No let-offs for empty lets

From the beginning of April this year, second homeowners can no longer claim a 10% reduction in Council Tax for their holiday property.  Now they must pay the full council tax charge. Other exemptions have also been removed; properties undergoing major structural repair which previously enjoyed a 12 month tax free period will now have to pay in full, as will empty and unfurnished properties which previously qualified for a six-month exemption.

Other councils across our area have made similar changes, although most are less draconian. Chelmsford City Council gives three months exemption for properties which are unoccupied and unfurnished, and a 10% discount for furnished second-home properties. However, any left empty for more than two years will incur a 50% additional charge on top of the normal council tax rate.

Ipswich Borough Council has replaced its 100% discount over 12 months for properties undergoing major works with 10% off for a year, and its 100% discount for six months on other empty properties with 50% off for 28 days only. The second home overall discount of 10% has also been removed. They are also charging a 50% premium for properties left empty for more than two years.

For more information please contact a member of our Lettings team.

Steve Wright, Salaried Partner | Residential Lettings