Summary: Mrs X complained the Council failed to provide her with relevant information, despite her request, about her late mother’s Council Tax. Mrs X also complained the Council provided misleading Council Tax exemption notices. Mrs X says the lack of, and misleading, information provided by the Council meant she missed out on Council Tax exemption by her registering the property in her name too soon. The Ombudsman does not find fault with the information the Council made available to Mrs X, and the general public, about Council Tax. The Ombudsman found fault by the Council in managing Mrs X’s, and her mother’s, Council Tax accounts and through timescales of responses to Mrs X’s complaint. However, this fault did not cause a significant injustice to Mrs X.

The complaint

1. Mrs X complained the Council failed to provide her with relevant information, despite her request, about her late mother’s Council Tax. Mrs X says the Council did not respond to contacts and failed to advise her about the information available on the Council’s website or its Council Tax booklet.
2. Mrs X also complained the Council provided misleading Council Tax exemption notices which lead her to believe the property would be exempt from Council Tax for longer than it was.
3. Mrs X says the lack of information provided by the Council meant she missed out on Council Tax exemption by her registering the property in her name too soon.
4. Mrs X also complained about delays in the Council responding to her contacts and complaints. Mrs X says the delays by the Council caused her additional trouble and inconvenience.

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The Ombudsman’s role and powers

5. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
6. 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

7. I have considered all the information Mrs X provided. I have also asked the Council questions and requested information, and in turn have considered the Council’s response.
8. Mrs X provided comments on my draft decision. I considered Mrs X’s comments before making my final decision.

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What I found

Council Tax

9. Council tax is a combination tax on the value of property and a tax on individuals living in the property.
10. The occupier or owner is liable to pay Council Tax. An occupier with a freehold or leasehold interest in the property is the primary person responsible for Council Tax. This is followed by an occupier with no interest and then ultimately the owner of the property. (Local Government Finance Act 1992, section 6(2))
11. A council has discretion to apply reductions and exemptions for Council Tax. A council will detail what reductions and exemptions it applies. Councils are under a duty to take reasonable steps to ascertain whether any discounts or exemptions should apply to taxpayers. (Council Tax (Administration and Enforcement) Regulations 1992 (regulation 14))
12. There are also situations in which a council must make a property exempt from Council Tax. A council must make a property exempt from Council Tax when a person has died until after an executor or administrator gets probate, provided the property remains empty. A person can get a further six months exemption from the date of probate provided the property remains empty and is still owned in the name of the person who died.

Transfer of ownership of a property

13. If a person is a sole owner of a property, following their death this property can be transferred to the person entitled to inherit the property under the terms of a Will.
14. The executor, executrix or administrator can transfer the property by applying to the Land Registry using a TR1 form. The executor, executrix or administrator must put the name of the intended recipient of the property and the date of transfer of the property on the application form.
15. The Land Registry will then place the property into the name of the new owner making them the legal owner of the property from the date specified in the TR1 form.

Council corporate complaint procedure

16. The Council has a three stage corporate complaints procedure.
17. The Council says it will acknowledge a complaint within three working days and provided a full written Stage 1 response within ten working days.
18. A person can request escalation to Stage 2 if they are dissatisfied with the Stage 1 response. The Council will again acknowledge this request within three working days. The Council will aim to provide a full written response within 25 days of the review request.
19. The Council will consider progression to Stage 3 of its complaint process if a person requests this. Alternatively, the Council may direct a person to the Local Government and Social Care Ombudsman without progressing to Stage 3.

