Discovering the UK 2022

Taxes Council Tax

Council tax is locally set and payable on all residential properties. In most cases there is one bill per property, regardless of whether it is rented or owned, and whether it is a house, bungalow, flat, marionette, mobile home, or houseboat. Council tax is collected to help pay for local services such as police, fire, schools, roads, libraries, and waste collection. However, it is not a direct payment for these services and is payable regardless of whether they are actually used. The amount payable depends upon the capital value of the property and will be obtained for you once you have decided upon the property you wish to rent. Typically, the amount varies per annum from around £1,000 to over £3,500 for larger properties. The amount is calculated by the council and a bill is sent to you at the property. The bill can be paid by direct debit in interest-free monthly instalments over 10 months. Your Consultant can advise you further and assist you with setting up payments. Stamp Duty Land Tax Certain tenancy agreements can be taxable, and are payable by the tenant. If tax is due, it must be paid within one month of the start of the tenancy to avoid paying a fine and interest charges. Broadly speaking it is only those tenancies where the total rent for the tenancy is in excess of approximately £125,000 that attract tax which in practice is very few. However, the rules and calculations are complex and are likely to be modified by the Government or interpreted by case law as time goes on. You are most strongly advised to seek legal advice through your company's HR and Legal Departments to determine whether there is a liability in respect of your particular Tenancy Agreement.

Departure End of Lease

If your lease is ending and you do not want to renew it, you will need to let your landlord know that you are going to vacate at the end of the tenancy. If your company is going to repatriate you or move you to another location before your tenancy has ended, the appropriate notice will need to be served. To receive the full security deposit, property condition at the time of move-out should be the same as during the move-in. The cost of repairs by the landlord will typically be deducted from the security deposit.

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