students, some non-students): the property is not fully exempt. Non-student occupants are liable, but may receive a 25% single person discount if the student co-habitants are 'disregarded' for council tax purposes
- Student halls managed by the university or college are typically exempt — private landlords must apply for the exemption for student properties
- Ask tenants to provide their student exemption certificates at the start of the tenancy and pass them to the council promptly