Double Council Tax!!

lincroft1710

ReadySteadyPop said:

Olinda99 said:

https://news.sky.com/story/second-homes-to-be-taxed-double-by-most-councils-a-naked-cash-grab-or-not-far-enough-13334068

Looks like someone interviewed agrees with what I said earlier in the thread, it should be based on use of local services, not living there all the time requires a discount not an increase.

Not going to happen. Parliament passed the legislation allowing the second home premium, so clearly this is what the government wants. 

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

ReadySteadyPop

lincroft1710 said:

ReadySteadyPop said:

Olinda99 said:

https://news.sky.com/story/second-homes-to-be-taxed-double-by-most-councils-a-naked-cash-grab-or-not-far-enough-13334068

Looks like someone interviewed agrees with what I said earlier in the thread, it should be based on use of local services, not living there all the time requires a discount not an increase.

Not going to happen. Parliament passed the legislation allowing the second home premium, so clearly this is what the government wants. 

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

Spending on what?

lincroft1710

ReadySteadyPop said:

lincroft1710 said:

ReadySteadyPop said:

Olinda99 said:

https://news.sky.com/story/second-homes-to-be-taxed-double-by-most-councils-a-naked-cash-grab-or-not-far-enough-13334068

Looks like someone interviewed agrees with what I said earlier in the thread, it should be based on use of local services, not living there all the time requires a discount not an increase.

Not going to happen. Parliament passed the legislation allowing the second home premium, so clearly this is what the government wants. 

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

Spending on what?

Your council tax bill or accompanying leaflet(s) will tell you

Grumpy_chap

lincroft1710 said:

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

Doesn't all "local Government spending" go on paying for "local services"?
I accept not all the funding for "local Government spending" originates from CT, but there is not (so far as I am aware) CT that goes to be spent outside the Local Authority that raised the revenue.  
Obviously, some "local Government spending" is the local part of a service that is available nationwide, but the local CT still goes to the local services - education, Police & Fire, roads, planning, waste collection, social care, libraries, and so on.

lincroft1710

Grumpy_chap said:

lincroft1710 said:

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

Doesn't all "local Government spending" go on paying for "local services"?
I accept not all the funding for "local Government spending" originates from CT, but there is not (so far as I am aware) CT that goes to be spent outside the Local Authority that raised the revenue.  
Obviously, some "local Government spending" is the local part of a service that is available nationwide, but the local CT still goes to the local services - education, Police & Fire, roads, planning, waste collection, social care, libraries, and so on.

The official line is that it is local government spending, rather than providing certain services. I believe this is to deflect claims from people who think they should pay less as  they don;t have street lighting, regular bin collections, made up roads/footpaths etc, etc. 

ReadySteadyPop

Grumpy_chap said:

lincroft1710 said:

CT is not and (like domestic rating previously) never has been a payment for local services. It is a tax on domestic property the proceeds of which go to fund local government spending. 

Doesn't all "local Government spending" go on paying for "local services"?
I accept not all the funding for "local Government spending" originates from CT, but there is not (so far as I am aware) CT that goes to be spent outside the Local Authority that raised the revenue.  
Obviously, some "local Government spending" is the local part of a service that is available nationwide, but the local CT still goes to the local services - education, Police & Fire, roads, planning, waste collection, social care, libraries, and so on.

Basically the point I was trying to make.

ReadySteadyPop

What is the council tax situation with Airbnb, are there differences for a separate Airbnb house as opposed to an Airbnb space in your own house, and as by definition Airbnb attracts many people who will be "using services" shouldn`t Airbnb be at treble council tax at least to cover this and discourage this denial of property space to "local residents" - Resident in the area being the main difference as opposed to tourist or occasional stayer or even part-time worker in the area?

anselld

ReadySteadyPop said:

What is the council tax situation with Airbnb, are there differences for a separate Airbnb house as opposed to an Airbnb space in your own house, and as by definition Airbnb attracts many people who will be "using services" shouldn`t Airbnb be at treble council tax at least to cover this and discourage this denial of property space to "local residents" - Resident in the area being the main difference as opposed to tourist or occasional stayer or even part-time worker in the area?

A full-time Holiday Let (AirBnB etc) will generally be placed on Business Rates.  If you only have one it will probably qualify for small business rates relief, ie pay nothing.  Currently Retail, Hospitality and Leisure qualifies for a 40% discount anyway even if small business relief does not apply.

So as it stands all the CT penalties being talked about do not apply to qualifying FHLs.  In fact FHLs are significantly discounted vs normal CT.  That may of course change at the drop of a hat.  What they "should" pay is pointless speculation in the meantime.

artyboy

Look, they've got a black hole to fill, and the councils doubly so. And no argument anyone makes on here is going to get in the way of a council that sees an opportunity to grab easy extra revenue...

ReadySteadyPop

anselld said:

ReadySteadyPop said:

What is the council tax situation with Airbnb, are there differences for a separate Airbnb house as opposed to an Airbnb space in your own house, and as by definition Airbnb attracts many people who will be "using services" shouldn`t Airbnb be at treble council tax at least to cover this and discourage this denial of property space to "local residents" - Resident in the area being the main difference as opposed to tourist or occasional stayer or even part-time worker in the area?

A full-time Holiday Let (AirBnB etc) will generally be placed on Business Rates.  If you only have one it will probably qualify for small business rates relief, ie pay nothing.  Currently Retail, Hospitality and Leisure qualifies for a 40% discount anyway even if small business relief does not apply.

So as it stands all the CT penalties being talked about do not apply to qualifying FHLs.  In fact FHLs are significantly discounted vs normal CT.  That may of course change at the drop of a hat.  What they "should" pay is pointless speculation in the meantime.

Thanks, but people used to say that about second homes? Surely Airbnb is too tasty a low hanging fruit for councils/central government to resist, and it plays nicely into the "not enough homes" narrative that a lot of people seem to swallow?