Should I be paying council tax on...?

Constituents can check whether their property is on the council tax list, and what its band is:

• on the Check your Council Tax band webpage on gov.uk (for properties in England and Wales)
• on the Scottish Assessors’ Association website (for properties in Scotland)

The property I’m renting?

Most likely yes.

A person occupying a property is liable to pay council tax on it.

If other liable people are living in a house, each of them will be jointly and severally liable for the council tax. This means that, if one person fails to pay, the council can ask each person to pay the full amount, not just their ‘share’.

If someone is renting a room in a house in multiple occupation (HMO), the landlord is liable for the council tax. The landlord might say that a portion of the rent is to cover the council tax bill, but that is part of the rental contract, not part of the council tax system.

The government changed the law in December 2023 so that all HMOs are now assigned a single valuation band and the council tax is payable by the landlord.

My student house?

No, provided that the resident is a student.

If everyone in the house is a student, the house is exempt from council tax.

If non-students live in the house, they will have to pay council tax. In this scenario, the students can’t be held jointly and severally liable for the council tax due.

If there is only one non-student in the house, they will receive the 25% single-person council tax discount, as the council tax system ‘sees’ only one person living in the house.

The property I’m doing up, but not living in?

Maybe.

In England, councils do not have to give any discounts on properties that are empty because they are being renovated. The owner may find that they have to pay the normal council tax bill, even if the renovations mean that the house is uninhabitable.

In Scotland and Wales, renovated properties can be exempt for up to 12 months. It is up to a local authority to decide whether a property qualifies for this exemption.

Some properties that are derelict, or in a state of disrepair, can be removed from the council tax list. This can be done where a property is in a sufficiently poor state that a ‘property’ can no longer be said to exist. This is a decision for the Valuation Office Agency (VOA), not the council. The VOA’s note on Removing a property from the Council Tax list provides information on how it decides whether a property is derelict.

A house that is being renovated could also be liable for an empty homes premium. This can be payable if a house has been “unoccupied and substantially unfurnished” for one year or more. If renovations are under way:

• a further year’s exception from the premium can be available in England
• a further six months’ exception from the premium can be available in Scotland
• no further exception from the premium is available in Wales

A homeowner can’t obtain the extra year’s exception (in England) more than once on the same house.

Note that the premium applies according to how long a house has been empty, not how long the current owner has owned the house. It is possible for someone to buy a property and then have to pay a higher level of council tax immediately (this situation would not show up on standard legal searches during the purchase).

My caravan?

Probably.

In the council tax system, static caravans are properties like any other property. Caravans can be assigned their own council tax band, and discounts and exemptions may apply to them. Caravan pitches without a caravan on them are exempt.

It is possible for a caravan site to be liable for business rates, instead of the caravans on it being liable for council tax. This is normally the case where there is a residency restriction on the site (that is, caravan owners cannot live there permanently).

In this scenario, a caravan site owner might ask for a payment from caravan owners to cover the business rates they are liable for. This type of payment is a consideration alongside rent, and not part of the business rates system.

Caravans can’t be charged a council tax premium.

The rental flat that I own, where the tenant has just left?

Maybe.

Councils do not have to give any discount on properties that have become empty. Some councils exempt empty properties for very short periods of time, and other councils exempt properties for up to six months. It is possible that a landlord could have to pay council tax for, say, a period of three weeks between tenants while a property is empty. This could be the case even if the property is being refurbished during this time.

If a tenant has moved out but their rental contract is still in place, it is possible that the tenant could still be liable for council tax until the rental contract ended.

My annexe?

Sometimes.

An annexe can be assigned its own council tax band if the council tax system deems it to be a “self-contained unit” and “capable of separate occupation.” This is a decision for the VOA or the Scottish Assessors, not a council.

Whether an annexe is a “self-contained unit” depends on the characteristics of the annexe itself. Planning permission for the annexe, or who owns it, does not play a role in the decision.

If an annexe is treated as a separate property and it is being occupied by a “dependant relative”, it is exempt from council tax. An annexe is also exempt if it is empty, provided that it cannot be let separately.

In England, if an annexe is being used as part of the main property, it may still have its own council tax band. In this case, the annexe will normally receive a 50% discount on the council tax bill.