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Council tax work around
Comments
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As you mention selling within 3 years it woukd appear your partner’s job position will change?
Could you sell now and he rent where you currently live?0 -
If you had not lived together and both owned and lived in your own home, then you would both pay council tax on the home you lived in , with a 25% single person discount. So what is being proposed is not different to that.
In any case between you , the council tax bill will be higher than if you stayed together in the same house, so not exactly a very good fraud ( which I am pretty sure it isn't anyway) .
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I think most people don't do it because they're not living in the second house, whereas you are. Only your council can tell you, but it would seem sensible that your main residence is the one where you spend most time.
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Except that the OP will own two houses.
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What's fraudulent is to do that on a property that's empty. Your second house won't be. You'll be living in it for more than half a week!
You are absolutely allowed to live there and visit your partner for a weekend and go on holiday and leave the house empty for a couple of weeks at a time. Might be more complicated if you are married but you are not. You are a couple living between two houses. There is nothing fraudulent or particularly unusual about that.
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If the soap makes the second house her main residence by registering for council tax there. then she becomes liable for CGT on her share of the first house when sold.
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As a tax ignoramus, can you expand?
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You can only have one principal residence at a time. If you’re claiming the new property is your principal residence then the old property that your partner lives in can’t be your principal residence.
Capital Gains Tax is due when you dispose of an asset. Most people don’t pay CGT when they sell their home because for the entire duration of ownership it has been the only property they’ve owned and importantly the only property they’ve lived in and therefore received Principal Property Relief which results in no CGT being due.
In your case you’d only get PPR for the number of months you owned and occupied the property plus an additional 9 months of relief under the current CGT rules.2 -
Councils in Scotland can charge double the usual rate of Council Tax for second homes. They can also apply the usual rate or a discount of up to 50% if they choose to so I don’t think your figure of 4 times is correct.
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I think the OP means 4 X what they currently pay, as it is a more expensive area.
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