Empty property tax. 100% fine

supa34

Hi.
I was hoping someone can help me on this new tax. I know before you got empty house council tax discount, and then there was no discount, but now I have been hit with 100% fine for house being empty.

I got some properties in Jan 2019 and they have been empty whilst I have been doing them up. Due to cash flow and workers issues I haven't done them yet but should be done hopefully in a month or so.

Is there a way to avoid this fine. I pay the council tax so why charge me double?

This is the kirklees Council btw. Might be different with your local council.

Slithery

Every council is free to make their own rules. Having to pay 200% on an empty property is common as a way of discouraging empty housing stock.

davidmcn

supa34 wrote: »

Is there a way to avoid this fine.

Get somebody to occupy the properties and be responsible for the council tax.

00ec25

since the English law changed in 2013 to allow councils at their discretion to charge a 100% surcharge for leaving a property empty, I am surprised you have not built that into your business plan, since you seem to be a professional multi property developer and it is hardly news that it applies once a property has been empty for 2 years.
Did you not check out how long they had been sitting empty before you started work?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/797672/Empty_home_premium_guidance.pdf

justjohn

renovation discount.?
get someone to live there for a short time.(or register there)


You register yourself there and pay council tax. then re-register for empty property relief at a later date

justjohn

Sell them, many councils give full discount for 1 year if property is being actively marketed with EA.

CIS

The exception to the premium for marketing the property does not apply in England.

CIS

The rules for the premium are the same across England, they do however give the council the power to set the rate (within statutory parameters).



The premium is not a fine, fines can only be applied by a court.



Ultimately there are legal ways around the premium/to mitigate the premium but it depends how much effort you want to put in (and it'll typically not be possible retrospectively).



From April the council will gain further powers to increase the premium in specific cases.

AdrianC

supa34 wrote: »

Is there a way to avoid this fine. I pay the council tax so why charge me double?

It's not a fine. It's an increase because of the occupancy circumstances of the property, just as a 25% discount is for a single occupant.

It's perfectly legal for a council to choose to impose it.

The way to avoid it is to change the occupancy circumstances of the property so it no longer applies.

The local authority themselves offer several schemes to help you do so.
https://www.kirklees.gov.uk/beta/housing/empty-residential-properties.aspx
https://www.kirklees.gov.uk/beta/housing/pdf/information-for-owners-of-empty-properties.pdf

Oh, and remember it becomes a 150% uplift after two years...

lees80

supa34 wrote: »

Hi.
I was hoping someone can help me on this new tax. I know before you got empty house council tax discount, and then there was no discount, but now I have been hit with 100% fine for house being empty.

I got some properties in Jan 2019 and they have been empty whilst I have been doing them up. Due to cash flow and workers issues I haven't done them yet but should be done hopefully in a month or so.

Is there a way to avoid this fine. I pay the council tax so why charge me double?

This is the kirklees Council btw. Might be different with your local council.

Did you not budget / plan for the unforeseen issues with cash flow / workers before you started building a property portfolio?

They are charging you double in an attempt to avoid the very scenario you've created - multiple empty properties.

stayathomeandsave

Your local council will want the property occupied.

Contact them and advise that due to the premium being charged the property may well sit vacant for longer as you now have less cash to complete renovations to the property than you would otherwise have.

I am aware of at least 2 friends who have done this and had good results with the premium being waived for a further 12 months.