UK Landlord Forum / Life

Hi,

I've signed a contract for a 12-month lease in London today, and after signing the contract the agent came back to us that the landlord has requested us to leave council tax in their name.

Although I am obviously happy with not having to pay council tax, I am also thinking it is a bit unusual. Does anyone have experience with this, has an idea why the landlord would do this, and if this could have any further implications for me as the tenant?

Thanks in advance!

Jan

Because you have a contract of more than six months and are resident, you're liable to pay the council tax.
So, if the landlord doesn't pay it, you'll be pursued for it and will have to pay it.

It's possible that your landlord is unusually civil minded and wants nothing more than to pay as much tax as possible to support this great nation of ours.

It's also possible that they have a residential mortgage and don't have permission to let the property from their lender, if it's a flat they're hoping to conceal it from their own landlord or freeholder, or are simply trying to conceal the fact that they're renting out their property from anyone (including HMRC).
It's a commonly held belief that council tax records are used to identify people who are landlords.

Assuming that the landlord pays the tax, I don't think it's going to matter to you, other than the concern that your landlord might be a little bent, or hugely patriotic, and your agent is either supportive of that or massively naïve.

@JPKEATES, thanks for your response. I just figured out what was going on, and it was clearly not for patriotic purposes.

The landlord wanted to keep the council tax under their name in order to have a parking permit on the property for their car.  Found all this out when trying to apply for a parking permit myself, so indeed a little bent.

Thanks!

Ah, that's a new one.

I wonder if when the landlord comes to sell, he will try to claim it is his principle residence to avoid Capital Gains Tax? How do we 'know it was his principle residence? - well he's paid council tax every year. So, on record, he's been living there.

Bet theres a mail redirection going on aswell.

Similar thing here. Been here 5 years now with my name on council tax.

Presently the council tax for the whole house is in my name (only) and I pay it.

Recently the landlords mentioned they might want to sell the house in 2024

They want to put the rent up by 400 per month this next year 2023

they now want THEIR name on the council tax

They want ME to pay them the council tax amount!!

I think this fraud & they are trying to evade paying capital gains tax when they sell the property.

I think it's a total cheek to ask for this AND a rent increase.

I feel

my council tax receipt with my name is solid ID proof * * might be needed when I need to rent a new house.
I wonder if I agree to it if I would be breaking the law or just them?

I think if I confront them over this they may toss me out at the end of lease (in 4 months) and airB&B the house with short letts so they can pretend they live there / pick up post etc.

On the other hand it could be a negotiation point on the rental price.

But the lack of sole name on council tax gives me the creeps - I feel need that for ID proof.

ID verification companies like Home Let may demand Council tax ID whe I am looking for a new place to live.

I think the landlords are running a income tax scam as well as I forward a lot of HMRC post to where they actually live (scandinavia where tax is really high) and yes they keep a car here (parked round the corner in a residents parking bay.

Should I stand my ground to keep the council tax in my name?

It's going to be a pain to move. (Kids etc)

The landlord will have to do a lot to evict you when the lease ends (it will just go periodic if they don't renew - which sounds sensible if they plan to sell the property).

You would be liable for the council tax (by law) so you'd be really daft to let someone else try and pay it, because you'd be prosecuted if they don't (council tax tax debt is enforced by magistrates courts and non-payers can be imprisoned - it's not like other debt). You'd want guarantees that they'd pay for your defence in case of a default - they can't change who's liable for paying council tax.

Where do you pay the rent?
There are special tax rules for non-resident landlords.

London UK.

Landlords are Scandinavian.

Many thanks.

Do you pay the rent to a UK Bank?