Death and Taxes

GCH888

The saying is really true. Nothing is certain but death and taxes.

Anyway I've inherited a property which means I now owe two houses. The second property is empty and I've received the 2009/2010 council tax for this house. What discounts am I entitled to for this property? I've already used up my "unoccupied status" 12 month exemption. I find it odd that single occupancy allows me a 25% discount but an unoccupied property means I am liable for the full tax amount.

All the council tax office can advise is to get rid of the property quick which in the current climate is something I'd rather not do. Also I'm finding it difficult to let the house as it's quite old and in need of updating.

Any advice will be greatly appreciated!

m_13

Is it furnished or unfurnished? In England or Wales?

If it's unfurnished and you furnish the property for 42 days with a 'reasonable level of furnishing' then after the 42 days if you remove the furnishings again it will restart the 6 month empty period exemption. You will need to ask them to come out and confirm they are happy with the level of furnishing. Madness I know. In addition, whilst it's furnished if you say it is your second home and stay there occasionally then you get a 10% discount.

ILW

GCH888 wrote: »

The saying is really true. Nothing is certain but death and taxes.

. I find it odd that single occupancy allows me a 25% discount but an unoccupied property means I am liable for the full tax amount.

Any advice will be greatly appreciated!

The logic is that they want to discourage people from hanging onto empty properties waiting for the price to go up, whilst at the same time others do not have a home to live in.

GCH888

m_13 wrote: »

Is it furnished or unfurnished? In England or Wales?

If it's unfurnished and you furnish the property for 42 days with a 'reasonable level of furnishing' then after the 42 days if you remove the furnishings again it will restart the 6 month empty period exemption. You will need to ask them to come out and confirm they are happy with the level of furnishing. Madness I know. In addition, whilst it's furnished if you say it is your second home and stay there occasionally then you get a 10% discount.

Thanks for that information. Right now the house has beds, a couple of sofas and a dining table ... does this count as being furnished? And if they consider this furnished I'll have to leave it for 42 days, pay the council tax, remove the furnishings and get them to inspect again? And hopefully this will start the whole 6 month exemption?

Geenie

How much would it cost to get it up to a level to rent, ie what work needs doing and is it just cosmetic? It seems a shame to have a house sitting empty, when there may be people willing to rent with just a little work.

Radsteral

I know money is tight now to get the builders, but if you got some money aside, its the best time to get the builders in, as it may cost you less than it would cost to do in 2008 or after this mad year-that in case the economy start picking up.

Robert_Sterling_3

GCH888 wrote: »

. I find it odd that single occupancy allows me a 25% discount but an unoccupied property means I am liable for the full tax amount.

Having a house empty for more than a year when lots of people are homeless is not a good idea. Perhaps they should charge the rates as if the house was in a high council tax band.

m_13

GCH888 wrote: »

Thanks for that information. Right now the house has beds, a couple of sofas and a dining table ... does this count as being furnished? And if they consider this furnished I'll have to leave it for 42 days, pay the council tax, remove the furnishings and get them to inspect again? And hopefully this will start the whole 6 month exemption?

Be careful. If the council believe that the property has not been unfurnished for the 12 month period then they could try and get you to pay for that period too although properties in probate are also exempt until probate granted and for up to 6 months afterwards under Class F.

These are the exemption types (taken from North Somerset, discounts vary between areas):

Certain properties are exempt from council tax.
These are:
Class A - a vacant and substantially unfurnished property which needs or is having major repair work. This is exempt for up to 12 months and after that a 10% discount is given until the work is finished.
Class B - a vacant property which is owned by a charity. This can be furnished and is exempt for up to six months.
Class C - an empty and pretty much unfurnished property. This is exempt for up to six months and after that a 10% discount is given until the property is furnished.
Class D - a property left empty while the person who has to pay the council tax is in prison. This can be furnished.
Class E - a property left vacant, which can be furnished, because the person who would pay the council tax is a permanent patient in a hospital or a care home.
Class F - a property left vacant, which can be furnished, because the person who should pay the council tax died and probate (or letters of administration) have not been granted. This can be exempt for up to six months after probate or letters of administration granted.
Class G - a property left vacant, which can be furnished, because nobody is allowed to legally live there by.
Class H - a vacant property, which can be furnished, where a minister of religion will be moving in, for example a vicarage.
Class I - a property left vacant, which can be furnished, because the person who should pay the council tax is receiving care elsewhere (but not in a residential care home).
Class J - a property left vacant, which can be furnished, because the person who should pay the council tax is caring for someone elsewhere.
Class K - a property left vacant, which can be furnished, because the person who should pay the council tax is a student living elsewhere to study.
Class L - a property left vacant, which can be furnished, because it was repossessed.
Class M - a hall of residence for students.
Class N - a property lived in only by students.
Class O - a property owned by the Ministry of Defence and lived in only by members of the armed forces.
Class P - a property lived in only by visiting service personnel.
Class Q - a property, which can be furnished, left vacant by a bankruptcy trustee.
Class R - an empty caravan pitch or a boat mooring.
Class S - a property lived in only by under 18s.
Class T - a vacant part of another property that may not be let separately because of planning restrictions, for example a granny annex. This can be furnished.
Class U - a property lived in only by people who are severely mentally impaired.
Class V - a property lived in by at least one foreign diplomat or specified member of an international organisation.
Class W - part of a property which is lived in separately, for example a self-contained flat or house, by a dependent, elderly or disabled relative of the family.

Do you know what class was previously used? Is should say on the bill for 2008/2009.

Substantially furnished means that somebody could comfortably live there. This involves a cooker, fridge, something to sit on, something to sleep on and something to eat at.

You need to check your local authority website. Some councils have changed their exemption for empty homes that could be lived in to 10% maximum to encourage use.