Challenging Doubled Council Tax

Isthisanunusedname

I understand that the government want to encourage dormant houses to be put back on the market and as part of that have given power to local councils to double and treble Council Tax on empty properties but when a property has demonstrably been on the market for two years at market value or less and still hasn't sold is there a mechanism to challenge Council over the increase?

maisie_cat

If a property has been on the market for two years it's probably over priced and therefore not market value.

lincroft1710

Up to one year on the market and usually the extra premium would not be payable. Being on the market for over 2 years would suggest that the asking price is too high. If the property is a retirement apartment then these can be difficult to sell.

There is no formal appeal process, but there is no harm in asking the council if they would waive the extra premium. However do not expect a positive response

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6653620/challenging-doubled-council-tax

How did you determine "market value"?

If the property is genuinely being marketed for sale and is at market value, it will sell within two years.

If there is some particular factor about the property that makes it difficult to sell, that would impact the market value.

If genuinely committed to sell, why not use one if the "we buy any house" companies or sell via auction?

dumpster_fire2025

I imagine if there was some sort of exemption for houses on the market that are empty then it would create a nice loophole of people putting their house on the market and either asking a ludicrous price or just refusing any offer that the received.

Whilst the answer to that might be "they can check if the price is too high and ask the estate agents how many offers have been received" it overcomplicates the system and generates more work. Then you have all the borderline cases etc.

Isthisanunusedname

The property is a retirement property and is already being advertised at a lower price than other identical flats in the same block. The estate agent and block warden agree there is no reason why it shouldn't sell, it just hasn't. There have been offers but all have fallen through for differing reasons I will make no money from the sale as it will all be swallowed up in care fees which is why I am wary of spending money on it as I will see no return, other than not having to pay exorbitant Council Tax fees.

Blancmang25

https://forums.moneysavingexpert.com/discussion/comment/81872835#Comment_81872835

Hi, you have stated the property is up for sale and the proceeds are to pay the care fees.

Does the person who is in the care home own the property and were they liable for the council tax prior to going in the care home?

If so, you need to contact the council tax department at your council and request the exemption for a person permanently residing in a care home, as they are exempt from council tax and no council tax is charged.

lincroft1710

https://forums.moneysavingexpert.com/discussion/comment/81872835#Comment_81872835

Unless you have inherited the property, you do not pay CT. If you are acting as executor of the estate then the estate pays the CT. If the estate is insolvent, i.e. its debts are more than its assets, then you should read this

https://www.bereavementadvice.org/topics/probate-and-legal/insolvent-estates/

If the owner of the property is currently residing in a care home then no CT is payable, see @Blancmang25 post above