Monday, August 06, 2012

Six month council tax exemption under threat

It worries me that in the new Localism Act, the Government is considering removing the six month council tax exemption on properties that fall empty. There is a proposal to allow councils to charge what they see fit, so anywhere from 0-100 percent of the council tax.

The Government says ‘there is no compelling reason why the first six months should be treated so generously’.

If councils then did decide to charge full council tax it could add considerably to the financial burden of rental voids.

In a time when councils are strapped for cash they are likely to jump at any opportunity to bring in added revenue and I could see many opting to charge the full 100 percent on empty rental properties. Let's all face it the electorate  don't have any great sympathy for the plight of landlords. In fact it would probably be a vote winner as well as a revenue raiser.

The only potential misgiving they might have would be the logistical difficulties of collecting the £2.86 charges when some rental properties fall empty for a day or two between tenancies. Maybe we'll see council offering one month period without charge before they through the full charge onto landlords.

It's purely speculation at this time so let's just hope it doesn't happen.


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7 comments:

  1. Appreciate a link to this - I rent properties in London and have NEVER managed to get away with Council tax between rental voids - even of only a couple od days - they'll bill you for it AND issue court summons....logistic difficulties are no problem for £2.86 I assume you - once the teeth are in they stay there for Lambeth, Lewisham and most definately Camden!

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  2. Re previous comment I'm in the same boat with Hackney Council, never been exempt or had discount applied to council tax during void periods and they will issue summons in case of default..

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  3. Interested by the comments above as never had this problem. In Watford, Hertfordshire, they always apply the 6 month exemption. Something I have learnt recently though is that there are many councils that ignore the law and do as they see fit so not totally surprised by these comments.

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  4. To be eligible for the current exemption the property needs to be unnocupied AND unfurnished, maybe this has been the previous posters problem. Otherwise the exemption as it currently stands is standard.

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  5. Indeed: unnocupied AND unfurnished = Class C Eexemption, But you need to ASK for it, preferably a week before the property falls empty.
    My local lot always send a council operative around to make sure it really is unoccupied & unfurnished. That's why you need to get the request in early just in case some new tenants wanted to move in within a week. Its worked fine for me in Essex, Middlesex and Surrey over the last 10 years. Beware the 6 month exemption is accumulative so if you claimed for an initial void period (eg you were refurbishing the place) and then the new tenancy didn't work out you could find yourself vacant again within the year meaning you've only got the unused balance of the 6 months remaining from your exercising it last time around.

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  6. Bristol CC just sent me an invoice for £39 for 10 days unoccupied but S Glos has sent me a letter stating they will charge 150% for each & every empty property.

    That's 150% of council tax because the services provided were'nt used! What's next, Asada will charge 150% of the price for fuel if you don't use it in a week!?!

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  7. Bromley Council in SE London charges for even for a single day void for a partial furnished flat - but with a 10% discount.

    This includes if a tenant moves out on a Wednesday morning, and the new tenant moves in on the Thursday morning.

    Illogical I know - but after several weeks I gave up arguing about it and paid the 2 quid 86 pence.

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