Information for
owners, managing agents and housing associations
This information has been prepared
by the London Borough of Newham's Council Tax & Benefits
Section to provide information to owners, managing agents, housing
associations and their clients. Please take the time to read
through this information, it also includes advice on how to apply,
and what (if any) documentation you need to provide to ensure that
your discount/exemption application is successful.
Should you have any queries regarding the following
information or if you would like to discuss a particular issue
regarding discounts or exemptions, please do not hesitate to
telephone our Contact Centre on 0208 430 2000.
As a Council we recognise that Landlords, owners, managing agents
and housing associations have a very busy task to carry out. To
assist us in reducing unnecessary paperwork, visits and phone
calls, you are advised to keep us informed of all tenancy changes
immediately. This will let us provide a more efficient service to
you and your tenants by sending correct bills and awarding
discounts and exemptions promptly.
The types of information we require from you are as
follows:
- Inform us of all changes in tenancy when they
happen
- Keep and provide original tenancy agreements (this will prevent
possible disputes occurring in the future)
- Give the exact start and end dates of tenancies
- Tell us when someone else moves into a property with an
existing tenant, or moves out
- Provide a copy of each tenancy agreement at the start of the
tenancy or send us a new one if some of the tenants change
- Confirm if any tenants are full-time students (an original
student certificate will need to be provided for verification
purposes)
- Give a contact phone number or email address in case we have
any questions we need to ask you
- Give details of any alterations you make to any property you
are responsible for e.g. increase or reduce the number of
flats
- Let us know if your tenant (s) rent the property as furnished
or not
You may think that providing this information to us is
unnecessary and a waste of time but you are required by law to give
it, so that we can see who should be liable for paying the Council
Tax.
There are certain types of properties where the owner or landlord
is liable for the Council Tax. One example of this are Houses in
Multiple Occupation.
What is a House in Multiple Occupation
(HMO)?
A house in multiple occupation is a house or flat that was
originally built or has been changed for living in by one or more
people who are not part of the same household. One example of a
change, is where the rooms have individual locks on the doors.
Examples of HMO's include bedsits, homes shared by people who are
not related to each other, halls of residence and hostels.
How do you know if more than one household lives in a
property?
If the property has any common parts used by all of the people
living there, such as entrance and exits, or shared facilities like
a kitchen, bathroom or toilet then it is a HMO.
It also depends on the kind of agreement occupiers have with their
landlord. If each person who lives there pays rent separately or
has an agreement that only lets them occupy a part of the property,
we will class the property as a house in multiple occupation.
Who pays the Council Tax bill for a HMO?
Council Tax law says the landlord, not the occupier (s) must pay
the Council Tax bill. The rent charged to the occupier can include
an amount towards the Council Tax. The amount included is a private
matter between the landlord and the occupier and does not involve
the Council Tax & Benefits Service. The bill must stay in the
landlord's name - it cannot be given to the occupier (s) to
pay.
What if I do not agree that the property is an
HMO?
If the Council determines that your property is a HMO and you do
not agree with this, you can appeal against our decision. For
further information on how to appeal visit the 'Appealing against
Valuation Bands and Liability' web page.
Discounts
Discounts printed on your Council Tax Bill indicate that Council
records show one of the following applies to your Property.
Single Persons Only one person resides at the
property (DISCOUNT = 25%).
All but one person disregarded More than one
person resides at the property but only one person is counted for
Council Tax purposes (DISCOUNT DISREGARD =
25%).
Long Term Empty The property is unoccupied and
unfurnished for a period of six months (DISCOUNT = 0% not
applicable).
All Persons Disregard All persons are disregarded
from paying Council Tax (DISCOUNT =
50%).
Single Person Disregard Only one person is
resident at the property and this person is disregarded from paying
Council Tax (DISCOUNT = 50%).
Furnished Between Lets The property is furnished
and no ones sole or main residence (DISCOUNT =
10%).
Condition of Employment The property is required
as a condition of employment, where the occupiers have their Sole
or Main residence elsewhere and are required to pay their Council
Tax there (DISCOUNT = 50%).
Furnished Second Home The property is furnished,
but no one's sole or main residence and the property is considered
to be a second home. E.g. one may have a permanent address
elsewhere, pay Council Tax there and stay at this property during
the weekend (DISCOUNT = 10%).
Exemptions
Uninhabitable - Class A Exemption
To qualify for a Class A exemption the property must be
unoccupied and require, or be undergoing, (or have undergone)
structural alterations and/or major repairs. The property must
remain continuously vacant since completion for less than six
months. The maximum length of the exemption is one year (i.e.12
months) If the council decides that your property does not qualify
for a Class A exemption you can appeal against this decision. For
further information on how to appeal visit the 'Appealing against
Valuation Bands and Liability' web page.
Unoccupied and Substantially Unfurnished - Class C
Exemption - Uninhabitable
To qualify for a Class C exemption the property must be unoccupied
and substantially unfurnished. The maximum time this exemption will
last is six months. After this the exemption will revert to the
full charge. If you believe that a property could be eligible to
receive a Class C exemption, you will need to advise the Council
Tax and Benefit Service. If the council refuses to grant a Class C
exemption you can appeal against this decision. For further
information on how to appeal visit the 'Appealing against Valuation
Bands and Liability' web page.
Properties occupied by students - Class N
From 1st April 2004, students are no longer held jointly and
severally liable with other people that have the same level of
interest in the property as them, unless they are all students. The
student cannot be higher in the liability hierarchy for this to
apply:- i.e. If the student is the owner/occupier and resides with
other students who are tenants, then the student owner would remain
liable as they have a higher interest in the property. Also if all
the occupiers of the property are students, all the students will
be joint & severally liable to pay Council Tax unless exempt
under the criteria detailed below.
Example
Three residents - all certificated students (S)(S)(S) = 100%
reduction (NIL charge)
Three Residents - two certificated students (S)(S) = 25% reduction
(75% payable)
Three Residents - one certificated student (S) = NIL reduction
(100% payable)
To qualify, students must be:-
Enrolled in a full time (at least 21 hours per week) course, and at
a recognised educational establishment. For at least 24 weeks in an
academic year or in cases where there is no academic year, a full
calendar year (an original student certificate will also need to be
provided, before a discount or exemption can be considered).
Provide a valid, current student certificate (which is certified by
the educational establishment's stamp) along with a London Borough
of Newham Student application form.
Application forms are also available by telephoning our Contact
Centre on 020 8430 2000.
If an application for a student discount or exemption is
unsuccessful, you may appeal in writing to the Council Tax &
Benefit Manager clearly marking your letter "Class N
exemption-Appeal". For further information on how to appeal visit
the 'Appealing against Valuation Bands and Liability' web page.
For further information you can:
There is a legal obligation to inform the Council Tax and
Benefit Service of any change of liability or circumstances within
21 days. For further information on any discount disregard or
exemption please see the 'How to Pay Less Council Tax' page.