Hello

My parents have never had a council tax bill for their property. They live and work at the same address and pay business rates. According to the council tax valuation records their house does not exist.

Now they are retiring and so want to end the business rates, but are scared this could trigger a huge backdated council tax bill.

My question is, what is their liability when a council tax bill has never been issued?

Many thanks for any replies... this site is a wonderful find!

Emma

It appears they have never informed the council/valuation office that the property has been used for residential purposes. its their responsibility to inform them that the property is residential, nor the council's/valuation office's job to chase.

The valuation office need to inspect the property and band the residential section of it. Once this is done they will provide a date for the council to use and the council tax will be due from that date - this date may be backdated.

Once a date has been set then council tax bills will be issued, even if this has been backdated, and becomes collectable from that date - anything for a previous tax year can be collected in 1 lump sum due 14 days after billing but the council may be amiable to spreading it out.

Hi

I would say your parents really need to check the agreement/contract if there is one firstly?

When was the actual Valuation done?

ss002d6252

Many thanks for your reply. The house has been used for both residential and business since the 1970s when they bought it. They've paid domestic rates and then poll tax. An error must have been made by the council/valuation office when addresses were transferred to council taxation. When my dad tried to pay CT at the council offices years ago he was told the house was not on the register and never heard from them again. A letter asking for the situation to be sorted out was ignored by the council.

My question is, can that huge amount of backdated CT now be demanded of them? Does it ever lapse?

stu007, many thanks for your reply but I'm afraid I don't understand it... what agreement/contract are you referring to? And there has never been a CT valuation.

My question is, can that huge amount of backdated CT now be demanded of them? Does it ever lapse?

Council Tax would be due from the date the valuation office decide is the date for the property to enter the council tax lists, the council would use the date supplied and bill from that date.

Council Tax becomes due only when the bill is issued, even if this includes a retrospective charge. From the date the bill is sent the council have up to 6 years to obtain a Liability Order (if required due to non-payment). Once a Liability Order is granted the balance becomes collectable for as long as its outstanding.

Many thanks for your help.

Does anyone know of a precedent for this situation?

Many thanks

Does anyone know of a precedent for this situation?

Many thanks

For what particular purpose >

Is the residential half of the property included in the business rates? I would ring your local valuation office and ask them to talk you through the "sumary valuation" of the business this will detail exactly what they have as part of the business. If you have been paying business rates on the whole of the property rather than the part you use then you just need to tell them that part of it is used as domestic. If they ask for details you can say you dont know the exact date. For council tax and business rates purposes if they cannot prove how long you have been living in the property, the council tax can only be dated from the date you make them aware of it. They may also try to go back up to 6 years.

Hi

Just a thought on this something else that may need to be considered is the Business as its been classed as is now a Business/Residential Property.

I think we also need to look at the planning consent side as well as has this always been just a Business? or

During its time converted to half business and half residential this would need planning consent and change of use which would have to go through the Local Authority.

I think we need to know:

a. Did your parents purchase this as just a Business or Business/Residential Property?

b. If just a business when was it converted to Business/Residential?

c. What does the Deeds to the Business/Property say?

d. If it was just a business initially and then converted to Business/Residential Propertry were the Local Authority informed of the change of use and planning permission sought?