Man calls out ‘death tax’ after inheriting his mother’s home

Kieran Molloy, Local Democracy Reporter

A bereaved son has been hit by what he called a “death tax” after inheriting his mother’s home.

Phil Bond, 68, lost his mother, Eunice, 91, in May and as a result her home came into the possession of Phil and his brother.

Soon after his mother died the brothers received a council tax bill for their mother’s home in Cardiff which included an item labelled “premium furnished and no-one resident” which doubled the amount that needed to be paid to more than £4000.

In Wales local authorities can charge a council tax premium of up to 300% on furnished second homes, which Phil’s mother’s home had been classed as being.

In Cardiff a 100% premium applies to furnished properties that are not anyone’s sole or main residence.

The premium is intended to encourage bringing empty homes back into use, helping to increase the availability of housing and support sustainable communities.

Phil called this premium both a “penalty” and a “death tax”.

He told the Local Democracy Reporting Service (LDRS): “What I find amazing is the way it’s set up, as if the council expects you to empty the house straightaway and then worry about the funeral after.”

The Llandaff North resident said that after his mother’s death he was occupied with informing friends and family and organising the funeral and the house was “the last thing on my mind”.

He added: “Once the funeral is over and everything starts to come back to reasonably normal we then start to look to clear the house because we’re going to sell it so we go through everything and then this bombshell drops.”

Phil clarified that he didn’t object to paying council tax at his mother’s property but it was purely the extra charge he objected to.

However after contacting local councillors he managed to get an exemption but is still on the hook for a reduced premium of £544 for the period between May and August when the house was furnished.

But he said to him any premium still feels like a “death tax” and that he is being “penalised through no fault of ours”.

While he did manage to get the bill reduced he only managed to do so through contacting his local councillors on his own initiative and he questioned whether other people would do the same.

Phil said: “You can’t tell me we’re the first people that this has affected. Someone somewhere has ended up in the same situation.”

He worried some people would just pay the bill without challenging it.

A spokesman for the council said: “The council recognises that bereavement can be a difficult time for families and aims to ensure residents are aware of any council tax reductions or exemptions that may be available to them. We are sorry to hear of Mr Bond’s loss.

“There is no council tax exemption that is applied automatically following the death of a resident.

“Where a person who lived alone has died the property may be exempt from council tax if it remains unoccupied.

“This exemption remains in place until probate or letters of administration have been granted unless that process takes longer than two years. Once probate or letters of administration have been granted the exemption can continue for a further 12 months.

“Where probate or letters of administration are not required council tax remains payable by the owner or occupier in the usual way.

“Properties that are substantially unfurnished may be exempt from council tax for up to six months while properties that are actively being marketed for sale are exempt from the premium and are charged only the standard rate of council tax for up to 12 months.

“Residents who believe they may qualify for a reduction or exemption are encouraged to contact the council so that their circumstances can be considered.”

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