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Council tax query - if I rent AND buy at the same time do I pay twice?

15 replies

IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 12:26

I think the answer to this is yes but just wanted to check, I rent with DD who is a student so I get the 25% discount, she is on the tenancy agreement as joint tenant. If I also buy a house now and renovate it, in the period I am not living there (although need to be camping in one room sometimes to keep an eye on the builders) would I need to pay council tax on the property I own whilst paying 75% on the rental too?

And then if I eventually fully move into the house I've bought, does DD's liability here in the rental then become zero, or would I have to get my name removed from the tenancy agreement first? The landlord would prefer that I remain on it so might cause issues.

Seems a reach to get this answered on here but just wondering if I was being a bit thick trying to think it through - what's a logical way to set this out? I've looked at HM Gov website and CAB and still can't grasp it - does anyone know?

OP posts:
flipent · 17/04/2025 12:30

Yes, you would be liable for council tax on both properties. You are also only entitled to one discount, so the second property would be 100%. Although my experience was with the single person discount, which I could not apply to my rental and purchased property.

I believe if you remain on the tenancy that you would remain liable, but I'm not 100% on that one.

hannahclb · 17/04/2025 12:31

This reply has been withdrawn

This has been withdrawn by MNHQ at the poster's request.

Lovelysummerdays · 17/04/2025 12:34

Some councils will give you a period of time on a void property. Mines would then charge you double if unoccupied. Would it perhaps make more sense to call new property your residence and put old residency in your daughters name? Maybe stay there a big more during renovations.

TimeForABreak4 · 17/04/2025 12:38

Contact the local authority to ask. The rules are different now, there may be a period of exemption on it whilst you are decorating it. Alot of authorities now charge 200% on second homes, so if definitely enquire direct with them.

IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 13:05

Thanks all, I think you are onto something about the dividend on additional properties - I googled again after I posted and found that in the area I am moving into, the council only give a disregard/discount if you can prove "major structural work" - not sure a new bathroom counts as that, but it might do. And then yes, posters are right, I'd end up being charged 200% if I left it empty!

So I think the issue would be could I get my name off the tenancy agreement on the property that DD remains in, and I think the answer is very likely no - the landlord would not be happy with just one student on the agreement for the flat we both live in now.

OP posts:
IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 13:05

flipent · 17/04/2025 12:30

Yes, you would be liable for council tax on both properties. You are also only entitled to one discount, so the second property would be 100%. Although my experience was with the single person discount, which I could not apply to my rental and purchased property.

I believe if you remain on the tenancy that you would remain liable, but I'm not 100% on that one.

I didn't realise that either. My plans are full of expensive holes but best to find it all out now!

OP posts:
ADoughnutADay · 17/04/2025 13:11

IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 13:05

Thanks all, I think you are onto something about the dividend on additional properties - I googled again after I posted and found that in the area I am moving into, the council only give a disregard/discount if you can prove "major structural work" - not sure a new bathroom counts as that, but it might do. And then yes, posters are right, I'd end up being charged 200% if I left it empty!

So I think the issue would be could I get my name off the tenancy agreement on the property that DD remains in, and I think the answer is very likely no - the landlord would not be happy with just one student on the agreement for the flat we both live in now.

if the property has been empty before you buy it, that time continues into your ownership.

I brought somewhere that had been empty 18 months, so if I didn't move in when I brought it, I'd need to pay extra tax.

also, this place had no kitchen or bathroom, but didn't get any discounts for this. I was told it would need to be major structural work, like no roof.

MikeRafone · 17/04/2025 13:21

if you move into the property you are purchasing and inform council tax you have moved - but have left dd student in the rental property solo - then the rental become 0 as she is a full time student. Council tax is then liable on purchased property by you as a solo occupant at 75%

mive a bed and basics in and live there on day of completion

IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 13:22

@MikeRafone I had hoped that might work - but then wouldn't I need to be formally removed from the tenancy agreement first?

