Decision details

Council Tax Empty Property Charges

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Council Tax Empty Property Charges

Decisions:

The Cabinet considered the report of the Chief Finance Officer that was seeking approval to increase the council tax empty property premium from 200% to 300% with effect from 1st April 2021 for properties that have been empty in excess of 10 years.

 

In considering the submitted report, Members of Cabinet were informed that the Corporate Overview and Scrutiny Committee on 24th November 2020, had requested that Cabinet give consideration to providing Council Tax exemptions, or some form of relief for domestic accommodations that are attached to commercial premises, such as pubs and shops, which had become empty because they have had to close because of the adverse effects of Covid-19.

 

Alternatives considered:

 

The empty property premium could remain at 200%. However, Government has identified that additional measures are needed to continue the improvements already made and have amended the legislation. 

 

Resolved:

 

1.    That Council be informed that Cabinet recommends the following:

a)    That the proposal to increase the council tax empty property premium from 200% to 300% with effect from 1 April 2021 for properties that have been empty in excess of 10 years be approved;

b)    That the request of the Corporate Overview and Scrutiny Committee relating to  providing Council Tax exemptions, or some form of relief, for domestic accommodations that are attached to commercial premises, such as pubs and shops, which had become empty because they have had to close because of the adverse effects of Covid-19 be approved.

 

Reasons for the decision:

 

In April 2013, Government gave local authorities power to determine the level of empty property discounts in dwelling classes B, C and D (Section 12 of the Local Government Finance Act 2012). The power included an option to charge a premium of up to 50% where a property has been empty in excess of two years. The Council decided to introduce a 50% premium with effect from 1 April 2013 and increased this to 100% with effect from 1 April 2019.

 

From 1 April 2020, Government increased the optional maximum empty property premium charge to 200% for properties that have been empty in excess of 5 years.  The Council decided to introduce this 200% premium with effect from 1 April 2020. 

 

From 1 April 2021, Government is increasing the optional maximum empty property premium charge to 300% for properties that have been empty in excess of 10 years.

 

The Corporate Overview and Scrutiny Committee on 24th November 2020, had requested that Cabinet give consideration to providing Council Tax exemptions, or some form of relief for domestic accommodations that are attached to commercial premises, such as pubs and shops, which had become empty because they have had to close because of the adverse effects of Covid-19.

Report author: carolyn goddard

Publication date: 11/01/2021

Date of decision: 01/12/2020

Decided at meeting: 01/12/2020 - Cabinet

Accompanying Documents: