Hi Just_So, I'm sure one of the Trust Deed experts will be able to help you and will be with you shortly.

Forum Administrator

Hi Just So,

Sorry I didn't manage to reply to this sooner. Quite a tricky question actually - it is a less common scenario than you might think.

If the property is unfurnished and unoccupied then you should get at least 6 months exemption from the date you vacated the property - though you need to apply to your local authority for it.

The reason it is a tricky question is that different councils might deal with this situation differently. If you were sequestrated (made bankrupt) you would be entitled to an exemption for as long as it takes to sell the house. However, the Council Tax regulations make no mention of trust deeds in this respect. You might find that your local authority would treat trust deeds the same as sequestration and allow you an exemption for as long as is needed, as they are both formal insolvency procedures. I don't believe they have to do this though and after six months is up you may be liable for the tax again. This would be at a discount of up to 50% (though possibly less as local authorities have the power to set the discount lower if they wish, so it might depend where the property is).
Are you still with me? Sorry can't be more definitive for you. I guess what I'm saying is that you should be entitled to a 6-month exemption at least, but if you are lucky you might be able to get the exemption for longer. Fingers crossed.

The other point to make is that your trustee should be trying to sell the house as soon as possible, in accordance with their professional guidelines, so keep on at them to make sure they are trying to do so.

Regards
Kevin

Hi Kevin

Many thanks for the reply. It seems to me its going to be a 6-month exemption. I spoke to my IP about it as it affects my mounting problems. She said that technically the house was still in my name. I also have my separation solicitor fees to pay, my mortgage provider is also chasing me for 'arrears' even though they can reposess it if thay want. I have managed to keep things together, financially, over the few months I struggled after the separation and was just beginning to get straightened out now the possibility of 2, reduced or not, council taxes, one of which is for a property that my IP changed the locks of. The council in question are so unhelpful I know that they will not entertain more than 6-months exemption. Why on earth should I pay for services when I havent got keys for the place in question, seems harsh.

Its all getting a bit much to deal with especially after the separation.

many thanks for your advice, its really appreciated!!

JS

Sounds like you're getting it from all sides at the moment. I agree it does seem very harsh having to pay 2 lots of council tax in your circumstances.

Are you making a monthly contribution to your trust deed, Just So? If so, I would suggest you speak to your trustee with a view to reducing your contributions given your current outgoings. As your creditors are likely to be getting a better return than anticipated anyway, I don't see why this should not be possible.

Hi again,

I have progressed this council tax problem and I have been granted 6-months exemption and I am now on to 50% reduction, still paying FULL Water & sewerage charges. I am currenty pay council tax at my new address and as I dont even have the keys for the apartment held by my IP, I have no interest in it whatsoever. It is still not sold (since october) and they are asking for ?ú4000 over my original equity release. With the market the way it is it may be a long wait. I dont mind the wait but I OBJECT [:(!] to paying the council for NOTHING. I am writing to them to revise their decision, and Ill do as much as I can to get this property classed as an exemption.

Added to this is my IPs request for a 30% hike in my monthly contributions.[:0]

I have now surrendered my home, all equity, I am struggling with the unfair council tax and now a request for more monthly payments.

Its all getting beyond a joke. To separate from my wife is bad enough and distressing enough and every way you look for help there aint none.

Advice?

rant over [:)]

Not surprised you need to rant, Just So. Feel free.

On what basis have they decided that you need to pay an extra 30% ? Presumably they have reviewed your income/expenditure and assessed that you can afford more. Did you make sure they took into account all of your outgoings, including the 2 council tax charges?

If you can't afford what your trustee is asking for, tell them so. It may be that they will be willing to review the payments again if you can make a good case to them.

Hi again

Just to finish off my series of complaints, the best I could get from the council was 6-months exemption and after that a 50% discount on my council tax bill. I still have to pay FULL water & sewerage charges. At least its something, its extremely unfair as I can't even get in.

I closed my electri/gas accounts and moved them to my new apartment. Unfortunately the service provider kept applying a standard tarriff and I ended up with a large electric /gas bill, even though the property is empty, and I had told them this when I moved my account.
I'v spoken to this company about this and they could not offer any scope on this issue. Fortunately I tried, yet again, and a customer services advisor told me he would put me on a 'no service charge' tarriff, and backdate it to the day I surrendered the keys to my IP. So the bill will now be very little. Result!

My IP have been very understanding and very approachable, they reassessed my position and they have told me I need not increase my contributions after all, so this really offsets the extra council tax.

I just thought I'd finish this thread as maybe one day these issues may affect someone else in a similar position.

JS

Many thanks for the update JS and very good to hear of the support offered to you by the Insolvency Practitioner you have worked with.