Council tax is a local tax levied on residential properties in England.
Typically, the person living in the property is responsible for paying it.
However, the situation can become more complicated when a tenant moves out.
Factors that determine council tax liability
The type of tenancy is the primary factor determining council tax liability after a tenant leaves. There are two main types of tenancies:
- Fixed-term tenancy: This type has a specific start and end date, usually six or twelve months.
- Periodic tenancy: This tenancy doesn’t have a fixed end date and continues month-by-month until the landlord or tenant ends it.
Who is Responsible for Council Tax if the Tenant Leaves During a Fixed-Term Tenancy?
Suppose a tenant leaves a property before the end of a fixed-term tenancy of six months or more. In that case, they usually remain responsible for the council tax until the tenancy officially ends because they are considered to have a material interest in the property for that period.
Remember that even if the tenant has vacated the property, they are still legally responsible for paying the council tax until the tenancy agreement expires.
If the tenant fails to pay, the council may pursue them for payment.
What Happens if the Tenant Leaves After the Fixed-Term Tenancy Ends?
If a fixed-term tenancy ends and the tenant remains in the property without signing a new agreement, the tenancy automatically converts to a periodic tenancy.
In this case, the tenant is only liable for council tax while occupying the property.
Once they move out, the responsibility shifts to the landlord.
Who is Responsible for Council Tax if a Tenant Leaves on a Periodic Tenancy?
The situation is slightly different for periodic tenancies.
If the tenancy has always been periodic (month-to-month), the tenant is only liable for council tax while occupying the property.
Once they leave, the responsibility shifts to the landlord.
However, it becomes more complex if the tenancy starts as a fixed-term AST and then rolls over into a periodic tenancy.
In such cases, the landlord might still be responsible for council tax until a new tenancy begins, even if the tenant has vacated.
Is the Landlord Responsible for Council Tax if the Property is Empty?
Once the tenant leaves and the tenancy ends, the landlord becomes responsible for paying council tax on the empty property.
However, many local councils offer discounts or exemptions for empty properties, especially if the landlord actively tries to re-let the property.
You should check with your local council to understand the rules and eligibility criteria for empty property discounts.
What Happens if the Tenant Leaves Without Ending the Tenancy?
If a tenant leaves a property without formally ending the tenancy, they may still be liable for council tax.
The exact situation depends on the type of tenancy and the specific circumstances.
In some cases, the tenant may be considered to have abandoned the property, and the landlord may be able to take steps to end the tenancy.
However, until the tenancy is formally ended, the tenant may still be responsible for council tax.
What Happens if a Tenant Leaves Early Without Giving Notice?
Suppose a tenant leaves a property without providing the required notice. In that case, they may still be liable for council tax until the tenancy is officially ended, which could be done through the landlord legally reclaiming the property or obtaining a court order.
Ending the tenancy as soon as possible is essential to avoid unnecessary council tax charges.
Depending on the circumstances, this might involve changing the locks or serving a Section 21 notice.
Can a Landlord Claim Council Tax Back from a Tenant?
Generally, a landlord cannot claim council tax back from a tenant unless a specific agreement states otherwise.
However, if the tenant damages the property and causes significant costs, the landlord might be able to recover some of these costs through the tenancy deposit.
What if the Property is Empty for a Long Period?
The council tax bill can become substantial if a property remains empty for an extended period. To mitigate these costs, landlords might consider:
- Short-term lets: Renting the property for short periods through platforms like Airbnb can generate income and reduce council tax liabilities.
- Council Tax exemptions: Some areas offer tax exemptions for empty properties under specific circumstances.
- Property guardians: Using property guardians can provide some protection against empty property premiums.
How to Inform the Council of a Tenant Leaving
You must inform your local council when a tenant leaves to avoid unexpected council tax bills. You can usually do this online or by contacting the council directly.
Remember to provide details of the tenancy end date and the reason for the tenancy ending.
How Can I Protect Myself as a Landlord?
To protect yourself as a landlord, it’s essential for you to:
- Clearly define the tenancy end date: Ensure the agreement specifies the exact date the tenancy ends.
- Obtain a signed inventory: This document records the property’s condition when the tenant moves in and out, which can be helpful in case of disputes.
- Communicate effectively with the tenant: Maintain clear communication with the tenant throughout the tenancy, especially regarding the end of the tenancy.
- Check council tax regulations: Understand your area’s specific tax rules regarding empty properties and discounts.
What happens if a tenant leaves with a periodic tenancy?
The situation is more straightforward if your tenant has a periodic tenancy (such as a month-to-month tenancy).
As long as the tenant lives in the property, they are responsible for the council tax.
Once they vacate, their liability ends, and the council tax becomes the landlord’s responsibility.
Does the notice period affect council tax liability?
The notice period given by the tenant generally doesn’t affect council tax liability.
The determining factor is the end date of the tenancy agreement.
However, I advise that you check the specific terms of your tenancy agreement, as there might be exceptions.
