Council Tax on purchased property 300%.

DoctorStrange

They own two properties and how they choose to split their time between those properties is up to them, IMO.

Admittedly I don't know what counts as occupancy in these cases (one night a month? 20 nights a month?) but I wouldn't be happy be 400% in council tax and if staying over some nights after a shift can reduce that then I'd be looking into it...

Slithery

DoctorStrange said:

Admittedly I don't know what counts as occupancy in these cases (one night a month? 20 nights a month?)

It means that it is their main residence.

CIS

Slithery said:

DoctorStrange said:

Admittedly I don't know what counts as occupancy in these cases (one night a month? 20 nights a month?)

It means that it is their main residence.

For council tax purposes occupancy and residence are two different things - for the purposes of a single person discount a person must be resident, that means that the property must be their 'sole or main residence'.

CIS

Vixmag82 said:

Hi all. 

My parents just bought a house to do up and contacted Liverpool city council to set up the council tax account. They need to do work on it before they can sell it. They were informed that as the previous owner left the property empty for 8 years they have to pay 300% council tax adding up to almost £400 per month. Plus the council tax on their own property which is £150. They are doing the council a favour surely by doing up a property so it doesn’t rot away. We figured once they bought the property and spent 6 months doing it up that the account would start as new so paying 100% for first year it is empty. Is there a way around this? Surely this isn’t right? Almost £5000 a year! 

Thanks 

In a large % of cases the premiums are either incorrectly applied (as the council don't have the correct information) or the effect can be mitigated by following legislation. That the property is being done up or was previously owned by someone else is not relevant - the time period starts from it became unoccupied and substantially unfurnished and keeps ticking, regardless of owner.

DoctorStrange

Ignoring the 25% discount, paying 2 x 100% is still better than 100% + 300%.

AdrianC

CIS said:

Slithery said:

DoctorStrange said:

Admittedly I don't know what counts as occupancy in these cases (one night a month? 20 nights a month?)

It means that it is their main residence.

For council tax purposes occupancy and residence are two different things - for the purposes of a single person discount a person must be resident, that means that the property must be their 'sole or main residence'.

So, which of the two is admitting to living in a building site...?

macman

DoctorStrange said:

Ignoring the 25% discount, paying 2 x 100% is still better than 100% + 300%.

Do you really think that the LA's C. Tax dept is that stupid? This dodge is the oldest in the book. A lot of people in the Home Counties try it on. They have a main home in the shires, and a pied-a-terre in London that is occupied by the main wage-earner, Monday night to Thursday night. (or at least they did until the era of WFH)  They then claim that the breadwinner's main residence is in London, and apply for the SPD at both addresses.

It doesn't work, pure and simple.

In this particular case, a property that is near-derelict after 8 years of non-occupation is going to be uninhabitable while renovation is underway, and clearly not a main residence.

Carl2510

Vixmag82 said:

Carl2510 said:

Never heard someone say someone is doing the council a favour by buying a property doing it up and then selling it presumably for profit! 🧐

My parents are taking a run down property and fixing it up to make a small profit so someone can buy an affordable home.  My dad is an out of work musician and my mum is a nurse who has worked her butt off the last 40 odd years. They have taken the money left to them by my Nan to try and make a bit of money before my mum retires on !!!!!! pension. Thanks for the helpful reply though. 

I don’t believe for one second there doing it for anyone but themselves which is fine no need to lie about it we’d all love to make some extra money.

ProDave

If you and your wife were to separate, and each live in one of your two houses, not only would you not pay the 300% you would qualify for the single occupancy discount in each as well.

rik111

Doesn't sound like a good start, what other costs have they overlooked, they might not be cut out for renovations if they can't cost correctly.