Bereaved Families Warned of Unexpected Council Tax Charges on Inherited Properties
A leading inheritance disputes lawyer has issued a warning to bereaved families about the potential for unexpected Council Tax charges on inherited properties. According to a report by Yahoo UK Style, some councils are applying a ‘second home’ premium immediately after a death, which can leave families vulnerable to hefty tax bills.
Under current rules, most local authorities offer a six-month grace period during which Council Tax is not payable on a property that has been left empty due to the death of its owner. However, the process of obtaining probate, selling the property, and completing conveyancing often exceeds this timeframe. This can lead to unexpected charges, particularly if the property is considered a ‘second home’ by the council.
Andrew Wilkinson, head of inheritance disputes at Lime Solicitors, described one council’s decision to impose a second home levy on an estate property as "incredibly harsh". The property in question was not used as a second home, but the council considered it a second home from a technical perspective because it was legally in the son’s name at the time of the owner’s death. Yahoo UK Style reports that Wilkinson said: "It’s deeply concerning to see councils imposing hefty council tax bills on grieving families who are already navigating the complex probate process. In all my years of practice, this isn’t something I have seen before, and it feels extremely unfair, especially when executors are actively trying to deal with the estate."
Wilkinson advised families dealing with estate properties to proactively communicate with their local council to explain the situation and timelines. This can help in negotiating any available exemptions or reliefs. Additionally, if a property is expected to remain vacant for an extended period, renting it out might be a viable option to offset council tax liabilities, though this comes with its own set of responsibilities and considerations. As Yahoo UK Style notes, Wilkinson emphasized that families shouldn’t be further burdened by unexpected financial pressures due to administrative oversights or rigid policies.
The warning comes amid a nationwide crackdown on second homes, part of a UK Government-led effort to tackle the housing shortage in popular towns and rural communities. On April 1, 2025, more than 200 local authorities across England implemented new powers allowing them to levy a 100 per cent Council Tax premium on properties that are furnished but not the owner’s main residence. The policy, introduced by Michael Gove in 2023, was originally aimed at curbing the ‘scourge’ of second homes in coastal towns where housing supply is under pressure. However, its rollout is now affecting a far broader range of properties.
As Yahoo UK Style reports, most councils in Scotland have information on inherited homes after someone dies on their website. Guidance on the South Lanarkshire council website states: "If a property is unoccupied because the occupier has died, as long as it is unoccupied, and liability for Council Tax falls solely to the estate of that person, it could be exempt from Council Tax." However, if the property was owned jointly with someone else, is owned by someone else, or is held in a Trust, liability for Council Tax will fall to that owner, or Trust, and this exemption category won’t apply.
In conclusion, bereaved families are being warned to be vigilant about unexpected Council Tax charges on inherited properties. As Yahoo UK Style highlights, it is essential for families to communicate proactively with their local council and seek advice from a qualified inheritance disputes lawyer to navigate the complex process of dealing with estate properties. By doing so, they can avoid unexpected financial pressures and ensure that they are taking advantage of any available exemptions or reliefs.
According to Yahoo UK Style, the issue is one of sensitivity and understanding, and councils must handle such situations with care. As Andrew Wilkinson notes, "This policy was designed to free-up housing, not penalise bereaved families. The loss of a loved one is already a challenging time. Families shouldn’t be further burdened by unexpected financial pressures due to administrative oversights or rigid policies."
The council tax warning has significant implications for families dealing with inherited properties, and Yahoo UK Style suggests that families take steps to protect themselves from unexpected tax bills. By understanding the rules and regulations surrounding Council Tax and seeking professional advice, families can navigate this complex and emotionally challenging time with greater ease.
