Decision details

Changes in legislation for the Council Tax Premium on Empty Properties

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To consider the changes in legislation applicable to the Council Tax Premium on Empty Properties.

Decisions:

Consideration was given to the report that detailed how from 2013/14 the Government introduced changes affecting the way that Council Tax was charged on certain types of empty property or second homes, by allowing Local Authorities increased discretion to set the level of charges locally. 

 

One option available to Local Authorities was the introduction of a 50% Premium for long term empty properties which had been unoccupied and substantially unfurnished for a period of over two years. The principle of the introduction of the Premium was to incentivise owners to bring empty properties back into use.

 

The Council introduced the Council Tax Premium with effect from 1st April, 2013 with the 50% Premium being charged on the two year anniversary of a property becoming unoccupied and substantially unfurnished.

 

In the November 2017 Budget statement, the Chancellor of the Exchequer announced that authorities would be given the power to increase the Council Tax Empty Homes Premium from the current level of 50% to 100% as further encouragement to owners to bring empty properties back into use.

 

In January 2018 Cabinet approved the introduction of the 100% Premium, which was expected to be effective from 1st April, 2019. However it had subsequently been announced that further changes were to be introduced to the Premium for the financial years 2020/21 and 2021/22, which would allow Councils to apply larger premiums to properties unoccupied and unfurnished for over five and ten years. It was understood that further guidance regarding implementation of the 2020/21 and 2011/22 changes may be released by the Government at a later date.

 

Legislation to introduce the changes to premiums received Royal Assent in November 2018 and it was expected that guidance in respect of the changes that could be applied from 2020/21, would be issued thereafter.

 

Cabinet Members supported these proposals and welcomed any incentive to bring long standing unoccupied properties back into use.

 

Resolved:-  That it be recommended to Council that subject to the legislation being introduced an increase in the Empty Property Premium as follows:-

 

(a)        From 2020/21 a 200% premium for properties unoccupied and unfurnished for over five years.

 

(b)        From 2021/22 a 300% premium for properties unoccupied and unfurnished for over ten years.

 

(c)        Any decisions required in relation to the implementation of premiums following the issue of Government guidance, be delegated to the Strategic Director of Finance and Customer Services, in consultation with Cabinet Member for Corporate Services and Finance.

Publication date: 08/02/2019

Date of decision: 17/12/2018

Decided at meeting: 17/12/2018 - Cabinet

Effective from: 01/01/2019

Accompanying Documents: