Latest news with #LevellingUpandRegenerationAct
Yahoo
03-05-2025
- Business
- Yahoo
How to fight back against the second home tax raid
Have you appealed a second home premium? Share your story by emailing money@ Second home owners in over 200 local authorities hit by double council tax bills may be able to appeal the increase, it can be revealed. Some 55 councils have seen disputes over the application of a second home council tax premium, with hundreds of successful appeals, according to data obtained via a Freedom of Information request carried out by the Taxpayers' Alliance. The premium, which has seen some second home owners receive five-figure bills, is charged on properties that are furnished but not used as someone's main home. Telegraph Money is calling for the premium to be abolished, and scores of our readers have told us that they feel vilified by the levy. From April 1, over two thirds of town halls chose to use new powers, granted in the Levelling Up and Regeneration Act, which allowed them to impose a 100pc council tax premium on second home owners. But the new research reveals that councils are already climbing down in some cases. New Forest Council, which has seen the most appeals of any council, has removed 230 council tax premiums and added exceptions to 199 accounts. North Yorkshire Council has recorded a total of 310 exceptions to the council tax premium on second homes. Of the 125 disputes in Great Yarmouth, 46 resulted in a change of charge, or 37pc. With regard to council tax, a second home is defined as a property that is 'occupied periodically', for which 'there is no resident of the dwelling, and the dwelling is substantially furnished'. But if you use your second home frequently enough, or you do not believe that your home meets this definition, you may be able to use this to appeal a council tax premium. A spokesman for Isle of Wight Council, which has received 350 total disputes and removed premiums on or granted exceptions to 31 homes, said: 'One likely reason for this is that the property was previously being recorded as a second home, but it is now someone's main residence.' But the council also removed 20 premiums on properties that remained a second home, but met an eligibility criteria for an exception to the council tax premium. The spokesman added: 'We assessed these based on the information and evidence supplied by the taxpayers to demonstrate their eligibility.' The spokesman said this could include properties that are: Annexes and military accommodation Job-related dwellings Caravan pitches/boat moorings Undergoing probate Being actively marketed for sale or let Seasonal homes If you believe that your second home meets one of these criteria, you may be eligible for an exemption from the council tax premium on your second home. For example, there are 12-month exemptions for properties where the occupant has died, from the date of a grant of probate. Properties being actively marketed for sale or let are also exempt from the premium for one year, but this does not apply to a property for a second time until it has been sold, or let for at least six months. The council tax premium should also not apply to seasonal homes where year-round or permanent occupation is prohibited, or that have been specified for use as holiday accommodation, or prevent occupancy as a person's sole or main residence. 'I'd imagine that most of the appeals would be because people have successfully disputed the claim that it's not their primary residence. Alternatively, they may have applied for council tax support,' said Elliot Keck of the Taxpayers' Alliance. If you believe that your home should be exempt from the council tax premium, you can first try to appeal to your council directly – ultimately, the decision regarding exemption lies with them. 'All councils will have their own appeals process,' added Mr Keck. You will generally need to provide your council tax number along with the address of the home you are disputing the council tax premium on. You will also need to provide evidence to support your claim. If this fails, you'll need to complete an appeal form and submit it to the Valuation Registry, along with evidence and information supporting your case. You'll need to do this within two months of receiving a decision from your local council about a premium. Jenny Wigley KC, of barrister firm Landmark Chambers, said: 'An appeal to the Valuation Tribunal would only really be able to challenge the calculation of council tax payable on a particular dwelling, or the question of whether that dwelling actually falls within the area or category subject to the council's determination increasing the council tax. A Valuation Tribunal appeal would not be able to challenge the council's determination of the increase itself.' If you are facing financial hardship due to a council tax premium, you may be able to apply for a council tax reduction, also known as council tax support. Whether or not you are eligible depends on a number of factors including your income, how many children you have and if they live with you, and ultimately where you are, as your local authority will make the decision. While councils have been given permission to raise council tax on second homes, there is a list of factors they should take into account when deciding whether it is appropriate to do so, according to the House of Commons library website. These include: Numbers and proportion of long-term empty dwellings and/or second homes in the local area Circumstances which may affect whether the dwelling can be used as a main residence Potential impact on local economies and the tourism industry Potential impact on the local community Potential impact on local services Other measures that are available to councils to help bring empty dwellings back into use If you do not believe that second homes in your constituency have any meaningful negative impact on the local community and local services, or that there is not a large number of empty dwellings and second homes in your area, you may be able to use this as evidence in your appeal to the Valuation Registry. For example, the West Midlands, the North East and the North West rank as the regions with the lowest proportions of second homes in the UK, ranging from 0.2pc to 0.5pc of all dwellings, according to Census data. Yet a number of local authorities within these regions, such as Cheshire and Durham, have taken advantage of their powers to double council tax on second homes. Heather Powell, head of property at tax advice firm Blick Rothenberg, said: 'Your local politicians are desperate to raise money. But if there is not a surplus of empty homes in your area, or holiday homes aren't going to go to locals, they should be considering the money that second home owners bring into the area and spend, and the support they give to the leisure and hospitality industries. That can be really important for the local economy and businesses, who may suffer due to this. 'Appealing council tax premiums on second homes may become easier in the future; as the tax increase is very new for the majority of UK constituencies, there lacks a wealth of legal precedent for appealers to draw on. As the House of Commons library website states, 'legal cases that clarify when exemptions should apply may emerge in the next few years.' One Telegraph reader, who did not wish to be named, managed to overturn a council tax premium successfully. He told Telegraph Money that by maintaining that he used his second home regularly, the local council conceded that it did not fit definitions of a second home, as stated by online guidelines. He said: 'My wife and I are in the fortunate position of owning two houses [in two different local authorities]. We have owned these houses since June 2018 and since then have paid full council tax on both properties: both houses are owned by the two of us jointly. 'My wife lives for the bulk of the year in one house, and I live for the bulk of the year in the other. We occasionally spend time together in one of the two houses but more often than not we live separately in the two houses. 'We see our domestic arrangements as very unusual. While we undoubtedly own two properties, we do not see either of them as a 'second home'. They are both lived in and occupied by us for most of the year. Each of us contributes to our local economy. 'I think [the council was] swayed by some guidance I sent them which has been published on a number of council websites, which is pragmatic in deciding what constitutes a second home. 'While the council did declare that the house is a second home a few months ago, they have recently come round to the view that [it is actually] my main residence and that, subject to sorting out a couple of bits of paperwork, they will be removing it from their list of second homes, and normal council tax will be charged on it rather than double.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
03-05-2025
- Business
- Telegraph
How to fight back against the second home tax raid
Have you appealed a second home premium? Share your story by emailing money@ Second home owners in over 200 local authorities hit by double council tax bills may be able to appeal the increase, it can be revealed. Some 55 councils have seen disputes over the application of a second home council tax premium, with hundreds of successful appeals, according to data obtained via a Freedom of Information request carried out by the Taxpayers' Alliance. The premium, which has seen some second home owners receive five-figure bills, is charged on properties that are furnished but not used as someone's main home. Telegraph Money is calling for the premium to be abolished, and scores of our readers have told us that they feel vilified by the levy. From April 1, over two thirds of town halls chose to use new powers, granted in the Levelling Up and Regeneration Act, which allowed them to impose a 100pc council tax premium on second home owners. But the new research reveals that councils are already climbing down in some cases. New Forest Council, which has seen the most appeals of any council, has removed 230 council tax premiums and added exceptions to 199 accounts. North Yorkshire Council has recorded a total of 310 exceptions to the council tax premium on second homes. Of the 125 disputes in Great Yarmouth, 46 resulted in a change of charge, or 37pc. Eligibility for appeal With regard to council tax, a second home is defined as a property that is 'occupied periodically', for which 'there is no resident of the dwelling, and the dwelling is substantially furnished'. But if you use your second home frequently enough, or you do not believe that your home meets this definition, you may be able to use this to appeal a council tax premium. A spokesman for Isle of Wight Council, which has received 350 total disputes and removed premiums on or granted exceptions to 31 homes, said: 'One likely reason for this is that the property was previously being recorded as a second home, but it is now someone's main residence.' But the council also removed 20 premiums on properties that remained a second home, but met an eligibility criteria for an exception to the council tax premium. The spokesman added: 'We assessed these based on the information and evidence supplied by the taxpayers to demonstrate their eligibility.' The spokesman said this could include properties that are: Annexes and military accommodation Job-related dwellings Caravan pitches/boat moorings Undergoing probate Being actively marketed for sale or let Seasonal homes If you believe that your second home meets one of these criteria, you may be eligible for an exemption from the council tax premium on your second home. For example, there are 12-month exemptions for properties where the occupant has died, from the date of a grant of probate. Properties being actively marketed for sale or let are also exempt from the premium for one year, but this does not apply to a property for a second time until it has been sold, or let for at least six months. The council tax premium should also not apply to seasonal homes where year-round or permanent occupation is prohibited, or that have been specified for use as holiday accommodation, or prevent occupancy as a person's sole or main residence. 