2nd home council tax premium on children's flat

caveman8006

We own a flat in Stoke Newington which is lived in full time and rent free by our 2 daughters who are working in London. They pay all bills for flat, including standard council tax. Will we be subject to the 100% 2nd home council tax premium when it is introduced next April? Can we avoid it by creating some kind of formal peppercorn tenancy agreement?

Flugelhorn

I am assuming not as the council tax is being paid by someone else who lives there. I have similar with DD living in a flat of ours - it is her home and not ours.
I know that I will have to pay double on our holiday flat because there is no-one else living there / paying council tax

caveman8006

I hope you are right.

I did note this definition on the Homeowners Alliance site which seems more ambiguous to me, but I would love to be definitively corrected...?

What is classed as a second home for council tax reasons?

When it comes to second home council tax rules, second homes are defined as furnished properties where no one lives or the owner has a main home elsewhere.

lincroft1710

As it is your daughters' sole or main residence, then as occupiers they are responsible for the CT. For CT purposes the set up is no different to that of a landlord and tenant, where the whole property is a single let. Second home premium would only apply if the flat was occupied by yourself as (for example) a holiday home or pied-a-terre. If vacant then it may attract empty home premium 

Flugelhorn

caveman8006 said:

I hope you are right.

I did note this definition on the Homeowners Alliance site which seems more ambiguous to me, but I would love to be definitively corrected...?

What is classed as a second home for council tax reasons?

When it comes to second home council tax rules, second homes are defined as furnished properties where no one lives or the owner has a main home elsewhere.

The key is the "furnished properties where no-one lives" - your daughters are living there and paying council tax

caveman8006

So it doesn't matter the "the owner has a main residence elsewhere"?

Flugelhorn

caveman8006 said:

So it doesn't matter the "the owner has a main residence elsewhere"?

If you google this some put the same sentence but change OR to AND 

"Council tax will be payable on second homes, defined as furnished properties where no one lives and the owner has a primary residence elsewhere. If you are renting out the property, then the tenants will be responsible for paying the council tax."


Elsewhere on assorted council sites there are various definitions eg :


Somerset Council state this: (others have similar wording)

" Within the Council Tax legislation, a second home is defined as a dwelling, which is no one's sole or main residence but which is furnished"

caveman8006

OK. Thanks...think you are right, although it would be difficult to prove that a 2nd home that was not the main residence of the owner was the sole of main residence of one or more of their children if there is no tenancy agreement

Flugelhorn

caveman8006 said:

OK. Thanks...think you are right, although it would be difficult to prove that a 2nd home that was not the main residence of the owner was the sole of main residence of one or more of their children if there is no tenancy agreement

I suspect it won't be an issue if someone is paying normal council tax from that address and is registered with GP  there , address given on driving licence etc 

Interestingly in the 2021 census there was a question about tenure of the property and there was a category for "lives rent free"  There are 24 million households and 32000 are in "rent free" (property owned by someone else)

lincroft1710

You are worrying unnecessarily!


Your daughters occupy the flat, THEY are the CT payers. In the hierarchy of CT responsibility as permitted occupiers of the flat they are nearest the top of the list