Low Income Landlords and Council Tax

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  • LandlordOfTheEast
    replied
    So, if there is no fire do I get my refund? Wow, that's a lot of money for such an unlikely eventuality. Unfurnished properties don't usually have much in the way of things to steal and I would prefer to deal with the matter myself if a kettle - for example - was stolen - no need to waste police time.

    Leave a comment:


  • LandlordOfTheEast
    replied
    Some people purchase properties in order to generate an income for themselves to live off. It could be that almost all their money has gone into this. Councils taking money from landlords (council tax) when their properties are empty, when no other income is available to the landlords (in the event of all properties being vacant) and when the landlord is actively trying to tenant the properties is a disgrace.

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  • LandlordOfTheEast
    replied
    People who only have a second home for leisure purposes no doubt have the money to cover any expenses.

    Leave a comment:


  • loanarranger
    replied
    If someone is on such a low income, I would seriously suggest disposing of the property since clearly there is no contingency for voids, essential repairs and maintenance etc etc.
    As I said previously the question as posed beggars belief.

    Leave a comment:


  • jamie380
    replied
    Think of council tax on empty properties as an incentive to fill them with tenants. Empty properties are bad for the council as they have an obligation to house homeless people, so the more homes lying empty in their district the harder this becomes.

    Most councils have now removed empty property discounts, indeed some are now charging double.

    Leave a comment:


  • loanarranger
    replied
    The posting by Landlord of the east just beggars belief, it seems that he is quite happy for tenants to pay him a market rent which provides some level of income but the moment it is vacant complains that he should have to pay Council Tax. Sorry to be so blunt but "Wake up and smell the coffee"
    I thought it was June 1st not April 1st

    Leave a comment:


  • Gordon999
    replied
    Originally posted by LandlordOfTheEast View Post
    Because of the low income they are on (under annual personal allowance). On an empty property noone is living there and, therefore, nothing should be demanded from the council to cover the cost of someone (not) living there and all the related expenses attached.
    If the owner has low income, it would be sensible to let out the property and receive some rental income .

    At present if property has no furniture , most Councils will allow 6 months period with no CT from date of visit by their inspector.

    Leave a comment:


  • jpkeates
    replied
    It's a property tax, not a personal tax.
    The property still makes demands on the council.

    If it catches fire, they'll still come and try and put it out.
    The police will still investigate a burglary and protect the property.
    And so on...

    Leave a comment:


  • LandlordOfTheEast
    replied
    Originally posted by calm-on-the-surface View Post
    What I can't fathom is why anyone would think that they ought to get a 100% discount on Council and that everybody else should pick up their bill.
    Because of the low income they are on (under annual personal allowance). On an empty property noone is living there and, therefore, nothing should be demanded from the council to cover the cost of someone (not) living there and all the related expenses attached.

    Leave a comment:


  • Hippogriff
    replied
    Originally posted by LandlordOfTheEast View Post
    The problem is when the council interferes and starts demanding that the landlord has to pay them council tax on empty properties as this can very difficult for the landlord to makes ends meet.
    You're not describing a problem.

    You're describing what any Landlord should have known well before they got into the gig. Call it planning, budgeting, whatever... it's not a surprise expense.

    Leave a comment:


  • calm-on-the-surface
    replied
    I would guess that it is more of a burden having to pay council tax on a property that does not generate any income rather than on a property that is a business acquisition.
    What I can't fathom is why anyone would think that they ought to get a 100% discount on Council and that everybody else should pick up their bill.

    Leave a comment:


  • LandlordOfTheEast
    replied
    Thanks for the reply. It's just that some landlords can invest pretty much everything they have in an attempt to create a small business and then try to live off a mediocre income from the rentals - nothing wrong with that. The problem is when the council interferes and starts demanding that the landlord has to pay them council tax on empty properties as this can very difficult for the landlord to makes ends meet. This is very a different situation from people who have second homes which they frequent a few months of the year and do not use the home to generate income. You would expect that these people do not find paying council tax as much of a burden.

