Single Person Council Tax Discount

hillwalker2004

This is completely hypothetical...

Suppose there were two of you living in a property and one of you goes on a holiday - would that mean that the other person is entitled to single person discount (25%)? Are there any set rules - for instance if someone is away for 2 weeks, 1 month, or 1 year should it make any difference?

Or an alternative possibility - suppose both of you go on holiday and the property is still furnished - you wouldnt be entitled to the 100% discount (due to the furnishings), but could you be entitled to the single person discount?

Please dont shoot me down, its not something I've ever done or would consider doing. I was just wondering how the rules are applied!

CIS

Simple anwer is no.

The property would remain the person's 'sole or main residence' throughout the holiday and as such the remaining occupier would not be able to claim a single person discount as there wold be two people with the property as their 'sole or main residence'. A person can be away from a property for several years and yet it can still be their 'sole or main residence'.

The same would apply even of all the occupiers were on holdiday - the property would remain their 'sole or main residence' irrespective.

hillwalker2004

Interesting thanks! Assume it is similar to PPR - Principal Private Residence which are the rules for capital gains. i.e. it works the other round with these rules - you are still treated as resident so dont have to pay capital gains on your principal residence (obviously a bit more complicated than that).

So what you are saying is that even if the property was unfurnished and people went away for a year then you would still not be entitled to the 100% discount for the first 6 months and 50% discount thereafter? I wonder how many people get away with this?

As I say its hypothetical, although I had the stretch the rules a few years back... I bought a new build direct from the developer but the developer thenselves had claimed the 100% discount for the first six months (although I was unaware). I was told that even as the first buyer that I was not entitled to the discount even though the property was unfurnished and was not living there. In the end I had to live in the property for a week, furnished to reset the clock, or so the council advised.

CIS

So what you are saying is that even if the property was unfurnished and people went away for a year then you would still not be entitled to the 100% discount for the first 6 months and 50% discount thereafter? I wonder how many people get away with this?

Thats correct - case law has determined this.

The 50% discount can be varied by each local authority to anywhere between a 50% discount and a 0% discount.

As I say its hypothetical, although I had the stretch the rules a few years back... I bought a new build direct from the developer but the developer thenselves had claimed the 100% discount for the first six months (although I was unaware). I was told that even as the first buyer that I was not entitled to the discount even though the property was unfurnished and was not living there. In the end I had to live in the property for a week, furnished to reset the clock, or so the council advised.

The developer would have received a Class A exemption for a new proeprty however you could have also received up to an extra 6 month of exemption (to an overall of 12 months including the exemption claimed by the developer) following the Class A exemption if the property remained unoccupied and unfurnished.

To 're-set' the exemption after a Class C exemption (unoccupied and substantially unfurnished) there must be at least a 6 week period of occupancy.