Family photos could help second home owners swerve tax raid

Telegraph

18-05-2025

Second home owners could avoid double council tax bills on a property if there are family photos and heirlooms on display, a Scottish ruling suggests.
Court documents published last week indicate the presence of sentimental items can help families to prove a property is their main residence and not a second home.
It comes after more than 200 authorities in England brought in a 100pc council tax premium on second home owners from April 1.
Authorities in Wales and Scotland have held similar powers since 2017 and 2024 respectively.
The recent ruling from the Upper Tribunal for Scotland centres around 'Mr A' who owns a home in the Shetland Islands but works in Saudi Arabia for most of the year, according to Scottish Legal News.
Mr A launched an appeal against the council raising the tax bill on his Shetlands property to £2,048.
Mr A and his wife argued the house on the archipelago was their main residence, despite the fact their children attend school abroad.
They also claimed it was their intention to move back to the Shetlands property permanently in the future.
The case was first rejected by Scotland's First-tier Tribunal (FTS) chamber in October, but a further appeal to the Upper Tribunal has proved successful, and it will again be heard by the FTS at a later date.
Family photographs and heirlooms were not stated as a defence, however, Judge Sheriff McCartney suggested in the ruling that such an argument could add weight to future claims.
She said: 'The question of whether a property is a main or sole residence is fact sensitive.
'It requires the decision maker to have a clear understanding of the relevant facts.'
She continued to state several factors were influential in the case, including: how much time the family spent at the property; their ties to each home including where they book dentists' and doctors appointments; the whereabouts of personal belongings such as photographs, heirlooms and 'items of sentimental value'; their living arrangements abroad; and details of Mr A's work contract.
Ben Menahem, of law firm Seddons GSC, said: ' Second home owners may well begin to rely on this reasoning to challenge higher council tax premiums, arguing that the presence of such items reflects the property's use as a main residence.'
Johnny Drysdale, a property lawyer at Keystone Law, said it is 'interesting to note the judge's broadening of the criteria of what is a main residence'.
He added: 'Scottish judgements are not binding on English courts but commentary from judges across the border can be persuasive and influential.
'If these types of quite tenuous ties to a property can be included in the assessment, then we are going to see this tax challenged by people in England and Wales for the same reasons.
'Photographs and items of sentimental value seem very broad and open to interpretation.'
Shetland Islands Council enforced the penalty on its 221 second homes last April in an effort to boost availability for locals.
It is one of many local authorities across Britain to launch a tax raid on second home owners. Those in England have seen their annual bills rocket to £3,672 on average, according to Telegraph analysis.
Andrew Hazeldine, of law firm Aaron & Partners, said the Scottish ruling mentioning presence of family photographs in a second home 'could potentially open up a loophole of sorts'.
But he warned that 'simply putting some items of sentimental value or photographs into an unoccupied property is unlikely to sway the court's decision significantly'.
Aaron Peake, of credit score service CredAbility, said: 'A couple of framed photos and a few keepsakes aren't going to outweigh hard evidence.
'This ruling doesn't open the door for a flood of people dodging council tax by putting up a few family snaps. In fact, I'd caution anyone thinking about it.'