'I'd imagine that most of the appeals would be because people have successfully disputed the claim that it's not their primary residence. Alternatively, they may have applied for council tax support,' said Elliot Keck of the Taxpayers' Alliance. How to appeal a council tax premium If you believe that your home should be exempt from the council tax premium, you can first try to appeal to your council directly – ultimately, the decision regarding exemption lies with them. 'All councils will have their own appeals process,' added Mr Keck. You will generally need to provide your council tax number along with the address of the home you are disputing the council tax premium on. You will also need to provide evidence to support your claim. If this fails, you'll need to complete an appeal form and submit it to the Valuation Registry, along with evidence and information supporting your case. You'll need to do this within two months of receiving a decision from your local council about a premium. Jenny Wigley KC, of barrister firm Landmark Chambers, said: 'An appeal to the Valuation Tribunal would only really be able to challenge the calculation of council tax payable on a particular dwelling, or the question of whether that dwelling actually falls within the area or category subject to the council's determination increasing the council tax. A Valuation Tribunal appeal would not be able to challenge the council's determination of the increase itself.' If you are facing financial hardship due to a council tax premium, you may be able to apply for a council tax reduction, also known as council tax support. Whether or not you are eligible depends on a number of factors including your income, how many children you have and if they live with you, and ultimately where you are, as your local authority will make the decision. Evidence for appeal While councils have been given permission to raise council tax on second homes, there is a list of factors they should take into account when deciding whether it is appropriate to do so, according to the House of Commons library website. These include: Numbers and proportion of long-term empty dwellings and/or second homes in the local area Circumstances which may affect whether the dwelling can be used as a main residence Potential impact on local economies and the tourism industry Potential impact on the local community Potential impact on local services Other measures that are available to councils to help bring empty dwellings back into use If you do not believe that second homes in your constituency have any meaningful negative impact on the local community and local services, or that there is not a large number of empty dwellings and second homes in your area, you may be able to use this as evidence in your appeal to the Valuation Registry. For example, the West Midlands, the North East and the North West rank as the regions with the lowest proportions of second homes in the UK, ranging from 0.2pc to 0.5pc of all dwellings, according to Census data. Yet a number of local authorities within these regions, such as Cheshire and Durham, have taken advantage of their powers to double council tax on second homes. Heather Powell, head of property at tax advice firm Blick Rothenberg, said: 'Your local politicians are desperate to raise money. But if there is not a surplus of empty homes in your area, or holiday homes aren't going to go to locals, they should be considering the money that second home owners bring into the area and spend, and the support they give to the leisure and hospitality industries. That can be really important for the local economy and businesses, who may suffer due to this. 'Appealing council tax premiums on second homes may become easier in the future; as the tax increase is very new for the majority of UK constituencies, there lacks a wealth of legal precedent for appealers to draw on. As the House of Commons library website states, 'legal cases that clarify when exemptions should apply may emerge in the next few years.' 'I fought the council tax premium on my second home – and won' One Telegraph reader, who did not wish to be named, managed to overturn a council tax premium successfully. He told Telegraph Money that by maintaining that he used his second home regularly, the local council conceded that it did not fit definitions of a second home, as stated by online guidelines. He said: 'My wife and I are in the fortunate position of owning two houses [in two different local authorities]. We have owned these houses since June 2018 and since then have paid full council tax on both properties: both houses are owned by the two of us jointly. 'My wife lives for the bulk of the year in one house, and I live for the bulk of the year in the other. We occasionally spend time together in one of the two houses but more often than not we live separately in the two houses. 'We see our domestic arrangements as very unusual. While we undoubtedly own two properties, we do not see either of them as a 'second home'. They are both lived in and occupied by us for most of the year. Each of us contributes to our local economy. 'I think [the council was] swayed by some guidance I sent them which has been published on a number of council websites, which is pragmatic in deciding what constitutes a second home. 'While the council did declare that the house is a second home a few months ago, they have recently come round to the view that [it is actually] my main residence and that, subject to sorting out a couple of bits of paperwork, they will be removing it from their list of second homes, and normal council tax will be charged on it rather than double.'
