Who has to pay Council Tax

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You will usually have to pay Council Tax if you are 18 or over and own or rent a property.

One person might be responsible for paying, or multiple people depending on the circumstances. 

How to work out who pays

To work out who has to pay Council Tax, a list called the hierarchy of liability is used. 

Start at the top of the list - if no one living in the property matches the description at level 1, move down to the next level. Keep going until someone matches a description. That person is responsible for paying the Council Tax.

The list is:

  1. A resident who owns the freehold – for example, an owner occupier
  2. A resident who owns a leasehold – for example, an owner occupier who pays ground rent 
  3. A resident who is a tenant – for example, a council or private tenant 
  4. A resident who is a licensee – for example, the landlord of a public house who lives on the premises 
  5. Other resident - for example, a squatter
  6. Non-resident owner - when a property is empty, the owner has to pay 

A resident is a person of 18 years or over and lives in the property as their sole or main residence. 

Couples and other joint liability examples

If two people are at the same point on the list they have a joint responsibility to pay Council Tax. This is known as joint and several liability. This applies to: 

  • Married couples living together or people living together as husband and wife, or are civil partners - they are responsible as a couple but also individually
  • People with the same interest in the property in the hierarchy of liability list
  • Residents or owners liable for pitches occupied by caravans and moorings occupied by boats 
  • Joint owners who are liable, rather than residents  

If more than one person has a joint responsibility to pay, we can take recovery action against any or all of the people named on the demand. 

Landlords and tenants

Usually, if a landlord rents their whole property to one person, one family or to joint tenants, the tenants are responsible for paying Council Tax. That's because tenants are higher up the hierarchy list than owners not living at the property.

In some circumstances, the landlord is responsible. 

For example, if tenants who were responsible for paying Council Tax move out, and the property is empty for a period, the landlord will be responsible for paying. That's because on the list, the first person to meet a description would be the non-resident owner at level 6. 

Landlords will also be responsible for paying Council Tax if:

When the owner has to pay

In addition to the landlord examples, there are other instances when the owner of the property, not the residents, has to pay the Council Tax.

This includes:

  • Residential care homes, nursing homes, mental nursing homes or certain types of hostel providing a high level of care 
  • Religious communities such as monasteries or convents 
  • A dwelling which is not the owner's main home, but which is the main home of someone who the owner employs in domestic service 
  • Vicarages and other dwellings where a minister of religion lives and works. Where the owner-occupier is a Church of England minister of religion, the Church is responsible for the bill 
  • Dwellings occupied only by asylum seekers 

Houses in multiple occupation (HMOs)

HMOs are properties that are occupied by more than one household, where residents pay rent separately for separate parts of the property. This could include hostels and groups of bedsits, for example.

The Valuation Office Agency publishes the latest guidance on HMOs and Council Tax.

Exempt properties

Some empty properties, and properties occupied only by certain people, do not need to pay Council Tax. This includes properties that are:

  • Left empty by a deceased occupier
  • Left empty because a person is in hospital or care home
  • Left empty when repossessed by the mortgagee
  • Occupied only by persons under the age of 18

Read about all types of exemption, including how to apply.

Paying less Council Tax

You might be able to get a Council Tax discount or a reduction. It depends on your circumstances, but some examples include:

  • If you have no income or a low income
  • If you are disabled
  • If you live alone

Difficulties paying your bill

You should contact us if you have problems paying your bill. 

Disagreeing with liability decisions

If you don’t agree that you are liable for paying Council Tax, you should initially make your appeal in writing, giving as much evidence as possible. 

You must continue to pay your instalments as billed while your appeal is outstanding.

Freeman of the land

The freeman of the land movement and similar groups believe they are only bound by contracts and laws they consent to. They don’t think they have to pay Council Tax, as they have not consented to.

There is no legal basis for this argument. Council Tax liability is governed by legislation created by Parliament – it does not depend on consent or having a contract with us. 

You can’t choose whether you are liable to pay Council Tax, and calling yourself a freeman doesn’t exempt you. We will take recovery action if you do not pay your Council Tax. 

Legislation

Council Tax legislation is freely available on the government’s legislation website. It includes: 

We reserve the right not to respond to lengthy and spurious arguments about Council Tax liability that have no legal basis.  

Up to Council Tax

Updated: 07/10/2024