Terms & Conditions

[gshiels]

Hello,

I am trying to find out who should be liable for Council Tax in the event that a property is repossessed.

I know that the property would be exempt anyway but can’t decide if the owner or mortgage provider would be the liable party.

I have asked around some of our offices and different people have different thoughts on this. The liability hierarchy doesn’t really seem to help much with this case. Is there anything in the Scottish regs that I am missing?

Cheers

[markp]

Quote from my IRRV notes (Courtesy of Bob Trahern’s training notes)

Exemption class L: Repossessed dwellings left unoccupied where the mortgagee is in possession.

Possession by the mortgagee does noy result in a change of ownership and the person from whom the property has been repossessed should remain the qualifying person (ie) the person who would have been liable but for this action. Exemption will continue until the property is sold, or occupied, whether legally or not.

This suggests that the former owner is still liable for CT until a sale or new occupancy begins.

There is not a specific reference to a Scottish variation but as I only took England & Wales papers I don’t know about that

Do I know what I'm doing? The jury's out on that........................

[gshiels]

That’s great, exactly what I was looking for and this is what I thought so that’s even better!

Are there any regs that back this up?

[markp]

Your starting point will be the Council Tax (Exempt Dwellings) Order 1992
SI 1992/548 and Section 4 and Schedule 1 of the LGFA 1992.

Quite where in this set, unfortunately I don’t know as I work on the benefits side.

Do I know what I'm doing? The jury's out on that........................

[Author]

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