Council Tax

[pedragon]

Hi All

 

I'm doing a self build that has planning permission granted. It is an old cottage that was in no fiit state to live in, had no water, bathroom or kitchen. The previous owner had used the councils 2 years of no council tax exemption. I did apply for exemption as it was uninhabitable, the council wouldn't budge, so I reluctantly paid the council tax last year at double the normal band as they said it was long term out of use. They are now wanting to charge 3x times the band cost as its now longer term not being used. 

 

We have now demolished the house having built a detached garage under PD. Previously we needed the PD in order to build the garage, this has now completed. We will hopefully be starting to build later this year once ground work is done, but won't likely have it habitable to move in till at least the end of the year.

 

I've asked the council for exemption again as the house has been demolished. If they won't, I'm thinking of deregistering for council tax, but have some queries...

 

1. If it is deregistered, we don't lose planning permission? I'm fairly sure we don't.

 

2. If we deregister, does that affect previous buildings built under PD? I.e the detached garage. 

 

3. If we deregister, do we get rebanded when the new house is built?

 

4. Is there any disadvantage to deregistering? Or is there anything else I need to consider if going down this route?

 

Thanks

 

Mike

[newhome]

40 minutes ago, pedragon said:

1. If it is deregistered, we don't lose planning permission? I'm fairly sure we don't.

 

2. If we deregister, does that affect previous buildings built under PD? I.e the detached garage. 

 

3. If we deregister, do we get rebanded when the new house is built?

 

4. Is there any disadvantage to deregistering? Or is there anything else I need to consider if going down this route?

 

There should be no reason why the council will not exempt if the house has been demolished and they should also deal with de registering the property. Assume that your new build planning permission also includes the demolition? If so you can provide them with the PP reference and send a photo. 
 

Yes your new build will be a new entry on the VOA register and it will be banded in line with the new house you have built. Note that different councils have different views relating to when they will start charging council tax on a new build. Some will want to charge as soon as the new build is plastered, others will wait until completion. Have a search of the forum to find threads that cover this topic. 
 

Assume you understand the VAT rules relating to a demolition and new build, eg the demolition can be zero rated assuming you aren’t doing it yourself? If not there is a sub forum beneath this one that covers lots of stuff. You need to be a regular member to see it (kicks in at 10 posts). 
 

 

[pedragon]

Thanks very much newhome.

 

Yes am aware of te VAT rules about new buils, thanks. I'll aim to have a look at that sub forum once I am able to view it.

[Bozza]

My project was same as yours.  As soon as the roof was off the old cottage I sent photos to the Assessor who deregistered the property as no longer eligible for council tax.

Council tax liability ended that day.  Built replacement house.  Assessor reassessed and entered new build onto list at new assessed rate. 
New council tax bill issued.  Simples.

advantages -  no council tax bill liability until new build was habitable. 18 months x ££££s saved.

disadvantages - unable to have bins emptied or do recycling runs.

 

[pedragon]

Hi Bozza, thanks very much for the information that is much appreciated.