What happened

20. Mrs X’ mother lived in a property for which she was the sole owner.
21. Mrs X’s mother moved into a care home on 21 July 2017 but retained her home. The Council applied a Class E exemption, exemption for property which was lived in but the occupier now permanently resides in a care home, to her Council Tax account.
22. Mrs X’s mother moved in with Mrs X in November 2019. The Council amended Mrs X’s mother’s Council Tax exemption to Class I. A Class I exemption is for a when a person receives care other than in a hospital or home.
23. Mrs X’s mother passed away on 4 December 2019. The Department for Work and Pensions informed the Council of Mrs X’s mother’s death on 9 December 2019. The Council did not record Mrs X’s death on its Council Tax system at this time.
24. Mrs X was granted probate as an executrix of her mother’s estate on 11 February 2020.
25. The Council sent Mrs X an annual Council Tax exemption notice for her mother’s property on 12 March 2020 for the year commencing 1 April 2020. The Council still held Mrs X’s mother’s property under a Class I exemption because the Council had not registered that Mrs X’s mother had passed away. This letter explained the full exemptions classifications and asked Mrs X to contact it if the situation had changed.
26. Mrs X wrote to the Council on 16 March 2020 to advise her mother passed away in December 2019. Mrs X told the Council she was currently arranging to re-register her mother’s property into her name as the beneficiary of her mother’s Will. Mrs X told the Council the property would remain empty until she sold it. Mrs X asked the Council to let her know what position the property would be in for Council Tax liability while the property remained unsold and unoccupied.
27. Mrs X applied to the land registry on 23 March 2020 to transfer the property into her name.
28. The Council updated Mrs X’s mother’s death on its Council Tax system. The Council sent Mrs X three Council Tax exemption notices on 16 April 2020 to reflect the change in circumstances. The first confirmed her mother’s property was exempt from Council Tax under Class I until 3 December 2019. The next two letters confirmed the property was exempt under Class F from 4 December 2019 to 31 March 2020 and for the year starting 1 April 2020. A Class F exemption is when a property remained unoccupied following a sole owner’s death and it had been less than six months from the granting of probate.
29. The Land Registry registered the property in Mrs X’s name on 8 June 2020 using the 24 March 2020 as the registration date.
30. On 10 August 2020, the Council wrote to Mrs X to advise her Class F exemption was due to end on 11 August 2020, six months after the granting of probate. The Council had the property registered as empty and unfurnished so applied a 100% premium to the Council Tax from 11 August 2020 onwards.
31. Mrs X contacted the Council to query the 100% premium as the property was furnished. Mrs X also wrote to the Council on 17 August 2020 querying liability and exemptions for Council Tax following transfer of the property into her name with the Land Registry.
32. Mrs X spoke with the Council on 24 August 2020 and informed the Council the property was furnished but remained empty. The Council removed the 100% unfurnished premium from the Council Tax account. Mrs X retained her Class F exemption up to 7 June 2020 and the Council charged Council Tax on the property at the standard rate from 8 June 2020. The Council wrote to Mrs X to confirm these changes.
33. The Council investigated Mrs X’s letter of 17 August 2020 on 2 October 2020. The Council checked the Land Registry and found Mrs X was the owner of the property from 23 March 2020. The Council updated the Council Tax account to end the Class F exemption on 22 March 2020. The Council charged Mrs X the standard Council Tax charges from 23 March 2020. The Council wrote to Mrs X to provide this information.
34. Mrs X contacted the Council on 19 October 2020 and 20 October 2020 to query the removal of the Class F exemption from 23 March 2020 to 8 June 2020. The Council advised Mrs X since she became the legal owner she was not entitled to the Class F exemption.
35. Mrs X complained to the Council on 22 October 2020. Mrs X complained that:
• Despite specifically asking the Council for information about Council Tax liability for the property the Council failed to provide this.
• She only transferred the property into her name because of the lack of information from the Council.
• The Council sent her a Council Tax exemption notice on 16 April 2020 confirming the property was exempt from Council Tax until 31 March 2021.
• The Council failed to provide useful information about Council Tax exemptions until August 2020 and the Council failed in its responsibility to provide information sooner.
• The Council sent her Council Tax letters applying a 100% premium in August 2020 based on incorrect information.
36. The Council provided its Stage 1 response to Mrs X’s complaint on 20 November 2020. The Council:
• Apologised to Mrs X for not responding to her letter requesting information about Council Tax liability.
• Apologised for the delayed responses to the August 2020 contact and Stage 1 complaint, The Council advised the Covid-19 pandemic and had impacted its response times.
• Said people could find full information about Council Tax liability and exemptions on its website and information about where to find this information is on the back of the Council Tax bill.
• Said Mrs X did not qualify for any exemptions to the Council Tax at her mother’s old property.
• Offered to defer the remaining balance until 31 March 2021 to allow Mrs X opportunity to sell the property.
37. Mrs X asked the Council to respond to her complaint at Stage 2 of its complaint process. Mrs X also agreed to the deferral of payment until April 2021. Mrs X sent her formal Stage 2 response to the Council on 25 November 2020. Mrs X’s main complaint was the lack of information provided by the Council causing her to transfer the property early. Mrs X also complained that the Lang Registry only put the property into her name from 24 March 2020, not 23 March 2020.
38. The Council confirmed receipt of the Stage 2 complaint on 30 November 2020.
39. The Council wrote to Mrs X on 12 January 2021, 1 February 2021 and 24 February 2021 to advise it was experiencing delays in responding to Mrs X’s complaint. The Council told Mrs X she could approach the Local Government and Social Care Ombudsman with her complaint in the letter dated 24 February 2021.
40. The Council apologised for the delays in responding to Mrs X complaint on 12 March 2021 and confirmed allocation of the complaint on 19 March 2021.
41. The Council sent Mrs X its Stage 2 complain response on 1 April 2021. The Council said:
• It received Mrs X’s letter of 16 March 2020, actioned this letter by updating the relevant exemptions on her mother’s Council Tax account and sent exemption notices to Mrs X accordingly.
• The exemption notices are statutory notices so the wording cannot be amended by the Council.
• It will only send out an information booklet about Council Tax if a person requests this. The booklet and other Council Tax information is also available on the Council’s website.
• It has now changed the Class F exemption to end on 23 March 2020 and full liability to start from 24 March 2020 when the property transferred into Mrs X’s name.
• Mrs X could approach the Local Government and Social Care Ombudsman with her complaint.

