England, Scotland, and Wales levy the Council tax on all domestic properties within their borders; the tax funds local services like bin collection, libraries, and street maintenance.
When you move out of a property, you must close your council tax account to avoid unnecessary charges and ensure a smooth handover to the new occupant.
When Should You Close Your Council Tax Account?
The best time to close your council tax account is when you vacate the property entirely, which applies to both purchase and rental situations.
If you’re moving to a new residence within the UK, you’ll need to close your account for the old property and register for council tax at your new address.
If you’re selling, once the sale of your property is finalized and you no longer own it, you should close the council tax account.
If you’re emigrating from the UK and leaving your property unoccupied, you’ll still be liable for council tax unless you qualify for an exemption (more on this later).
However, you can close your account and inform the council of your new circumstances.
You must be mindful of the UK council tax banding system.
When you move to a new property, your council tax band is determined by its value, which impacts the amount you pay.
What Happens When You Don’t Close Your Council Tax Account?
Leaving your council tax account open after moving out can lead to several issues.
Here’s why closing your account is necessary:
- Unnecessary Payments: You’ll continue to be billed for the property even if you no longer reside there.
- Debt Collection: Failure to pay outstanding council tax can lead to debt collection procedures, incur additional fees, and impact your credit score.
- Difficulties for New Occupants: The new occupants might face delays in registering for council tax if your account remains open.
How to Notify Your Local Council
The first step in closing your council tax account is notifying your local council.
There are several ways to do this:
- Online: Most councils in the UK offer online services where you can manage your council tax account. Look for a dedicated section to notify them of a change of occupancy or closing of your account. You’ll likely need your council tax reference number to log in.
- Phone: You can directly contact your local council by phone and speak to a representative in the council tax department. They’ll guide you through the process and provide any relevant forms you must fill out.
- In-person: Although this is less common, some residents might prefer to visit their local council office in person, which can be helpful if you have any specific questions or require clarification on the process.
When notifying your council, be prepared to provide the following details:
- Your council tax reference number (found on your council tax bill)
- The date you vacated the property
- Your new address (if applicable)
- Proof of your new address (such as a utility bill or bank statement) in some cases
How to Close Your Council Tax Account
Here’s a step-by-step guide to help you close your council tax account efficiently:
- Locate your council tax reference number and ensure you have readily available proof of your new address.
- Choose your preferred method to contact your local council: online portal, phone call, or in-person visit.
- Inform the council representative you wish to close your council tax account and provide your reference number.
- State your move-out date from the property.
- Submit Proof of New Address. Which verifies you’re no longer residing at the property.
- Ensure you’ve paid all council tax due up to your move-out date.
- Ask for a final council tax bill to confirm the closure and identify any potential refunds.
- Maintain copies of your communication with your council regarding the account closure.
Do I Need to Pay Any Outstanding Council Tax?
You must settle any outstanding council tax balance before your council tax account can be closed, including any arrears or council tax due for the period you occupied the property.
Here’s how to handle outstanding payments:
- Online Payment: Most councils offer online payment options for council tax. You can usually pay through the council’s online portal using your debit/credit card or bank account.
- Phone Payment: Some councils accept phone payments. Contact them to inquire if this option is available, and be prepared to provide your card details over the phone.
- Direct Debit: If you had a direct debit set up for council tax payments, you can cancel it through your bank after confirming your account closure with the council.
Requesting a Final Bill
Once you’ve informed the council of your move and settled any outstanding balance, you can request a final council tax bill.
This bill will confirm your account is closed and show any final adjustments or potential refunds.
Here’s how to request a final bill:
- Online: Many councils allow you to request a final bill electronically through their online services.
- Phone: Contact your local council’s council tax department and request a final bill.
- By Post: Some councils might require a written request for a final bill. Check their website or contact them directly for instructions.
Carefully review your final bill to ensure all charges are accurate.
If you have any discrepancies, contact your local council immediately to resolve the issue.
Will You Get a Refund?
You might be eligible for a council tax refund in a few cases.
If you’ve overpaid your council tax, you’ll likely receive a refund after closing your account.
The final bill will reflect any amount you are due.
Also, if you moved out mid-year and a new occupant moved in, you might be entitled to a partial refund for the remaining amount or balance.
What if I’m Selling the Property or Transferring Ownership?
If you’re selling your property or transferring ownership to someone else, the council tax liability typically transfers to the new owner on the completion date of the sale or transfer.
However, if possible, you still need to inform your council about your move-out and provide details of the new owner (name and contact information), facilitating a smooth handover of council tax responsibility.
What Happens After I Close My Council Tax Account?
Once your council receives your closure request and verifies the information, they will:
- Update their records and close your account.
- Issue a final bill outlining any outstanding balance or council tax due up to your move-out date.
- Inform you about any council tax refunds you may be entitled to, such as if you’ve overpaid.
