Council forces owner to sell property to pay tax bill...

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23 July 2024

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Council forces owner to sell property to pay tax bill

A council has warned so-called “evaders” that they are in its sights after forcing the sale of a property on which almost £36,000 of outstanding council tax was owed.

The debt owed and legal costs were recovered from the proceeds of the sale of the property, with the balance going back to the home’s former owners.

The council in question - Gravesend - says it is pursuing another 109 high value cases, with the potential of recovering around £700,000 of council tax debt.

A spokesperson says: “Forcing the sale of someone’s home is always a last resort. However, in cases where an owner has resisted all other attempts by us to engage with them to recover what is owed, we will pursue this ultimate sanction – it’s only fair on the majority of householders who pay their council tax that we do so.

“We rely on council tax to pay for the vast majority of services we provide. Like many local authorities around the country, we face budget challenges, and every penny counts.

“Where it is clear that a council taxpayer can afford to pay but has chosen not to, then as demonstrated by this latest case, we will use all legal powers available to us to collect unpaid council tax.”

If a resident owes unpaid council tax the local authority in question can apply for a liability order, and if granted, the council’s legal costs may be added to the amount owed.

Once a liability order has been granted, a range of options are open to the council, including asking an employer to deduct unpaid council tax directly from the householder’s wages; applying to take money from benefits such as Employment and Support Allowance, Income Support, Jobseeker’s Allowance, Pension Credit, or Universal Credit; appointing bailiffs to seize property to recover the debt; or apply for a charging order which gives the council security for the debt as it is secured like a mortgage on a property and in extreme cases can force the sale of the property.

The council’s statement boasting of the sales comes on the same day that the Institute for Fiscal Studies called on the government to reform council tax, which is currently calculated using a property's estimated value in 1991.

Property values have changed wildly across England over the last three decades, and the IFS has said the system now punishes those whose house prices have not kept up with the rest of the country.

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