London Borough of Haringey (22 005 536)
Category : Benefits and tax > Council tax
Decision : Closed after initial enquiries
Decision date : 17 Aug 2022
The Ombudsman's final decision:
Summary: We will not investigate this complaint that the Council does not do land registry checks before issuing council tax liability orders. This is because there is insufficient of fault by the Council and we could not achieve the outcome the complainant wants.
The complaint
- The complainant, whom I refer to as Ms X, says the Council should check with the land registry before issuing liability orders for council tax arrears. She says the Council has not demonstrated this would not be cost effective.
The Ombudsman’s role and powers
- The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide:
- there is not enough evidence of fault to justify investigating, or
- we cannot achieve the outcome someone wants.
(Local Government Act 1974, section 24A(6))
How I considered this complaint
- I considered information provided by Ms X and the Council. This includes the complaint correspondence. I also considered our Assessment Code and invited Ms X to comment on a draft of this decision.
My assessment
- The owner of a property is liable for the council tax when it is empty. The law says councils must send council tax letters to the last known address for the liable person. The law does not say councils must do land registry checks. If someone does not pay the council tax, councils can register the arrears in court and instruct bailiffs. People should report changes in their circumstances to the council tax team; this includes buying or selling a property, moving in or out, and when a tenant becomes liable.
- Ms X owned property A. The Council closed her council tax account in 2009 because a tenant moved in. Ms X did not tell the Council when she subsequently sold the property.
- Property A was empty for a couple of months in 2021. Ms X was still listed as the owner. The Council made Ms X liable and sent council tax letters to the last address it held for her. Ms X did not receive the letters as she was no longer at that address. Ms X found out about the arrears when she was contacted by bailiffs.
- Ms X contacted the Council and provided evidence from the land registry to show she is not the owner. The Council cancelled all the costs and action. Ms X did not have to pay anything but says the experience was time consuming and stressful. She asked the Council to reimburse the £3 land registry fee, pay compensation, and change its procedures so that it checks with the land registry if people do not respond to the council tax letters.
- In response the Council explained it had held Ms X liable because she had not reported she had sold the property and it sent the letters to the last address it held for her as the registered owner. It said it would not be cost effective to do routine checks before taking recovery action. The Council explained it does checks in some circumstances, such as when there is a dispute about ownership. It declined to pay compensation because it acted correctly in line with the information it held.
- I will not investigate this complaint because there is insufficient evidence of fault by the Council. There is no requirement for the Council to do land registry checks before taking enforcement action. Councils are, however, required to hold the last known owner liable when a property is empty and to contact the owner at the last known address. If Ms X had told the Council when she sold property A then it would not have kept her listed as the owner.
- Ms X wants the Council to change its procedures. It would require a change in the law to make this a requirement and that is not something we can achieve. And, it would be for the Council, not us, to decide to introduce a council policy to do routine checks. Ms X says the Council has not demonstrated it would not be cost effective but it is for the Council to decide whether to do additional checks and it has decided not to change its policy.
Final decision
- We will not investigate this complaint because there is insufficient evidence of fault by the Council and we could not achieve the outcome Ms X would like.
Investigator's decision on behalf of the Ombudsman