Liability and exemptions

The owner is always liable where the dwelling is one of the following:[1]

• Care homes or certain hostels

• Houses of religious communities

• Houses in multiple occupation (HMO)*please note however: the definition of an HMO for council tax is slightly different to that used for licensing purposes.

• Second homes with domestic servants

• Residencies of ministers of religion

• School boarding accommodation

• Accommodation provided to asylum seekers under s.95 of the Immigration and Asylum Act 1999.

There is then what is known as a ‘hierarchy of liability’. The first person in this list is consider to be liable to pay the council tax:

• a resident owner of all or part of the property

• a resident tenant of all or part of the property

• a resident sub-tenant of all or part of the property

• a resident with no security of tenure

• a non-resident owner of any part of the property unless there is a non-resident tenant or sub-tenant who has a lease (or sub-lease) of six months or more.

If no one in the list above is resident then the non-resident owner is liable.

If two or more people fall into the liable category they may be jointly and severally liable (except if one is severely mentally impaired or a student)

Additionally, the liable person’s partner/spouse is jointly and severally liable if s/he is resident in the dwelling.

The local authority has a variety of powers to identify who has liability. A person who believes they have been wrongly identified as liable can appeal against this and there is no time limit for making an appeal.[2]

The following unoccupied properties are exempt for up to six months (and longer in some cases):[3]

• Unoccupied new dwellings

• Dwellings under repair

• Dwellings last occupied by charitable bodies

• Empty dwellings

• Dwellings last occupied by persons living or detained elsewhere

• Deceased owners

• Dwellings empty under statute

• Dwellings awaiting demolition

• Unoccupied dwellings for students

• Unoccupied dwellings for occupation by ministers of religion

• Repossessed dwellings

• Agricultural dwellings

• Difficult to let separately (e.g. granny flats)

The following occupied dwellings are exempt indefinitely:[4]

• Only occupied by one or more students, school or college leavers or under 18 year olds

• Occupied by a student or a student’s spouse

• Only occupied by one or more 'care leavers'

• Housing association ‘trial property’ for older people or people with disabilities

• Student halls of residence

• Armed forces accommodation

• Visiting forces accommodation

• Garages, carports and storage sheds

• Is occupied by ‘severely mentally impaired person’

• Is ‘prescribed housing support accommodation.’

In general, students are defined as those enrolled on 'full time, qualifying course'. This is defined in more detail within in the legislation. [5] In calculating whether someone is a full time student it was held that 'formally documented' additional hours, in order to mitigate disadvantage as a result of a disability, could be included in calculating whether the course was for an average of at least 21 hours per week during term time.[6]