Council tax is a locally-set tax that is payable on all the domestic purposes, including most of the unoccupied properties. The tax that is collected is for the services that are provided by parish and town council organizations. It also depends on where you live and the charge varies accordingly.
Who solicits the council tax?
The authorities from various councils such as district council, principal area councils, and other council areas collect the tax from the residents on properties. The precepting authorities from other local organizations and agencies will collect the tax and will redistribute to the country councils and joint boards such as
- Parish councils and meetings
- Garden squares and National park authorities
- Passenger transport authorities
- Country councils
- Police and fire authorities
Estimation of taxation charges:
The Adult Social Care organizations allow the central government to raise the costs of social care for adults. The total bill of taxation depends on the council tax charge from the Police and fire authorities. Elected representatives of each organization calculate how much money they require each year to provide services they deliver.
Who pays council tax?
If you own a property and rent it, then the tenants are liable for paying council tax. Details such as the name of the tenants, dates on which they moved into and out of the property, forwarding addresses for the tenants who moved out and the other relevant information has to be submitted to the council.
An owner has to pay the council tax in any period gaps between the tenancies. The Council law states that the person who appears to be the owner, managing the residents of a dwelling is liable to pay the tax.
Reductions for untenanted properties:
In recent cases, the owner has to pay the council tax for the untenanted properties. The owner has to pay 150% of the quoted tax amount if the property is unoccupied or fundamentally unfurnished for more than 2 years.
Even when you want to purchase an empty property then you have to cross-check the quoted price with the council for the previous dues and then determine when the premium council tax would begin.
There are certain cases where reductions for the council tax can be nearly 100%. Applying for the reduction doesn’t mean you can stop paying the tax; instead, continue paying until it is legally approved by the organization.
How to avoid paying council tax:
As we said earlier the owner must pay the council tax if the property is untenanted. This comes under the act of council tax on an empty rental property. If the property is unoccupied or unfurnished for more than 2 years then the owner has to pay 150% of the normal amount. But in certain cases, the reductions become 100% which ultimately highlights that no council tax has to be paid.
As an owner, if you want to avoid paying council tax on an empty property, then the owner has to apply for the reduction or discounts and keep paying until it is approved by the specific authority. Reductions will also be applicable to even in the below-mentioned cases.
- The taxpayer who resided alone is no more:
The supporter can claim for the tax reduction which is 100% for certain duration after the person who resided in the property alone or owned property has passed away.
Here arises an obstacle which will be the due amount as per the below-specified cases:
- If someone else has moved in
- Someone else took in-charge of empty property
- Property is depleted
- Different owners for same property
- Property is tenanted and the rent is to be ceased
If your case doesn’t match any of the above criteria then the tax council will be on due for the next six month from the quoted month. After receiving the letters from the tax council the executors can pay the due amount.
- Ready-to-use property for rent:
If you haven’t thought about letting out the property, then certain management companies will help in that. Unfurnished and unoccupied property that is available for rent can also be claimed for 100% reduction in tax for nearly 8 weeks. And also the report from the landlord regarding the variation in tenancy and occupancy will be considered for appropriate discounts.
- 100% reduction for people under certain criteria:
The tax council gives 100% reductions for the people with following criteria generally lives there.
- A person living away from the property under someone’s care
- A person living in another place to care someone,
- A student
- A prisoner
- A person confined for mental illness
- A trustee who is bankrupt
- Detained due to immigration law
- Other distinguishing strategies apply to the empty property:
It is not necessary to pay the council tax if any one of the below-mentioned scenarios applies to an untenanted property:
- The property has been taken back by the mortgage lender
- Occupied by a funding committee for donation purposes
- Due to planning restrictions if nobody is allowed to reside in the restricted property
- A person in charge of the religion
- An empty annex that can’t be rented separately
- Held for accommodating military forces and if it’s mainly possessed by the Defense Secretary.
Primary repairs: If you are paying the Empty Homes Premium for an empty property then if there is any major work that specifies that no one can live in the property, is also exempt from paying the tax.
Council tax is controlled by the local government. As such it is good for you to get in touch with them regarding the exemption from paying. You will get some sort of reduction from paying the tax. All though it will be difficult for the council to give absolutely pay nothing offer to the property owners, some sort of discounts will be given. The above-shared information will help in exempting the individuals from paying the massive council tax bills.