Council Tax Liability - not sure...?

Jenniefour

Wondering what the aim is - why not simply continue as is i.e. both paying single occupancy council tax on their respective properties. I can't see why there's anything at all untoward or improper about that.

jjlandlord

booksurr wrote: »

neither OAP 1 nor OAP 2 have a share of ownership of the respective person's property - this eliminates a question of OAP 2 having a second home (and so being liable for the second home rate) whilst having a main residence in OAP1 or vice versa

Note that a 'second home' does not mean that one must own two homes.
The actual definition is:

The class of dwellings described in this regulation (“Class B”) comprises every chargeable dwelling in England —

(a)which is not the sole or main residence of an individual;
(b)which is furnished;

If you own or rent a property which is not your main residence then that property is a 'second home'. It does not matter what your main residence is.

CIS

The simple issue is that it comes down to a matte of fact:

Option 1 - They would each need to pay 100% Council Tax on each house.
Only applies if they both live in one property and the council offer no discount on the other unoccupied property.
Option 2 - House 1 attracts 100% Council Tax, but house 2 attracts 75% as only OAP2 ever lives there (single occupancy discount).
Won't happen - either both properties keep the 25% single occupancy discount or neither do.
Option 3 - House 1 attracts 100% Council Tax, but house 2 attracts 150% as it is considered "empty".
This council only happen if both of then lived in one property and the other property remains unfurnished and unoccupied for 2 years or more .
Option 4 - They would each pay 75% Council Tax on each house due to single occupancy discount.
Only if they both remained 'solely or mainly resident' in their own properties.

Pricivius

Thanks, everyone.

In answer to the question as to what I am trying to achieve, the OAPs are currently paying Option 4 - 75% each. If this is wrong and they should be paying Option 1 - 100% each. They want to avoid getting in trouble and do the right thing.

Regarding CIS's points: This Council offers no reduction for unoccupied homes. The OAPs spend every night at house 1 but are registered on the electoral roll at their respective properties. Does this mean they are not solely or mainly resident in their own properties so Option 4 is out, in your view? What defines solely or mainly resident - where you sleep?

Confusedandneedhelp

Ok now someone define solely or mainly resident.

I'm Fairly certain option 4 is fine. But again this is from personal experience

G_M

Just to throw a spanner in the works: don't forget to consider:

* insurance. May be invalidated if property is not occupied. Definition of 'unoccupied' will vary (so read insurance policy) but if it is declared as such for council tax purposes this may affect insurance....

* Capital Gans Tax. If OAP2 is 'living' at house 1 (again, council tax designation may define residency) then house 2 is not his main residence, so becomes liable for CGT

Frankly this is a futile discussion.

* They each own a house
* they each keep their stuff in their own house, and use it as correspondance address for banks, HMRC, pensions etc
* they are each entitled to 75% single person discount for Council Tax
* where they choose to sleep, and with who and how often, is frankly irrelevant

Don't rock the boat.

Write to the council and ask? Mad! You'll open a can of worms!

G_M

Confusedandneedhelp wrote: »

Ok now someone define solely or mainly resident.

Now you are into how often they sleep in each property. What time in the evening they go round. What time in the morning they leave: before or after breakfast; whether breakfast is a bite of toat or a full English; who cooks it; where they (mainly) eat dinner; who they sleep with; how often; whether they just sleep together, or 'sleep together';

Good grief! Get a grip!

CIS

Sole or main resident is a PITA but a (very) simplified way to look at is what an outside individual would say if they looked at the circumstances.

Jenniefour

G_M wrote: »

Don't rock the boat.

Write to the council and ask? Mad! You'll open a can of worms!

My thoughts exactly.