Summary: Mrs B complains the Council incorrectly applied an empty property charge to her council tax account. She also says it failed to identify its error in its complaint process. We find fault with the Council. The Council agrees actions to remedy the injustice.

The complaint

1. Mrs B complains the Council wrongly added an empty property charge to her Council Tax account. She also complains it incorrectly told her to appeal to the valuation tribunal.
2. She says although the Council acknowledged its mistake and refunded the money it failed to consider the unnecessary distress, time and trouble it caused her.

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The Ombudsman’s role and powers

3. 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)
4. 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

5. I spoke to Mrs B and considered the information she provided with her complaint. I considered the information from the Council along with relevant law and guidance.
6. Mrs B and the Council had the opportunity to comment on my draft decision. I carefully considered the comments I received before making a final decision.

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What I found

Council empty property policy

Long Term Empty Property Premium

7. If a property has been empty for two years the premium will be 100%. This will mean the charge will be 200% of the council tax owed on the property.
8. If a property has been empty for five years the premium will be 200%. This will mean the charge will be 300% of the council tax owed on the property.
9. The Council policy says a home is empty if it is “unoccupied and substantially unfurnished”.
10. If a property is left empty when someone dies the Council may apply an exemption until probate (official proving of a will) or letters of administration are granted and for up to six months after this if the property remains unoccupied.

What happened

11. A family member passed away in 2012 and Mrs B inherited their property. She told the Council she was responsible for the Council Tax and the property was empty but fully furnished.
12. The Council applied a long-term empty property charge from 2014 to 2021.
13. Mrs B contacted the Council about the charge in April 2020. She was unhappy with its response and complained. It responded at stage one and two of its corporate complaint procedure.
14. In its final response it said it was satisfied the empty property charge had been applied correctly. It directed her to the valuation tribunal service if she was dissatisfied with the response.
15. Mrs B appealed to the valuation tribunal February 2021.
16. Mrs B remained unhappy with the Council’s response and complained to the Ombudsman.
17. In response to our enquiries the Council said:

“… since Mrs B confirmed the property had remained fully furnished the council tax levy charge was removed on 14th April and the levy amounts paid since 2012 were refunded on 20th April 2021”

My findings

18. Mrs B says she told the Council the property was fully furnished but it still incorrectly applied the empty property charge over several years which cost her thousands of pounds.
19. The Council’s policy says an empty property is one that is “unoccupied and substantially unfurnished”.
20. The Council had opportunities to identify it had been incorrectly charging Mrs B the increased rate of Council Tax. Instead, it continued to say the charge was applied correctly and directed her to the valuation tribunal. This is fault.
21. The Council only identified its error after we became involved. It could have put things right earlier, which would have avoided causing Mrs B unnecessary distress, time and trouble.
22. Once it established its error the Council apologised and arranged a refund for Mrs B. It should also pay Mrs B the lost interest on the amount she overpaid between 2014 and 2021.

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Agreed action

23. Within one month of my final decision the Council agrees to:
• Pay Mrs B £250 in recognition of the unnecessary distress, time and trouble it caused her.
• Pay Mrs B the lost interest on the money it overcharged her. This should be calculated using the retail price index for the relevant period from 2014 to 2021.
24. Within two months of my final decision the Council agrees to:
• Review the information it provides to residents about empty property charges. It should ensure the information is clear when the charge will be applied and what information the Council needs to make a decision.
• Review the Council’s policy for empty property charging to ensure it does not incorrectly add this charge to properties that do not meet the definition.
25. The Council should provide the Ombudsman with evidence it has completed the agreed actions.

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Final decision

26. I find fault with the Council causing injustice.

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Investigator's decision on behalf of the Ombudsman