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Second home council tax discount cut

http://www.bbc.co.uk/news/uk-politics-15509705

“The government said the reforms would allow for a £20 reduction in the annual bill for a typical Band D property in England. The current average for a Band D property is £1,196.”

How much will this raise and is that really the best use of the money.
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Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    edited 30 October 2011 at 4:41PM
    Not sure if it's the best use of the money, however, it's certainly better than putting council tax up for everyone else.

    Notice that there are plans to remove the need to pay seperate tax for "granny flats". Never knew you had to....but about time if that's the case!! Bit weird if a granny flat or annexe is required to pay it's own seperate council tax, but second home owners get up to 50% reduction!!

    Hopefully it would make larger differences to places like where I live, where a band D property is billed much higher, but we also have more second homes on average. For example, a Band D is over £1,450 on average per year in Cornwall, but many many people will be making use of discounts.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
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    Not sure if it's the best use of the money, however, it's certainly better than putting council tax up for everyone else.

    Notice that there are plans to remove the need to pay seperate tax for "granny flats". Never knew you had to....but about time if that's the case!! Bit weird if a granny flat or annexe is required to pay it's own seperate council tax, but second home owners get up to 50% reduction!!

    Hopefully it would make larger differences to places like where I live, where a band D property is billed much higher, but we also have more second homes on average. For example, a Band D is over £1,450 on average per year in Cornwall, but many many people will be making use of discounts.

    Don’t agree with you very often but I don’t see why they should get a discount. But I’m not sure how much it would actually raise, more in areas like your I suppose. Could it not be used to build more affordable housing?
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    ukcarper wrote: »
    Don’t agree with you very often but I don’t see why they should get a discount. But I’m not sure how much it would actually raise, more in areas like your I suppose. Could it not be used to build more affordable housing?

    Well in my very local area, a swimming pool for the disabled and an activity centre for the mentally disabled has recently (in the last 3 years) been shut down due to lack of council funds. When these sorts of services are shut down, I feel we are stepping backwards, not forwards.

    I'd love to see the extra money being pumped into these sorts of services, they were well used. I doubt the money will be used in that way, but thats where my vote would go.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well in my very local area, a swimming pool for the disabled and an activity centre for the mentally disabled has recently (in the last 3 years) been shut down due to lack of council funds. When these sorts of services are shut down, I feel we are stepping backwards, not forwards.

    I'd love to see the extra money being pumped into these sorts of services, they were well used. I doubt the money will be used in that way, but thats where my vote would go.

    I suspect the only reason they are doing it is they see the council tax reduction as a vote winner.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ukcarper wrote: »
    I suspect the only reason they are doing it is they see the council tax reduction as a vote winner.

    Maybe. Don't really agree myself though. Don't think this will win any votes.

    I think it's just right. Something that should have been done a long time ago.

    I don't personally feel everything has to be done to win votes. What's more, the areas this is going to effect are usually tory areas anyway.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Maybe. Don't really agree myself though. Don't think this will win any votes.

    I think it's just right. Something that should have been done a long time ago.

    I don't personally feel everything has to be done to win votes. What's more, the areas this is going to effect are usually tory areas anyway.

    I’m not sure it will win any votes either just very cynical.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    Having just looked at Devon's website; it seems they give a 10% discount for second homes; I don't know what percentage of home there are second homes but I can't see it raising a massive amount of money; but I guess anything is welcome to the locals
  • vivatifosi
    vivatifosi Posts: 18,746 Forumite
    Part of the Furniture 10,000 Posts Mortgage-free Glee! PPI Party Pooper
    Notice that there are plans to remove the need to pay seperate tax for "granny flats". Never knew you had to....but about time if that's the case!! Bit weird if a granny flat or annexe is required to pay it's own seperate council tax, but second home owners get up to 50% reduction!!

    Under council tax rules "granny annexes" are classed as separate dwellings if they have their own entrance IIRC. I think removing tax on those is a bit of a moot area. Its fair that the elderly should be able to live with their families, but not that families should have a unit to rent which they can then offer to rent as this will be an unfair incentive over other rental properties, IYKWIM.

    I don't think the removing the two homes reduction is a bad idea either. Any money raised is good, no matter how small the contribution.
    Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
  • MrRee_2
    MrRee_2 Posts: 2,389 Forumite
    Second Homes where I am looking to buy one only get a 10% reduction ...... so, to be honest, £200 a year more/less will make little difference to anyone.
    Bringing Happiness where there is Gloom!
  • heathcote123
    heathcote123 Posts: 1,133 Forumite
    I think it comes down to what you think council tax is for. I'm going to take it at face value and assume it's for the local council to provide services, rather than a tool to bash anyone with more money than me.

    Of course then I am probably wrong when I say that second home owners should if anything get a far bigger discount than 50% - it's very unlikely they use up many of the local councils services at all.
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