Yahoo
24-04-2025
- Business
- Yahoo
We are now counting the cost of Michael Gove's dreadful mistake
After a long and controversial career in politics, Michael Gove drew many admirers from the Conservative Party. But one of his biggest blunders is only now coming to light, and could well end up costing the Tories crucial votes next time Britain goes to the polls. The Tories' 'Mr Fixit' served continuously in the Cabinet for 14 years under four prime ministers. Though (tellingly), he never held one of the Great Offices of State, he was unusually effective, particularly in reforming the education system and seeking to end the scandal of leasehold property 'ownership'. Highly intelligent and full of can-do energy, he is the kind of politician who actually gets things done, rather than serving up endless platitudes like most MPs. But his eagerness for change was also his weakness (see his disastrous public betrayal of Boris Johnson), and second home owners are now feeling the ill-effects. I'm not convinced he fully understood the powers he handed to local councils as part of the Levelling Up and Regeneration Act. Perhaps I'm being too generous, but the powers go against everything the Conservatives should stand for. Thousands of people across Britain have been shocked to receive demands for double council tax on second properties under powers granted by Mr Gove that took effect in April. Back in 2023, the Government said one of the outcomes of the reforms would be to 'rebalance the housing and land markets'. It would do this by 'giving local councils the power to increase council tax on empty homes'. That statement was misleading. The fine print of the Act makes it clear this is an increase on second homes, no matter how well used they are, not simply empty properties wealthy investors are hoarding with no intention of ever using. Councils have already had the power to charge extra tax on empty homes since 2013. These were unfurnished properties that had been unoccupied for at least two years, and the premium was set at 50pc to encourage owners to rent them out or sell up. That seems fair enough. The changes that Mr Gove brought in attack boltholes, often owned by families for generations. These are often in places where there is actually little demand for year-round housing. Several writers at The Spectator, the august organ that Mr Gove now runs as editor, agree. Matthew Lynn, also of this parish, notes that second homes account for just 3pc of our housing stock, compared to 10pc in France and 54pc in Sweden. He argues that, rather than penalising owners, we should be encouraging people to buy one. In the same magazine, Ross Clark makes the obvious point that the real issue is we are not building enough of the kind of the houses in the places we actually want them. Branding second homers as evildoers who need to be bled dry, doesn't fix that one jot. What does Mr Gove make of all this? Does he regret giving councils free rein to extort property owners, some of who have invested in these homes in lieu of pensions and other savings to support themselves in old age, or painstakingly restored dilapidated homes no one else wanted? We don't know what he thinks because he has been strangely quiet. To his credit, he is not stopping others from criticising his second homes raid, but we deserve to hear his side of the story. Telegraph Money reader, Sue, is spot on when she says that the 'only people it seems to be popular with are the local councils, who can't believe their luck'. She added: 'At a stroke, the Tories lost many of their hardcore voters (including me), some of them probably never to return (very probably me).' He was a mercurial politician of rare skill but he has opened pandora's box. The least we deserve is an apology and his help in reversing a wrong-headed raid on aspiration. The Telegraph is campaigning to abolish the second homes council tax raid. Mr Gove, if you are ready to join us, my email is below. Email me at: Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
24-04-2025
- Business
- Telegraph
We are now counting the cost of Michael Gove's dreadful mistake
After a long and controversial career in politics, Michael Gove drew many admirers from the Conservative Party. But one of his biggest blunders is only now coming to light, and could well end up costing the Tories crucial votes next time Britain goes to the polls. The Tories' 'Mr Fixit' served continuously in the Cabinet for 14 years under four prime ministers. Though (tellingly), he never held one of the Great Offices of State, he was unusually effective, particularly in reforming the education system and seeking to end the scandal of leasehold property 'ownership'. Highly intelligent and full of can-do energy, he is the kind of politician who actually gets things done, rather than serving up endless platitudes like most MPs. But his eagerness for change was also his weakness (see his disastrous public betrayal of Boris Johnson), and second home owners are now feeling the ill-effects. I'm not convinced he fully understood the powers he handed to local councils as part of the Levelling Up and Regeneration Act. Perhaps I'm being too generous, but the powers go against everything the Conservatives should stand for. Thousands of people across Britain have been shocked to receive demands for double council tax on second properties under powers granted by Mr Gove that took effect in April. Back in 2023, the Government said one of the outcomes of the reforms would be to 'rebalance the housing and land markets'. It would do this by 'giving local councils the power to increase