If a property is held on trust, who has liability for council tax, the trustees or the beneficiary?

The Principal factor in determining Council tax liability will be physical residence of the dwelling, rather than the status of ownership. This follows the hierarchy for council tax liability under section 6 of the Local Government Finance Act 1992 (LGFA 1992) which sets-out the following categories of liable person in descending order:

1. •

   a resident freeholder

2. •

   a resident leaseholder

3. •

   a resident tenant

4. •

   a resident licensee

5. •

   a resident

6. •

   the owner

An owner is defined as a person holding a ‘material interest’ in the dwelling which at LGFA 1992, s 6(5) is described as a freehold interest, or a leasehold interest (if granted for six months or more). Where two or more persons fall within the same category then those persons will be jointly and severally liable. This is also subject to LGFA 1992, s 8 which operates by way of an exception to the usual hierarchy, for certain prescribed classes of property.