Development Checklist No 6 - Local Taxation No 1 - Council Tax

Generally developers of houses and other dwellings are active in the following kinds of development opportunities:

1. developing greenfield or brownfield sites with houses and flats;
2. carrying out regeneration projects involving new dwellings or upgrading existing houses, etc;
3. carrying out major reconstructions of commercial and industrial buildings;
4. converting existing dwellings into one or more flats or apartments; and,
5. putting flats or maisonettes into the vacant upper floors of high street retail premises.

Either the developer or the occupier (or owner) of each completed dwelling will become liable for council tax at some date.

Demand for Council Tax
A developer of one or more unoccupied completed dwellings must comply with any proper demand issued by the billing authority for the payment of council tax (unless the dwelling is occupied or disposed of to a third party).

Completion Notice Trigger
The Local Government Finance Acts 1988 (schedule 4A) and 1992 (section 17) provide the mandatory statutory requirements to initiate:

1.  the procedure whereby dwelling(s) are entered upon the valuation list; and.
2.  the payment of council tax.

The billing authority will issue a completion notice which states the date when the authority reasonably expects the building to be completed. 

Council tax becomes payable on the date which is the earlier of:

• the first date of occupation of the dwelling; and
• three months after the completion notice.