Council Tax Exemptions - Class C & A

wing.nut007

This is a little complicated so I apologise in advance.

I completed / bought my house back on the 2nd Nov 2010.

The house was in need of extensive renovation so I immediately applied for a Class C (Vacant and Unfurnished Dwelling) 100% exemption. The local council granted one but only up until 9th Jan 2011 as the previous owner had already used almost four months of the 6 months maximum allowance. Apparently exemptions are per property not owners.

When the Class C exemption expired I asked the council about other exemptions that the house might qualify for and in particular exemptions for houses that are undergoing major repair works / alterations (I now know this to be a Class A exemption) but they told me that my house qualified for none.

They did however grant me a 50% reduction in council tax payment for a further 6 months due to its zero occupancy.

The 50% reduction ended on the 9th July 2011 and I became liable for full council tax. Due to various planning issues the house is still far from complete so I asked the council about major repair works / Class A exemptions and they agreed to inspect the property. Upon inspection the council official immediately agreed the property is uninhabitable and that he woulkd recommend a Class A exemption for the property.

The council subsequently backdated and refunded me my 6 months at 50% zero occupancy, however they have now written to me saying that the Class A exemption expired on the 9th July 2011 and I owe from this date. FYI a Class A exemption is only valid for a period of up to 12 months.

I am guessing that the previous owner applied for and was granted the Class C exemption from 9th July 2010 and that the council have decided to run both the Class C and Class A exemptions for the property concurrently and from this date meaning the 12 months was up on the 9th July 2011.

FYI - I am already paying full council tax on another property within the same council area.

My questions are this:

- Is it correct that the exemptions run concurrently?
- The Class C exemption expired on the 9th Jan 2011 at which point I started to pay the 50% reduced occupancy rate. Work only began in April 2011 once planning was granted shouldn’t the 12 month exemption really run from then when the house in fact became uninhabitable?
- Following on from the above are you allowed to have 2 exemptions on a property with the 3 month gap in the middle or are there limits in place?
- If as I believe the council have run the 2 exemptions concurrently to the maximum 12 months that’s available shouldn’t I now be eligible for the 50% reduced occupancy rate after all this is not an “exemption” but a 50% “Reduction” for zero occupancy.

Many thanks in advance for any advice people are able to offer.

CIS

- Is it correct that the exemptions run concurrently?

Simple answer Yes, more complicated answer No - the Class A exemption can only run for 12 months from the date the property became unoccupied and requiring major works (both conditions need to be met). The Class C exemption has been awarded for the previous occupier and then you've been given the Class A exemption for the balance of the 12 months (became unoccupied Jul 2010 and undergoing works from Jan 11 - 12 month period of Class A exemption runs from Jul 10 but only awarded from Jan 11)

- The Class C exemption expired on the 9th Jan 2011 at which point I started to pay the 50% reduced occupancy rate. Work only began in April 2011 once planning was granted shouldn’t the 12 month exemption really run from then when the house in fact became uninhabitable?

See above

- If as I believe the council have run the 2 exemptions concurrently to the maximum 12 months that’s available shouldn’t I now be eligible for the 50% reduced occupancy rate after all this is not an “exemption” but a 50% “Reduction” for zero occupancy.

That depends on how the local authority have set the local rates in their area, many councils now give a 0% discount on unoccupied and unfurnished properties.

sweetpeas_2

Hi wing nut, Hope to help you a bit as I used to work in council tax...

Firstly, the exemptions do run on the property and not the owner, so that part is right.

If the property is uninhabited the exemption can be applied, it doesn't matter what state of repair it is in at what point, so if the previous owner had already used up approx 4 months then it is correct that you only had the remainding 2 months applied before going to 50%.

Reduced occupancy rate does not qualify for 50% discount, if you are a single occupant you receive a 25% discount as council tax is broken down 50% property/50% inhabitants, so if there is only one eligible adult in the property they will be liable for a 75% bill.

It does seam to all be spot on to be honest, just the way the system works I'm afraid.

Hope this helps you,

sweet x

00ec25

wing.nut007 wrote: »

They did however grant me a 50% reduction in council tax payment for a further 6 months due to its zero occupancy.

FYI - I am already paying full council tax on another property within the same council area.

are you sure it was an "occupancy" reduction ? It sounds more like the second home rate to me (between 10% to 50% at discretion of individual council)

sweetpeas wrote: »

Hi wing nut, Hope to help you a bit as I used to work in council tax...

Reduced occupancy rate does not qualify for 50% discount,

agreed , but the second home rate could be 50% discount

wing.nut007

Many thanks for the swift and informative replies.

If my local council does still offer a 50% reduction for Zero Occupancy (they did up until 9th July 2011) then would I be able to claim this for 6 months on the basis the origional 50% discount period they offered was in fact already covered by the now backdated Class A exemption?

Many thanks.

wing.nut007

are you sure it was an "occupancy" reduction ? It sounds more like the second home rate to me (between 10% to 50% at discretion of individual council)

Hi there taken direct from my Council Tax bills it says:

50% Reduction For Zero Occupancy - it then gives the dates in question and the charges payable.

CIS

If my local council does still offer a 50% reduction for Zero Occupancy (they did up until 9th July 2011) then would I be able to claim this for 6 months on the basis the origional 50% discount period they offered was in fact already covered by the now backdated Class A exemption?

If they offer a 50% period after an exemption and this has not been awarded then there should be no reason why you cant claim it. (they may have their own rules on when they will award it)