The General Rule

Council tax liability follows a strict hierarchy set out in the Local Government Finance Act 1992. In most cases, the person living in the property as their main home is responsible for paying council tax. For a standard tenancy, this means the tenant is liable — not the landlord.

Liability Hierarchy

The council tax hierarchy determines who is liable in order of priority:

• 1st: Resident owner-occupier
• 2nd: Resident tenant (with a lease)
• 3rd: Resident with a licence to occupy
• 4th: Resident with no legal interest (e.g. squatter)
• 5th: Non-resident owner (i.e. the landlord)

The landlord only becomes liable when no one higher in the hierarchy is in residence.

Void Periods

When a property is empty between tenancies, the landlord becomes liable for council tax. However, many councils offer a discount or exemption for short void periods:

• Some councils offer a 100% exemption for the first month of vacancy
• After the exemption period, the full rate (or a premium) may apply
• Long-term empty properties may attract a council tax premium of up to 300%
• Rules vary significantly between local authorities — always check with your council

HMO Properties

Houses in Multiple Occupation (HMOs) have specific council tax rules depending on the tenancy structure:

• Individual room lettings (separate agreements): Each tenant is individually liable for their share
• Joint tenancy (single agreement): All tenants are jointly and severally liable
• Bedsit-style HMOs: The landlord is often liable as the property is treated as a single dwelling

Exemptions and Discounts

• Full-time students: Exempt from council tax. A property occupied solely by students pays no council tax
• Single occupier: 25% discount on the council tax bill
• Severely mentally impaired: Disregarded for council tax purposes
• Furnished holiday lets: May be exempt from council tax and subject to business rates instead — check with your local authority
• Properties undergoing major works: May qualify for a temporary exemption

Furnished vs Unfurnished Empty Properties

Whether a property is furnished or unfurnished does not affect council tax liability. However, some councils previously offered discounts for unfurnished empty properties — most have now removed these discounts and some apply premiums instead.

Notifying the Council

When a tenancy starts or ends, you should notify the local council so they can update their records. Failure to do so can result in the landlord being billed incorrectly. Most councils have an online form for this purpose.

Disputes and Appeals

If you believe you have been incorrectly billed for council tax, you can:

• Contact the local authority billing department to query the bill
• Appeal to the Valuation Tribunal if the dispute cannot be resolved
• Seek advice from a solicitor or Citizens Advice if the amount is significant