Important Council Tax changes from 1 April 2013 for empty properties.

The Government has introduced major changes to the financial framework in which the Council operates which has introduced significant financial risk and uncertainty whilst funding has been cut in some vital support areas.

The changes the Government has made are being introduced from April 2013 and leave the Council facing unprecedented financial pressures in order to balance its budget and continue to provide quality services for residents.

The Local Government Finance Act 2012 introduced the changes that could be made to Council Tax discounts and exemptions for second homes and certain empty properties.  The changes allow the Council greater flexibility over the amount of council tax that is charged.

With effect from 1 April 2013 the current Class A and Class C Council Tax exemptions will be abolished. The existing 10% discount that is available for second homes will be removed and an empty homes premium will be charged on properties which have been unoccupied and substantially unfurnished for more than 2 years.

A summary of the changes from 1 April 2013 are:

Class C

Properties that had previously been entitled to a full exemption under Class C from Council Tax up to a maximum of 6 months will now be subject to full Council Tax charge as the Class C exemption is being removed and replaced with a zero discount.

(Click here for the definition of Class C)

Class A

Properties that had previously been entitled to an exemption from Council Tax for up to 12 months under Class A will now be subject to full Council Tax charge as Class A exemption is being removed and being replaced with a zero discount.

     (Click here for the definition of Class A)

Second home

Properties deemed as ‘second homes’ (which also includes empty furnished lets) that had been entitled to a 10% discount will now be subject to a full Council Tax charge as the 10% discount is being removed.

Empty and unfurnished for over 2 years

Properties that have been empty and substantially unfurnished for over 2 years will be subject to a 50% additional premium (150% Council Tax charge).

These changes will be implemented, and, anyone affected by these changes will receive their Council Tax bill for 2013-14 based on the new charges.

For anyone currently receiving a Class A or Class C exemption that exemption will cease to have effect on 31 March 2013 even if they have not had the full 12 or 6 months exemption which is currently available.

Whilst these changes have not been taken lightly and need to be considered in the wider context of the Council’s financial position they are necessary in order for the Council to balance its priorities and continue to provide services at existing levels.

If you have any query regarding these changes please contact the Council Tax Team direct on 01670 624884.

Listed below are the classes of exemption applicable from 1 April 2013; 

Class	Description	Exempt Period
B	Dwellings, owned by charities, which are empty.	Up to 6 months (after which there will be a charge)
D	Dwellings left empty by persons in detention.	No limit
E	Dwellings left empty by persons in hospitals or care homes.	No limit
F	Dwellings left empty by deceased persons.	Up to grant of probate or letters of administration and up to 6 months thereafter (after which there will be a charge)
G	Dwellings whose occupation is prohibited by law.	No limit
H	Dwellings left empty but held vacant for a minister of religion.	No limit
I	Dwellings left empty by persons receiving care other than in hospital, residential care, nursing home, mental home or hostel.	No limit
J	Dwellings left empty by persons providing care.	No limit
K	Dwellings left empty by students.	No limit
L	Dwellings repossessed by a mortgagee.	No limit
M	Student halls of residence.	No limit
N	Dwellings occupied only by students.	No limit
O	Armed forces barracks, messes and married quarters.	No limit
P	Dwellings occupied by a member or members of visiting armed forces.	No limit
Q	Empty dwellings in which a trustee in bankruptcy would be the liable person for council tax.	No limit
R	Empty caravan pitch or mooring for a boat.	No limit
S	Dwellings occupied solely by persons under 18 years of age.	No limit
T	Unoccupied annexes which cannot be let separately.	No limit
U	Dwellings occupied by persons who are severely mentally impaired which can also be owned or occupied by students.	No limit
V	Dwellings occupied where at least one person who would be liable is a foreign diplomat.	No limit
W	Dwellings which form part of a single property including one other dwelling and are the home of a dependent relative (granny annex).	No limit

Please note: Class A and Class C exemptions end on 31st March 2013. From 1st April 2013 dwellings which are vacant (but not exempt under any of the classes above) no longer qualify for an exemption. Vacant dwellings are dwellings that are both unoccupied and substantially unfurnished.

 

The remainder of this page refers to the financial year 1 April 2012 to 31 March 2013.

 

If you own or occupy a property that falls into one of the categories below (excluding Class A, Class C  Class E and Class W which have relevant forms to complete) please write with the necessary supplementary information as detailed below to:

Council Tax Section,
Northumberland County Council,
Wansbeck Square,
Ashington,
Northumberland,
NE63 9XL

Where properties meet the criteria of an exemption, that exemption runs from the date these circumstances were first met. Where exemptions are time-limited a change in ownership does not mean there is entitlement to a new full exemption.

For example if a property has been empty and unfurnished for three months prior to it being bought, the new owner would only be entitled to the remaining three months of the six months exemption if it remained empty and unfurnished.

In the event that a property qualifies for more than one class of exemption, the exemptions are deemed to run concurrently.

