Laura Sharman 31 August 2017

London council closes council tax ‘loophole’

London council closes council tax ‘loophole’

A London borough has closed a council tax ‘loophole’ which meant thousands of landlords were not paying tax over the summer period.

Islington Council has taken action after landlords across the borough rented out student accommodation over the summer holidays without paying the right level of council tax.

The new measure means landlords now have to supply the council with the tenancy and student occupancy details for every flat for every week of the year. This will ensure they are charged for council tax for any time the flats are occupied by people other than students.

Cllr Andy Hull, Islington Council’s executive member for finance, performance and community safety, said: ‘At a time when Islington faces ongoing cuts to its budgets from central Government, it isn’t fair that landlords have effectively been getting a tax break on renting their flats out over the summer.”

‘Closing this loophole means that the correct levels of council tax are collected, which is fairer for all our residents and helps to pay for local services in Islington and London.’

There are more than 4,000 student flats in Islington, so even if a quarter are rented out during the summer, this would generate £121,250 for the council.

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