Moving home with council tax arrears: what happens to the debt?
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MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
Council tax arrears do not normally prevent a move, but the debt remains with the liable person. Tell the council and arrange affordable repayment.
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.
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Can you sell a house with council tax arrears?
Arrears do not automatically stop a sale. A charging order already registered against an owner’s interest can affect how a transaction proceeds and how the debt is paid. The council cannot simply add a charge without the applicable legal process. Tell your conveyancer about the debt and any orders.
Liability depends on the legal council-tax rules and occupation of the property, not simply on who owns it. A landlord does not automatically owe a tenant’s personal arrears, but an owner can be liable in some circumstances, including certain types of property. Check the account and liability before relying on an assumption.
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How do I write off my council tax arrears?
Qualifying council-tax debt may be included in a DRO, IVA or bankruptcy, depending on the rules and circumstances. These are formal insolvency options with eligibility tests and serious consequences. There is no universal requirement that council arrears be a particular large amount before an IVA can include them.
Ask the council about reductions, discounts or discretionary hardship relief, and get free debt advice about the whole situation. The most appropriate route depends on your country, income, assets and other debts; moving is not a debt-write-off process.
| 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 affordable, pay the arrears or agree instalments. Any discretionary reduction must be assessed by the council; a lump sum does not automatically earn a discount. |
| Hardship Schemes | Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals Current discretionary support (ask your council) 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 someone qualifies to be disregarded because of severe mental impairment; the effect depends on the household and eligibility rules) |
| 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?
In England and Wales, the council generally must apply for a liability order within six years of the amount becoming legally due. A liability order obtained in time does not automatically expire six years later. This is not a rule that arrears are automatically written off after six years.
Backdated bills and the date a sum became due can complicate the position. Scotland uses different rules. Ask for the bill, liability dates and any order details, and obtain advice before assuming an old balance is unenforceable.
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