Do Lodgers in Wales Need to Pay Council Tax?

If you're renting a room as a lodger in Wales, or taking in a lodger, you might wonder who pays the council tax for the property. Council tax rules can be confusing—especially for those living in shared homes or as part of different tenancy arrangements. Here, we explain how council tax works with lodgers in Wales so you know your rights and responsibilities.

What Is a Lodger in Wales?

A lodger rents a room within someone’s home but doesn’t rent the entire property. Typically, you share living spaces with the homeowner (the resident landlord), and your arrangement may be less formal than a standard tenancy. It’s important to know this distinction, as it directly affects who's responsible for council tax.

Who Pays Council Tax When There’s a Lodger?

The general rule is: The resident homeowner (landlord) remains responsible for paying council tax in Wales, even if you have one or more lodgers living with you. Lodgers themselves are not directly liable for council tax bills.

• If you are a lodger, you typically do not have to pay council tax directly to the council
• If you are a homeowner/landlord, you are still responsible for the bill, but you can agree in writing for a lodger to pay a share as part of a rental agreement

Special Cases: When Could a Lodger Become Responsible?

It's very rare, but possible in some circumstances for a lodger to become liable for council tax. This might happen if:

• The property is unoccupied except for lodgers and the owner doesn’t live there
• All residents, including the landlord, are exempt (for example, full-time students), leaving a non-exempt lodger as the liable party

However, in most typical arrangements where the homeowner lives on the property, that person is still the one who must pay council tax.

Discounts, Exemptions, and Single Person Allowance

Council tax in Wales may include discounts or exemptions for certain situations:

• Single Person Discount: If you live alone, you can get 25% off. If you have a lodger, this discount may no longer apply unless the lodger is an exempt person (e.g. full-time student).
• Student Exemption: Full-time students are generally exempt from council tax. If all householders (including the lodger) are students, the property may become exempt. More council tax exemption details here.
• Other Exemptions: Certain people are disregarded when counting council tax liability, including carers or those with severe mental impairment. See official guidance on council tax reductions and discounts in Wales.

Official Forms and How to Use Them

If you believe you are entitled to a discount or exemption, or your situation has changed, you may need to notify your council. Here are common official forms and what they do:

• Application for Council Tax Discount or Exemption (no universal form number):
  • When to use: To claim a single person discount, notify of a student, or apply for special exemptions.
  • Example: If you've become a live-in lodger and believe the single person discount shouldn't apply anymore, you or the landlord should fill out the relevant application found on your local council's website.
  • Find your local Welsh council and their council tax forms here.
• Appeals or Complaints (Valuation Tribunal Wales):
  • When to use: If you disagree with your council tax liability or a decision about discounts.
  • Example: If you’re a lodger incorrectly billed for council tax, you can appeal to the Valuation Tribunal for Wales.

Relevant Legislation and Tribunals

The main law covering council tax in Wales is the Local Government Finance Act 1992. Residential tenancy rights and lodgers' regulations in Wales now operate under the Renting Homes (Wales) Act 2016. Any disputes can be taken to the Valuation Tribunal for Wales for council tax complaints, or the Welsh Residential Property Tribunal for other housing issues.

What Should You Do If You Get a Council Tax Bill as a Lodger?

If you're a lodger and receive a council tax bill, check the following steps:

• Ask your landlord if they've notified the council of your tenancy
• Contact your local council to clarify liability
• Appeal through the Valuation Tribunal for Wales if you disagree with the council’s decision

If you're unsure about your liability, it's best to speak directly to your local council for written confirmation and guidance specific to your situation.

Frequently Asked Questions

1. Do lodgers have to pay council tax in Wales?
   Lodgers are not directly responsible for council tax in Wales. The homeowner (resident landlord) must pay, though the lodger’s rent may indirectly include a portion of this cost.
2. Can a landlord ask a lodger to contribute to council tax?
   Yes, a landlord can ask a lodger to contribute as part of the rent agreement, but the responsibility for payment to the council remains with the landlord.
3. What happens to council tax discounts if I take in a lodger?
   If you were receiving a single person discount, you may lose this if you take in a lodger—unless the lodger is exempt (such as a student).
4. What should I do if I receive a council tax bill as a lodger?
   Confirm your living status with your landlord and contact your local council for clarification. If incorrectly billed, you can appeal to the Valuation Tribunal for Wales.
5. Where do I get official forms for council tax changes?
   You can find council tax forms on your local Welsh council’s official website. Each council provides forms to claim discounts or report changes in occupancy.

Key Takeaways

• Lodgers in Wales are generally not directly liable for council tax; the resident landlord is.
• Landlords may ask lodgers to share the cost, but official responsibility stays with the property owner or main tenant.
• Always notify your council if your occupancy status changes, and seek help if you receive a bill you think is incorrect.

Check your tenancy agreement and speak with your landlord or council for advice if you're unsure of your council tax situation as a lodger.

Need Help? Resources for Renters

• Official UK Government Council Tax Guidance
• Find Your Local Welsh Council
• Valuation Tribunal for Wales (council tax appeals)
• Welsh Residential Property Tribunal (housing disputes)
• Renting Homes Wales: Get Help Renting a Home

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1. Local Government Finance Act 1992: Official legislation text
2. Renting Homes (Wales) Act 2016: Official Act overview
3. Valuation Tribunal for Wales (official council tax disputes tribunal): Tribunal website
4. Welsh Government council tax information: Discounts & Reductions guidance
5. Find your local Welsh council: Local council search

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