The classes of exemptions are as follows:

Class A

Unfurnished and unoccupied property in need of or undergoing major repair work to make it habitable (can be exempt for up to six months after the work has been completed, but the exemption can not last for more than a maximum of 12 months in total)

When applying please detail the work being carried out and where you currently live. We can then arrange an inspection with you.

If the work has already been done, evidence of the work such as invoices from tradesmen or receipts for materials will help your application.

Download Class A Guidance Notes here

Download a Class A Exemption Form here

Class B

Unoccupied property that is owned by a charity (exempt for up to 6 months)

Class C 

Properties that are empty and substantially unfurnished (exempt for 6 months from when the furniture was first removed and are charged in full if still empty and unfurnished after the 6 month period).

When applying please let us know the date the furniture was first removed and provide your usual address.

Download a Class C exemption form here.

Class D 

Properties left empty where the person responsible for the Council Tax has been detained in prison. (Exemption period - no limit)

When applying please provide a letter from the prison advising when the Council Tax payer was first detained and an estimated release date. 

Class E

Properties left unoccupied where the person responsible for paying the Council Tax has become the permanent resident of a hospital or nursing home.  (Exemption period - no limit)

Download a Class E exemption form here

Class F 

Properties left empty where the Council Tax payer has died and remain the responsibility of the estate of the deceased person. This exemption only applies where the deceased Council Tax payer is the SOLE owner of the property.

Properties are exempt for 6 months beyond the Grant of Probate.  

Class G 

Properties that are unoccupied and where occupation is prohibited by law. When applying please provide a copy of the planning notice that prohibits occupation. (Exemption period - no limit)

This exemption does not apply to properties awaiting approval of planning applications. 

Class H 

Properties that are unoccupied and will be occupied by a Minister of Religion. (Exemption period - no limit)

Please provide the date the property became vacant when applying. 

Class I 

Properties that are unoccupied where the Council Tax payer has gone elsewhere to receive personal care. (Exemption period - no limit)

When applying please provide the date the property was left vacant, the address of the person providing care and a letter from a medical practitioner confirming that care is necessary.

Class J 

Properties left unoccupied where the Council Tax payer has gone elsewhere in order to provide personal care.  (Exemption period - no limit)

When applying please provide the date the property was left vacant, the address of the person receiving care and a letter from a medical practitioner confirming that care is necessary. 

Class K 

Properties left vacant where the Council Tax payer has left to study elsewhere.  (Exemption period - no limit)

When applying please provide the date you left the property and provide a student certificate confirming your status as a full-time student. 

Class L 

Properties left unoccupied which have been re-possessed by the mortgage lender.  (Exemption period - no limit)

When applying please provide the date you left the property, who the mortgage lender is and the date they took ownership of the property.

Class M 

Student halls of residence.  (Exemption period - no limit)

Class N 

Properties occupied solely by students or school / college leavers.  (Exemption period - no limit)

When applying student certificates for all adult residents are required.

Class O 

Armed forces accommodation for UK forces.  (Exemption period - no limit)

Class P 

Armed forces accommodation for visiting forces.  (Exemption period - no limit)

Class Q 

Empty dwellings in which a trustee in bankruptcy would be the liable person for Council Tax. (Exemption period - no limit)

Class R 

Unoccupied caravan pitches and houseboat moorings.  (Exemption period - no limit)

Class S 

Properties occupied solely by persons under 18.  (Exemption period - no limit)

When applying please provide proof of all residents dates of birth, such as birth certificates. 

Class T 

Unoccupied annexes that have planning notices restricting their occupation. Copies of these notices will be needed when applying. (Exemption period - no limit)

Class U 

Properties occupied solely by persons who are severely mentally impaired. When applying for this exemption an application form will need to be filled out for each member of the household. (Exemption period - no limit)

This includes a doctor’s certificate and evidence of qualifying benefits. 

Class V 

Properties that are the main residence of people with diplomatic privilege or immunity. (Exemption period - no limit)

Class W 

Annexes where the occupants are dependant relatives of the occupants of the main property. (Exemption period - no limit)

Dependant relatives are those who are over 65, severely mentally impaired or disabled. 

If the relative is severely mentally impaired then an application form needs to be completed.

Download a Class W application form. 

 

If you are unsure if you would qualify for an exemption or require any clarification of any of the classes of exemption please contact:

The Council Tax Section on 0845 600 6400 or email counciltax@northumberland.gov.uk

 

If you are awarded an exemption then you are obliged to notify the council within 21 days if your entitlement to this exemption ends.  

If you get an exemption we may send you a review form just to check you are still entitled to it. Failure to supply this information could result in the removal of the exemption. 

If you have applied for an exemption but have not yet received a decision on this application you must still pay your Council Tax in accordance with your most recent bill.

If you are awarded a time limited exemption which terminates at a future date the Council Tax bill which is issued will show the exemption to the end of the financial year. A further bill will be issued immediately prior to the exemption expiry date showing the revised Council Tax liability.