Under normal circumstances, the person who is living in a property is responsible for paying the council tax on that property. Usually, therefore, the lead tenant will take on the council tax when they move in.
There are two fairly frequent exceptions to this:
- when the landlord is living in the property themself. If you have a lodger in your own home, then you'll remain responsible for the council tax, and for how that bill is split with your lodger.
- HMOs, where the landlord normally pays the council tax (and then recoups the expense as part of the rent)
Council tax and void property
Where things start getting complicated is when the property is empty. If the property is unfurnished, there will be no CT liability for the first six months of any void. Making the property unfurnished by removing all the furniture is allowable. However, bear in mind that landlords of furnished property can claim 10% depreciation allowance annually. You won’t be able to claim both on the same property, so do some sums before you decide which is preferable.
If the property is void because major works are being carried out, it may be exempt from CT for up to twelve months.
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