That's your problem, right there. Council tax is paid monthly. There is no way that you should be charged £866,07 now, because those payments should have been going out monthly since April --and if they were not, you would have heard about it back in June/July. So: 1. Find proof of payment of monthly council tax instalments since April '13. If the council tax was transferred to you on 29.10.13, then again this sum should be broken down into monthly instalments. Since the bill is three months overdue they are asking you for three instalments. You don't pay council tax for the last three months of the financial year, which is why it makes no difference to the outstanding charge whether you move out in January or April 2014. Either way, they're tardy with the bill so you should be able to negotiate something. 2. Take both bills to the council tax office and sit down with a person and explain the situation. If you have proof of payment of council tax from 01.04.13 to 28.10.13, show it to them, but only give them a copy for their records. Be polite. State that you want to pay, but can't. NEVER say that you won't. It's all in the words.
Claim it back. If you have proof of payment, then the bill they sent out was in error, and therefore its payment (and their accepting the money) was in error. Refunds can be made. It is always difficult to make sense of someone else's financial affairs after their death, but it is something you must do. For all you know your dad had a funeral insurance. For all you know he had savings or assets he forgot about. Check all his bank statements. Check yours also. Check all the incomings and outgoings. Don't expect the council to have better bookkeeping on your taxes than you do.
Also it's worth remembering if you have paid in advance for the council tax for the year if you move out before that period is up you are entitled to a pro rata refund of the remaining balance.
