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There has been considerable confusion as to the position of a personal representative in relation to the NPPR (non-principal private residence) charge since it was introduced by the Local Government (Charges) Act 2009. The committee had anecdotal evidence of different local authorities applying different interpretations of the legislation. There was a suggestion that some authorities held the view that a personal representative would, for the purpose of the act, be treated as the owner of a property from the date of death of the deceased. Following enquiries made by the committee, a reply was received from the Department of the Environment (extracts from which are set out below), which, in effect, confirms that it is only when a grant has issued in a deceased’s estate that a personal representative becomes liable for the charge.

“In 2009, this department issued guidelines to local authorities to assist in implementing the Local Government (Charges) Act 2009. Included in these guidelines was advice on how property where the owner was deceased was to be treated. In effect, if probate on the property had not yet been granted, the property was to be treated as if it had no owner, as there would be no person who would satisfy the definition of owner in the act. … However, given that the Succession Act 1965 provides that, on a person’s death, his or her estate becomes vested in his (or her) personal representatives, it was considered advisable to seek further legal advice in order to ensure probate cases were being treated correctly in this regard.

"The Office of the Attorney General has now confirmed that, where there is a property whose owner is deceased, there is no person meeting the definition of owner in the Local Government (Charges) Act 2009 until letters of administration or probate have been granted. Where letters of administration are required, the person who is granted administration becomes the owner for the purposes of the act. In a probate case, the executor becomes the owner on the issue of probate. Only at that point does liability commence and liability lies with the owner. The act does not include any provision for a waiver in the case of an insolvent estate, and insolvency of the estate would not negate the owner’s liability. It is intended to update the FAQs on the NPPR website in due course."

It is hoped that the above clarification will be of assistance to solicitors in practice when advising clients on the matter. The matter has been added to the FAQs section of   - solicitors are reminded that this website also contains other useful information that will assist in advising clients on this charge.