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Council Tax exemption on inherited home. Selling.

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  • lincroft1710
    lincroft1710 Posts: 18,937 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 28 July at 4:23PM
    As the property was and is unoccupied following the death, it qualifies for a Class F exemption from council tax until six months after probate has been granted. 

    Once that exemption expires then the normal council tax is due from the estate - you need to speak to the council if there are not enough liquid assets in the estate to pay it and the house is in the market, and let them know that they need to wait to be paid from the house proceeds. 

    My understanding (which may be incorrect) is that once probate has been obtained, the council can only charge the standard rate of council tax for twelve months, after which they may impose an empty house premium if the house remains unsold and still unoccupied. 
    I see. Swings and roundabouts.  If i decided to rent it out as a let / holiday let then its classed as a 2nd home i think, even if i rent in my current place.  That CT rate is 200%  in W. Wales, so £4K a year.  The welsh councils are really not doing any favours for the local economy.  2nd homeowners are basically getting out of Wales.  Local business already moaning there are no customers like before the council money grab attempt. 
    If you rent it out to someone as their home rather than as a holiday home, then the tenant would be responsible for the CT. But then you have all the problems of being a landlord. Going abroad would theoretically exacerbate those problems
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • p00hsticks
    p00hsticks Posts: 14,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 28 July at 4:23PM
    As the property was and is unoccupied following the death, it qualifies for a Class F exemption from council tax until six months after probate has been granted. 

    Once that exemption expires then the normal council tax is due from the estate - you need to speak to the council if there are not enough liquid assets in the estate to pay it and the house is in the market, and let them know that they need to wait to be paid from the house proceeds. 

    My understanding (which may be incorrect) is that once probate has been obtained, the council can only charge the standard rate of council tax for twelve months, after which they may impose an empty house premium if the house remains unsold and still unoccupied. 
    I see. Swings and roundabouts.  If i decided to rent it out as a let / holiday let then its classed as a 2nd home i think, even if i rent in my current place.  
    I'm not sure of any nuances of it being in Wales, but in England, as stated above, if you rent it out to a permanent tenant then they are responsible for paying the council tax. If you let it out as a holiday let for the required number of days a year then you are charged Business rates rather than council tax, and can usually claim small business rate relief.
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