Is it classed as a second home?

Cinders2001

Sorry if I have put this in the wrong section.

I have a question:
If you inherit your mothers house, but choose not to live in it while you 'do it up' either for resale or as a home for yourself and family, is it classed as a second home even if you only rent the current house you are in?

Does that make sense??

Anyone been in this situation?

Doozergirl

What is the purpose of the question? Is it for Council Tax?

If it isn't a second home for you, then no-one can class it that way

Gorgeous_George

I assume that IHT is resolved/not applicable.

As for CGT, I'm 99% confident that you are not liable for this either.

If you intend to sell, be careful about doing it up too much. A quick clean and a drop of paint may be enough to maximise your profit. Do it quick and stick it on the market. Ask an estate agent if any more expensive improvements are likely to add to the value.

Remember, while you do it up, you don't get any interest but still need to pay utility bills and water rates. Council tax should be exempt for up to 6 months.

Best wishes



GG

Cinders2001

So if we can get in 'done up' within 6 months then we will be exempt from paying Council Tax for that time?

Does it matter if it has existing furniture in it?

Ian_W

There is an online leaflet about council tax and exemptions are covered in sections 14 -17 at:
https://www.local.odpm.gov.uk/finance/ctax/ctaxbillguide.pdf

The exemption that seems to fit your circs is:
• unoccupied dwellings which form part of the
estate of a person who has died, for up to six
months after the grant of probate or letters of
administration.

I would contact the local council to explain the position and find out how to claim this.

Cinders2001

Still wondering about, once the probate is done and it officially becomes Hubby house, is it classed AS a second home even though we Rent the one we live in.

Ian_W

Cinders2001 wrote:

Still wondering about, once the probate is done and it officially becomes Hubby house, is it classed AS a second home even though we Rent the one we live in.

Sorry Cinders but refer to Doozers post #2

What is the purpose of the question? Is it for Council Tax?
If it isn't a second home for you, then no-one can class it that way

You can class it as a second home - or not, entirely up to you, but for anyone else to answer you need to give us a clue as to what context you want to know whether it would be classified as such by the taxman/council or who?

Doozergirl

No. Why would it be? We own more than one house but rent the one we live in. They aren't second homes and we don't get treated as if they are, for any purpose. (We are liable to pay tax however, which is why I asked you the purpose - I'm sure there's a way round for you if it is the only house you own?)

You can often claim Council Tax exemption also if the house is uninhabitable (ie. if the house is without kitchen and bathroom during renovation works). Someone may well ask to come and inspect the property to decide how long that exemption will last.

THE_LONE_RANGER_4

no it wil not be classed as your 2nd home ,