Liability
A resident for council tax purposes is a person who is 18 years or over and occupies the property as their sole or main residence.
1s75 LGFA 1992If there are more than one resident with the same interest in the property (ie, joint owners or joint tenants), they are ’jointly and severally’ liable. This means that all the people concerned can be asked to pay the full charge, together or as individuals. Members of a couple are jointly liable. A single bill is sent, either in the name of one of the persons concerned, or in both names.
Some people are disregarded and may be exempted from being counted as being residents living in the property. These include full-time students, people who are ‘severely mentally impaired’, unpaid carers, people held in detention and children under 18. They cannot be jointly and severally liable if there is someone else with the same status and legal interest in the property who is not exempt.
Annual council tax bills should be issued less any award of council tax reduction (CTR), exemption or discounts, and must arrive at least 14 days before the first instalment falls due. The local authority usually asks for payment by 10 monthly instalments, but this can be spread over 12 monthly instalments in certain circumstances.
A council tax bill is sent to each domestic property. There is a ‘hierarchy’ of liability, as follows:
2s75(2) LGFA 1992•resident owner of the whole or any part of the dwelling;
•resident tenant of the whole or any part of the dwelling;
•resident statutory tenant, resident statutory assured tenant, or resident secure tenant of the whole or any part of the dwelling;
•resident sub-tenant of the whole or any part of the dwelling;
•resident of the dwelling or any of the following:
◦the sub-tenant of the whole or any part of the dwelling under a sub-lease granted for a term of six months or more;
◦the tenant, under a lease granted for a term of six months or more, of any part of the dwelling which is not subject to a sub-lease granted for a term of six months or more;
◦the owner of any part of the dwelling which is not subject to a lease granted for a term of six months or more.
A resident of the property is usually responsible for paying the council tax unless:
•they rent and the owner has agreed to be responsible for paying it; or
•they live in a house in multiple occupancy (HMO); or
•they live in a hostel, nursing home or other accommodation where several individuals or households pay rent separately but share cooking or washing facilities; or
•they live in a convent, monastery or other religious community.
There is a right to appeal to the First-tier Tribunal (Local Taxation Chamber) against certain decisions, including liability, valuations, discounts, exemptions and CTR.