Council Tax - 2 houses next to each other, two children, one disabled. 1 minor living in one side.

unknown_hero

Hi, this feels like quite a conundrum and any suggestions would be very much appreciated.

We live in Cornwall, we've ended up in a situation where we own and live across two small cottages that are connected (part joined, no planning or building regs applied for or changed).

We're married with two children, both under 16 and one of them is legally disabled and needs more space due to their needs. We lived in house 1, then bought house 2 and rented it out for a few years. Rather than move to a bigger house we started living across both houses, this is odd but works for us as the gardens are enclosed by a 12ft stone wall.
Physically one of my sons has his bedroom in house 2, and house 2 does not have a kitchen.

Currently we pay two council tax bills in full, as well as separate services (water, electric, gas) on both houses. Paying 100% more on house 2 from April does not seem fair or just, but Cornwall Council have no one I can actually talk to about this. 

Idea: Could I notify the council that I have moved out of house 2 (I do not technically live/sleep there), then state my son lives there (under 16), he'd get full exemption as he's under 18? I realise a minor cannot legally hold a tenancy agreement, but perhaps I could ' Grant a licence ' to my son, essentially give him personal permission to occupy the premises? 

This all sounds like a ridiculous thing to do, but I can't afford x3 council tax bills. I'm not looking to do anything illegal, just get advice on what I'm permitted to do where my council provide no meaningful advice or support(I've been trying).

I have recently become aware that I can get a 25% CT reduction due to my disabled child. So perhaps I can end up paying x1 CT bill with 25% reduction instead of x3 bills?

An EHCP that's taken more than twice the legal limit, a child not at school as a consequence and having to take a career break to look after them is financially crippling enough.

FlorayG

If house 2 does not have a kitchen you might even be able to get it exempt from CT altogether as that's what people do when they want a garden build; build without a kitchen. Have you looked into making them legally one house?

unknown_hero

FlorayG said:

If house 2 does not have a kitchen you might even be able to get it exempt from CT altogether as that's what people do when they want a garden build; build without a kitchen. Have you looked into making them legally one house?

We haven't tried to make them one house, it'll trigger some complex and expensive building control challenges. We expect to move in under 5 years time and I suspect the properties are worth more separately. It really wouldn't make sense for another owner, due to the complex needs we're dealing with it works for us though. As these houses were built in the 1840's it's a bit different situation from adding a garden annex

lincroft1710

FlorayG said:

If house 2 does not have a kitchen you might even be able to get it exempt from CT altogether as that's what people do when they want a garden build; build without a kitchen. Have you looked into making them legally one house?

As house 2 does not have a kitchen and as both houses are in the same occupation and form a single dwelling, the VOA would assess it as one house rather than two. Removing a kitchen from a house would.not exempt it from CT.

lincroft1710

unknown_hero said:

Hi, this feels like quite a conundrum and any suggestions would be very much appreciated.

We live in Cornwall, we've ended up in a situation where we own and live across two small cottages that are connected (part joined, no planning or building regs applied for or changed).

We're married with two children, both under 16 and one of them is legally disabled and needs more space due to their needs. We lived in house 1, then bought house 2 and rented it out for a few years. Rather than move to a bigger house we started living across both houses, this is odd but works for us as the gardens are enclosed by a 12ft stone wall.
Physically one of my sons has his bedroom in house 2, and house 2 does not have a kitchen.

Currently we pay two council tax bills in full, as well as separate services (water, electric, gas) on both houses. Paying 100% more on house 2 from April does not seem fair or just, but Cornwall Council have no one I can actually talk to about this. 

Idea: Could I notify the council that I have moved out of house 2 (I do not technically live/sleep there), then state my son lives there (under 16), he'd get full exemption as he's under 18? I realise a minor cannot legally hold a tenancy agreement, but perhaps I could ' Grant a licence ' to my son, essentially give him personal permission to occupy the premises? 

This all sounds like a ridiculous thing to do, but I can't afford x3 council tax bills. I'm not looking to do anything illegal, just get advice on what I'm permitted to do where my council provide no meaningful advice or support(I've been trying).

I have recently become aware that I can get a 25% CT reduction due to my disabled child. So perhaps I can end up paying x1 CT bill with 25% reduction instead of x3 bills?

An EHCP that's taken more than twice the legal limit, a child not at school as a consequence and having to take a career break to look after them is financially crippling enough.

I doubt Cornwall Council would wear the idea of someone under 16 being able to live on their own in a house. See my post above for the solution  (I'm ex VOA) 

unknown_hero

thank you for spending the time to share your knowledge, I'd been avoiding going through VOA due to concerns about changing the property back into two at a later date, as well as the building control challenges that may arise. However I appreciate this may be the only option. 

1840's cottages - both extended to varying degrees and enhanced. So the VOA would re-assess the properties and give them a new band... I'll send them an enquiry as it appears as though permitted development permits the joining of two properties. It feels like I might need some professional help here, I've no idea what would happen from a capital gains perspective ! So many things to consider

lincroft1710

As far as the VOA are concerned, they will look at the property as it stands. For CT purposes, there does not have to be planning consent to merge the 2 properties, nor a single set of title deeds. CGT would only kick in if you rented out one of the cottages then sold either it or both of them..