Ted Posted March 22, 2007 Report Share Posted March 22, 2007 Hi I have a small self-contained unit in my house which I let it out, the council starts charging my tenant council tax as a separate unit on its own. When my tenant moves out next month, the unit will be left empty. Is that true that if I move out all the funiture from the self-contained unit, I don't have to pay council tax until I found a new tenant? Please advice. Ted Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 22, 2007 Report Share Posted March 22, 2007 Hi Ted Assuming Ct policy is National and not Local- then yes but make sure you remove every piece of furniture i had a 2 year battle with one council over a sofa left in the property despite the fact that at the time there was no water, sanitation gas or electric at the property as we were doing major renovations - they did eventually back down But make sure they have no excuse not to grant exemption. Had another situation where a house i bought had been empty and vendor had claimed 12 exemption already -(meaning no exemption was available to me) I needed to completely gut the place and didn't like the idea of paying a £1200pa bill for months whilst work ensued - Luckily the vendor had left a divan bed at the property on its end, in the lounge. On this basis he should not have been able to claim unfurnished exemption -Together with estate agents "property particulars " the dated photos i had from when i viewed the house plus a letter from the estate agent to confirm the bed was there throughout- along with the fact that the bed was still in the property was enough for the CT guys to withdraw the previous exemption and therefore give me a fresh 12 months ! Was the vendor happy - not judging by the phonecall i got from him wingeing about has new £1200 bill - what goes around comes around - as this was my second attempt at buying the property as he took it off the market on a previous occasion the day before i was to exchange on it - and cost me a small fortune in fees- I smiled that day ! I regularly exempt my properties on void periods- diferent councils have different attitudes to inspections - some will require an inspection b4 they grant an exemption some will accept written confirmation that it is empty unfurnished and unoccupied. (exempt up to 6 months ) At one time you could get a year exemption for major works (still available)then bolt on 6 mths emty/ unocc then bolt on 6 months exemption with 50% for empty nonexemptable - they have wised up to this now ! Just get everything that is not bolted down out! Simon Link to comment Share on other sites More sharing options...
Matthew Posted March 22, 2007 Report Share Posted March 22, 2007 Ah, very useful information. Personally I don't think the policy is very fair. If nobody is living in the property you shouldn't pay council Tax, including void periods. It just sounds like a pain for people to remove furniture for a few months only to put it back again. Sometimes it feels like us landlords are viewed as charities, with the only difference being the charities founders can pay themselves a £50K salary. Hang on a minute, maybe we should become charities?? Any benefits? Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 22, 2007 Report Share Posted March 22, 2007 Hi Matthew How was the lease !? I think as a charity you can claim upto 90 % in expenses and just hand over a paltry 10 % to the "charity" but how you actually get to convert the profits into anything you can use - I dont know ! you maybe be able to build a huge portfolio like this but i would imagine getting it back into " your personal assests" would not be easy any one know ?!! Simon Link to comment Share on other sites More sharing options...
Matthew Posted March 23, 2007 Report Share Posted March 23, 2007 No I imagine it wouldn't, I just remember seeing that as company director, two people for one charity can pay themselves a salary of £50K a year and that was a while ago. Printed the lease off last night at the internet cafe and had a quick read. Took me ages being an accountant I'm only used to dealing with figures. I've got to admit it read more like a prison sentance....PERFECT! :-) I have a few questions, but got a meeting in a mo, so will try and send a message later or at the weekend. Thanks for it though, very comprehensive and am looking to adapt it for my needs, so will definatley be in touch. Regards, Mat. Link to comment Share on other sites More sharing options...
Ted Posted March 23, 2007 Author Report Share Posted March 23, 2007 Hi everyone, Thanks for the advice. The self-contained unit is virtually a large on-suite room in the house with a small kitchen and it has its own entrance. If I move my teenage daugther (student) in there, I shouldn't need to pay the council tax either, right? Ted Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 23, 2007 Report Share Posted March 23, 2007 Hi Ted Correct As long as you get an AST in place (with liabilty handed to tenant) and send a copy to LA then all legal responsibilty passes from you to tenant. As long as she has a student exemption certificate (again national/regional policy ??) and no one else is living at the property who is "non exempt" ie working. Also be careful as with close relatives she is unlikley to get any housing benefit as - you, her father is the Landlord ! Can be done but can be tricky ! Simon Link to comment Share on other sites More sharing options...
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