Empty property tax relief in Gravesham is ENDING!
When a property is empty traditionally local councils have offered discounts on council tax, providing relief for Landlords and property owners. However, recent changes in legislation have altered the landscape of empty property discounts. What is changing and when?
At the moment landlords and owners currently receive a 100% discount for up to a month for empty, unfurnished properties. From 1st April 2024 this is changing!!
The Evolution of Empty Property Discounts
Historically, many local councils in various regions offered substantial discounts or exemptions on council tax for empty properties. However, over time, concerns arose regarding the impact of empty properties on local communities, such as decreased property values, increased crime rates, and reduced neighbourhood vibrancy. In response, legislative changes have been introduced to modify the way empty properties are taxed, aiming to incentivise property owners to occupy or sell vacant properties promptly.
What’s happening
From 1st April 2024 exemptions in Gravesham will change.
The Council Tax (Prescribed Classes of Dwelling) (England) (Amendment) Regulations 2012 gives the council powers to determine how discounts apply to certain empty properties.
- Empty properties currently receive 100% discount for up to a month. However, from 1 April 2024 this discount will no longer be awarded
- Properties requiring major works to render them habitable currently receive a 100% discount for up to 12 months discount. This will no longer be available from 1 April 2024.
- Under The Levelling-Up and Regeneration Act 2023 the council are required to levy a premium charge on a Council Tax account of an additional 100% (i.e. two times the standard charge) for properties that have been unoccupied and unfurnished for at least 12 months prior to 1 April 2024
The council have provided working examples for those who aren’t sure. Further information is available on their website www.gravesham.gov.uk/council-tax-help/empty=property-discount.
What you need to do
These changes make it vital that you inform the council as soon as a property is let or sold. You can do this by emailing council.tax@gravesham.gov.uk with the tenant's full name and tenancy start date or the date of completion and the new owners full name. You can also send copy documents, for example tenancy agreements, to this email address. We do this for all of our managed tenancies already.
Conclusion
Whilst these changes reflect evolving priorities among local councils and governments to address housing shortages and promote efficient use of housing stock, they are yet another blow for Landlords in terms of additional costs to consider coming off their already stretched bottom line.
Should you have any queries about the above, or indeed any property related questions please do not hesitate to contact the office. We are here and ready to help.