Do we need to pay Council Tax??

michelden

We own a log cabin on a holiday park which is open for 10 months occupancy. We stay there for the full 10 months and live with our daughter for the two months the park is closed. It is a non residential park and we can't have post delivered there. We pay a share of the business rates as do all the other unit owners, we have now been told we also have to pay council tax. Can anyone explain this to me as I understood that the business tax was our contribution to the council.

CIS

Unless a property is split between a business premises and a residential premises then they cant both be due on the same property.

Whether a property is classed as residential or business depends on the circumstances however as you are using it live in as a main home then it should be banded for council tax rather than as a holiday home paying business rates. The valuation office will make the decision thatit is no longer rateable and that its now residential and as such council tax is due.

A basic explantion can be found here - http://www.voa.gov.uk/corporate/_downloads/pdf/selfCatering.pdf

Even though your due to pay council tax your contract on the site may mean that you still have to pay the owner an equivalent value of the business rates due - this would be purely contractual between yourself and the site owners.

lincroft1710

As it is your sole or main residence, the cabin is no longer used as holiday accommodation and thus is now a dwelling and should be subject to Council Tax.

McKneff

I thought that these mobile home parks only opened 10 months of the year to avoid having to pay CT, obviously I'm wrong then

HappyMJ

McKneff wrote: »

I thought that these mobile home parks only opened 10 months of the year to avoid having to pay CT, obviously I'm wrong then

Yes but you should/must be registered as living somewhere else for voting and council tax purposes for the whole year. i.e not having the daughter declare a single persons discount on her property for 10 months of the year when the OP is not at home and is on holiday in the holiday park. It's a long holiday but it's acceptable.

Itismehonest

McKneff wrote: »

I thought that these mobile home parks only opened 10 months of the year to avoid having to pay CT, obviously I'm wrong then

No, the 10 month thing is usually a Planning requirement. They don't want people living in them full time.
Council Tax is still payable by the resident whether it is lived in for a full year or for a shorter period.
Even if it is not used at all the owner would be liable under 2nd home CT rules if they are not trading & paying Business Rates.

McKneff

Right, thank you for that, leaned something new today then:D

michelden

So even though we pay part of the parks business rates we also have to pay Council Tax. We don't object to paying one or the other but why both? Surely this would mean we are paying for the same thing twice?

CIS

So even though we pay part of the parks business rates we also have to pay Council Tax. We don't object to paying one or the other but why both? Surely this would mean we are paying for the same thing twice?

You should be paying Council Tax however even if the VOA have the property banded for Council Tax purposes and you start paying Council Tax there may still be a clause in your contract with the site to pay a charge equivalent to the business rates. You would need to check your contract.

lincroft1710

There is a possibility that the VOA would reduce the park's non domestic rating assessment by the amount that is attributed to OP's cabin. However there may be still be an element in the assessment which relates to communal or ancillary parts and for which the park owner charges his tenants.