Who’s liable?

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  • #20662
    twill
    Participant

    We have a case where Mr A owns a property – he does not reside in the property. The property is held in trust for the use of Mr A’s 7 year old daughter and his ex-wife Mrs B until the child becomes 17 (there is a court document confirming this). Mrs B has no legal or financial interes t in the property. She also has her mother living there (Mrs C). There is tenancy agreement (again agreed by the courts) between Mr A and Mrs C Our C/tax department want to make Mrs B liable for 100% of the tax. I’m not sure that this is correct and my view is that it would be 50/50 between Mrs B and Mrs C. Any thoughts?

    #3315
    benwat
    Participant

    I would have thought it would be Mrs C who is liable as the resident tenant, not Mrs B who is just a resident?

    #3316
    Bob_Wagstaff
    Participant

    But if there is a court order permitting Mrs B to live there with her daughter for the enxt ten years, how can Mr A grant a tenancy to Mrs C. I would guess that would be in vreach of the court order. In which case I think the council tax dept are right in charging Mrs B 100%

    #3317
    benwat
    Participant

    if the court also agreed the tenancy order then surely it will not be in breach of any other order it has made i.e. the trust?

    notwithstanding this, Mrs B’s situation is not catered for in S6 of the LGFA 1992 – she is not a freeholder, leaseholder, statutory or secure tenant, she is just a resident as far as council tax is concerned. Mrs C who is a tenant falls higher up the ladder of hierarchy than Mrs B and should therefore be liable.

    Courts cannot overrule S6, if the court intended for the council tax to be dealt with in some other manner it will be for the parties to deal with it privately.

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