Latest news with #Taxpayers'Alliance
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.'
Telegraph
11-04-2025
- Business
- Telegraph
Residents furious over council's ‘custard corner' paintwork in historic market town
Residents in a historic market town have criticised the council for painting a public space bright yellow. Warwickshire county council spent £42,000 repainting the space in Kenilworth as part of efforts to 'renew and refresh' the area. But many people have questioned the choice of the paint scheme, which has been described as 'vile', 'nauseating' and 'overpowering'. The pedestrian area along Station Road has since become known locally as Custard Corner. Residents have criticised the council for wasting thousands of pounds of taxpayers' money on painting a 'gigantic double yellow line'. Georgina Tibbits, a 69-year-old retired pastel artist, said: 'It's not appropriate for here, it's a little bit overpowering. 'If you've ever done colour theory, yellow is supposed to cheer you up. 'I don't know if that was supposed to be the idea behind it but I find it jarring, it's not relaxing is it? Niall Halfpenny, 32, added: 'It's become a bit of a local joke and lots of people just call it the custard corner now. 'It's pretty vile isn't it, just looks like a gigantic double yellow line to me. 'I'm not sure who thought it was a good idea because it was clearly a waste of money.' Benjamin Elks, the grassroots development officer at the Taxpayers' Alliance, said this type of spending 'does nothing for local services and everything for council PR'. He added: 'Councils should be focused on fixing potholes and emptying bins, not splashing cash on bizarre paint jobs'. The road was shut off to motorists permanently during the pandemic, and reopened as a pedestrianised area in 2023. Steve Penny, a 62-year-old resident, said the new pedestrian zone has interfered with his cycle routes and described the colour as 'nauseating'. He said: 'I hate it. I see no sense in closing a perfectly good road, roads are there for a reason. It means I can no longer cycle into town directly, I now have to go out of my way to get into town as there's no clear cycle route. 'Disregarding the idea that it's a stupid idea in the first place, I mean the colour shows the dirt really badly. Choosing a darker colour would have been more sensible. It's not very convivial for a conversation.' A spokesperson for Warwickshire county council said: 'The initial closure of Station Road, Kenilworth was funded by the Government and implemented to assist with social distancing and encourage outdoor seating during the COVID-19 pandemic. 'When restrictions were lifted, it was identified that the area would still benefit from improvements to further enhance the space for pedestrians, so £42,000 was allocated from the Delegated Budget to renew and refresh the old road surface; the yellow surfacing was chosen as the most cost-effective option.'
Yahoo
11-04-2025
- Business
- Yahoo
Residents furious over council's ‘custard corner' paintwork in historic market town
Residents in a historic market town have criticised the council for painting a public space bright yellow. Warwickshire county council spent £42,000 repainting the space in Kenilworth as part of efforts to 'renew and refresh' the area. But many people have questioned the choice of the paint scheme, which has been described as 'vile', 'nauseating' and 'overpowering'. The pedestrian area along Station Road has since become known locally as Custard Corner. Residents have criticised the council for wasting thousands of pounds of taxpayers' money on painting a 'gigantic double yellow line'. Georgina Tibbits, a 69-year-old retired pastel artist, said: 'It's not appropriate for here, it's a little bit overpowering. 'If you've ever done colour theory, yellow is supposed to cheer you up. 'I don't know if that was supposed to be the idea behind it but I find it jarring, it's not relaxing is it? Niall Halfpenny, 32, added: 'It's become a bit of a local joke and lots of people just call it the custard corner now. 'It's pretty vile isn't it, just looks like a gigantic double yellow line to me. 'I'm not sure who thought it was a good idea because it was clearly a waste of money.' Benjamin Elks, the grassroots development officer at the Taxpayers' Alliance, said this type of spending 'does nothing for local services and everything for council PR'. He added: 'Councils should be focused on fixing potholes and emptying bins, not splashing cash on bizarre paint jobs'. The road was shut off to motorists permanently during the pandemic, and reopened as a pedestrianised area in 2023. Steve Penny, a 62-year-old resident, said the new pedestrian zone has interfered with his cycle routes and described the colour as 'nauseating'. He said: 'I hate it. I see no sense in closing a perfectly good road, roads are there for a reason. It means I can no longer cycle into town directly, I now have to go out of my way to get into town as there's no clear cycle route. 'Disregarding the idea that it's a stupid idea in the first place, I mean the colour shows the dirt really badly. Choosing a darker colour would have been more sensible. It's not very convivial for a conversation.' A spokesperson for Warwickshire county council said: 'The initial closure of Station Road, Kenilworth was funded by the Government and implemented to assist with social distancing and encourage outdoor seating during the COVID-19 pandemic. 'When restrictions were lifted, it was identified that the area would still benefit from improvements to further enhance the space for pedestrians, so £42,000 was allocated from the Delegated Budget to renew and refresh the old road surface; the yellow surfacing was chosen as the most cost-effective option.' 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.
