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  • Tax

    Council Tax on voids

    I have just been checking my Business accounts and like any other Landlord I have voids

    I never really factored in Council Tax in past years as the Council used to give you a grace period for an empty property which is no longer the case

    This currant year I have paid quite a lot of Council Tax and it all effects my profits

    In my opinion its a bit of a Ghost Tax what percentage of council tax do you factor in on your business plan

    are you finding the same as me that your Bills are growing from a couple of years ago

    I was chatting to a friend who buys and sells on property and he too is finding how easy it is to see profit slipping away from a project he is trying to sell

    again in point of fact your paying a tax for no profit gain

    who says they have not got it in for us

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Yes, these kind of "ghost" expenses should be on every landlord's radar.

    My friend, who buys and sells properties, is finding that the 3% stamp duty surcharge is really slimming his margins.  He is struggling to find deals that are financially viable because of this.

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    It’s a chip chip away fairy godmother

    and there is only one loser and that’s the investor

    in Newcastle a flat pays around £1200 pounds a year CT

    so if you have a void it is £100 a month from a gross rental of £450 a month so your loseing money faster than you think

    it all mounts up and effect nett yeild

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    In MK we get a free months grace for an empty property so rarely pay any council tax

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    Jonathan Clarke. http://www.buytoletmk.com


    Newcastle took the reductions down on a furnished/unoccupied property to a 0% reduction- on substantially unfurnished/unoccupied property they give a 1 month at 100%. From 2003 a furnished/unoccupied property had to be at least 10% discount (and a maximum of 50%) but from 2013 they were allowed to set the minimum discount at 0%. (so they have to set a discount rate, it can just be set to 0).

    I was working for them across the period they started to reduce the discounts etc and there was a lot of internal discussion over the issue and what rate should be set. Councils were 'encouraged' to reduce the discounts to recover monies being cut from the central budgets, the idea being that more money would be raised locally and that any complaints over the amounts would then be aimed at the council and not the government.

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    Specialist Council Tax paralegal advisor & consultant (A.Inst.Pa)
    http://www.lgfa92.co.uk
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog

    Any posts are my own opinion on legislation and may vary from your local authorities !

    Just out of interest DL, what % of your gross or net (you choose) is your CT provision? Can't be more than 1% I'd guess?

    I don't have a problem with CT, it's the damn Stamp Duty that is a killer in the south east!

    £22k down the swanny on a £400k purchase - there goes the refurb money right there!

    Buy some properties down south DL and then you'll find your CT provision isn't so high ;->

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