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How Long Can a Council Tax Debt Last? – Overview & FAQs

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Scott Nelson

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MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Jan 22nd, 2024
Could you legally write off some debt? Answer below to get started.

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For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
How Long Can a Council Tax Debt Last

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Dealing with council tax debt can be tough and puzzling, but you have come to the right place for answers. We know you might be worried about legal action if you can’t pay your council tax.

Every month, over 170,000 people find useful information to deal with their debt issues on our website, so you’re not alone.

In this article, we will provide clear answers to your questions. We will talk about:

  • What to do if you can’t pay your council tax.
  • How long a council tax debt can last.
  • When a council tax debt might end in England, Wales, or Scotland.
  • How you might be able to reduce some of your debt.
  • How to talk to the council about your tax bill.

We are here to help you understand all you need to know about this situation. We want you to feel less worried and more in control. So, let’s start to make things clearer for you and lay your options on the table.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

How long can a council tax debt be pursued?

You can only be chased for council tax debts for so long before they can no longer be enforced by the council or the courts. The duration of time you can be chased for unpaid council tax is different whether you live in England and Wales or if you live in Scotland.

I discuss the details below…

When does council tax debt expire in England and Wales?

If your council tax debt is owed to one of the local authorities outside of Scotland, the debt can be enforced until it becomes Statute Barred, which is usually six years. By ‘enforced’, I mean requested payment, taken to court or having to deal with council tax bailiffs.

The Limitations Act 1980 states that some debts outside of Scotland cannot be enforced after six years elapses from a) the debt originating, b) the last payment on the debt, or c) last acknowledging the debt in writing – whichever was most recent. 

The debt at this stage becomes statute barred, which means you cannot be taken to court and made to pay. If you cannot be taken to court then you can never be forced to pay from a legal perspective. And the local municipal must stop requesting payment. 

I have a statute barred template letter you can use to make them stop asking for payment if this applies.

The reason this law exists is to protect the courts from becoming overwhelmed with older cases.

This all means that, if you are in a situation like this forum user, it is very unlikely that your council will be able to successfully collect a 16 year old debt!

Can council tax debt be chased for longer than six years?

The Statute Barred law applies unless even if have already been instructed to pay the council tax arrears from a court judge. In the case of council tax, this is known as a liability order

» TAKE ACTION NOW: Fill out the short debt form

How long is a council tax liability order valid for?

A liability order has no expiry date. But the order is only to enforce the debt and does not override the debt potentially becoming Statute Barred. 

Nevertheless, try to reach a decision early to avoid court costs and bailiff fees. They can be very expensive so it’s best to confront the debt as quickly as possible at this stage. 

When does a council tax debt expire in Scotland?

The period of time you can be chased for a council tax bill in Scotland, known as the prescription period, is 20 years. For this reason, it is near impossible for a local council in Scotland not to be able to recover these debts through the courts in time.

However, it could still happen if the local municipal has not been able to track you down. 

Scotland does have an equivalent to the Statute Barred rule, but the period a debt can be chased is one year shorter at five years. Unfortunately, the types of debts that are included in Scotland’s Statute Barred law do not include council tax arrears. 

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

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How long before council debts are written off?

A local authority tax debt is legally unenforceable if it becomes Statute Barred after six years or the equivalent in Scotland after 20 years. 

However, in these cases the debt is not automatically written off. The debt exists but you just cannot be chased for it any longer. 

You might want to ask your local council to write off the debt at this point. If they cannot recover it using enforcement agents anymore, they might just write it off. 

Can I write off council tax debts?

You might be able to write off some of your council tax debts with a debt solution. Even if these debts can’t be covered, getting a debt solution might help you get back in control of your finances enough to pay back the council.

There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

I have linked a few charities that offer these advisory services for free below.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

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Reviews shown are for The Debt Advice Service.

Council Tax Contact Details

Website: https://www.gov.uk/browse/housing-local-services/council-tax

Paying your council tax bills FAQs

Do council tax debts expire?
Council tax debt doesn’t expire, but it can become legally unenforceable after six years or 20 years depending on where you live. They can still expire if you have received a liability order from the county court. If you are unsure, contact a debt charity.
How can I make a council tax payment?
You can make payments to councils by setting up a direct debit so the local council can take money from your bank automatically. You can also pay the money over the phone and online with credit cards and debit cards.
Can you be sent to prison for council tax debts?
In extremely rare situations, you can be sent to prison for not paying your debt after being instructed to by a judge. The debt becomes your legal obligation, so you shouldn’t ignore it at this stage.
Where can I get debt advice?
Contact charities for free to take advantage of their free debt advice.
Is council tax a priority debt?
Yes, it is classed as a priority because councils can take you to the magistrate’s court.
How can I get a council tax reduction?
Reductions are available to people who live alone or with someone not classed as an applicable adult, such as diplomats, full-time students, people with some disabilities and some other people. Contact the registered office to see if you can reduce your payment. You might be able to backdate the reduction if applicable and get credit back.
Will the council send bailiffs?
If you do not pay after a liability order has been issued, the local municipal can use a bailiff to collect the money owed. They will send you a letter as a notice to pay within 7 days. If you do not, they can come to your home and take control of valuable goods. Do not shy away from the final notice as paying or agreeing a repayment plan (CGA) will help you avoid expensive bailiff charges. Bailiffs charge £75 just for the first contact and this rises to hundreds of pounds for subsequent visits and services. The bottom line? Don’t ignore bailiffs!
How else can they enforce the liability order?
A creditor might use another method to enforce the debt after having the liability order approved. Another method is an attachment of earnings, which is a way for the council to take a payment from your income or benefits, such as income support allowance, pension credit or universal credit.
Can I spread out my debt?
You can spread out your debt by agreeing to a payment plan with the council. Some councils have a dedicated phone number to make these arrangements. Contact them as soon as possible if you have missed payments.
Can I complain about my council tax bill?
You should direct your complaint to the local municipal using the number for their registered address. If they do not respond satisfactorily, you can then take your complaint to the Financial Conduct Authority.
Will the Financial Conduct Authority be fair?
Yes, the FCA must be fair and impartial when dealing with all complaints.

 

And stick around with MoneyNerd!

And don’t forget that MoneyNerd has plenty of informative guides and answers to common questions to do with debt.

Come back soon to know your rights and get out of debt the easier way!

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.