Council Tax Empty Property Exemptions

lincroft1710

The clock does not restart with change of ownership, so in this case the effective date of the property becoming empty was 28 Feb 2023 and will remain so until the property is next occupied.

ExpertNeeded

I am advised that the legal start date for the empty property calculation for new owners is the date of purchase/completion Oct 16 2023.

It is not the date of death. Based on Section 6 and 11B of the Local Government Finance Act 1992, the Council Tax (Exempt Dwellings) Order 1992, which limits Class F to the deceased’s liability only and not to the property.

The Council say it is the property not the lability. But it is not crystal clear.

ExpertNeeded

Just read:

Council Tax Information Letter 2/2024 from the Department for Levelling Up, Housing and Communities clarifies:“The property will be liable for the standard rate of council tax once the Class F exemption has ended; but a premium cannot be levied for a 12-month period.”

This means that the “empty clock” for premium purposes only starts ticking after the Class F exemption ends. The property is not treated as a long-term empty dwelling during this exemption period.

Based on the time line I shown, the premium should not be applied until at least 16 October 2025, assuming the property remains unoccupied beyond the repairs period.

sheramber

Class F exemption ceases when you buy.  October 23z. 

You are allowed 12 months ‘empty exemption  from date of purchase October 23 . 

12 months takes you to October 24. 

Premium starts October 24. 

However,

Councils may wish to consider the specific circumstances of the dwelling at the end of this 12 months and whether to use their discretionary power to extend this exception in certain scenarios.

mybestattempt

ExpertNeeded said:

I am advised that the legal start date for the empty property calculation for new owners is the date of purchase/completion Oct 16 2023.

It is not the date of death. Based on Section 6 and 11B of the Local Government Finance Act 1992, the Council Tax (Exempt Dwellings) Order 1992, which limits Class F to the deceased’s liability only and not to the property.

The Council say it is the property not the lability. But it is not crystal clear.

ExpertNeeded said:

Just read:

Council Tax Information Letter 2/2024 from the Department for Levelling Up, Housing and Communities clarifies:“The property will be liable for the standard rate of council tax once the Class F exemption has ended; but a premium cannot be levied for a 12-month period.”

This means that the “empty clock” for premium purposes only starts ticking after the Class F exemption ends. The property is not treated as a long-term empty dwelling during this exemption period.

Based on the time line I shown, the premium should not be applied until at least 16 October 2025, assuming the property remains unoccupied beyond the repairs period.

Section 6 of the Local Government Finance Act 1992 defines the person liable for council tax, which is you from the date of ownership- s6(2)(f)

Section 11B allows the higher amount of council tax (premium) to be charged in respect of long-term empty property and defines what is a long-term empty property, which is a property empty and unoccupied for a continuous period of at least one year -s11B(8).

The class F exemption is a time limited exemption from liability to council tax in respect of the personal representative if the property is empty. 

The information leaflet explains what happens if the class F exemption ends but the personal representative remains liable for the council tax because it was not sold during the exemption period.

The empty property was sold to you on 16 October 2023 so the class F exemption could no longer apply. It was simply a property which was empty and different empty property rules apply to your period of ownership.




If you still maintain the council is wrong to charge the premium from 16 October 2024 but they disagree then you can make an appeal:

https://valuationtribunal.gov.uk/council-tax-appeals/council-tax-liability-appeal/

ExpertNeeded

Thanks for the pointer.

Looking at tribunals published I find this conclusion in one:

6. The panel was informed that Mrs Jeffery, the appellant’s mother in law, occupied the appeal property until she passed away on 30 August 2013. The appellant was the executor of the estate.

7. As the appeal property was unoccupied the BA decided an exemption should be applied to the account from 30 August 2013. The BA applied a Class F exemption from 30 August 2013. A grant of probate was granted on 26 November 2013 so in line with the relevant legislation, the BA removed the Class F exemption from a date six months after the granting of probate, namely 25 May 2014. The revised bill was issued to Mr Saywell as the executor of the late Mrs Jeffery.

8. After the Class F exemption ceased the appeal property remained unoccupied. It was the BA’s submission that there were no circumstances arising to justify any other discounts or exemptions for the appeal property after cessation of the Class F exemption.

9. Under changes to The Local Government Finance Act 1992 (The Act) with effect from 1 April 2013, Local Authorities have been given greater flexibility over certain discounts and exemptions for empty properties. Medway Council (BA) decided to charge a 50% additional premium on long term empty properties that have been empty for more than two years, the additional charge taking effect from 1 April 2015.

10. As from the 26 May 2016 the appeal property had been empty for more than two years a 50% premium was applied to the council tax account for the period 26 May 2016 to 31 March 2018.

11. The BA claimed the correct discounts and exemptions had been applied to the council tax account for the appeal property 

———-
Key points are

- bereavement Aug 2013
- Class F Probate up to May 25 2014
- Property classified as empty from May 26 2014

So this is in keeping with my understanding is that Class F and probate does not classify a property as empty.

sheramber

You bought in October 23.  Class F ceased then. 

The property was empty from October 23. so it is classed as empty from October 23.

Empty property exception is 12 months from you bought it.
 12 months from October 23 is October 24. 

After October 24 it is outwith the 12 months empty exemption. 

Premium charge is due from October 24.

What part of that do you disagree with?

How do you arrive at October 25 as 12 months after October 23?

 

 

ExpertNeeded

The council say empty started at the point of death. The legislation says the liability is with the deceased estate. It is liability to pay, and nothing to do with the property being unoccupied.

The TributeI states that the “empty” clock starts after 6 months after Probate or sale.

So for me, empty starts Oct 2023, not Feb 2023

QrizB

ExpertNeeded said:

So for me, empty starts Oct 2023, not Feb 2023

I think there might be some crossed wires in this thread.

There Council rebate scheme is 12 months 50% reduction, then 12 months at 100% and then 200% “Premium”. However they include Empty from the point of death meaning they want to charge the Premium rate from Oct 2024.

You're quite happy to pay 100% from October 2024 (increasing to 200% in October 2025 of you haven't moved in) but the council is asking for 200%?

Even if empty started in February 2023, that would be 100% from February 2024 and 200% from February 2025?

lincroft1710

That Tribunal decision predates current legislation on charging premiums on empty property. Be aware Valuation Tribunals are not experts on CT legislation (I have personal experience of this) and they sometimes get it wrong. 


If you disagree with the council's interpretation then as another posted has suggested, appeal to the Valuation Tribunal,