Council tax work around

Fisaplisap

I co-own a house mortgage free. We'd like to move to another council area and I've got a bank job with the NHS in that area already and work occasional shifts. We'd like a house in that area so I'm not always bunking with family, we can get our pets used to a new house plus the rental market is woeful. However, the council tax for a second home in the new area is mind blowing. As in paying 4x the current rate. So although I've got mortgage in principle, the fact that council tax would be £500 a month, it's sadly not sustainable. We are both on the council tax in our current house, the second house would just be me initially. I anticipate I'd be in the new house 3-5 days a week. Is there any work around at all? I'm not trying to avoid paying, I'm just trying to find a lawful way to try and make this work. I can afford an £800 mortgage I've been quoted but not an additional £500 for council tax. For info we're comfortable but not well off, appreciate buying a second home doesn't make it sound that way but the second home is relatively cheap but needs a lot of work (so council tax money would be great to put into renovation!) Any thoughts or advice would be appreciated.

Woodstok2000

Speak to the council - there are sometimes exceptions for work related property, or maybe they'd accept it as your main residence for council tax purposes?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6659404/council-tax-work-around

Who are the "we" you refer to?

Guna

Second home premium is for properties which are furnished but unoccupied. Yours obviously won't be because you'd be living in it. Definitely worth a call to the council to explain your circumstances and ask advice.

I mean, the obvious workaround would be to come off council register in the property you are currently living in and register as a permanent resident in the second property. If you are planning to live there for 5 days out of 7, then it's basically your main residence.

Bigphil1474

If you are moving to the second property as your main residence on your own, then you would pay normal council tax and also be eligible for a 25% discount. If you is two of you, you would just pay normal council tax. The first home would then be liable for whatever council tax is applicable to that council if you keep it - if it is unoccupied there may be a premium, or if rented out the tenants would pay, or if you reside at property 2 and your partner at property 1, then you would pay 75% on both (don't think you can do that if you are married). The most simple solution would be to buy property 2, and sell property 1.

ciderboy2009

In addition to the Council Tax have you also considered that you will have to pay the higher rate of stamp duty on the purchase?

Fisaplisap

https://forums.moneysavingexpert.com/discussion/comment/81921130#Comment_81921130

Oh yes! Additional dwelling supplement in Scotland is 8%. I can take that hit as we get it back if we sell our current home within 3 years of purchasing the second home. It does sound like a lot of additional money but when you see rental prices in the area this feels like the better option, would you believe.

Fisaplisap

Myself and my partner. Not married but I know for security we should be.…!

Fisaplisap

https://forums.moneysavingexpert.com/discussion/comment/81920890#Comment_81920890

I've already made enquiries. As far as they're concerned they would treat it as a second home although there's discretionary relief but you apply for that retrospectively and it's on a case by car basis.

Fisaplisap

https://forums.moneysavingexpert.com/discussion/comment/81920955#Comment_81920955

Thanks for input- a couple of people I've spoken to mentioned this, coming off my council tax in my current home and applying as the single occupant in the second home. But surely if it was that straight forward everyone would do it?! Something doesn't sit right with me about that set up and don't want to do anything fraudulent. I want a quiet life in a quiet house!

Fisaplisap

Thanks- there's no option to sell house 1 as my partner's job is not currently transferable and there's 3.5 hours commute between each house! We need the house for access to his place of work.