New council tax powers re second homes

Stubod

No, if you rent it out the council tax is paid for by the tenants. Some councils also give you a "grace" period if it is empty for a short while, (maybe up to 6 months?).

Bigphil1474

Think you are getting wrongly outraged about the dogs dinner. You only pay second home council tax premium if it's a second home that nobody lives in. As others have said, if you rent it out, the tenants pay. That's the system trying to ensure houses don't go unoccupied.

Also worth considering - if you are left a home in a will, you do become a second home owner and that house could become liable for CGT when you sell it. However, the owner should probably decide whether they want to leave you the house, or the proceeds of sale of the house. If it's proceeds of sale, the estate sells the property and you get the money so you wouldn't have any CGT to pay. If you are left the house, the CGT clock starts ticking as soon as it's yours.

Bookworm225

StevieD54 said:

 I assume as a second home owner the CT would increase drastically, even if it were occupied by tenants? The whole thing is a dog’s dinner tbh.

the dogs dinner is because you haven't done any reading of your own of simple factual info.
who is liable for council tax is a reasonable place to start....
 Check how council tax works and if you have to pay - Citizens Advice

you say mother is in "sheltered" housing, that is very different to being in a care home when it relates to ongoing liability for CT on her own house, which she remains owner of and thus liable for the CT on it until death.. 

ReadySteadyPop

StevieD54 said:

Wow, my original question has certainly generated some interesting discussion.

Here’s a related, and relevant, question……

My Mum (the next door neighbour) now has her property on the market as she has moved into sheltered housing. It is willed to me as her only surviving child. If she were to die before it sells, I would be deemed to be a second home owner. Years ago, I thought if the property was ever left to me, I would probably rent it out for income. Now however, if that does become the situation, I assume as a second home owner the CT would increase drastically, even if it were occupied by tenants? The whole thing is a dog’s dinner tbh.

No, the tenants would pay the basic rate CT?

Mgman1965

If tou own a second house in an area that charges extra CT and a main one in an area that doesn't  could you not "flip" the one in the extra CT area as your "main" residence  ?

Do you need to prove somehow which is your main residence  ?

MeteredOut

Mgman1965 said:

If tou own a second house in an area that charges extra CT and a main one in an area that doesn't  could you not "flip" the one in the extra CT area as your "main" residence  ?

Do you need to prove somehow which is your main residence  ?

Only if you lie and are then charged with fraud.

Your main residence must be the one where you live, in the main.

Bookworm225

Mgman1965 said:

If tou own a second house in an area that charges extra CT and a main one in an area that doesn't  could you not "flip" the one in the extra CT area as your "main" residence  ?

Do you need to prove somehow which is your main residence  ?

you are confused between what can be done for CGT purposes and how CT operates

under CGT it is possible to nominate on paper which is the "main" home even if you actually live elsewhere.

HOWEVER for CT purposes the main home is a test of the fact of actual occupation, there is no "paper" option, and to attempt so would be tax fraud.

Olinda99

That is a useful to know distinction.

subjecttocontract

As CGT on property is 18% & 24% (depending on your tax band) surely it's better to own the property, take the increased capital value when you sell and pay the tax....you'll still get to keep the vast majority of the value of the asset.

ReadySteadyPop

Mgman1965 said:

If tou own a second house in an area that charges extra CT and a main one in an area that doesn't  could you not "flip" the one in the extra CT area as your "main" residence  ?

Do you need to prove somehow which is your main residence  ?

I think more and more councils are now doing the double council tax thing, too much easy income to turn down?