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Council tax exemptions when owner has died - anyone got more information?

9 replies

Tinker · 05/10/2007 18:12

It's my mother's house. I know we get 6 months with no council tax to pay. And after that we have to pay 90% of council tax. I also know it usd to be 50% and that the % of teh exemption changed in 2005

I understand why it has changed. I agree that 2nd homes should have to pay higher council taxes and/or houses that are left to become negelected.

But, is there any leeway re inherited homes? It is currently under offer but who knows how these things will pan out. And it is being maintained - gardener etc So, is there any option to appeal the rate of exemption? Does anyone know of any cases?

Seems harsh when we (me and siblings) certainly haven't chosen to have a 2nd home and are trying to sell it (which in itself is heartbreaking).

I'm prepared to be told to stop whinging but I don't think this situation was what was in mind when teh legislation changed.

Thank you

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Fizzylemonade · 05/10/2007 19:00

Tinker can you tell me why it has become your house when it was your Mum's? I used to work in council tax and the exemption to which you are referring is a Class C exemption which is where a property is left unoccupied and unfurnished for 6 months (this can apply to between tenancies etc)

faylisa · 05/10/2007 19:10

Hi, As far as I know (and it's a while since I did probate), you will only get the 6 months full exemption and then have to pay council tax from the estate funds. I think the rationale is that 6 months is plenty of time to get probate and sell the house - unfortunately that is utter rubbish as it often takes over six months just to get probate. You could try appealing to teh council and explaining the situation but tbh I doubt you'll get very far

Fizzylemonade · 05/10/2007 19:11

I think you are saying that your Mum sadly passed away and the house has been left to you and your siblings.

You get 6 months from probate to sell, rent or occupy the house. Before probate I believe (I gave up work 3 years ago to be sahm) that there is no time limit.

Although this does seem harsh, there are deadlines set by government with regard to empty properties. There are other properties this effects too.

I find it bizzare that your council chose 90% for the unoccupied charge (they all had a choice to bill between 75% and 90%) the council I worked for chose 75%. Otherwise you are opening yourself up to owners lying and saying it is occupied to pay a much reduced charge. 75% charge applies to properties occupied by one adult or one adult and an exempt adult ie a student.

Tinker · 05/10/2007 19:20

Thank you fizzylemonade and faylisa

Yes, my died in May, hence why it is our house

The stuff I've read on teh council site in question isn't 100% - it just says that they have opted for teh 90% rate on unoccupied houses. So, I'm assuming this house falls into taht category without question? It had occurred to me to just ask someone to live there until teh hosue is sold (I'm not serious - assume all sorts of nightmares about having to charge full market rents etc) but did seem to be a bit of a loophole. I'm assuming teh rationale for that is someone living in it woudl maintian it - but we have been doiing that

I sound like I'm whinging, sorry.

Now the term "get probate" has always confused me. Is that simply teh point at which you go to the solicitor with teh relevant documents and get teh ball rolling? It's not at the point where teh solictor has finalised their work I assume?

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Tinker · 05/10/2007 19:21

Sorry for typos

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faylisa · 07/10/2007 20:48

Tinker - 'getting probate' means the time when you get the document allowing the Executors/Administrators to begin winding up the estate. If there was a Will then the document will be a 'Grant of Probate', otherwise it will be a 'Grant of Letters of Administration'.

Either way, the Grant will be issued once the death-date value of all the assets and liabilities has been ascertained, the inheritance tax forms have been submitted and an Oath has been sworn by the Executors/Administrators.

So there are really three stages to Probate - first collecting all the relevant info and completing and submitting the iht forms and oath. second is submitting those forms and receiving the Grant. the third is using that Grant as authority for the banks, etc to release the deceased's funds, selling any property, etc and carrying out the instructions in the Will. Once everything has been collected and distributed the estate has been 'wound up'.

Hope that makes sense...

hamabeads · 07/10/2007 20:53

DH says the only way to avoid it is if it is no longer in probate but now inherited by you (and siblings) is to make it unihabitable eg. remove the bathroom! A bit extreme maybe...

O(therwise it is classed as a second home.

hamabeads · 07/10/2007 20:54

second homes are discretionary amount as decided by each council, hence yours is 90%

Tinker · 07/10/2007 22:35

Thanks faylisa and hamabeads. So, the council tax being due from January 2008 makes sense now. And, yes, neighbouring council is not using the 90% rate.

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