Council Tax Deferment for Pensioners Proposed

18 Aug 2005

As part of a government-commissioned review of local taxation in England, Sir Michael Lyons is considering an option to allow pensioners to defer their council tax payments until they die.

The concept is that those who are home owners could pay their council tax in one lump sum out of their estate following their death and the sale of their property.

Labour MP Clive Betts, told BBC Radio 4's World at One that despite Conservative and Liberal Democrat party criticisms he welcomes the proposal; "It won't be compulsory. People will be able to pay the tax as they go along. So it is an option that is available for people. I think creating another option is entirely right.”

"I think it is very unlikely that even if people chose to defer all or some of their council tax that it is going to take up all the value of their property when they sell it; there is still going to be quite a lot left in most cases I am sure."

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