Landlord Wins Council Tax Liability Court Case

A landlord in Leeds has won a Council Tax liability court case, following an appeal by Leeds City Council. The Residential Landlords Association (RLA) has spoken on behalf of all landlords, saying it is pleased with the win.

The Appeal Court made the judgement that landlords are not responsible for paying Council Tax on a property after a tenant has moved out if the tenancy agreement hasn’t expired yet.

The appeal, brought by Leeds City Council, had demanded a landlord to pay Council Tax on five properties for periods when the homes were empty but either the landlord or his tenants had not formally ended the tenancies.

The tenancies in question were contractual periodic tenancies following a fixed term. The Council argued that a single tenancy cannot be both a fixed term and periodic contract. The landlord retaliated, saying that the contract created a single tenancy of six months and thereafter continued as a monthly tenancy. This would have the same effect as a fixed term Assured Shorthold Tenancy (AST), insists the RLA.

Leeds City Council appealed against a High Court rejection of its claim, saying there was no uncertainty of term and that the Council Tax liability remained with the tenant and not the landlord.

The RLA intervened in the case on behalf of all landlords.

David Smith, the Policy Director of the RLA, reacts: “The RLA is very pleased with this decision, which upholds the basic principles of tenure.”

Do you agree with the outcome of the court case?

The RLA has put together a helpful guide for UK landlords on who is responsible for paying Council Tax and when it is due: http://www.rla.org.uk/landlord/guides/liability_for_council_tax.shtml

Following this recent case, you will have the protection against paying Council Tax if your tenant has moved out, but the tenancy has not yet come to an end.