29. Why does the estate of a deceased person have to pay the Council Tax premium?
The Council Tax premium as well as any other charge should be paid from any funds within the estate in the same way as other bills would be, before funds are distributed to any beneficiaries.
If there are no funds within the estate until the property is sold, then with an undertaking from a solicitor we can hold the charge on the understanding that it will be paid in full on completion.
Within the legislation a premium must be applied where the following criteria are met:
For a second home:
- the property is not lived in as a sole or main residence and is
- substantially furnished
For an empty and unfurnished property:
- the property is not lived in as a sole or main residence and is
- substantially unfurnished
Exceptions to the premium
When central government laid legislation allowing for a premium to be applied, they also created a number of exceptions that meant a premium could not be charged if the property falls within them. However, the government did not allow local authorities the discretion to alter the terms of these exceptions or to add their own. For more information on:
If you are not eligible for an exception, the estate remains liable for all charges and the personal representative will need to ensure payment before funds are distributed to beneficiaries.