Council tax on Empty Properties

Tripledrop

Hi all,

I've recently been chased for an outstanding Council Tax debt from Birmingham Council, for a property I rent out.

Turns out I owe a small amount for the period in-between 2 tenants, as they have changed the rules for empty properties.

In the past, the rules that I understood were that if the property was materially empty (which mine was), with nobody living there, you could have up to 6 months without being charged council tax. This was great, as there's normally a gap between one tenant and the next, nobody in the property, not using Council services etc.

However they;ve told me they changed the rules in Birmingham:

"as part of welfare reform Birmingham City Council decided to remove specific exemptions and discounts that were granted up to 31 March 2013 in respect of second homes and empty properties. Therefore from 1 April 2013 non-resident owners became liable for 100% of the Council Tax charge on their property while it is not occupied"

Now I understand that normally Government agencies should be correct, however this is Birmingham Council, who are completely inept at anything resembling sensible working and knowing what they're talking about, so I thought it best to check this advice is correct.

Anybody know anything about this?

TIA

Admin, please feel free to move this topic to a different forum if applicable.

-taff

Different councils have different rules. If that's what they say they are, they are.

G_M

What does it say on the council's website?


https://www.birmingham.gov.uk/info/20144/exemptions_and_discounts/807/empty_and_unoccupied_properties

hb2

Many councils have done this. It is a double whammy for them as it generates more revenue and helps prevent properties being left vacant. IIRC, our local council allow a total of 6 months over a certain period of time (don't remember what that is cos it isn't relevant to us now).

lincroft1710

Perfectly legal. CT legislation gives councils the discretion to offer between 0% and 100% discount on empty dwellings. Many councils now offer no discount.

foxy-stoat

I wont worry, just pay it and include the costs in your annual tax return to the HMRC, its a running cost of your business.

System

It isn't just Birmingham, most councils if not all do this and have done for at least a couple of years. Mad part is you can't even get single person discount applied.

KatrinaWaves

Tarambor wrote: »

It isn't just Birmingham, most councils if not all do this and have done for at least a couple of years. Mad part is you can't even get single person discount applied.

How is it mad.

SPD is available to help those living alone manage the costs.

An unoccupied property is nothing to do with that. Its not being occupied by a single person.

CIS

The Class C exemption was abolished in England as of 1 April 2013, since then discount rates for unoccupied properties (with a few exceptions) have been delegated to local authority control.


In respect of the single person discount the council has no powers to vary it's application. Legislation is clear it can only apply on a 'sole or main residence'.

movilogo

Most councils now charge full tax on empty properties. They just want to maximize their revenue.

KatrinaWaves

movilogo wrote: »

Most councils now charge full tax on empty properties. They just want to maximize their revenue.

Beeeeecause government funding is being reduced to zero yet things still need to be done.

On the whole it targets those wealthy enough to have two properties and have one empty, either landlords or those with second homes. Yes there are instances where people have inherited properties but there are probate exemptions, and there are very few cases where houses ‘won’t sell’ and not ‘won’t sell at the price they set’