Summary: We will not investigate this complaint from a landlord that the Council is wrongly holding him liable for council tax and business rates for a property instead of his tenants. This is because the landlord has, or had, a right of appeal to the Valuation Tribunal about his liability for council tax. Also, liability for business rates is for the magistrate’s court to decide.

The Ombudsman’s role and powers

2. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal about the same matter. However, we may decide to investigate if we consider it would be unreasonable to expect the person to appeal. (Local Government Act 1974, section 26(6)(a), as amended)
3. The Valuation Tribunal (VT) is a tribunal that deals with appeals against councils’ decisions about council tax liability.
4. We may decide not to start an investigation if we think the issues could reasonably be raised within a court of law. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended)

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How I considered this complaint

5. I considered the information Mr X provided about his complaint and information from the Council. I also took account of the Ombudsman’s Assessment Code.

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My assessment

6. Mr X leases a property from the Council which has part business part residential use. Mr X says he has rented out the property to tenants for many years.
7. In 2021 the Council started legal action against Mr X to recover arrears of council tax for the property for the years 2019 to 2021. But Mr X said his tenants were liable for the council tax. Mr X said the Council dropped its legal action in 2021. But he complains it is now chasing him again for the arrears.
8. Earlier this year the Council also sent Mr X a final reminder about arrears of business rates it said he owed for the same property. Mr X also disputes his liability for the rates.
9. However, I consider that we should not investigate Mr X’s complaints about these matters.

Council tax

10. The law says we normally cannot consider complaints if someone can go to a statutory tribunal about the issue.
11. If a person billed for council tax does not agree they are liable to pay the tax, they have a right of appeal to the VT. The VT is an independent expert body whose decisions are binding on the Council. We have no power to decide who should pay council tax.
12. In the circumstances I consider it reasonable to expect Mr X to have appealed to the VT in his case, or to make a late appeal if he has not already done so.

Business rates

13. The magistrates’ court decides liability for business rates. A council can apply for a liability order to recover arrears of rates, and the person it thinks liable can defend themselves in court. The case law on rates liability is technical and this is something where we do not have enough expertise to decide about fault. So I have decided we will not investigate Mr X’s complaint as the court is the most appropriate place to decide about his liability.

Final decision

14. Mr X complained the Council is wrongly chasing him for arrears of council tax and business rates he is not liable to pay. But we will not investigate this complaint. Mr X has, or had, a right of appeal to the Valuation Tribunal about his liability for council tax and the magistrates court is best placed to decide about his business rates liability.

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Investigator's decision on behalf of the Ombudsman