Council tax on empty house for renovation?

genny

With saving rates so low, we are considering buying a second house, it's not that old, nor falling down, but needs a bit of work, bathroom, general TLC not been looked after etc. If we buy it, and stay living in our current house, how is council tax affected? How long before we have to start paying council tax on the second house, immediately or is there a grace period? Is there are discount when we have to start paying, will the council be odd if we say it's empty for a period having renovations/updates?

Any tips gratefully received, in an ideal situation we'd have it for a few months to improve/do up, then rent it or move in and rent ours out, third option to resell when market improves.

Hectors_House

genny wrote: »

With saving rates so low, we are considering buying a second house, it's not that old, nor falling down, but needs a bit of work, bathroom, general TLC not been looked after etc. If we buy it, and stay living in our current house, how is council tax affected? How long before we have to start paying council tax on the second house, immediately or is there a grace period? Is there are discount when we have to start paying, will the council be odd if we say it's empty for a period having renovations/updates?

Any tips gratefully received, in an ideal situation we'd have it for a few months to improve/do up, then rent it or move in and rent ours out, third option to resell when market improves.

Here in Nottingham we've been told you can be exempt from paying council tax for up to 12 months on a renovation as long as the property is empty.

They will come around and check so best not to have any furniture in the house. Although, I believe you can have stuff in boxes.

We're getting the kitchen, cooker, washing machine and a fireplace delivered shortly and will just keep it all in its wrapping until we are ready to install it.

Our local council tried to argue we only had 6 months however as the people who owned the house previously had tried to get out of one of their bills by living in the house for the last 6 months whilst claiming it was uninabited.....you can guess what my response was to that. LOL!

socrates

The local auth. will in most cases give you 6 months exemption - then you call them if you next longer and they MAY send a rep to reassess or just issue it anyway

elmer

To claim an "Under reconstruction " exemption in my area, you have to have no water and electricity and major building work, ie we wont give it for new kitchens and/or bathrooms and redecorating. It has to be uninhabitable.

Please check what your council requires before taking the plunge.

If it is currently occupied you may qualify for a 6 month "empty and unfurnished" as long as the previous owner occupied it until you bought it, ( this exemption runs per property and not per owner) and there is no furniture in it.

Otherwise here it is 10% discount for a second home ie you pay 90% of the charge, it can be furnished though.

This is a brief run down, there are other circumstances in which different exemptions and discounts can apply. I can sort them out for you if you post your particular circumstances.

Elmer x

Robert_Sterling_3

I was given six months in County Durham.

Doozergirl

Exactly what Elmer said. It's 6 months for empty and unfurnished and up to 12 months for undergoing major building work. It has to be uninhabitable to get the 12 months.

genny

Thank you all very much, will check for the official line. We'd only need 6 months, and it's not structural, more just internal refurb.

We certainly don't want to be paying another 90% while we do the work, out tax is a fortune as it is!!

So slightly off topic, what happens if you buy a 2nd property to rent, obviously the tenant pays the council tax, but what if you can't get a tenant for ages?

p00hsticks

If the property is unoccupied and the six month (or whatever) allowances has been used up then the property owner has to pay the council tax (that's one of the reasons why it's so important to allow for 'void' periods when considering whether BTL is a viable prospect or not)

genny

Thanks all very much, really helpful info and advice!

simone83

hi,

Just a quick addition. Its 6 months from that date the property has last occupied. so if the previous owner has had it empty a while you will only get the remainder for the 6 month period. Your local LA will tell you when the property was last occupied and what you can claim.

downs523

is it tru you dont pay council tax in feb and march (bedfordshire area) just pay 10 monthly payments.