Yahoo
08-04-2025
- Business
- Yahoo
Council tax bills to soar 27pc under Labour
Council tax bills will soar by nearly 30pc under Labour, with residents in 28 areas hit with £3,000 average bills, analysis shows. Campaigners said the figures poured cold water on promises made by Rachel Reeves, the Chancellor, last week that households would be £500 a year better off thanks to this Government. Figures, compiled by the Taxpayers' Alliance on behalf of Telegraph Money, revealed a typical Band D house will be paying £2,750 a year by 2030, the end of Labour's first term. It amounts to a 27pc hike from 2024. Residents in Rutland will be hit hardest, with a £3,220 bill, closely followed by £3,218 in Nottingham and £3,150 in Dorset. Town halls in 25 other areas, including Gateshead, Bristol and Lewes will also charge residents more than £3,000. It comes after Ms Reeves used her Spring Statement to claim households will be 'over £500 a year' better off thanks to higher wage growth forecasts by the Office for Budget Responsibility. The watchdog said it expected 'real household disposable income per person to grow at an average of around 0.5 per cent a year in the five years from 2025-26 to 2029-30'. But for residents in Rutland, whose council tax could soar from £2,667 to £3,228, this £500 would be entirely wiped out by the increased bill, leaving them £61 worse off. The news will strike a blow to the countless families who are already stretched thin by exorbitant council tax. This week, inflation-busting increases came into effect, with nine in 10 councils raising bills by the maximum amount allowed. Kevin Hollinrake, shadow minister for Local Government, criticised Rachel Reeves's 'brass neck' to suggest she is improving people's lives. He said: 'Council tax has gone through the roof under Labour. This is the beginning not the end, with things set to get even worse. Even more inflation busting council tax rises will clobber middle England again and again.' By 2030, 42 councils will issue bills of £2,900 and higher, while a further 71 will charge residents more than £2,800, according to the Taxpayers' Alliance. This means 40pc of households in the UK will have bills of £2,800 or higher in five years. The average national wage, post tax, is roughly £30,000, meaning that typical households across the country will be forking out 10pc of their salary on council tax by the end of the decade. Councils with social care responsibilities are allowed to increase council tax by a maximum of 5pc without a referendum. It is 3pc for authorities such as district councils. The analysis is based on the assumption council tax will be permitted to increase by the maximum amount each year, looking at the 296 district, borough, metropolitan and unitary authorities. Labour has already allowed this once, following the move by the previous government in 2023. The Autumn Statement in 2022 changed the upper limit that councils can increase tax to 3pc for all local authorities, with an extra 2pc for those with social care responsibilities, such as unitary authorities. The Government has already been accused of misleading voters after its election campaign claimed that households wouldn't pay a penny more in council tax under Sir Keir Starmer's premiership. The rocketing bills come at a time when councils are making huge cuts to services, such as bin collection, meaning you are paying more for less. Andrew Dixon, of campaign group Fairer Share, said: 'This data paints a stark picture of the council tax crisis looming over UK households. If maximum increases persist, bills soaring past £3,000 in 28 areas by 2030 – and £2,800-£2,900 in dozens more – expose the deep unfairness of a system stuck in 1991. 'This trajectory doesn't just burden families – it dismantles Labour's promise of households being £500 better off by 2030.' Town halls came under scrutiny this week after separate research by the Taxpayers' Alliance found council fat cats were paid £100,000 or more in 2023-24. A record 3,906 council employees received the six-figure salary, including staff in Northumberland, where tax bills are set to reach £3,104 by 2030. Nottingham Council had eight officials receiving remuneration of more than £100,000, despite the unitary authority declaring effective bankruptcy in 2023. Elliot Keck, of the TaxPayers' Alliance, said: 'These figures press home the urgent need to find a sustainable solution to council finances, given the threat of £3,000 bills hanging over many British households. 'There are serious issues around council waste and the soaring number of six figure pay packets as our town hall rich list revealed. Labour ministers need to bring forward plans to address the social care crisis while making clear to councils that budgets for other services will be restrained in coming years, with efficiency gains expected.' A Local Government Association spokesman said: 'All councils continue to face the tough choice about whether to increase bills to bring in desperately needed funding. 'Councils need a significant change in funding in the Spending Review to stabilise local government finances.' A Ministry for Housing, Communities and Local Government spokesman said that 'no decisions' had been taken about council tax for the future but that the referendum threshold would be maintained. 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.