OP posts:
MikeRafone · 17/04/2025 14:56

Just because you’re on the tenancy agreement doesn’t mean you can’t move out of a property and not be liable for the council tax. As long as the other person takes it on until end of tenancy

id ring the council tax department and tell them you’re moving out and your daughter is staying put. Or do the online form and put note at end that your daughter is staying and has student status full time etc

why should you pay tax on the old property if you’re now paying elsewhere, you’re allowed to move and as long as your daughter stays in property until end of tenancy there shouldn’t be an issue

councils job is to collect tax within law

each district is slightly different, I used to work in c/tax but not since before covid - so have some understanding of how it works in general

JohnofWessex · 17/04/2025 15:02

Given the cost of renovating I suggest that the Council Tax is a drop in the ocean

Nextdoor55 · 17/04/2025 20:01

IWillAlwaysBeinaClubWithYouin1973 · 17/04/2025 13:05

Thanks all, I think you are onto something about the dividend on additional properties - I googled again after I posted and found that in the area I am moving into, the council only give a disregard/discount if you can prove "major structural work" - not sure a new bathroom counts as that, but it might do. And then yes, posters are right, I'd end up being charged 200% if I left it empty!

So I think the issue would be could I get my name off the tenancy agreement on the property that DD remains in, and I think the answer is very likely no - the landlord would not be happy with just one student on the agreement for the flat we both live in now.

This is what I was going to add. They'll write it off for council tax purposes, normally you'd get the house reinstated once the work has been done. They usually write it off for a year or 6 months then reinstate it when you ask.
One thing though if you increase the size etc they'll increase the banding.

Wot23 · 17/04/2025 20:49

new bathroom is not major structural work. You will not get the property removed from the CT register on account of a new bathroom

CT liability is based on what is called the hierarchy of liability, and is based on who is resident with who owns it as a secondary consideration

"resident" means it meet the test of being your main or only home. It is a relatively subjective assessment and is never as simple as how many nights do you sleep there.
You come off DD's rental as a liable resident for CT purposes you would need to remove your personal possessions from that property, change your address with banks, car insurance, driving licence, and any other "official" body that would send mail to you.
If you were ever investigated there is a nasty one they do which is to ask your friends where would they go to meet you, not clear cut if both properties in the same town, but even so unlikely to be that close together such that answer would not be revealing. There is extensive case law relating to this which boils down to the oft quoted phrase: degree of permanence, continuity or expectation of continuity of the resident

so if you can show you have genuinely left the flat and chnaged main home you should be able to claim single person discount on the new home and leave DD as disregarded sole occupant of the flat at zero CT.
if LL won't play ball and requires you to remain on DD's tenancy then you can try to get the council to accept you are not in residence as the hierarchy runs from most liable (1) to failsafe person (5)

  1. An owner / occupier living in the property who owns the leasehold or freehold of all / part of the property
  2. A tenant living in the property
  3. A person(s) who lives in the property and who is a licensee. This means that they are not a tenant, but have permission to stay there
  4. Any person(s) living in the property, for example, a squatter (yes, really)
  5. Non resident owner (eg the landlord of an unoccupied property)
Wot23 · 17/04/2025 21:09

PS the tenancy undoubtedly is one of joint and several liability
it will also doubtless include clauses making the tenants liable for "all" bills

therefore remaining on the tenancy makes it harder to say you are not liable for the CT unless you can show you do not live there and the ongoing tenancy is because of the normal situation for student LL - they need someone to step up if the student fails to pay. In your case, because you live there the LL gets that directly from the tenancy rather than the more usual making a parent have a deed of guarantee. Perhaps you need to offer the LL some such "insurance" in exchange for removing you from the tenancy?

TheOnlyThing · 17/04/2025 21:11

If the property is uninhabitable you can sometimes get a discount, you could also be liable for 200% council tax on a second home in some places so best to check.

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