Changes to Council Tax?

On 31 October 2011, the Department for Communities and Local Government (DCLG) published a consultation document on reforms of the current council tax system. The consultation is seeking views on:

• Extending the discretion over second homes discount. This would allow authorities the power to charge full council tax on second homes.
• Abolishing council tax exemption for  vacant dwellings
• Allowing authorities to charge an “empty homes premium” for properties that have been empty for two years or more, to encourage the properties to be brought back into use.
• Making it a default position that council tax payment by instalments should be over 12 months, rather than ten as is currently the case.
• Changing the existing legislation so that properties that have solar panels installed will be unable to take advantages of business rates. This is to avoid any tax complications associated with schemes where third-party providers take possession of roofs of properties and install solar panels at their own cost, with residents taking advantage of the free electricity generated (known as “rent-a-roof” schemes).

The consultation closes on 29 December 2011 and responses should be e-mailed to: counciltax.consultations@communities.gsi.gov.uk.

Whilst this is just a consultation we would expect the majority of these proposals to be implemented by April 2012.

Glen Salt
Partner
GSalt@LawBlacks.com

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