Council Tax Reductions

Empty Properties

The Local Government Finance Act 2012 allows local authorities the discretion to determine the duration and amount of discount for empty and unoccupied properties and the amount of discount for a period of 12 months for properties in need of or undergoing structural renovation. In addition properties considered as long term empty (unoccupied and unfurnished for a period of 2 calendar years or more) can be charged an additional amount known as an empty property premium.  

Further new legislation ‘The Rating (Property in Common Occupation and Council Tax (Empty Dwellings) Act 2018’, allows local authorities the ability to increase the amount that can be charged for a long term empty property premium from 1st April 2019, 1st April 2020 and 1st April 2021.

The act gave local authorities the power to vary these discounts and premiums providing agreement is made at a full meeting of the Council, before the setting of the Council’s budget and prior to the financial year that any changes are to commence.

The Isle of Wight Council resolved on 16th January 2019:

Properties considered to be long term empty for two calendar years or more will be charged a premium of 100% from 1st April 2019

Properties considered to be long term empty for five calendar years or more will be charged a premium of 200% from 1st April 2020

Properties considered to be long term empty for ten calendar years or more will be charged a premium of 300% from 1st April 2021

To view the agenda and minutes from the full council meeting on 16th January 2019, please click here

Historical Changes 

 

Discounts & Premiums Prior to 1st April 2013

Discounts & Premiums from 1 April 2013

Discounts & Premiums 1 April 2017

Discounts & Premiums 1st April 2019

Discounts & Premiums 1st April 2020

Discounts & Premiums 1st April 2021

Empty and unfurnished Property – 100% for a maximum of 6 months

Unoccupied and unfurnished Property – 100% for a maximum of 3 months

Unoccupied and unfurnished Property – 0%

Empty and unfurnished Property – 0%

Empty and unfurnished Property – 0%

Empty and unfurnished Property – 0%

Property in need of or undergoing structural renovations – 100% for a maximum of 12 months

Property in need of or undergoing structural renovations – 75% for a maximum 12 months

Property in need of or undergoing structural renovations – 0% (it is still a requirement to identify properties under repair)

Property in need of or undergoing structural renovations – 0% (it is still a requirement to identify properties under repair)

Property in need of or undergoing structural renovations – 0% (it is still a requirement to identify properties under repair)

Property in need of or undergoing structural renovations – 0% (it is still a requirement to identify properties under repair)

Second Home Discount – 10% reduction

Second Home Discount – 0% reduction

Second Home Discount – 0% reduction

Second Home Discount – 0% reduction

Second Home Discount – 0% reduction

Second Home Discount – 0% reduction

Premium for properties empty and unoccupied for 2 years or more – 0%

Premium for properties empty and unoccupied for 2 years or more – 50%

Premium for properties empty and unoccupied for 2 years or more – 50%

Premium for properties empty and unoccupied for 2 years or more – 100%

Premium for properties empty and unoccupied for 2 years or more – 100% or empty and unoccupied for 5 years or more – 200%

Premium for properties empty and unoccupied for 2 – 5 years 100%,  empty and unoccupied for 5 - 10 years 200%, empty and unoccupied for 10 years or more – 300%.

These changes are consistent with the Council’s aim for regeneration and to bring such properties back into occupation at the earliest opportunity. By removing discounts, this will promote prompt reoccupation of a property, creating additional housing stock available for island residents.

To view the Section 11 Council Tax Policy for Second Homes, Long Term Empty Properties and Determining Discounts for Certain Dwellings click here

For more information on how to bring a property back into use, please click here

Discretionary Reductions for Council Tax

Section 13A of the Local Government Finance Act 1992, inserted by section 76 of the Local Government Act 2003 - this gave councils new powers to create their own discounts and exemptions, including powers to grant relief on a case by case basis of between 1% & 100%. Any discount given has to be met by the council.

The council has the power to agree discounts but is not obliged to do so as Council Tax is a tax related to property and not directly to the provision of any specific services. It is not appropriate therefore, to relate the cessation, reduction or non provision of any specific services or facilities to the payment of Council Tax.

Any specific application for discount is referred to the Chief Finance Officer and section 151 Officer, under their delegated authority, and decision is made on the merits of the case.

To view the Council Tax Section 13A (1) (C) Discretionary Reduction in Liability Policy, please click here (PDF, 294.43KB, 12 pages).

To view the Guidance and Application form for Discretionary Council Tax Reduction under Section 13A of the Local Government Finance Act 1992, please click here (PDF, 179.20KB, 6 pages).

To view the Equality Impact Assessment Section 13A Discretionary Relief Policy, please click here (PDF, 276.74KB, 11 pages).