Empty properties – who is responsible for the Council Tax?
If there are no residents in a property, the owner is liable. ‘Owner’ in this context means a person who:
- has a ‘material interest’ in the whole or any part of the dwelling; and
- at least part of the dwelling or, as the case may be, of the part concerned is not subject to a material interest inferior to his interest
‘Material interest’ means a freehold interest or a leasehold interest which was granted for a term of six months or more – so sometimes, a tenant can be classed as ‘the owner’ if they have a tenancy agreement for six months or more. However, if a tenant's six-month tenancy has ended and their tenancy has become a 'rolling' periodic tenancy, they can't be held liable for any empty charges once they move out. See the related page 'Rented properties and the Council Tax' for more information.
Unoccupied and unfurnished properties
Until 1 April 2013, exemptions applied to unoccupied and unfurnished properties for up to six months (exemption class C), or for up to 12 months for empty properties being refurbished (exemption class A). However, Council Tax law has changed so from 1 April 2013, these exemptions no longer exist. Instead, councils can decide how much discount to grant for empty properties in these circumstances.
For 2013/14, Leeds City Council decided to allow no discount at all.
For 2014/15 – that is, with effect from 1 April 2014 - a discount of 100% can be granted for a property which is unoccupied and unfurnished for a period of 7 days or less, so no Council Tax is payable for them. However if the property is empty for over 7 days, no discount can be allowed, so full Council Tax is payable from the date the property first became unoccupied and unfurnished.
If you own an unoccupied and unfurnished property that is empty for over 7 days, you will therefore be liable for the full Council Tax. If the property remains empty for more than 2 years, the level of charge will increase - see the next paragraph.
Property empty for over 2 years
Once a property has been empty for over 2 years, a ‘long-term empty premium’ can be applied, if councils wish to apply it. Leeds City Council has decided to set a premium of 50%, so the rate of Council Tax payable is 150% for properties empty for over 2 years.
This decision is in line with the Council's policy on long-term empty properties. The strategy is designed to return to use property which has been empty for long periods and which can contribute to the decline of areas of the city.
It may be that the owner is trying their best to either sell the property or find new occupiers. However, now that the decision has been made to grant no discount, this will apply to all empty domestic properties in Leeds which would previously have qualified for exemption class C or exemption class A.
Properties being refurbished
As mentioned above, from 1 April 2013 there is no exemption for properties in need of, or undergoing, repair or refurbishment. However if you wish to apply for an exemption for a period before 1 April 2013, there is a claim form in the documents section.
If you have a property which is in a poor state of repair, or undergoing substantial refurbishment work or structural alterations, the Council will have to charge you for it unless the Valuation Office Agency (VOA) deletes it from the Council Tax list. However the VOA will only do this if it is derelict and uninhabitable, or if the work is substantial and the property is being rebuilt or structurally altered. The VOA has produced a factsheet on this - go to External links for a link to their factsheet.
Unoccupied but furnished properties
Until 1 April 2013, councils had to apply a minimum of 10% discount to these properties. However, Council Tax law has now changed so that councils are no longer obliged to grant any discount at all. From 1 April 2013, Leeds gives no discount for an unoccupied but furnished property, so the owner is liable for the full Council Tax from the date a furnished property becomes unoccupied (but see the explanation at the top of this page about who is classed as 'the owner'). A furnished property which is not being used as anyone's sole or main residence is regarded as 'unoccupied but furnished'.
Please note: there is no right of appeal to the Valuation Tribunal about the council’s decisions relating to empty properties in Leeds.