Analysis

Council Tax exemptions

42. Mrs X complained the information provided on the Council Tax exemptions notices meant she was led to believe the property would be exempt from Council Tax for longer than it was. Mrs X also complained the Council Tax exemption notices are confusingly laid out.
43. The exemption notices the Council sent to Mrs X up to and including March 2020 confirmed her mother’s property was exempt from Council Tax. Each exemption notice sent contained the relevant exemption class and provided an explanation on the reverse of each notice what this exemption class meant.
44. When the Council sent the exemption notice on 12 March 2020, this exemption notice contained incorrect information. The Council still had Mrs X’s mother as residing somewhere else other than her home for care and, therefore, exempt under Class I. The Council should have updated its records following contact from the Department for Work and Pensions on 9 December 2019 and amended the property to a Class F exemption. The Council’s failure to update it records between December 2019 and March 2020 is fault.
45. When Mrs X wrote to the Council on 12 March 2020 to advise of her mother’s death, it revised the classification to Class F from 4 December 2019. While the Council was at fault for failing to update Mrs X’s mother’s death on its Council Tax system in December 2019, I do not consider this caused Mrs X a significant injustice. The reason for this is that the Council updated its record on the first contact from Mrs X and provided the relevant exemption notification letters.
46. The notification letters sent to Mrs X on 16 April 2020 confirmed exemption under Class F and provided an explanation that Class F was applicable for six months from the date of probate when the property remains unoccupied and in the name of the deceased sole owner.
47. The information provided on the exemption notice is clear that Class F is only applicable for six months from the date of the probate. It is also clear that the property must remain unoccupied following the death of the sole owner. The information is also laid out in a clear manner with the applicable exemption on the front and a list of other exemptions on the back.
48. As of 16 April 2020, the Council has applied the relevant exemption to Mrs X’s mother’s Council Tax account from 3 December 2019 based on the information it held. The property was still in the name of Mrs X’s mother at this time and was still within the six-month probate period. The Council was not at fault for applying the Class F exemption and provided an exemption notice confirming this.
49. The Council provided Mrs X with an exemption notice on 10 August 2020 advising the probate period was ending on 11 August 2020 and the end of the Class F exemption. The Council applied a 100% premium believing the property to be unfurnished. Mrs X did not advise the Council about the change in ownership on the land registry or about the level of furnishing in the property. The Council sent the correct exemption notice based on the information it had. I do not find fault with the Council.
50. When Mrs X queried the 100% premium, the Council immediately removed the premium and backdated this to 8 June 2020. The Council acted correctly in response to the information Mrs X provided. I do not find fault with the Council. This also presented no injustice to Mrs X as she never paid the 100% premium.
51. When the Council discovered Mrs X transferred the property into her name from 24 March 2020 it corrected its records. The Council initially amended this to the incorrect date of 23 March 2020 before correcting this to 24 March 2020 on further information from Mrs X. The Council acted correctly to remove exemption F as this was not applicable from the date the ownership changed hands.
52. The Council has now applied the correct exemptions for the correct time periods. The Council’s exemption notices also provide the relevant information about the exemptions it is applying and the full details of what the exemptions mean. I do not find fault with the Council for its application of the exemptions, or the information provided on the exemption notices.

