Empty House and Council Tax

Catswhiska

As yet this isn’t an issue but...
We are selling mums home as she is in a care home. Half of the sale will go towards her care. We get full council tax exemption. What happens if she passes away, which is quite likely, before the house is sold bearing in mind the 100% CT premium just mentioned in the budget? I know we get 6 months exemption after probate( if needed) This seems unfair to people genuinely trying to sell.

G_M

On what grounds are you getting full CT exemptiion?

So far as I know, on death of the (only) home-owner, there was a full CT exemption for 6 months folowing the grant of probate. Things may hve changed.

https://lewisham.gov.uk/myservices/counciltax/whensomeonedies/Pages/default.aspx

Presumaby there is a similar one where a home-owner goes into care?

JoJo1978

I may be wrong but as I understand it the budget stated that councils will be given the ‘power’ to do so. Council tax is locally governed though so exemption rules can vary across the country.

I would contact your council and ask whether that would apply to your specific circumstances. The measures are designed to prevent houses being unnecessarily empty I.e by investors and other people wealthy enough to do so.

That doesn’t mean councils will automatically penalise sellers and those delaying with probate. I hooe... as you say that seems unfair!

Catswhiska

Yes there is a full exemption whilst Mum is still in the nursing home

00ec25

wait until the details are published....

the current rules are , as you presumably know, a 150% rate (ie 50% premium) applied once the property has been empty for 2 years. How councils will use their new power to levy a 100% premium remains to be seen

AdrianC

Half the sale price is going to fund her care? Really...? What's happening with the other half, then?

Catswhiska

AdrianC wrote: »

Half the sale price is going to fund her care? Really...? What's happening with the other half, then?

Not that it really matters to you but dad left his half of the house to us when he died a few months ago!!

AdrianC

Ah. You neglected to mention that she is a joint owner of the property. That's a rather important detail, as you'll see from G_M's first reply to your post.

CIS

It's unlikely that any council won't up the premium from 50% to 100%. When it's introduced, most likely 1 April 18, any properties already under the premium will see any increase applied immediately.

The premium will not have any affect on a property which is exempt from council tax, that part of the rules hasn't changed (nor has there been any indication it will)*, but if there is no exemption in place then the premium will apply as soon as it has been left unoccupied and unfurnished for 2 years or more. The only thing the council have the power to do is to vary the rate of the premium, they can't set the rules regarding when and how it applies.

The current exemption is not an issue in the case - the Class E exemption can be applied as the property was "previously the sole or main residence of a person who is an owner or tenant of the dwelling". Some exemptions are worded in a way which would prevent this situation in cases of joint ownership but, for some reason, not the Class E.

When she dies any joint ownership would mean that no council tax exemption would apply as the liability would immediately vest in to any joint owners.

* If a property is exempt then the premium has not effect - the increase is applied to the 'payable council tax charge'. Whilst an exemption is in place that means that you have no charge to increase.

elmer

As you already own half the house you won't get any further exemption after your Mums death,
and may then be liable for the 150% charge as the property may have already been empty for the required period.
Perhaps you may want to have a family member lined up to move in if this is the case?

elmer

Rich2808

00ec25 wrote: »

wait until the details are published....

the current rules are , as you presumably know, a 150% rate (ie 50% premium) applied once the property has been empty for 2 years. How councils will use their new power to levy a 100% premium remains to be seen

Almost all will use the power and quite rightly.

There are exemptions for properties in probate – so that deals with the OPs issue – but anyone else who leaves a property empty for more than two years when we have a housing crisis deserves to pay a minor penalty. No different to taxes on other things that are bad for society – like alcohol and tobacco.