Removing house from Council Tax list

[srowe]

We're in the process of purchasing a house with the plan to demolish and rebuild. While it's less than ideal, it's looking like we may have to complete without having PP (we do have an agreement that the property can be demolished subject to plans being approved).

 

Given the "fun" we've already had with the Planning Dept. we're concerned about the time it will take for planning approval and the amount of Council Tax that would be owed during that time. My understanding is that houses can be removed from the CT list if they are deemed uninhabitable. If this is true, is it possible to do one or more of the following immediately after purchase and before PP is granted?

 

• remove the roof (it appears to be asbestos sheeting and needs to go anyway)
• remove the windows (they're so rotten they might do so spontaneously...)
• disconnect services (gas, electricity, water)

 

Does anyone have experience of a similar scenario?

 

Thanks.

[JohnMo]

3 minutes ago, srowe said:

houses can be removed from the CT list if they are deemed uninhabitable

Good luck,we had a property with no water, no bathroom, no kitchen and it took us 7 months and we had to pay for an engineer to inspect, basically in the not wanting to go there basket for the council - they want the money. By the time everything was sorted then house had been fully refurbished.

[twice round the block]

We currently have a house that's been de-rated. We supplied internal photos of the property that shows its not habitable.

This is down to your own local authority. Some will give you a percentage off, some nothing, some all of it off.

 

Not sure I'd like a property standing empty with the roof off and windows out etc..and there is no timescale advantage. Demolition will take 2 day's. 

 

You'll still have to pay to get the services disconnected, but you will need a temporary electricity supply when you start your build, so catch 22.

 

[nod]

1 hour ago, twice round the block said:

We currently have a house that's been de-rated. We supplied internal photos of the property that shows its not habitable.

This is down to your own local authority. Some will give you a percentage off, some nothing, some all of it off.

 

Not sure I'd like a property standing empty with the roof off and windows out etc..and there is no timescale advantage. Demolition will take 2 day's. 

 

You'll still have to pay to get the services disconnected, but you will need a temporary electricity supply when you start your build, so catch 22.

 

Plus one 

Local Authority’s follow there own rules 

 

[srowe]

I thought this was decided by the Valuation Office Authority?

 

https://www.gov.uk/guidance/removing-a-property-from-the-council-tax-list#deleting-a-property-from-the-council-tax-list-because-it-is-derelict-or-in-disrepair

 

Once they've delisted then the Council have to stop charging CT, no?

[ToughButterCup]

14 hours ago, srowe said:

... If this is true ..

 

One bridge at a time.

[srowe]

It all comes down to this magical concept of "rateable hereditament"

 

https://www.gov.uk/guidance/rating-manual-section-2-maintaining-the-rating-list/part-2-hereditaments-valued-by-the-central-valuation-officer

 

In section 6 a hereditament ceases to exist when

 

Quote

... it becomes incapable of beneficial occupation due to redevelopment.

 

Works in progress which are not economic repair, and therefore to be disregarded in accordance with Schedule 6 of the 1988 Act, may affect the rateable value and/or description of the hereditament, including to reduce it to a nil value. Valuation of empty hereditaments and those undergoing works is dealt with in detail in Rating Manual Valuation Principles Valuing Vacant Property. Where works of redevelopment/conversion/demolition are in progress at the Material Day and the hereditament is incapable of beneficial occupation this may justify deletion.

 

We have a surveyors report that says the property is beyond economic repair so perhaps it comes down to the Valuation Officer's take on the final sentence?

Edited January 31 by srowe

[kandgmitchell]

2 hours ago, srowe said:

I thought this was decided by the Valuation Office Authority?

It is or at least it was 6 years ago when we bought a half finished project and found the owners were paying Council Tax on a shell with no floors, no windows or doors and no services connected. When we queried this the Council said the only way was to get the VA to remove it from the list. The VA inspected and agreed it could be removed from the valuation list and so no CT was payable. We got it re-valued and put back on the list upon completion and luckily sold it before the CT was due (that council allowed 6 months free for empty properties).

[peekay]

Have you considered that if you do remove it from the register, then it might be re rated at a higher council tax rate once completed?

 

We chose to keep paying council tax for the 18 months of our large renovation/build, as looking at similar size properties in a similar location we could have expected to go up by two council tax bands when it is re rated and added back on the the register by the Valuation Office.

 

Our break even point for paying 18 months of unnecessary council tax is 6 years of living in the house of paying the lower rate tax band.

 

We expect the house will be re-rated to the higher tax band when we sell it.

[srowe]

5 hours ago, peekay said:

Have you considered that if you do remove it from the register, then it might be re rated at a higher council tax rate once completed?

 

That's a point we hadn't considered. The current house is band D, possibly influenced by it being detached and four bedrooms. We're actually planning to build a three bed as a replacement (although increasing the area a little). More research required to get an idea of what band the new property might be. I suspect that there's always a risk that a new house would be revalued in a higher band even if we didn't deband the current one.

[marshian]

12 hours ago, srowe said:

 

That's a point we hadn't considered. The current house is band D, possibly influenced by it being detached and four bedrooms. We're actually planning to build a three bed as a replacement (although increasing the area a little). More research required to get an idea of what band the new property might be. I suspect that there's always a risk that a new house would be revalued in a higher band even if we didn't deband the current one.

Re-band would only be at the point you sell it normally??

 

Our house scraped into Band D - I did go thro the appeals process because it really should have been just inside C based on value at the time of banding however I lost the appeal (I didn’t do enough research and unfortunately during the review and appeal I’d already done some improvements which were included in error at review)

 

It’s been extended now so sits firmly in band D so I’ve no worries about moving up a band if we ever sell it (been here 34 years now and no plans to move yet)

[peekay]

On 01/02/2025 at 09:23, marshian said:

Re-band would only be at the point you sell it normally??

 

 

 

Yes, or at the point when it is added back on by the Valuation Office if you get it removed from the Register to avoid paying Council Tax during the work.