Vacant rental property council tax bill

TotallyInzane

I have a rental property that the previous tenants vacated on the 22/12/11 - i have just received a council tax bill for the property in question, for the period of 31/12/11-31/3/12. The bill shows a 10% discount, I'm assuming due to it being a vacant property.

I have two questions -

1) Does 10% sound like a correct amount of discount?

2) I'm currently in negotations with prospective tenants, who want to move in mid Feb, therefore how do I go about re-claiming/amending the period in which I'm liable for the CT?

Due to being the weekend I can't phone the council office to discuss, the website is not the most helpful or easy to understand + I always prefer to do some background research 1st.

Thanks in advance

tbs624

If the property is unoccupied and "substantially unfurnished" you can apply for an exemption of up to 6 months ( provided that you've not previously used this up) After that time most Councils will charge 90% of the CT.

If you don't qualify for the exemption, you can arrange to pay in instalments and simply notify the Council ( in writing, copy kept) of the date on which any new T will be taking up occupation.

Make sure that you also notify the water company of the T's name as new occupier and the tenancy dates, as the water companies will be able to pursue a LL who fails to do this and hold him/her liable for any unpaid water bill.

corbyboy

I have always found it strange that an empty house attracts a higher council tax bill than a house with one adult living in it.

But I suppose they don't want there to be an incentive for leaving a house empty.

clutton_2

untenanted and empty rental property can accrue 6 months 0 council tax in a year . You will need to contact the council, tell them when the old tenant moved out, assure them it is empty of all furniture, (they may want to check) and in view of a new tenant moving in soon, they will probably send you a bill when the new tenant takes over the bill. do make sure you contact the council and tell them the tenants name and move in date so that your responsibility ends.

tbs624

corbyboy wrote: »

I have always found it strange that an empty house attracts a higher council tax bill than a house with one adult living in it.

But I suppose they don't want there to be an incentive for leaving a house empty.

LL is of course running a business and can set down cost of CT paid out, during voids, on his/her tax return

CIS

1) Does 10% sound like a correct amount of discount?

Sounds right for an unoccupied & unfurnished discount.

untenanted and empty rental property can accrue 6 months 0 council tax in a year

You can claim a Class C exemption more than once in any 1 year as long as there is a minimum of a 6 week period of occupancy between them.

TotallyInzane

Thanks for everyone's replies, gives me some ideas of where I stand now

If the property is unoccupied and "substantially unfurnished" you can apply for an exemption of up to 6 months

I know this is probably different between councils but would white goods, bed & sofa be classed as furnished or is that "substantially unfurnished" enough to qualify for the exemption?

pinkshoes

TotallyInzane wrote: »

Thanks for everyone's replies, gives me some ideas of where I stand now

I know this is probably different between councils but would white goods, bed & sofa be classed as furnished or is that "substantially unfurnished" enough to qualify for the exemption?

It would classify as furnished I'm afraid. When my flat was empty, the guy from the council came to check, and questioned why there was a loo brushh and toilet roll!!

tbs624

There is no definition of the term within the relevant CT legislation so it may vary slightly from one council to another. Most will only permit carpets/curtains/built in white goods and any "abandoned " furniture that's not suitable for use( which you would of course offload anyway) - some will be fine about free standing fridges/freezers etc.

Don't try hiding stuff upstairs - they will send someone out at some point to check and you *have* to grant them access or cough up that 90% CT.

TotallyInzane

Well I have spoken to the council involved & after a long conversation, I have set up a DD for the full amount (31/12/11-31/3/12) which will be debited 25/2.

This is due to the new tenant is planning on moving in 18/2 & I've asked to add a condition that they need to sign the AST before that date to secure the property.

This means I/my Agency can inform the CC of the tenants details before the DD is due & then my CT liability will be recalculated for period the property was vacant.

If this isn't done in time for the DD to be adjusted then I will have to wait for a credit to be applied from the CC for the amount the new tenant is liable. (worse case).

Unfortunately due to having the sofa & bed in the property, I am not liable for the exemption (apparently white goods are acceptable).

Thanks everyone for your help :beer: