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Double Council Tax!!

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  • ReadySteadyPop
    ReadySteadyPop Posts: 1,628 Forumite
    1,000 Posts Photogenic First Anniversary Name Dropper
    artyboy said:
    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...
    What happens if there is a mass sell-off of holiday homes?
  • Grumpy_chap
    Grumpy_chap Posts: 18,248 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    anselld 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?
    While I don't know all the ins-and-outs of CT / Rates for AirBnB properties, it may not be as simple low hanging fruit as you suggest.
    • Some AirBnB spaces are literally the spare room in someone's house.
    • Some AirBnB spaces are whole properties let out (these may be caught by the second home / holiday home CT in any case)
    • Some AirBnB spaces are one room of several within a whole property that is let out, so presumably on the business rates suggested by anselld
    • Some AirBnB are virtually fully fledged guesthouses with breakfast offered etc, so again maybe on the business rates that anselld suggested.
    Presumably any change to CT / Rates for AirBnB should aim to treat all such use in the similar manner.
    While not creating a loop hole for the second home / holiday home CT surcharge.
    While also not creating an uneven playing field within the various standards of guest houses / hotels / inns etc.
  • ReadySteadyPop
    ReadySteadyPop Posts: 1,628 Forumite
    1,000 Posts Photogenic First Anniversary Name Dropper
    anselld 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?
    While I don't know all the ins-and-outs of CT / Rates for AirBnB properties, it may not be as simple low hanging fruit as you suggest.
    • Some AirBnB spaces are literally the spare room in someone's house.
    • Some AirBnB spaces are whole properties let out (these may be caught by the second home / holiday home CT in any case)
    • Some AirBnB spaces are one room of several within a whole property that is let out, so presumably on the business rates suggested by anselld
    • Some AirBnB are virtually fully fledged guesthouses with breakfast offered etc, so again maybe on the business rates that anselld suggested.
    Presumably any change to CT / Rates for AirBnB should aim to treat all such use in the similar manner.
    While not creating a loop hole for the second home / holiday home CT surcharge.
    While also not creating an uneven playing field within the various standards of guest houses / hotels / inns etc.
     Just make it that if you use the Airbnb platform to advertise then you pay double, make it so Airbnb have to disclose who is listing with them and dates they listed?
  • Schwarzwald
    Schwarzwald Posts: 641 Forumite
    500 Posts Third Anniversary Name Dropper
    I could easily make it my main residence. There is nothing to stop me moving there on a permanent basis.
    It would be much cheaper. There is no risk. What is the risk if I am living there?

    Or how about, I can't afford the double council tax so I have to sell up. Then I declare myself homeless and the council have to house me!  That could work.
    Lot’s of things in life are not about what you declare them to be but what they actually are
  • ReadySteadyPop
    ReadySteadyPop Posts: 1,628 Forumite
    1,000 Posts Photogenic First Anniversary Name Dropper
    I could easily make it my main residence. There is nothing to stop me moving there on a permanent basis.
    It would be much cheaper. There is no risk. What is the risk if I am living there?

    Or how about, I can't afford the double council tax so I have to sell up. Then I declare myself homeless and the council have to house me!  That could work.
    Lot’s of things in life are not about what you declare them to be but what they actually are
    Making it the main residence is probably the best option I think.
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    artyboy said:
    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...
    What happens if there is a mass sell-off of holiday homes?
    People with smaller budgets could consider retiring there. Thereby freeing up housing where jobs are more plentifull. Incremental changes could make the world a better and happier place. 
  • ReadySteadyPop
    ReadySteadyPop Posts: 1,628 Forumite
    1,000 Posts Photogenic First Anniversary Name Dropper
    Hoenir said:
    artyboy said:
    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...
    What happens if there is a mass sell-off of holiday homes?
    People with smaller budgets could consider retiring there. Thereby freeing up housing where jobs are more plentifull. Incremental changes could make the world a better and happier place. 
    The problem is that doctors, dentists, shops, community groups etc. etc. are more plentiful in the city, a lot of people retire to London because it is easier to get around and there is a lot going on that is free in many cases, older people don`t want to have to drive ten miles to a shop that closes at 5pm or sit at home with a bottle of wine and the telly because there are no pubs in the village any more or wait two hours for a bus to the nearest town? Younger people will just jump in their car and tear around and might have young kids to look after and after a long day at work might be quite happy to crash out in a remote cottage and do it all again the next day?
  • Grumpy_chap
    Grumpy_chap Posts: 18,248 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
     Just make it that if you use the Airbnb platform to advertise then you pay double, make it so Airbnb have to disclose who is listing with them and dates they listed?
    That is probably too specific a basis for a taxation class to be set against.
    One can only imagine that a competitive AirBnB would arise, I dunno, maybe LiloBnB...
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