Council tax is a local authority charge on residential properties. The liable person is determined by a hierarchy set out in the Local Government Finance Act 1992: in most cases, the resident occupier is liable. In a normal tenancy, that is the tenant. When the property is empty, the owner (landlord) becomes liable. HMOs are an important exception — the landlord is typically the liable person even when tenants are resident.
Landlords are often surprised to receive council tax bills during short void periods or for HMO properties. Knowing when liability switches, how to notify the council, and what discounts or exemptions are available prevents unnecessary costs.
Standard tenancy — who pays council tax?
In a standard single-household tenancy, the tenant is liable during occupation:
- During the tenancy: the tenant is the liable person. The landlord has no liability while a tenant is resident under a normal AST or Periodic Assured Tenancy
- Notify the council when a new tenancy starts: provide the council with the incoming tenant's name, the tenancy start date, and the property address. Many councils have an online form for this
- During void periods (property empty between tenancies): the landlord is the liable person from the day the previous tenancy ends
- Notify the council when the tenancy ends: provide the outgoing tenant's departure date and your details as the new liable person
- Keep records of all tenancy start and end dates — councils can backdate liability assessments and challenge gaps or overlaps
HMO council tax — landlord always liable
For Houses in Multiple Occupation, the council tax rules are different:
- For licensable HMOs (properties with 3 or more occupants from 2 or more households sharing facilities), the landlord is the liable person for council tax — not the individual tenants
- This applies even when all rooms are occupied — the landlord pays council tax throughout the tenancy, not the tenants
- Landlords typically recoup council tax by including it in an all-inclusive rent, or by charging a separate utilities amount that covers council tax
- Non-licensable shared houses (2 occupants from 2 households): standard rules apply — tenants are jointly and severally liable, not the landlord
- The council tax classification of an HMO does not always match the HMO licensing classification — check with your local authority how your specific property is classified for council tax
Void period council tax — discounts and exemptions
Most councils charge council tax on void properties, but some discounts and exemptions apply:
- Standard void (furnished): full council tax is typically charged from day one. No automatic discount for furnished voids in most areas
- Empty and substantially unfurnished: most councils offer a 100% discount for the first calendar month — after that, full council tax is charged (or a local council surcharge may apply for long-term empties)
- Major structural works: some councils grant an exemption where the property is undergoing major structural renovation — apply in advance with evidence of works
- Uninhabitable: if the property is uninhabitable (e.g. after fire or flood damage), an exemption may apply — contact the council with evidence
- Council policies vary significantly — check your local authority's current council tax discount and exemption policy at the start of each void
Student exemptions
Properties occupied solely by full-time students are exempt from council tax:
- Full-time student exemption: a property occupied entirely by full-time students is exempt from council tax — the council issues an exemption certificate
- Students must be on a qualifying course: at least one year in duration, at least 21 hours per week of study
- Ask tenants to provide their student exemption certificates (issued by their university or college) at the start of the tenancy and pass them to the council promptly
- Mixed occupancy (students and non-students): the property is not fully exempt. Non-student occupants pay council tax, but student co-inhabitants are 'disregarded' — the non-student may qualify for a 25% single person discount if all other occupants are students
- HMOs with student tenants: the landlord is liable for council tax on the HMO — apply to the council for the student exemption by providing all tenants' exemption certificates
How to notify the council
Proactive council notification prevents billing errors and backdated demands:
- When a tenancy starts: notify the council online (most councils have an online portal), providing: the tenant's name, tenancy start date, and property address. Do this on the day of or immediately after move-in
- When a tenancy ends: notify the council immediately, providing: the outgoing tenant's departure date and your details as the new liable person for the void period
- When you re-let after a void: notify the council of the new tenant's name and tenancy start date — this ends your void period liability
- HMO exemption applications: submit all tenants' student exemption certificates annually at the start of each academic year
- Keep copies of all council notifications — if a disputed bill arrives, your notification records are your evidence
Frequently asked questions
Can I make the tenant pay council tax during the void if they left early?+
No. Once the tenancy has legally ended, the tenant is no longer the liable person for council tax — the landlord becomes liable from the day the tenancy ends. If the tenant caused the early departure (e.g. abandoned the property), you may be able to claim the council tax cost as a loss in your deposit deduction claim or a county court money claim against the tenant — but this is a civil debt recovery action, not a council tax liability shift.
My tenant hasn't paid their council tax — does this affect me?+
During the tenancy, the council tax is the tenant's debt — not the landlord's. The council cannot pursue the landlord for a tenant's unpaid council tax during the tenancy period. However, unpaid council tax can become a problem at the end of the tenancy: some councils issue backdated void period demands to landlords when the previous tenant's period shows as unpaid. Always notify the council promptly when a tenancy ends to ensure your void liability is correctly dated from the departure date.
Can I charge tenants council tax in an HMO?+
Yes — since the landlord is the council tax liable person in most HMOs, landlords typically recoup this cost through the rent. You can include council tax in an all-inclusive rent, or charge it as a separate utility contribution. Be transparent about this in your tenancy agreement. Note that the Tenant Fees Act 2019 allows landlords to charge utilities (including council tax) as a permitted payment where it reflects the actual cost — do not overcharge.
Is there a council tax surcharge for long-term empty properties?+
Yes — most English councils charge a council tax premium (surcharge) on long-term empty properties. Since April 2024, councils can charge up to 100% premium after 1 year empty, up to 200% after 5 years, and up to 300% after 10 years. If you are planning a long renovation or struggling to let a property, factor in council tax premiums in your cost calculations and explore whether the property qualifies for an exemption while uninhabitable.