Final-year university students are being advised to ensure they don’t owe council tax for the final weeks of their rented accommodation. Although students are exempt from this tax during their studies, they become liable once they finish their final year.
According to the UK government, student status ends the day after the university’s summer term closes, typically in early June. However, student accommodation leases with private landlords often extend into late June, July, or even August, potentially resulting in unexpected council tax bills.
Megan Lloyd, a debt expert at Citizens Advice, explains, “Students are liable for council tax from the day after they formally cease being a student. This can be when their course officially ends, or if they abandon it or are dismissed from their studies. For example, if a student’s final term ends on June 10th, they will become liable for council tax from June 11th.”
She clarifies that this rule only applies to final-year students; those continuing their studies do not have to pay council tax during the summer break between academic years.
Manchester City Council has already issued bills to graduating students for the days following the term’s end, while other councils may not be as proactive.
A spokesperson for Council Tax Advisors recommends that students check with their local council for specific details, as there can be variations in how councils manage end-of-term exemptions and the start of council tax liability.
Council tax bills are based on a property’s value, so the amount students owe depends on their rented property. According to Gov.uk, for the 2024-2025 period, the average bill for a band D property (valued between £68,001 and £88,000 as of April 1, 1991) will be £2,171 annually, or about £181 monthly. This can be significant, considering a third of students live on less than £50 per month.
Students who receive a bill or due payment notice should act promptly to avoid debt. Council tax arrears can lead to serious consequences, including legal action or visits from bailiffs.
Students who can prove they are no longer living in the property might obtain an exemption at the council’s discretion, but generally, those in this situation will need to pay. It’s crucial for students to keep checking their mail, especially as housemates start moving out of their rented accommodation.