Council Tax - New 150% rate?

John_Pierpoint

While flicking through the local free rag, before it becomes a bird cage liner,
I noticed one of those small ads, that have to be advertised for legal reasons.

It appeared to be a warning from my local authority that it intended to impose a 150% rate of council tax on empty property.

Is this a new power to tax on the part of a local authority that has already sold off its car parking charges collection - now imposed until midnight ?
Will it apply to those with a second home?
Just a desperate attempt to raise more compulsory revenue?
Have I misunderstood the advert?

CIS

Its not the only change which is happening from April 13. Under the Local Government Finance Act 2012 (to be implemented April 2012) a local authority has the discretion to levy a charge of up to 150% where a property has been a unoccupied and substantially unfurnished for over 24 months (certain properties are excluded).

Its an option given to the councils as a way to raise revenue now that budgets have been slashed- it means the government can pass any blame onto the local authorities as they are forced to use it to try and recoup some of the monies.

John_Pierpoint

Any news on what will be exempted ?
I am related by marriage to a family that owns something little better than a cow shed - something that would have been used historically to house itinerant workers at harvest time.
It is controversial in that it could be renovated and let out to holiday makers, as have some similar properties in the neighbourhood - I presume it is defined as "not habitable" at present. [Bottle gas stove and water supply from local stream - rusty tin roof]

Makes something like this look like modern luxury:

http://i.dailymail.co.uk/i/pix/2013/01/04/article-0-16BF6AD1000005DC-831_634x424.jpg

CIS

It is controversial in that it could be renovated and let out to holiday makers,

It currently banded as a residential dwelling ?

John_Pierpoint

I think probably not - but I don't want to stir things up by asking.

It is a marginal improvement on a tent, during inclement weather, though historically I bet I could find a family living there on the census.

It certainly does not receive any local authority services.

Here is a cleaned up similar "cottage" at the Iron Bridge museum; This one used to be the home for a family of 9 some 160 years ago.

CIS

I think probably not - but I don't want to stir things up by asking.

If it's not banded for residential use then the council tax changes won't apply.

You can check here - http://www.voa.gov.uk/cti/InitS.asp?lcn=0

lincroft1710

John_Pierpoint wrote: »

I presume it is defined as "not habitable" at present. [Bottle gas stove and water supply from local stream - rusty tin roof]

If it is currently banded, your relatives could apply to the VOA to have it deleted from the Valuation List. However they should be aware that in CT law, there is no definition of what constitutes "uninhabitable", so it will be dependent on the actual state of the property and the attitude and beliefs of the person dealing with the request.

The 6 month time limit does not apply in such cases and if they received an unfavourable decision from the VOA they will have the right to go to Tribunal.

tsb

I can't believe it's legal to charge more for an empty property. The empty property is using fewer services than an occupied one but is getting penalised. They shouldn't be able to charge more than the 100%.

simpywimpy

Its only in extreme cases to try to force landlords to renovate property and get it back into use - well thats what my local council tells me

paddedjohn

tsb wrote: »

I can't believe it's legal to charge more for an empty property. The empty property is using fewer services than an occupied one but is getting penalised. They shouldn't be able to charge more than the 100%.

I think its a great idea, its a good incentive to owners of run down often neglected propertys to tidy them up and add to the housing stock. In some areas there are streets of houses boarded up, hopefully something will ber done about these aswell.

Username-witheld

It's not only used in extremis, sadly. In [LA name witheld since complaint ongoing] it applies to any property that's been empty and unfurnished for two years or more, even if it's been on the market and/or to let (and is still in perfectly good condition, and on the market for less than it cost in 2002).