Can I Move with Council Tax Arrears? Quick Guide
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.
Are you worried about moving because you can’t pay your council tax? This can be a tough spot to be in, but you’re not alone. Every month, over 170,000 people visit our site for advice on their debt issues.
In this article, we’ll explain:
- What happens if you can’t pay your council tax.
- How council tax bands work.
- Steps to ask the council to write off your council tax debt.
- How not paying council tax can affect your credit score.
- What legal issues can come up if you don’t pay your council tax.
StepChange reports that over half of their clients contacted by bailiffs were struggling with council tax arrears, and many of them expressed feeling unfairly treated.1
So I know that missing a council tax payment can be concerning, but don’t beat yourself up. We are here to help you figure things out.
Can you move with council tax arrears?
Yes, there is nothing to stop you from moving house when you have council tax arrears.
However, it could be more difficult if the next estate agent or landlord knows about your arrears.
Remember that you will have to pay council tax when living at the new property as well.
What happens with council tax arrears when you move?
Council tax arrears remain your personal debt when you leave the property.
The council tax debt doesn’t stay with that property or get passed on to its new tenants. So moving won’t stop you from owing this debt.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- 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.
Can you sell a house with council tax arrears?
Yes, you can – but it might not be that straightforward.
If you have council tax arrears and try and sell your property, the council could ensure the debt is cleared beforehand or from the property sale proceeds by adding a charging order to it.
There will be no charging order placed on the property if you are a landlord and want to sell a property where a tenant incurred council tax arrears.
The council debt is a debt owed by the individual not by the owner of the property.
» TAKE ACTION NOW: Fill out the short debt form
How do I write off my council tax arrears?
It’s possible to write your council tax arrears off as part of a formal debt solution.
There are three debt solutions that you could include council tax debts in them and have some or all of the debt written off.
These are:
- A Debt Relief Order – this solution could write off all of the debt
- Bankruptcy – this solution could write off some or all of the debt
- Individual Voluntary Arrangement – this solution could write off some of the debt, but this is unlikely unless you have significant council arrears
Council Tax Debt Solutions
As mentioned earlier, there are different debt solutions that can help you deal with council tax arrears. I’ve put together this quick table that will help you understand each of them.
| Debt Strategy | How It Can Help With Council Tax Arrears |
|---|---|
| Flexible Payment Arrangements | Local councils often offer the option to spread council tax payments over 12 months instead of the standard 10. |
| One-Off Payment | If feasible, pay council tax in full and potentially negotiate a slightly reduced amount. |
| Hardship Schemes | Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals COVID-19 Specific Support Charitable Grants |
| Discounts and Exemptions | Check for eligibility for discounts (e.g., single-person discount of 25%) or exemptions (e.g., properties unoccupied due to the resident’s death, properties where everyone’s a full-time student, or a resident has severe mental impairment) |
| Deferred Payments | Some councils allow deferring payments wherein you’ll pay less now and make up for it later. |
| Challenge your Council Tax Band | If you believe your property’s council tax band is incorrect, you can challenge it to potentially lower future payments and refund previous overpayments. |
| Debt Solutions | Certain formal debt solutions like Debt Relief Orders (DRO), Bankruptcy, and Individual Voluntary Arrangements (IVA) can potentially write off council tax arrears, |
| Professional Debt Advice | UK residents can seek free advice from debt organizations and charities for council tax guidance tailored to their specific financial situation. |
How long before a council tax debt is written off?
A council tax debt is automatically written off after six years if no court order has been issued regarding the debt.
But it’s extremely unlikely that the council debt will be written off because the council usually always asks for a liability order after seven days of the final notice.
References
