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When do we start paying Council Tax in new house

Dodgysailor
Dodgysailor Posts: 181 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 1 June 2011 at 11:23AM in House buying, renting & selling
Hi,

We are going to complete the purchase of our new house tomorrow, that is on the second of June. We are still living in our old house which we are planning to rent out at the end of June and we are going to use these 30 days to do some work in the new house which is unfurnished, while we stay in our old house. When do we have to start paying Council Tax?
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Comments

  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    Ultimately the owner is responsible for council tax. So I'd say that as soon as you are the legal owner you become liable for the council tax on the property.
    You could apply for a reduction if the property has been empty and unfurnished for 6+ months.

    You may find that useful:
    http://www.communities.gov.uk/documents/localgovernment/pdf/1198171
  • Doozergirl
    Doozergirl Posts: 34,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jjlandlord wrote: »
    You could apply for a reduction if the property has been empty and unfurnished for 6+ months.

    You've got muddled up there. You become liable for Council Tax immediately, yes. But you can apply for an exemption if the house is empty and unfurnished for a period of up to 6 months. Not if it's been empty for more than 6 months.

    If someone has just moved out of the house, you will get a full discount ie. pay nothing. If the house has been empty for more than six months, the previous owners will have had the benefit of that reduction. If the house has been empty for some time but less than six months, you can have full discount until that six months is up or you move in, whichever is first.

    Phone the LA, give them your details for Council Tax, ask them for an exemption form to get you straight and also an Electoral Roll form ready for when you do move in.
    Everything that is supposed to be in heaven is already here on earth.
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    Doozergirl wrote: »
    You've got muddled up there. You become liable for Council Tax immediately, yes. But you can apply for an exemption if the house is empty and unfurnished for a period of up to 6 months. Not if it's been empty for more than 6 months.

    OK, thanks. I was quoting from the linked document: "Councils can offer an empty homes discount of up to 50% for dwellings which have been empty and unfurnished for longer than six months."
  • Dodgysailor
    Dodgysailor Posts: 181 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    OK, I understand. Thanks both.
    DS
  • Doozergirl
    Doozergirl Posts: 34,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jjlandlord wrote: »
    OK, thanks. I was quoting from the linked document: "Councils can offer an empty homes discount of up to 50% for dwellings which have been empty and unfurnished for longer than six months."

    I've yet to find that Council! There was one that gave us a 10% discount once after the major renovation exemption had expired. Barely worth bothering with. The others just bump it straight back up to full price.

    Fingers crossed, the OP has full exemption for the time they need it. :)
    Everything that is supposed to be in heaven is already here on earth.
  • tyllwyd
    tyllwyd Posts: 5,496 Forumite
    jjlandlord wrote: »
    OK, thanks. I was quoting from the linked document: "Councils can offer an empty homes discount of up to 50% for dwellings which have been empty and unfurnished for longer than six months."

    That document is from 2006, and having a quick look around I think the discount is discretionary so it is unlikely to apply (although it can't hurt to check). In our area, at least, you can get 100% discount for the first six months for an empty house and then after that there is a bit of a discount for a second home. Once it is rented out, the tenants should be responsible for the council tax.
  • superbabe612
    superbabe612 Posts: 145 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    The last time we moved we had a week's overlap in the tenancies so we paid council tax on the current property we lived in and got an exemption for the new property we rented. We just gave the council the two addresses, the relevant dates and provided proof of tenancy (or in your case, purchase).

    Good luck in your new home!
  • CIS
    CIS Posts: 12,260 Forumite
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    The discount following a Class C exemption is set between 50% and 0% at the local authorities discretion.

    If your new property is unoccupied and unfurnished then it will qualify , at the minimum, for the relevant discount. At the most it will qualify for a full exemption (Class C exemption) whilst it is unoccupied & unfurnished, up to a maximum period of 6 months of exemption.

    Only the council can give you the full answer as they know what has been claimed previously in respect of discounts and exemptions.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • westv
    westv Posts: 6,416 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Why is it that, when money is due to the council, there is no "discretion" but when a discount is due from them there is? The discount be fixed and not determined by whatever the council decides it can be bothered to offer!
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The discount be fixed and not determined by whatever the council decides it can be bothered to offer!
    The council have to work within the legislation and on almost everything they have no discretion but the law was changed to allow some discretion on certain discounts.

    Until 1 April 2008 the discount was fixed but the council's were then given delegated powers to set the charge on a local basis (within pre-set limits). This was done to allow council's with a high rate of empty properties to use the discount as a tool to encourage occupation of the properties.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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