So gone are the days when landlords got the automatic exemptions and discounts on their vacant rental properties between lets.
Also the exemption of properties undergoing development work is to be lost, with many councils deciding to offer no deduction of refurbishment properties.
To clarify the changes:
1. Exemption class C (properties that are empty and unfurnished for up to six months) has been abolished and each council can decide whether to award a local discount in its place
2. Councils can decide to charge an additional premium of up to 50% on homes that have been empty and unfurnished for two years or more
3. Exemption class A (properties requiring or undergoing major repairs for up to 12 months) has been abolished and each council can decide whether to award a local discount in its place
4. The minimum discount that councils can give for furnished homes that are no one’s ‘sole or main residence’ – i.e. second homes and unoccupied furnished lets – has been reduced from 10% to 0%.
Each council is taking an independent approach, with some offering shorter exemption periods, or percentage reductions, whilst others are handing no favours and are charging full rate from day one.
Speak to your local council to find out what their decisions are and don't be surprised if it doesn't change year by year.
The best advice for landlords is keep your tenants happy and avoid rental voids.
Landlord insurance here - discounted portfolio rates
Our local council - Cotswold District - has removed the Class C exemption completely, so we now have the situation where a landlord with a void property is paying more council tax than a property with a single occupier who receives 25% discount.
ReplyDeleteThey haven't said how they justify zero occupiers paying more than single occupiers.
Wonder how many landlords will claim to move their spouse, partner, child into the property for the period its void (and that might also help with CGT PPR relief ?)
Pray tell me how PPR relief can help. I thought it was only the property owner could claim this relief if they moved into the property!
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