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Council Tax in Service Charges covered by HC’s??

Carlo
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Benefits advice service - Eastlight Community Homes, Braintree

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Total Posts: 30

Joined: 11 September 2013

Hi everyone. Apologies if this sounds nonsensical!
Currently, some of our tenants receive HB to cover rent/eligible service charges, which have included an amount for Council Tax. This due to the properties being HMO’s, and the bill/liability being apportioned.
Does anyone know if this allowance a) exists with eligible service charges for UC HC’s, and b) if it does, where is it written?

Thanks for any pointers

Elliot Kent
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Shelter

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Joined: 14 July 2014

Someone living in a HMO isn’t liable for council tax - the owner of the HMO is. When the agreement refers to the tenant as paying something towards the council tax, this is just an increase in rent to offset the landlord’s liability. There is no “service” being provided. As such, it is treated as an increase in rent and not a service charge for HB purposes and therefore it can be covered (see HB Manual A4.160). I couldn’t find equivalent guidance for the UC HCE but the logic surely still applies.

Carlo
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Benefits advice service - Eastlight Community Homes, Braintree

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Total Posts: 30

Joined: 11 September 2013

Thanks for that. Apologies for the poor choice of wording - it sounded better than that in my head.
Yes the landlord is liable and will pass the cost onto the tenant through service charges, which can be covered by HB.
I just couldn’t find the equivalent in UC. The lists for eligible/ineligible SC’s doesn’t state it.
I like the idea that logic might work but…..
I suppose I just wondered if anyone had put one through that had been accepted.
Thanks again