Council tax -single person discount when unoccupied for sale?

Herbalus

Hello, I have had a rental property in Cambridge for over 10 years but could do with using the equity to buy a bigger home personally, so in January this year decided to sell once the current tenant gave his notice.

This has now happened so I’m considering putting the flat on the market, though as covid has now happened, flat sales seem to have dried up and house sales in the countryside are more popular. All this means I’m facing potentially a long time on the market before a sale (tenant moves out in a months time). Possibly six months minimum to a completion for example.

Cambridge councils policy is that council tax is due at 100% rate when unoccupied (you get a month free if the flat is unfurnished). I live in a nearby city, and was thinking that, without a tenant, I would effectively be the homeowner and visit occasionally (insurance purposes etc), perhaps stay the weekend to visit friends etc, and council tax letters would be sent to me there. Could I claim a single person discount?

I don’t want to commit fraud so will not claim if not allowed. Clearly councils need money but I won’t be using the services. I thought I might have to declare I’m living there when I won’t be, but googling “main residence” seems to point to articles on sdlt and not council tax. I don’t know whether having the place unoccupied for say 6 or 12 months with a paper trail to suggest I’m living there impacts unfairly on cgt so would be not allowed for those reasons. Any ideas?

sweetsand

Herbalus said:

Hello, I have had a rental property in Cambridge for over 10 years but could do with using the equity to buy a bigger home personally, so in January this year decided to sell once the current tenant gave his notice.

This has now happened so I’m considering putting the flat on the market, though as covid has now happened, flat sales seem to have dried up and house sales in the countryside are more popular. All this means I’m facing potentially a long time on the market before a sale (tenant moves out in a months time). Possibly six months minimum to a completion for example.

Cambridge councils policy is that council tax is due at 100% rate when unoccupied (you get a month free if the flat is unfurnished). I live in a nearby city, and was thinking that, without a tenant, I would effectively be the homeowner and visit occasionally (insurance purposes etc), perhaps stay the weekend to visit friends etc, and council tax letters would be sent to me there. Could I claim a single person discount?

I don’t want to commit fraud so will not claim if not allowed. Clearly councils need money but I won’t be using the services. I thought I might have to declare I’m living there when I won’t be, but googling “main residence” seems to point to articles on sdlt and not council tax. I don’t know whether having the place unoccupied for say 6 or 12 months with a paper trail to suggest I’m living there impacts unfairly on cgt so would be not allowed for those reasons. Any ideas?

I think they will ask you if its your main residence as you rightly stated.
CGT and second, third, etc properties also seek 'main residence'

Phone the coucil and ask. Re CGT - proerty is already a rental so no difference short term if you live there and not rent out your main property.
ATB

sweetsand

ps -  this is what some coucils look at check with that coucil!!
===========
Main residence

• physically living at each address
• the reasons why you have 2 addresses
• where your wife, husband or partner lives, if you have one
• where your children live, if you have any
• your legal tie to each address
• where you keep most of your belongings
• whether you intend to return to 1 address eventually
• whether anything prevents you from returning whenever you want to
• which address is your most settled home

AdrianC

You could claim the single-person discount, yes... IF you lived there.

If you don't live there, it isn't occupied by a single person. It's unoccupied.

greatcrested

Herbalus said:

....... I live in a nearby city,....... Could I claim a single person discount?

.....Clearly councils need money but I won’t be using the services......

You clearly don't live there and it's clearly not your main residence.

I assume you pay CT 'in a neary city', and depending on your circumstances may or may not qualify there for the single person dicount.

But not here. It's an 'empty property' which you visit periodically.

ps - check the terms of your insurance too!!!

KatrinaWaves

Single person occupancy discount. Quite a big clue in one of those four words... 

greatcrested

'DISCOUNT'! YIPPEE!

Herbalus

I live with partner in nearby city so full council tax paid here.

I guess I was thinking that one person has 75% cost and 2 or more people would pay more. On that logic, as I’d be the only person with the keys to this cambridge flat, it’d make sense to pay for a single persons council tax. Seems odd that it costs more to have nobody living there whilst up for sale than one person. It seems the forum doesn’t believe that logic is what happens in reality - fair enough. Can check with council of course but forum on here is usually right.

Herbalus

KatrinaWaves said:

Single person occupancy discount. Quite a big clue in one of those four words... 

Yes, quite. It’s a single (as in one individual) person who owns it, but doesn’t occupy it very much, hence the question!

AdrianC

Herbalus said:

Seems odd that it costs more to have nobody living there whilst up for sale than one person.

It's almost as if local authorities would rather properties be occupied than unoccupied...

It seems the forum doesn’t believe that logic is what happens in reality - fair enough.

You appear to be shooting the messenger. We're explaining the reality, even if it is inconvenient.

steve866

I lived in a rental property for 2 months with my partner (3 month tenancy) whilst moving house. We moved out after 2 months to the house we purchased in the same borough. I was quite shocked to be charged full council tax in both properties for the crossover month. The rental flat is unfurnished and has zero people living there but I have to pay 100% council tax, it doesn't seem particularly fair. I did make a saving on stamp duty so I guess it balances out