Information from the Council

53. Mrs X complained the Council failed to provide her with relevant information, despite her request, about her late mother’s Council Tax. Mrs X says the Council did not respond to contacts and failed to advise her about the information available on the Council’s website or about its Council Tax booklet.
54. Mrs X contact on 16 March 2020 told the Council about her intention to transfer her mother’s property into her name. This letter also asked the Council to provide information about Council Tax exemptions while the property remained unsold and unoccupied.
55. While the Council did not respond to this letter to provide personalised information, the Council did send Council Tax exemption notices on 16 April 2020 which provided the relevant information about the exemptions currently applicable to Mrs X’s mother’s Council Tax account. While Mrs X had already applied to the Land Registry to transfer the property into her name by this point, the Land Registry did not complete this application until 8 June 2020. This meant Mrs X had nearly two months to cancel this application following receipt of the corrected exemption notices from the Council. I cannot find fault with the Council that Mrs X chose not to cancel the application to the Land Registry.
56. The Council does not have a responsibility to provide additional information to a person about Council Tax. But, a Council should ensure it makes information available to people about Council Tax exemptions.
57. The Council provides information on its Council Tax exemption notifications about what exemptions are available and when these apply.
58. The Council also provides details on the back of Council Tax letters about how to pay for Council Tax and where people can find further information about Council Tax. The Council outlines on these letters that people can request further information for free and provides contact details and information about its website.
59. The Council’s website provides information about Council Tax and allows for downloads of its Council Tax information booklet which provides additional information about Council Tax. Information about Council Tax exemptions under Class F is also available on the Government website.
60. The Council makes relevant information available to people. It is not the fault of the Council Mrs X did not access this information before deciding to transfer the title of the property to herself. It was Mrs X’s decision to transfer the title of the property into her name and her responsibility to understand the implications of this.
61. I do not find fault with the Council for the information it makes available.

Complaint handling

62. Mrs X complained about delays in the Council responding to her contacts and complaints. Mrs X says the delays by the Council caused her additional trouble and inconvenience.
63. The Council delayed in responding to Mrs X’s contact on 17 August 2020 until 2 October 2020. This delay is fault and caused a delay in the Council applying the correct exemptions to the Council Tax account.
64. While this is fault, this did not cause a significant injustice to Mrs X. The reason for this is that Mrs X has chosen to defer payment for the Council Tax. The delayed production of charges by the Council had no impact due to Mrs X already deferring payment.
65. Mrs X made a formal complaint to the Council on 20 October 2020. The Council only provided its Stage 1 complaint response on 22 November 2020. This delay falls outside its complaint handling timescales for a Stage 1 response and is fault.
66. Mrs X also requested escalation to Stage 2 of the complaint process on 25 November 2020. The Council only provided its Stage 2 response on 1 April 2021. This delay also falls outside the Council’s complaint handling timescales for a Stage 2 response. This is also fault.
67. While the Council has failed to meet its complaint handling timescales, the Council has provided updates to Mrs X about the delays and explained that this was due to the Covid-19 pandemic. The Covid-19 pandemic has added extra pressure on Council services. The Ombudsman expects a Council to keep a person informed about any delays if it is experiencing delays because of Covid-19. The Council has done this in this instance.
68. The Council has also apologised for the delays in handling Mrs X’s complaints within both its Stage 1 and Stage 2 complaints responses. I do not consider a further apology is required for the same fault.
69. The delays in handling Mrs X’s complaints have also not caused her a significant injustice. This is because Mrs X’s Council Tax situation has not changed since October 2020 and will not change because of the Ombudsman’s decision. The delays in handling the complaint also gave Mrs X’s opportunity to defer her Council Tax payments.

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Final decision

70. I have completed my investigation as there was no fault in the information the Council makes available about Council Tax. There was fault by the Council in failing to update the Council Tax records from December 2019 until April 2019 and fault through delayed response timescales to Mrs X’s complaint. However, this fault did not cause a significant injustice to Mrs X.

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Investigator's decision on behalf of the Ombudsman