Living together now married with 2 houses and council tax

jaypwfd

Hi

Bit lost in all this so could do with some advice. 

Met my wife in 2022. We both have our own properties in our own sole names, own mortgages and are both in fixed terms for another 2 years before they expire.

We got married in 2023, and due to me having a child to an ex partner we have been moving between houses and spending 5 at each over a 10 day period. 

This got too much, so we now mainly live at my property and her mum now stays at her property and she contributes towards my wife's bills etc. We do still go stay there over night or my wife goes in the day time to relax there sometimes etc. 

In the next couple of years we will either sell both properties, or rent hers out most likely then get a joint mortgage on mine or a new property. Or rent mine out and convert hers to make it bigger we just don't know yet when interest rates are high.... clearly we are still very early in our marriage. 

She pays full person occupancy council tax on hers and doesn't get any discounted rate. I claim single persons discount, and the council told me that was okay even though she was staying with me as she was already paying FULL on another property. My bills are in my name, her bills are in her name at her property and so is her driving licence etc. 

Now I'm not sure this is correct and even the council are saying this is a grey area but still think its okay.. surely we cant pay double full council tax, are you even allowed to be named on 2 council taxes? I mean, if we have to we will but seems unfair. Cant seem to find anything on google, most of the scenarios are where its joint mortgage, more than 2 property which I understand you would have to pay more! 

Also, what's this 2 year rule about electing which is your marital property to HMRC? Isn't that just in relation to capital gains tax if you come to sell one (which were not at this time) 

What do we actually need to do here because I'm sure there are 1000s of people that have 2 separate houses in their OWN NAMES, then decide they want to live together but keep each property? 

Thankyou.

jaypwfd

*** SORRY.. MARRIED IN 2024 APOLOGIES ***

elsien

If Mum is the primary occupant, wouldn’t Mum be paying the council tax in your wife’s house, and then the two of you pay council tax between you at your property? 

It’s to do with occupancy and not ownership

Hoenir

jaypwfd said:

Also, what's this 2 year rule about electing which is your marital property to HMRC? Isn't that just in relation to capital gains tax if you come to sell one (which were not at this time) 

Only one of the properties can be your primary residence and has to be nominatated as such.  The other will be subject to CGT at the time of disposal.  The HMRC may well take a keen interest in any income your wife receives. Could be viewed as "rent" and be treated as taxable income. 

Be worth giving thought to longer term plans. 

silvercar

Also, what's this 2 year rule about electing which is your marital property to HMRC? Isn't that just in relation to capital gains tax if you come to sell one (which were not at this time) 

You should do this. You can choose which to count as your principal private residence if you do it within 2 years, if you miss that deadline it is based on fact rather than choice.

Flugelhorn

mum should be the one paying CT at the other house (with single person discount) and you 2 pay the standard council tax at your house where you both live

Bookworm105

very surprised the council have allowed a SPD claim to continue after your marriage. 
Council tax for couples | Who must pay council tax | Thurrock Council


by your own admission the "main home" is now your property and there are a number of subjective tests which have been established in the courts on how to define "main". It just just how many nights do you spend in each property. As others have said , CT is based on who occupies the property. A married couple can only have one main residence unless they are living apart in circumstances that strongly justify each needed to occupy their respective property (eg one property is in Scotland where her job is and your property is on the Channel Islands where your job is and therefore living apart, although married, is "reasonable").

Presumably mother has her own home as well? 
Liability for council tax is set out in a hierarchy enshrined in law, as occupant living in your property with your permission mother has a higher liability to pay the CT on that property than you do, since you are not resident owner occupiers of it by virtue of the fact you are married and live elsewhere. If mother does not want to pay the council tax then she needs to move out and the property will then become a "second home" for you and incur second home council tax rate. The fact your council has not chased this suggests they are either very wealthy or very badly run.
Paying the right level of Council Tax: a plain English guide to Council Tax - GOV.UK

yes the 2 year rule is about CGT, but as you are now married, the clock started ticking from that date so given your future plans you need to nominate one of the two as the main home for CGT purposes (has no impact on council tax). Note when the property is let then it cannot continue as a CGT main home, nominated or not.
Tax when you sell your home: Nominating a home - GOV.UK

Grumpy_chap

From the point at which you got married (congratulations) you can only have one PPR for Council Tax and CGT purposes.  The other property will be liable to tax on any gain arising and also for second property Council Tax,  though, if Mum is living there, can she register as the resident and pay CT?  Mum may even qualify for single person discount (but obviously you and your wife will not at the family home).  The CT rules will vary if Mum has another home also.