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Council Tax Liability Hierarchy “owner”
Not my area of expertise!
Background. Elderly council tenant downsizing to another council property (same LA). Signed tenanncy agreement for new property (B) but refused to move in as council had not undertaken promissed repairs and redecoration. Continued to live at original property (A).
LA have now served CT Liability Notice for (B). Also argue that client is still liable for CT at (A) during same period. Whilst they seem to accept that (B) was never clients ‘sole or main residence’ they argue that he was the “owner” of B for the purposes of LGFA s6(5) because he falls with the further definitions in 6(6)(a) quoting the following:
Meaning of ‘owner’
2.4.10 For the purposes of the hierarchy of liability, an ‘owner’ in relation to any dwelling is a person who satisfies the following conditions: -
(a) that he or she has a material interest in the whole or any part of the dwelling; and
(b) that at least part of the dwelling or, as the case may be, of the part concerned is not subject to a material interest inferior to his or her interest.
2.4.11 A ‘material interest’ is further defined as a freehold interest, or a leasehold interest which was granted for a term of six months or more. It follows that in the case of a shorthold tenancy for a period of six months or more, it is the tenant who is the ‘owner’ for council tax purposes, whereas in the case of a weekly or monthly tenancy (or any tenancy subject to notice of less than six months) the immediate landlord is the ‘owner’.
I have been unable to establish where this quote comes from (presumably some form of guidance). It seems to me that the final sentence of 2.4.11 adds something that is not in the actual legislation (but may be based on caselaw?).
Can anyone identify the sourse of this quote?
Can a council tenancy be treated as or create a ‘freehold interest’ or ‘leashold interest’ when the council is the actual owner of the property for the purpose of CT liability?
A Council tenancy is certainly a leasehold interest: in a legal context a “lease” is a contract giving rise to any kind of tenancy from six month AST to 999 years, or monthly recurring or whatever. But the issue is whether the Council tenancy is for a period of six months - I suspect it is not, I think the term of a Council tenancy is one week or one month recurring indefinitely.
There have been a few Valuation Tribunal cases involving assured shorthold tenants who moved out after the end of their original six-month fixed term. See Nearly Legal blog for further discussion:
A Council tenancy is certainly a leasehold interest: in a legal context a “lease” is a contract giving rise to any kind of tenancy from six month AST to 999 years, or monthly recurring or whatever. But the issue is whether the Council tenancy is for a period of six months - I suspect it is not, I think the term of a Council tenancy is one week or one month recurring indefinitely.
There have been a few Valuation Tribunal cases involving assured shorthold tenants who moved out after the end of their original six-month fixed term. See Nearly Legal blog for further discussion:
Thanks for your reply.
Propably doesn’t assist my client but (I haven’t seen the tenancy agreement):
council state the tenancy was for an initial period of 12 months. When he decided not to move in client was required to sign a notice to quit and council argue he was therefore liable until the expiry of that notice (because they were unable to take back possession the property until expiry).
.
Ah, yes I’d forgotten about introductory tenancies. Suspect that probably is going to satisfy the six month requirement - but Valuation Tribunal costs nothing so might be worth a shot after you have had a proper look at the T/A