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Islington Council takes action to close tax loophole

Islington Council has closed a council tax loophole to make sure the correct level of council tax is collected to pay for local services.

There are more than 4,000 student flats in accommodation blocks in Islington. In the past, this type of accommodation was given a block council tax exemption throughout the year, as students do not pay council tax.

However, increasingly landlords let these student flats over the summer holidays, when students are away, to tourists and other visitors, in order to maximise income. Because students are not living in the flats at this time, the flats are liable for council tax. If 1,000 such flats are rented out for the 10 weeks of the summer break, the council tax due is £121,250.

To close this loophole, Islington Council now requires landlords to supply the tenancy and student occupancy details for every flat for every week of the year. They will be liable for council tax for any periods during the year when flats are occupied by people other than students.

Cllr Andy Hull, Islington Council’s executive member for finance, performance and community safety, said:

“At a time when Islington faces ongoing cuts to its budgets from central Government, it isn’t fair that landlords have effectively been getting a tax break on renting their flats out over the summer.”

“Closing this loophole means that the correct levels of council tax are collected, which is fairer for all our residents and helps to pay for local services in Islington and London.”

Islington is one of the first local authorities in the country to take action to close this loophole.

For further information please contact: 
Chris Roe, Media Manager 
Tel: 020 7527 8751 
Alternative contact - Media team: 020 7527 2307 
Out of hours: 07769 163303 
Email: chris.roe@islington.gov.uk 
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