Do Landlords Pay Council Tax?

Council Tax is a local tax levied on residential properties in the United Kingdom to fund public services such as waste collection, education, and emergency services. Determining who is responsible for paying Council Tax in rental properties depends on the specific tenancy arrangements and the occupancy status of the property.​

Who is Responsible for Council Tax in Rental Properties?

The responsibility for paying Council Tax in rental properties varies based on the type of tenancy agreement:

Whole Property on a Single Tenancy Agreement

When a property is rented under a single tenancy agreement to one person, a couple, joint tenants, or a family, the tenant(s) are responsible for paying the Council Tax. The tenancy agreement should clearly state this obligation. ​

Several People with Individual Agreements (House in Multiple Occupation - HMO)

In cases where a property is rented to multiple individuals, each with their own tenancy agreement (commonly known as a House in Multiple Occupation or HMO), the landlord is responsible for paying the Council Tax.

Council Tax on Empty Properties

When a rental property is unoccupied, the responsibility for paying Council Tax typically falls to the landlord. The amount payable and any exemptions or discounts available can vary depending on local council policies:​

• Unfurnished and Unoccupied Properties: Some councils offer exemptions or discounts for properties that are both unfurnished and unoccupied. For example, certain councils may provide a 100% exemption for up to one month in such cases. ​

• Properties Undergoing Major Repairs: If a property is vacant due to substantial repairs or structural alterations, landlords may apply for a Council Tax exemption. This exemption usually lasts up to 12 months, though the duration can vary depending on local authority regulations.

• Long-Term Empty Properties: Properties that remain unoccupied and unfurnished for extended periods may incur additional charges. For instance, councils can charge higher Council Tax on homes left unoccupied and substantially unfurnished for two years or more, with premiums increasing based on the length of vacancy.

How Much is Council Tax?

Council Tax rates vary depending on the property's valuation band and the local council's rates. Each property is assigned a Council Tax band based on its estimated value, and the amount payable increases with higher bands. For precise rates, it's advisable to consult your local council's website.​

When Might Your Landlord Pay Council Tax?

Landlords are responsible for paying Council Tax in specific situations:​

• Houses in Multiple Occupation (HMOs): If the property is classified as an HMO, where multiple tenants have individual tenancy agreements, the landlord is responsible for paying the Council Tax.

• Unoccupied Properties: When a property is unoccupied, such as during void periods between tenancies, the landlord is typically responsible for the Council Tax. ​

What to Do If You Can't Afford Council Tax

If you're struggling to pay your Council Tax:

• Contact Your Local Council: They may offer payment plans or provide information on available support.​

• Apply for Council Tax Reduction: Low-income individuals may qualify for a reduction or exemption.​

• Seek Financial Advice: Organizations like Citizens Advice can offer guidance on managing debts and entitlements.​

What Landlords Are Exempt from Council Tax?

Certain situations may exempt a landlord from paying Council Tax on an unoccupied property:

• Properties Undergoing Major Repairs: If a property is vacant due to substantial repairs or structural alterations, landlords may apply for a Council Tax exemption. This exemption usually lasts up to 12 months, though the duration can vary depending on local authority regulations.

• Properties Left Empty by Individuals Providing or Receiving Care: Properties left empty by individuals who have moved to provide or receive care may be exempt from Council Tax. ​

How to Pay Council Tax

Council Tax can typically be paid through:​

• Direct Debit: Setting up automatic payments from your bank account.​

• Online Payments: Via your local council's website.​

• Telephone or In-Person: Contacting your local council for available payment methods.​

For specific payment options and arrangements, it's best to consult your local council's official website or contact their customer service department.​