Council Tax

Council tax is a local government tax levied on residential properties in the UK. The amount is determined by the property's council tax band (A-H in England and Wales) and the local authority's rate.

In a standard tenancy arrangement, the tenant is responsible for paying council tax. However, there are exceptions that landlords must understand.

During void periods (when the property is unoccupied), the landlord is typically responsible for council tax. Some councils offer a discount (usually 50%) for unoccupied but furnished properties. Properties that are genuinely empty and unfurnished may be exempt for up to 6 months in some councils, though policies vary.

For HMOs where individual rooms are let separately, the landlord is usually responsible for council tax for the whole property and must factor this into their room rents. Individual rooms in an HMO are not separately rated.

In limited company portfolios, council tax during voids is a legitimate business expense deductible against rental income.