    Leave a comment:


  • Gordon999
    replied
    If it is vacant for re-decoration and no furniture inside the property, you may qualify for Nil charge for 6 months ( after inspection) or 25% discount for single occupancy but depends on your local council.

    For low income persons, you may get a discount on council tax for the property you live in but not for another property.

    Leave a comment:


  • theartfullodger
    replied
    Why should he have preferential treatment over anyone else??

    On what grounds does THIS local council grant not needing to pay council tax on THAT property?? Apologies, but I can't work it out from your post...

    Leave a comment:


  • LandlordOfTheEast
    started a topic Low Income Landlords and Council Tax

    Low Income Landlords and Council Tax

    Hello there.

    If a self employed landlord is earning under the personal allowance threshold, should he/she have to pay council tax on an empty house/apartment?

    Thanks,

    Bob.

Latest Activity

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  • Reply to Flipping a property
    by Gordon999
    Land Registry only allows 4 names maximum on the property title.

    If more than 4 names , you would need to register under company name and the members in the group become shareholders.

    The members can be shareholders with one £1 share each and the company borrows the funds...
    30-05-2020, 05:59 AM
  • Flipping a property
    by Gray
    My son and I are thinking of buying a property together and renovating it. We were intending to rent it out but now are thinking about just selling it again once work is finished. If we purchase property in three names (our’s and his partner’s), we would get three capital gains allowances is that...
    18-05-2020, 17:53 PM
  • Reply to Flipping a property
    by jpkeates
    If the property title was a joint tenancy, anyone not contributing to the purchase would have received the ownership as a gift and would be an owner as a matter of fact.
    29-05-2020, 16:26 PM
  • Is changing carpets to laminate flooring tax deductible?
    by anqi_z
    Hello,

    Carpets in a let property has worn out and I am considering to replace it with laminate flooring.
    Could anyone advise if this will be tax deductible (assume this won't be considered as improvement)?


    Thank you....
    25-05-2020, 19:16 PM
  • Reply to Is changing carpets to laminate flooring tax deductible?
    by jpkeates
    OK, that makes a lot more sense.

    The HMRC guidance is focussed on improvements like new rooms or new bathrooms rather than more mundane changes.

    I would probably focus equally on the amount of the difference rather than the ratio - £500 is neither here nor there for tax purposes,...
    29-05-2020, 16:16 PM
  • Reply to Flipping a property
    by Stew
    thanks - interesting reading
    29-05-2020, 15:32 PM
  • Reply to Flipping a property
    by TaxAntics
    A good question! I read the post as being a purchase between a father, son and their partner and so assumed they'd all have an equitable interest. A partnership arrangement could easily have a variable profit sharing ratio that wouldn't necessarily follow equitable interests with partners’ capital...
    29-05-2020, 15:22 PM
  • Reply to Flipping a property
    by Stew
    A question if I may (not that I am disposing or buying but just sparked a question),,, is it enough to purchase the property in three names or do three names actually have to put funds into it at the point of purchase?

    If a property were bought by ten members of a family and all on the...
    29-05-2020, 14:38 PM
  • Reply to Is changing carpets to laminate flooring tax deductible?
    by TaxAntics
    That depends on how you choose to interpet HMRC guidance:

    However, where the new item is not substantially of the same standard/quality as the old item, the deduction is equal to the lesser of:
    • the cost of the new item
    or
    • the cost that would have been incurred if the old item had essentially
    ...
    29-05-2020, 13:32 PM
  • Reply to Is changing carpets to laminate flooring tax deductible?
    by jpkeates
    That's not correct.

    While it's not exactly like for like, one conventional floor covering is being replaced by another.
    Some incidental improvement is likely (as with any replacement) - the "improvement" wouldn't affect the value of the property materially....
    29-05-2020, 13:13 PM
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