Council Tax (Scotland) exemption for house undergoing work

pinklady21

Hello all
We have bought a project that consists of a house and a cottage. Both dwellings are registered for council tax. Both are currently uninhabitable due to extensive refurb works. We have not lived in either since we bought them in July 2018. We are doing most of the initial stripping out works ourselves.

I have applied to the Council for the maximum 12 month CT exemption due to empty and unfurnished and undergoing repair and I sent photos of the property to the Council showing it unfurnished and with walls being stripped back etc.

The response I received from the council was:

"Unfortunately, this category of exemption does not apply as work has not yet commenced on the property.

As the property is unoccupied and unfurnished exemption has been awarded under category 1 (unoccupied and unfurnished) from 16 July 2018 for the maximum period of six months followed by a 50% discount for a further six months until 15 July 2019.

Should work commence on the property during this period exemption under category 8 (empty and unfurnished and undergoing major repair or structural alteration) may apply. In order for this to be awarded please provide copies of receipts/invoices for work done or materials purchased."

We are in the process of applying for a building warrant for some works to the main house, and in the meantime, as we are doing the bulk of the "stripping out" works ourselves, we won't have any receipts for work done or materials purchased.

Although, I have bought some kitchen units and bathroom suites.

Questions:
1. Does anyone have any ideas as to what evidence we should be sending to the Council to prove that both properties are eligible for exemption under the Council's Cat 8?

2. Is it possible to receive an "empty and unfurnished" exemption that is then followed by the Cat 8 "Undergoing repair" exemption? or is only one type of exemption allowed?

Would be good to understand this properly before I call the Council and argue the case with them!
Thank you.

CIS

Where is the property at ? (England, Wales or Scotland)

theartfullodger

Pleased to hear council is working to cut down tax fiddles

lincroft1710

CIS wrote: »

Where is the property at ? (England, Wales or Scotland)

As OP refers to "building warrants", I am guessing houses are in Scotland (which is probably your thinking, hence the question).

CIS

lincroft1710 wrote: »

As OP refers to "building warrants", I am guessing houses are in Scotland (which is probably your thinking, hence the question).

Yes, I have that feeling (and the reference to a discount/exemption 'category' suggests it probably isr for Scotland which numbers them rather than giving them a letter).

pinklady21

Sorry all - should have said, this is in Scotland.

And this is NOT any sort of a tax fiddle, simply a request on what the rules are for legitimate exemptions from Council Tax. Thank you.

POPPYOSCAR

pinklady21 wrote: »

Sorry all - should have said, this is in Scotland.

And this is NOT any sort of a tax fiddle, simply a request on what the rules are for legitimate exemptions from Council Tax. Thank you.

I think you will find that different councils have different rules.

For exampe our council(England) only give a 3 month 50% discount for an empty property and if still empty after two years they charge 50% extra.

They do give a discount for uninhabitable properties while being worked on for a year only.


"To qualify for a Council Tax Uninhabitable Property Discount
Structural alterations would have to be substantive such as a large extension. Minor items such as putting in a roof window or a porch would not be sufficient. We should be notified before work starts, as an inspection will be necessary.

Repairs must be both major and required to render the property habitable. The property must therefore be uninhabitable before work starts. We consider major repairs to be substantial repairs to the main structure of the property, e.g. roofs, walls, foundations. Replacing a seriously defective roof would be sufficient but repairing a few tiles will not be enough. General refurbishment such as replacing old fashioned but still serviceable kitchen and bathrooms will not be enough"

pinklady21

I agree, each council seems to have different rules. The issue here is that we do consider that we meet the criteria - both properties have long standing issues with dampness and decay, and are being taken back to the walls. Every bit of plaster coming off, every floor coming up, new kitchens and bathrooms, install heating systems etc etc
I have explained this to the council, and sent them interior photos.
The problem is that they have responded saying that "the work has not yet commenced", so they can't consider the application.

My question is how do I convince the Council that the work is indeed underway (being done by ourselves rather than contractors) and that the property is therefore eligible for an exemption?

POPPYOSCAR

pinklady21 wrote: »

I agree, each council seems to have different rules. The issue here is that we do consider that we meet the criteria - both properties have long standing issues with dampness and decay, and are being taken back to the walls. Every bit of plaster coming off, every floor coming up, new kitchens and bathrooms, install heating systems etc etc
I have explained this to the council, and sent them interior photos.
The problem is that they have responded saying that "the work has not yet commenced", so they can't consider the application.

My question is how do I convince the Council that the work is indeed underway (being done by ourselves rather than contractors) and that the property is therefore eligible for an exemption?

Could you ask them to make a site visit?

pinklady21

POPPYOSCAR wrote: »

Could you ask them to make a site visit?

I did ask this the last time I spoke to them, they responded that they do not do this.....

CIS

Unfortunately I don't have the consolidated legislation for Scotland to double check but as far as I can see,



Scotland has slightly different criteria for work on a property compared to Scotland - for a property which would have had the Class A exemption (and now the Class D discount) for works in England it is can be undergoing or requiring the works - in Scotland the exemption requires that the property is undergoing works.



It is the reference to Class 1 and Class 8 that is confusing at the moment - unless they have changed it then Class 1 was a new dwelling and Class 8 a dwelling awaiting demolition.