Council Tax Changes on Empty Properties: New Rules for 2024
Published 31st July 2024
At Hammond-Barr Accountants, we're committed to informing you about tax changes that could affect your property investments. Recent updates to council tax rules for empty properties are set to reshape the landscape for homeowners and investors alike.
New Rules in Effect
Local councils now have the power to double council tax on long-term empty properties after just 12 months, rather than the previous two-year period. This change addresses housing shortages in areas where empty homes prevent locals from finding affordable housing.
Note that these updates were published under the 2022 to 2024 Conservative government. They may be subject to change under the new Labour government.
Second Homes and Additional Revenue
Councils have also gained new powers to introduce a tax premium on second homes in their area. This could potentially bring in millions more for public services or help keep overall council tax bills down for local residents.
Exceptions to the Rule
The Department for Levelling Up has outlined a limited number of exceptions to ensure fairness:
Empty properties uninhabitable due to extensive renovation
Second homes are unavailable year-round due to planning restrictions
Inherited homes, for up to one year to protect bereaved families
Impact on Homeowners and Communities
The government has stated that long-term empty properties are shutting local families and young people out of the housing market, denying them the opportunity to rent or buy in their community.
These changes are part of the government's long-term plan for housing, which aims to deliver one million homes and is backed by a £10 billion investment.
Additional Reforms
The government has also introduced reforms to give councils greater control over short-term lets by making them subject to the planning process. This aims to protect local residents from being pushed out of their communities.
What This Means for You
If you own a second home or an empty property for an extended period, these changes could significantly impact your tax liabilities. It's crucial to review your property portfolio and consider how these new rules might affect you.
How We Can Help
At Hammond-Barr Accountants, we're here to assist you in navigating these changes and optimising your property-related tax strategy. Our team can help you:
Assess the impact of these new rules on your specific situation
Explore options for minimising your tax liability
Ensure compliance with the new regulations
Don't wait to start planning. Contact us today to schedule a consultation and discuss how we can help you adapt to these new council tax rules. Let's work together to ensure your property investments remain financially sound in light of these legislative changes.
Remember, while we can provide expert guidance, the full impact of these changes may vary depending on individual circumstances and future policy implementations.
Want to know more?
You can contact Hammond-Barr accountants on 01438 281281 or via email at [email protected].
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