Summary: Mr A and Mr B complain the Council is enforcing a historic council tax debt unreasonably and has not suitably communicated with Mr A about the matter. This has resulted in enforcement action. The Ombudsman does not find fault with the Council for how it handled pursuing the debt, as it acted appropriately and followed legislation.

The complaint

1. Mr A and Mr B complain the Council is pursuing a Council Tax debt on a house that Mr A sold a significant amount of time ago.
2. Mr A and Mr B complain the Council did not communicate with them about the Council Tax at the time it was due, and has delayed contacting them about it until significantly later.
3. Mr A and Mr B complain the Council’s delay in pursuing the debt and failure to communicate has caused significant stress.

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The Ombudsman’s role and powers

4. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
5. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

6. I considered information from Mr B and information provided by the Council. I invited Mr A, Mr B and the Council to comment on a draft of my decision.

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What I found

Legislation

Council tax

7. Section 6 of the Local Government Finance Act (LGFA) 1992 provides a list of people liable to pay council charge for a property. Where a property is unoccupied the liable person will be the owner of the dwelling.
8. Section 6 defines a ‘resident’ as an individual who is over 18 years of age and has his sole or main residence in the dwelling. The concept of sole or main residence was introduced by the LGFA 1988, but was not defined in the 1992 Act. It was left to the High Court to interpret the meaning of the phrase sole or main residence through appeals brought against tribunal decisions.

Historic Council tax debt

9. The courts have ruled that there is no timeframe for recovery of historic Council tax debt where a liability order has been granted.
10. However, the Ombudsman expects Council’s to make reasonable attempts to pursue the debt and Councils need to consider if it is fair and reasonable to enforce a specific liability order.

Valuation Tribunal

The Valuation Tribunal Service deals with all the following appeals:

• appeals against the council tax band a property has been valued at
• the date a domestic property has been valued from
• whether a domestic property should be valued
• if someone is liable for council tax
• if a properly is someone’s main residence or a second home
• if a property is a house in multiple occupation
• if someone should have a council tax exemption
• if someone should have a council tax discount
• if someone should have a Section 13A discretionary discount
• if someone is a student for council tax purposes

What happened

11. Mr A bought a property in 2012 to renovate. He employed the services of Mr B to help him with the work needed.
12. In June 2012, Mr B rang the Council to set up a Council tax account in Mr A’s name.
13. The Council issued Council tax bills, reminders and summons addressed to Mr A between June 2012 and February 2015. The Council sent this correspondence to the house that Mr A and Mr B were renovating.
14. The Council did not receive communication or payments from Mr A or Mr B for the Council tax after Mr B set the account up.
15. The Council got liability orders for the debt in August 2012, September 2012, May 2013 and May 2014
16. In January 2017, the Council was made aware that new residents had moved into the house that it had previously been sending Council tax communication to. The Council closed the Council tax account and tried to trace a forwarding address for Mr A. This was unsuccessful.
17. In 2020, the Council again tried to trace Mr A and get a forwarding address, using a new approach than was previously used. This search was successful and the Council sent documents to Mr A advising him of the historic Council Tax debt.
18. Mr A and Mr B complained to the Council and said they did not feel it was fair and appropriate to pursue such a historic debt. They said the Council had not suitably handled communication about the debt or told Mr A about it.
19. In the Council’s response it said there were no limits on pursuing the debt, and that it had sent letters and summons to Mr A about the debt. It agreed to apply a discount for the first year as the property had been unoccupied. The Council remained of the view Mr A needed to repay the debt, and advised if Mr A did not it would pass the debt to an enforcement agency.
20. Mr A and Mr B remained unhappy with the Council’s response and Mr A refused to pay the historic debt. The Council passed the debt to an enforcement agency who made attempts to recover the debt.
21. Mr B bought the complaint to the Ombudsman on behalf of Mr A. The Council agreed to place the enforcement action on pause while the Ombudsman investigated the issue.

Analysis

22. Mr A and Mr B do not dispute that Mr A was liable for the Council tax on the property, therefore appealing to the Valuation Tribunal is not suitable in this case
23. Mr A and Mr B feel strongly the Council did not communicate with them about the Council tax owed, and that this maladministration means the Council should not enforce the debt.
24. The law says there is no time frame on recovery of a Council tax debt where a liability order has been granted. The Council were granted liability orders for the debt in August 2012, September 2012, May 2013 and May 2014, and are therefore able to pursue Mr A for the Council tax debt.
25. However, where there is a historic Council tax debt, the Ombudsman expects Councils to make to make reasonable attempts to pursue the debt. Councils also need to consider if it is fair and reasonable to enforce a specific liability order.
26. I asked the Council to provide copies of all communication sent to Mr A about the debt. I have reviewed all letters and demands sent to Mr A, to the property that was undergoing work and that Mr B listed the account under. I am satisfied the Council made reasonable efforts to tell Mr A of the debt.
27. Part of Mr A and Mr B’s complaint is about how the Council handled the complaint and the difference in amounts Mr A should pay.
28. Mr A disputed the original amount as the property was unoccupied during the renovation. The Council has a scheme where unoccupied properties are eligible for discount, and so applied the discount for one year.
29. Mr A and Mr B say the Council said the amount Mr B should pay was only £430, but the final amount is over £3000. I have reviewed the communication about the £430 and am of the view this amount is in reference to only part of the period Mr A was liable for the debt. The Council was clear with Mr A and Mr B about this amount in its complaint response.
30. The Council documents set out how it calculates the debt for each Council tax period, and if Mr A does not pay, the Council will add further costs. I am satisfied the Council has correctly calculated the amount due.
31. Mr B also complained the Council did not speak to him, other departments or third parties about the debt when trying to contact Mr A. The Council was not obliged to contact Mr B or other third parties about Mr A’s debt. I am satisfied the Council used suitable methods to try to trace Mr A.
32. The Council has a responsibility to collect Council tax and was within its rights to pursue the historic debt. Mr A did not dispute that he was liable for the debt. I am satisfied the Council made suitable attempts to collect the debt and considered that it was reasonable to enforce the liability order.
33. I can see no fault by the Council in how it has handled the matter and pursued the debt.

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Final decision

34. I have now completed my investigation. I find no fault with the Council for pursuing a historic Council tax debt. This is because the Council followed the correct steps and legislation when pursuing the debt.

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Investigator's decision on behalf of the Ombudsman