Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018
Official Summary
A Bill to make provision, where two or more hereditaments occupied or owned by the same person meet certain conditions as to contiguity, for those hereditaments to be treated for the purposes of non-domestic rating as one hereditament; and to increase the percentage by which a billing authority in England may increase the council tax payable in respect of a long-term empty dwelling.
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Overview
This bill amends the council tax rules in England for long-term empty properties. It increases the maximum council tax that local authorities can charge on these properties, with the increase depending on how long the property has been empty.
Description
The bill modifies Section 11B of the Local Government Finance Act 1992. This section already allows councils to increase council tax on properties that have been empty for a long time. This amendment significantly raises the maximum permitted increase.
Key Changes:
- 2019-2020: The maximum council tax increase for long-term empty dwellings is raised to 100%.
- 2020-2021: The maximum increases to 100% for properties empty less than 5 years, and 200% for properties empty 5 years or more.
- 2021 onwards: A tiered system is introduced. The maximum increase is 100% for properties empty less than 5 years, 200% for those empty 5-10 years, and 300% for properties empty for 10 years or more.
Government Spending
The bill is not expected to directly impact government spending. Instead, it allows local authorities to collect increased council tax revenue from owners of long-term empty properties. The exact amount of increased revenue will depend on the number of long-term empty properties in each local authority area.
Groups Affected
This bill primarily affects:
- Owners of long-term empty properties in England: They will face significantly higher council tax bills.
- Local authorities in England: They will receive increased council tax revenue, potentially enabling them to fund local services.
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