Tenancy renewal - no interim Council Tax liability?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    In the vast majority of cases, the Tenant will be an adult using the dwelling as their main residence.

    An Assured Shorthold Tenancy confirms the 'material interest' de facto, since by definition it has a minimum duration of 6 months.

    I have plenty of Tenants on Periodic Tenancies, but these tenancies have only ever commenced when a fixed term AST has lapsed, so how could I become the liable person before the tenancy has ended?

    Comment


      #17
      I'm sure you don't mind me playing the Devil's (or Landlord's) Advocate here.

      Comment


        #18
        Originally posted by bagus View Post
        In the vast majority of cases, the Tenant will be an adult using the dwelling as their main residence.
        While they're living there, yes. We are talking about the end of the day their tenancy ends where on that day or before, they have moved out. Since they have moved out, they are resident elsewhere at the end of that day, they are no longer resident here.

        An Assured Shorthold Tenancy confirms the 'material interest' de facto, since by definition it has a minimum duration of 6 months.
        That's not the definition, nor is it a requirement of assured shorthold tenancy. There haven't been a minimum six months term required for AST that is not a replacement tenancy since 1997, and there was never such a minimum term where the tenancy's a replacement tenancy.

        If the tenancy, assured or otherwise, is a fixed term of at least six months, then it's a material interest. If it has an initial definite term of at least six months which then continues contractually periodically, then it's a material interest. If the tenancy is periodic from the start, where the period is less than six months*, then it's not a material interest for the purpose of council tax.

        I have plenty of Tenants on Periodic Tenancies, but these tenancies have only ever commenced when a fixed term AST has lapsed, so how could I become the liable person before the tenancy has ended?
        A statutory periodic tenancy, i.e. one that arise after the end of a fixed term tenancy in accordance with s5 of the Housing Act 1988, is a new and seperate tenancy to the fixed term that preceded it. Accordingly, assuming a period of the SPT is less than six months, it is not a material interest for the purpose of council tax.

        Originally posted by bagus View Post
        I'm sure you don't mind me playing the Devil's (or Landlord's) Advocate here.


        * Depending on how the term/periods are expressed, the tenancy may not be determinable before the end of the second period, and thus it may be arguable that a quartrely periodic tenancy can be a material interest.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

        Comment


          #19
          Thanks for that. You've made me start to feel sorry for tenants now, having not previously considered how unfair it is/should be for them to pay two lots of Council Tax as well as two lots of rent on the day they move.

          I'll bow to your encyclopedic recall and go lick my wounds for now. Might still peep over the parapet again though!

          Comment


            #20
            Originally posted by bagus View Post
            At midnight, the first tenancy ends and the new tenancy begins, simple as that. There is no interim period at all. Surely, this is how all renewals work. An insurance renewal comes into effect when the old policy expires, commonly at the stroke of midnight - one policy lapses at midnight and the new one commences seamlessly after that. Liability is determined to the exact second.
            Legal time is not the same as real time.
            Things don't just happen at the same time, they happen in a sequence at the same time.

            It doesn't matter in the insurance policy example, but it does in a complex series of transactions (like selling a house).

            However, I have to agree with KTC.
            Even if the person wasn't a tenanct at the end of the day, they were definitely a resident throughout.
            So the sequence of events doesn't matter in this case.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #21
              What KTC says.

              Comment

              Latest Activity

              Collapse

              • Reply to Landlord in Distress
                by royw
                With 'experts' like ours you don't need enemies. Ignore what you can see happened in China and Italy and what the WHO and every other health expert says and deliberately allow it spread to create herd immunity. I'm glad BJ listened to popular opinion and reversed this policy.
                These are same experts...
                28-03-2020, 17:28 PM
              • Landlord in Distress
                by Roydravid
                Hello ,

                My tenant has stopped paying the rent on from the 5th of MArch 2020. This was the first month they stopped the rent . It is a period tenancy after one year tenancy agreement in 2018.
                The Tenant has changed the locks and denied access for inspection and essential works . ...
                25-03-2020, 06:26 AM
              • Reply to Tenant asks for rent reduction
                by jpkeates
                Welcome Lillylisa.

                I would simply decline their request. You are under no obligation to reduce the rent.
                The tenants are simply taking the mickey.

                If they want the rent reduced for a short period and then to pay increased rent to pay you back, that's one thing, but I...
                28-03-2020, 16:57 PM
              • Tenant asks for rent reduction
                by Interlaken
                I expect I won't be the first in this situation.

                Couple on SPT been in over 2 years. Decent, reliable rent paying young professionals. One who works in high end hospitality has been laid off indefinitely and is asking for rent reduction during this strange situation. Tenant is to apply...
                28-03-2020, 11:47 AM
              • Reply to Six Months AST or Twelve Months AST with Mutual Break Clause
                by Stew
                Thanks for all the responses, I notice on the contract there is also an option to have a six months contract with a mutual break clause at six months which does not make sense to me so will remove the mutual break clause and just go with the fixed six months then rolling.

                All the best ...
                28-03-2020, 16:39 PM
              • Six Months AST or Twelve Months AST with Mutual Break Clause
                by Stew
                Hi wondering if during these times for new AST's I should be doing

                a) 12 Months AST with 6 Months mutual break clause
                b) 6 Months AST

                Rather than worrying about the longer letter my main concern is being able to take back control of the property as soon as possible if...
                28-03-2020, 12:45 PM
              • Reply to Landlord in Distress
                by Lawcruncher
                With Trump what you see is what you get. BJ has been putting on a great act for years to achieve his lifetime ambition of being PM. Now he's got there and faces an unprecedented crisis he knows he has to come across as statesmanlike. He also knows he needs to get it right as it is the government in...
                28-03-2020, 16:37 PM
              • Reply to Letting agency won’t accept rolling contract
                by Lawcruncher
                Please explain why you have to pay a termination fee.

                Do not be browbeaten into doing something you do not want to do. I am afraid that many letting agents are experts at browbeating tenants. If and when they serve notice is the time to contact the landlord. In any event, as things stand...
                28-03-2020, 16:22 PM
              • Letting agency won’t accept rolling contract
                by Confused19
                Hello, I’d really appreciate some advice please.

                we have been in our rented property just over a year. The letting agent kept pushing us to sign on to a 6 or 12 month tenancy but we were keen to stay on a rolling tenancy to offer more flexibility due to being self employed. We are now...
                26-03-2020, 21:24 PM
              • Reply to No EPC
                by KTC
                Why do you think you need a valid EPC for eviction?

                Where is this property (England, Wales, Scotland, Northern Ireland)? When was the last time you agreed a new fixed term, renewal, or extension? What was the term of that? What type of tenancy is it?
                28-03-2020, 16:22 PM
              Working...
              X