Council Tax on Vacant Properties: What You Need to Know
Can leaving a property empty free you from paying the council tax? Think again. Whether you are a homeowner renovating, a landlord between tenants, or dealing with an inherited estate, council tax doesn’t disappear just because your property is unoccupied.
In fact, in some cases, you may have to pay more than the usual tax. Understanding the rules about paying council tax on a vacant property is crucial. Understanding its rules assists you in avoiding the unexpected financial shocks, and you can also know the exemption scenarios.
In this blog, we are going to discuss everything you need to know about how to pay council tax online, how it works and at what conditions discounts and exemptions are given.
What is Council Tax?
Council Tax is a local taxation system that is used in England, Scotland, and Wales. This tax is collected for the sake of paying for a wide range of public services. These services are as follows:
- Waste collection and recycling
- Education and schools
- Emergency services like police and fire departments
- Libraries, parks, and community maintenance
Do you know how your council tax is decided? It is done with the help of the council tax band.
How Council Tax Works?
Basically, the person living in the property pays the council tax. In case the property is vacant, the landlord or the owner is supposed to pay the Council Tax. Let’s uncover who will pay how much?
Occupied Properties
If the people are living in the property, they will pay the full council tax.
Unoccupied Properties
Leaving a property unoccupied is not an ideal choice, as the property owner may pay 100% council tax. In some cases, there can be some exemptions. For example, if the property is in the selling process.
Second Homes
Their council tax depends on the location and usage of the homes. In some cases, you may be asked to pay 200 to 300% council tax. It happens when your property remains vacant for more than 2 years.
Council Tax on Second Homes: Exemptions & Discounts
Indeed, this is an important point to consider. A second home is a property that you own, but you do not stay there permanently. For example, it can be your holiday home, investment property or occasional use residences. You must know about paying Council Tax on a Vacant Property, second homes and others.
What Possible Discounts can you get for Second Homes?
It entirely depends on your local council`s criteria. You can get a discount of between 10% to 50%. But keep in mind that not all the councils offer such discounts. They may charge you the full amount.
Common Scenarios for Second Home Council Tax Pay
There are some scenarios for second home council tax payers. It can be beneficial for you to know about these scenarios to get exemptions. For instance:
Furnished but Unoccupied
If your property is furnished but unoccupied, you may get a discount. Some tax councils consider them a second home and apply fixed discounts. You cannot ignore the Council Tax Pay; you can be at risk of a court summons.
Let Properties
Let property means the property is rented, so, in case you rent your property, the people living at your place are supposed to pay the tax not you.
Holiday Homes for Personal Use
It depends on how frequently you use your holiday homes. You will pay the tax according to it.
Council Tax on Vacant Properties: Exemptions & Discounts
Most people think that they will not pay council tax on empty houses, but this is a myth. There are some specific exemption categories. If you fall into those categories, you are still supposed to pay.
Short-Term Exemptions or Discounts
In case of vacant properties, you can be given some temporary relief for empty and unfurnished homes, recently vacated homes, or homes awaiting a new tenant.
Typical Relief Includes
These reliefs can be a 100% discount for the first 1 to 6 months. Some councils give a 50% discount and ask for full tax after the grace period ends. There are some scenarios where people can get relief from paying Council Tax on a Vacant Property.
Major Repairs or Structural Work
If nobody is residing at a home due to ongoing renovation, the owner can be given exemption upto 1 year.
Owner in Hospital or Care
Secondly, if the owner is hospitalised or living in a care home, the council tax will be exempt.
Probate Properties
If the property owner has passed away and the property is vacant, no council tax will be demanded.
How to Pay Council Tax Online?
Most of the councils offer user-friendly methods to pay the tax online.
Step-by-Step Guide:
- First of all, go to your local council’s official website
- After going to the official website, click on the “Pay Council Tax” section.
- Then enter your Council Tax account number.
- At the end, choose your payment method:
- Debit card
- Credit card
- Direct debit
- Debit card
- Confirm and submit your payment.
Take the Stress Out of Property Tax Management
At Home World Management Company, we assist property owners in navigating council tax rules conveniently. Whether your home is vacant, under renovation, or a second residence, our experts ensure you’re not overpaying. From exemptions to online payments, we’ve got it covered.
