NEW & DIFFERING RULES ABOUT DOUBLING OF COUNCIL TAX FOR SO CALLED EMPTY PROPERTIES

SURVIVEDCOVID

The rules regarding the above matter seem to be a bit variable on a Council by Council basis. Whilst there is 'national legislation' - the Levelling-Up and Regeneration Act 2023 - the rules (based on seemingly subjective discretion available to Councils) seem to be somewhat all over the place. 

I had made a post regarding this elsewhere in another forum but received what I felt was a somewhat dismissive response. Thus I deleted my other post and reworded my message in a new thread in this sub-forum which seems to be a more applicable location as the forum relates to Council Tax.

I have a share in two second properties but don't own either of them, or have the 'title'. That's cos my sister and I are executors for my Mum's place who died 3 yrs back and our Dad's (parents were separated) who also passed away about 30 months ago. Their properties are based in separate Councils, say Council A and Council B.

Grant of Probate finally came through for both properties about 18 months ago. For both properties each Council charged normal Council Tax rates 6 months after probate and up until this coming Council Tax year. Both properties became substantially UNfurnished earlier this year which we were led to believe (according to the legislation) meant that no Council Tax premium (or doubling) should apply. Mind you, the views on the amount of Council Tax due moving forward are now very different for each of the two Councils. 

Council A agree (based on pics provided) that because the property (though empty) is NOT substantially furnished then the normal Council Tax rate will apply for the foreseeable future. Conversely, Council B are all over the place and to date we have had two different answers re this coming tax year. A few weeks back one officer said that because the property is no longer furnished then the normal Council Tax rate would apply for 12 months post the date it became unfurnished. But last week we double checked with the same Council and a rather bolshie officer stated that a) they couldn't care less whether or not the property was unfurnished and b) then went onto threaten backdating a Council Tax premium of 3 times the amount going back 2 years! 

We are about to refurbish both properties and then sell them later in the year. Neither are presently worth much. If a double tax rate were to apply in relation to Council B then we may let out the property to a friend who may be willing to help with some DIY skills and they would presumably then also become responsible for the Council Tax but with a single person discount. A tenancy agreement would be established and we are certain that they will leave later in the year as they are heading back to Oz. Finally even if we put the property up for rent on the open market apparently from that day onwards Council B should revert back to the normal Council Tax rate. Is that correct?

Any truly constructive comments or guidance would be very much appreciated. Thanks. 

lincroft1710

If you you and sis both have equal shares in both properties then from tomorrow (1 April) both properties will become liable for double CT (if the council choses to so charge) as both being second homes. CT legislation allows second home premium to be at the discretion of each council. If a property has been empty for more than 12 months then a premium can also be charged, again at the discretion of the council. 


If either property is rented out then either from the date of commencement of the tenancy or actual physical occupation (whichever is the earlier) the tenant becomes liable for CT which will be charged at standard rate unless the tenant has a main home elsewhere, with 25% discount if there is single person occupancy.

julbai

My Mom died in 2023 and I have been trying to sort out her house which also had a lot of my late brother's stuff stored there after he died in 2021.   The house is still in her name as it is part of her estate but my local council have informed me that it is classed as my second home and therefore I am liable for double council tax on it at nearly £3000 this year.   I get a single person discount on my house while I am paying a lot more for a house no-one is living in.   How does that work?

sheramber

Has the house been transferred into your name or is still in your mother’s name and part of her estate?

If it is in your name then you are liable for the second property charge.

This is how all councils work regarding second homes. 

If the house is still part of her estate, the payment is due to be paid by the executor of her estate, out of the estate  assets. 

pinkshoes

julbai said:

My Mom died in 2023 and I have been trying to sort out her house which also had a lot of my late brother's stuff stored there after he died in 2021.   The house is still in her name as it is part of her estate but my local council have informed me that it is classed as my second home and therefore I am liable for double council tax on it at nearly £3000 this year.   I get a single person discount on my house while I am paying a lot more for a house no-one is living in.   How does that work?

If the house is still in her name and part of the estate and can't be sold yet then they shouldn't be charging the higher rage council tax.

It's not you that's liable rather than the estate.

As its been empty for at 16+ months I guess the council want it sold so they can have a local family living in it.

sheramber

Only for 12 months

https://www.gov.uk/council-tax/second-homes-and-empty-properties

You may not have to pay the premium for up to 12 months if:

• you recently received a grant of probate (or letters of administration) for the empty home
• the empty home is being marketed for sale or to rent
• the empty home is undergoing major repairs or structural alternations

You will still need to pay the standard rate of council tax on the property, unless you’re eligible for a discount or exemption.

MobileSaver

julbai said:

My Mom died in 2023 and I have been trying to sort out her house which also had a lot of my late brother's stuff stored there after he died in 2021.   The house is still in her name as it is part of her estate but my local council have informed me that it is classed as my second home and therefore I am liable for double council tax on it at nearly £3000 this year.   I get a single person discount on my house while I am paying a lot more for a house no-one is living in.   How does that work?

The "second home" council tax surcharges are a misnomer as they also apply to empty houses even if it's the only home (such as in the case of a deceased's estate.)

If the house is still in your mum's name and no-one is living in it then it is the estate that is liable for the council tax and not you personally. As @sheramber says, if the house is being actively marketed for sale then the double surcharge should be suspended for 12 months but the normal full council tax charge will still be due.

To be fair to the council, if your mum died in 2023 then the house has probably been sitting empty for around 18 months, maybe even two years by now and they have a mandate to encourage houses to be put back into use.

ReadySteadyPop

MobileSaver said:

julbai said:

My Mom died in 2023 and I have been trying to sort out her house which also had a lot of my late brother's stuff stored there after he died in 2021.   The house is still in her name as it is part of her estate but my local council have informed me that it is classed as my second home and therefore I am liable for double council tax on it at nearly £3000 this year.   I get a single person discount on my house while I am paying a lot more for a house no-one is living in.   How does that work?

The "second home" council tax surcharges are a misnomer as they also apply to empty houses even if it's the only home (such as in the case of a deceased's estate.)

If the house is still in your mum's name and no-one is living in it then it is the estate that is liable for the council tax and not you personally. As @sheramber says, if the house is being actively marketed for sale then the double surcharge should be suspended for 12 months but the normal full council tax charge will still be due.

To be fair to the council, if your mum died in 2023 then the house has probably been sitting empty for around 18 months, maybe even two years by now and they have a mandate to encourage houses to be put back into use.

The real mandate is to tax a sitting asset (you can`t offshore a property) to bail themselves out of previous financial mis-management, paying two lots of council tax (when you only occasionally use the resources in one of the areas) is punishment enough for daring to have two properties, doubling the rate on one of the properties is outrageous.

sheramber

The OP dors
n’t have two homes.

She has one and her mother’s estate has one, which is an empty property for council tax.