Council Tax service news

Changes to the law from 1 April 2013

Council tax discounts and exemptions for second homes and empty properties

On 28 May 2012, the government confirmed its intention to give Councils discretion over Council tax discounts and exemptions for second homes and empty properties. The Local Government Finance Act 2012 became law on 31 October 2012 and now provides the legal framework for the changes.

Changes from 1 April 2013

The government has announced the following changes to council tax discounts and exemptions that will come into force from 1 April 2013:

• Exemption Class C (properties that are empty and unfurnished for up to 6 months) will be abolished and each council can decide whether to award a local discount in its place.
• Exemption Class A (properties requiring or undergoing major repairs for up to 12 months) will be abolished and each council can decide whether to award a local discount in its place.
• Discounts for Furnished homes: The minimum discount that councils can give for furnished homes that are not anyone's 'sole or main residence', for example, 2nd homes and unoccupied furnished lets, will be reduced from 10 per cent to 0 per cent.
  
• Long-Term Empty Properties: Councils have the freedom to decide to charge an additional premium of up to 50% on homes that have been empty and unfurnished for 2 years or more.

All other exemption and discounts are not affected by these changes.

Changes in Wandsworth from 1 April 2013

The Council met on 5 December 2012 and passed the following changes to take effect in Wandsworth from 1 April 2013:

• Class C Exemption shall be replaced by a 100% discount for a maximum period of 6 weeks only and 0% thereafter.
• Class A Exemption, shall be replaced by a 25% discount for a maximum period of 12 months.
• Discounts for Furnished homes, the 10% discount for all second homes shall be abolished.
• Long term empty dwellings, properties that have been empty and substantially unfurnished for a continuous period of at least 2 years, shall be charged 150% of the daily Council Tax charge for each day over 2 years they remain in such a condition.

See below the formal notice of Wandsworth Council's resolution to charge a premium of 50 per cent on all empty homes that have been empty for 2 years or longer.  

Wandsworth Council

Changes to empty property council tax discounts and exemptions from 1 April 2013

In accordance with section 11A and 11B of the Local Government Finance Act 1992 Wandsworth Borough Council, the billing authority, hereby gives notice that at its meeting on 5 December 2012 it determined that for each financial year beginning on 1 April 2013:

• The full 100% discount for unoccupied and substantially unfurnished properties, previously known as a Class C exemption and granted for a maximum period of 6 months, shall be replaced by a 100% discount for a maximum period of 6 weeks only and 0% thereafter.
• the full 100% discount for empty, substantially unfurnished and uninhabitable properties requiring or undergoing major repair work, previously known as a Class A exemption, shall be replaced by a 25% discount for a maximum period of 12 months.
• the 10% discount for all second homes shall be abolished.
• long term empty dwellings, i.e. properties that have been empty and substantially unfurnished for a continuous period of at least 2 years, shall be charged 150% of the daily Council Tax charge for each day over 2 years they remain in such a condition.

Paul Martin
Chief Executive and Director of Administration

Dated 3 January 2013