council tax on empty homes'. That statement was misleading. The fine print of the Act makes it clear this is an increase on second homes, no matter how well used they are, not simply empty properties wealthy investors are hoarding with no intention of ever using. Councils have already had the power to charge extra tax on emptyhomes since 2013. These were unfurnished properties that had been unoccupied for at least two years, and the premium was set at 50pc to encourage owners to rent them out or sell up. That seems fair enough. The changes that Mr Gove brought in attack boltholes, often owned by families for generations. These are often in places where there is actually little demand for year-round housing. Several writers at The Spectator, the august organ that Mr Gove now runs as editor, agree. Matthew Lynn, also of this parish, notes that second homes account for just 3pc of our housing stock, compared to 10pc in France and 54pc in Sweden. He argues that, rather than penalising owners, we should be encouraging people to buy one. In the same magazine, Ross Clark makes the obvious point that the real issue is we are not building enough of the kind of the houses in the places we actually want them. Branding second homers as evildoers who need to be bled dry, doesn't fix that one jot. What does Mr Gove make of all this? Does he regret giving councils free rein to extort property owners, some of who have invested in these homes in lieu of pensions and other savings to support themselves in old age, or painstakingly restored dilapidated homes no one else wanted? We don't know what he thinks because he has been strangely quiet. To his credit, he is not stopping others from criticising his second homes raid, but we deserve to hear his side of the story. Telegraph Money reader, Sue, is spot on when she says that the 'only people it seems to be popular with are the local councils, who can't believe their luck'. She added: 'At a stroke, the Tories lost many of their hardcore voters (including me), some of them probably never to return (very probably me).' He was a mercurial politician of rare skill but he has opened pandora's box. The least we deserve is an apology and his help in reversing a wrong-headed raid on aspiration. The Telegraph is campaigning to abolish the second homes council tax raid. Mr Gove, if you are ready to join us, my email is below.
Yahoo
15-04-2025
- Business
- Yahoo
‘Suspicious' second homes flood property market in holiday let hotspots
Second home owners are raising suspicion by exploiting a loophole to dodge council tax premiums. Local authorities have been able to charge a 100pc premium on second homes since April 1, under new powers introduced under the 2023 Levelling Up and Regeneration Act. But experts said second home owners were 'raising eyebrows' by exploiting a legal loophole around it. By listing their holiday home for sale, owners can receive a 12-month exemption from the tax. The tactic is fully legal as long as properties are publicly marketed and listed at a price in line with the local area. North Cornwall MP, Ben Maguire, said the litany of for-sale signs in the coastal town of Padstow was 'suspicious'. He said: 'Houses here sell like hot cakes. It's slightly suspicious, seeing that. They've been on the market a long time.' Only around a fifth of second homes which have come on to the market this year are under offer, according to Hamptons estate agency. While property sales are a slow-moving process across the board, Harry Goodliffe, of Hampshire-based firm, HTG Mortgages, accused some second home owners of 'playing the game'. He said: 'We've noticed a few properties pop up at inflated prices or with zero real marketing effort. It's a clear sign they're just buying 12 months of relief, not seriously exiting the market. 'This loophole might be legal, but it's raising eyebrows. List the house, dodge the tax, but don't actually sell.' The average second home owner has seen their tax bill rise 77pc to £3,672 in 2025-26 as a result of the new premium, according to Telegraph analysis. Those owning the most expensive properties in some areas face a bill in excess of £10,000. A growing number, however, are believed to be sidestepping the costs by putting their home for sale with little intention of selling. Several councils shared fears over administration challenges and suggested the relief 'could be open to abuse and create opportunities for avoidance' when consulted by the Government in 2023. Jonathan Moser, of property management firm, Mo'Living, said: 'It's early days but we're already seeing this tactic emerge.' Holiday home owners in England making use of the listing trick are following in the footsteps of those in Wales who have faced tripled council tax bills since last April. The exemption, which is enshrined in the Local Government Finance Act, can last for a maximum of one year, but councils have discretionary powers to extend the relief if a sale is nearly over the line. There is, however, no obligation to sell. An owner can only make use of the 12-month exemption once during the course of their ownership. As well as being listed for sale, the home can be marketed for let and still earn 100pc relief from the premium. Government guidance states: 'Owners may need to provide evidence to their council to benefit from this exception. To qualify, a property must be on the market for sale or let at a reasonable price. 'In cases where the council considers the sale or rental price to be inflated, the council can request evidence to support the asking price.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
