Hi ,
Any comments on the following would be appreciated.
Andy is sole director / shareholder of Bravo Ltd , a trading company which buys, refurbishes and sells properties.
Bravo Ltd have paid full council tax on a property while it was 'empty and unfurnished' ( class C ) during refurbishment and during initial marketing.
Andy is a council tax payer on his own home in the same council area.
After 2 years a 50% surcharge is payable on 'empty and unfurnished' properties.
Bravo Ltd are considering furnishing the property to aid marketing of the property, under which circumstances the property would clearly not be 'empty and unfurnished' .
it would be 'empty and furnished'
However the council list the following classifications for empty properties.
Class A Furnished properties/second homes which have a restricted use e.g. holiday chalets Full Council Tax
Class B Furnished properties/second homes Full Council Tax
Class A and B exception Liable person living in defined job related accommodation 50% discount
Class C * Empty and unfurnished properties Full Council Tax
Class D * Empty and in need of or undergoing structural alteration or major repair Full Council Tax
Class E Empty due to occupant living in job related armed services accommodation Full Council Tax
Class F Empty properties which form part of another property that is in use e.g. an empty annexe in an occupied home
Full Council Tax
and the council official has suggested that it should be Class B which would not incur the 50% surcharge.
However they refer to it as a 'second home' classification , and I believe 'second home' appears on the invoice.
Andy's concern is the use of term 'Second Home' , as it may implies that someone is receiving some kind of benefit in kind.
Nobody is, the property is empty and furnished and marketed for sale.
I know that the rates charged are determined by individual councils but I believe that the classifications A-F are set by national government.
Could anyone point to formal explanation of the classifications.
I was thinking that it might be best for Andy to email the council explaining that the property was furnished but not used as a second home and ask what classification it should come under.
Andy does not want a tax liability should HMRC erroneously claim he is obtaining a benefit in kind.
Thanks
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