Council tax can be a huge outlay every month, depending on where you live. Different properties, of different sizes, in different areas of the country get charged various amounts of council tax month on month. We've written before about how you can get a council tax discount as a single person living alone, but what about empty properties? It could be that you have a property just sitting there, empty. Do you need to pay council tax on that? What is the council tax empty property information that you need to know?
What Is Council Tax?
Firstly, council tax is an annual fee on domestic property, usually split into 10 instalments, collected by the local council. Depending on what area of the country you live in and the tax band of your home will determine how much you pay. The money paid goes towards rubbish collections, street lighting, schools and other local services.
Council Tax Empty Property Information
Obviously, if you have an empty property, one where no one lives, you're not going to be using services such as rubbish collections. That doesn't mean that you don't pay council tax though. The council tax empty property information that you need to know is that you usually have to pay council tax on an empty house. Your council can decide to give you a discount but that is entirely up to them. The amount discounted is also up to them. You need to contact your local council to ask about a council tax empty property discount. It's also worth noting that you might be charged double if you house stays empty for more than 2 years. This might not be the case if you're in the armed forces or the property is an annex.
Why Might Properties Not Be Charged Council Tax?
There are certain situations where you won't pay council tax. As long as houses stay empty they will not get a council tax bill if it's the home of someone who is in prison – unless they are in prison due to not paying Council Tax or fines. Other empty house situations include if the person has moved into a hospice or care home, if the house has been repossessed or compulsory purchased. If you are refurbishing your home and not living in it, the council will provide you with a completion notice which will give you the date you must start paying council tax. This is the same if you are building a new home. Derelict houses that cannot be lived in by law do not have to pay council tax either.
If someone has unfortunately passed away and you are selling the house on their behalf, you won't need to pay Council Tax until after probate. This is only if the house stays unoccupied. Once probate has been granted you can apply for another 6 month exemption. This should be granted as long as nobody lives there and it is still owned by and in the name of the person who has died.
What About Second Homes?
If you have a second home, you might pay less council tax. You'll have to contact the local council and explain that the house is not your main residence. It is up to them how much discount, if any, you will get. However councils can opt to give furnished second properties or holiday homes up to 50% discount on council tax.
Check Your Council Tax Band
It's also worth checking your council tax band. Council tax bands are labelled by letters of the alphabet, with band A being the cheapest and so on. These bands were determined many years ago. There have been cases where they have been wrongly determined. If that is the case you could be owed thousands of pounds. There have been instances where home owners have had their council tax band changed and had a huge amount of money given back to them. It's worth checking that you're in the right band.
Start by checking what your neighbours council tax band is. If they are similar properties they should be the same band. Of course, there have also been instances where people have put in for an alteration and their band has been changed to be more expensive. It's worth looking into but be prepared for all eventualities. There is plenty more information about how to do this online.
Council Tax Empty Property Conclusion
It's worth seeing if you can get a council tax discount on your empty property. There is little point in paying money if you are entitled to a discount. You might as well save that cash and put it towards the renovation of your property or keep it in the bank. Look into it and see what reductions on council tax you can get.