Finance (Local Property Tax) Act 2012 section 127

Unpaid local property tax to remain as a charge on property

Section 127 deals with what happens when a property seller fails to clear outstanding local property tax before completing a sale, ensuring the tax liability continues to attach to the property itself.

• If a liable person sells a property without paying outstanding LPT, the debt does not disappear — it remains attached to the property.
• The charge on the property covers not just the unpaid LPT itself, but also any penalties and accrued interest.
• This provision reinforces the obligation under section 126, which requires sellers to discharge all LPT liabilities on a property before or at the point of sale.
• The practical effect is that the new owner acquires a property that still carries the outstanding LPT charge, making it a matter of concern for purchasers and their solicitors during conveyancing.