Council Tax Exemptions

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Certain properties are not chargeable if they fall within one of the categories prescribed by the Secretary of State.
 
There are currently 23 prescribed classes (Class A to W). They may fall within one of those categories if they have a particular characteristic (e.g. they are uninhabitable), be occupied/unoccupied for a prescribed purpose (e.g. held for a minister of religion) or be occupied/owned by someone of a prescribed description (e.g. occupied solely by students).
 
Once entitlement to an exemption has been established you will be issued with the appropriate notice. We must assume that the situation on the day of calculation will be the same for every subsequent day. Please note therefore that if the award is ongoing it will be displayed on the above notice as being effective to the end of the financial year, even if the exemption has a known time limit and/or we are aware of a future change in circumstances. The exemption will be adjusted after such an event has occurred and if appropriate a further notice will be issued.

Should the property remain unoccupied after the exemption has expired it will become subject to a Council Tax charge, irrespective if there has been a change of ownership.

The original Council Tax regulations required this to be a charge with a 50% discount. With effect from 01/04/2004, however, local Council’s were given discretionary powers to vary the level of this discount to between 50% to 10% for furnished second homes and 50% to 00% for long term empty properties.

As with many Council’s we have decided to currently award a 10% discount for furnished second homes and no discount for long term empty properties.

This has been done in an attempt to encourage owners to bring their unoccupied properties back onto the local housing market.
 
EXEMPTIONS THAT ONLY LAST FOR A LIMITED PERIOD:
 
Class A - Altered and repaired dwellings
Dwellings that are, or have recently been, the subject of major repair works or structural alteration. This exemption is allowed for a maximum period of up to one year, or six months after the work is finished, whichever of the two is sooner.
 
Please note it is very important that the Council is given an opportunity to inspect the property and verify entitlement to this exemption. You are therefore recommended to contact the Local Taxation Team as soon as practicable to arrange for a mutually convenient time & date so the Council’s Inspection Officer can call.
 
If, however, it is now too late and the work is complete, the Council will still consider a retrospective application but only if you are able to provide photographs of the various stages of work, along with copies of your contractors invoices and/or structural survey or similar.
 
Class B - Empty dwellings under charity ownership
A dwelling owned by a charity and last used for charitable purposes, which is unoccupied for up to 6 months.
 
Class C – Newly built & empty and unfurnished dwellings
New properties (whether newly constructed or created by conversion from existing buildings) that remain unoccupied and substantially unfurnished, along with existing properties that become unoccupied and substantially unfurnished, for up to 6 months (if ownership changes within the 6 months, the exempt period does not start again).
 
Class F - Dwellings left empty by deceased persons
An unoccupied dwelling which forms part of the estate of a person who has died, for up to 6 months after the grant of probate or letters of administration (if probate determines ownership, the new owner will become liable therefore this exemption will no longer apply).
 
OTHER EXEMPTIONS FOR UNOCCUPIED PROPERTIES:
 
Class D - Dwellings left empty by a person being detained elsewhere.
A dwelling now unoccupied which was previously the sole or main residence of a person who would be liable but is now being detained in prison (except where imprisoned for non-payment of a fine or Council Tax), hospital or in another place of detention .
 
Class E - Dwellings left empty by hospital/care home patients
A dwelling now unoccupied which was previously the sole or main residence of a person who would be liable but now has his/her sole or main residence in a hospital, care home or hostel in order to receive treatment or care.
 
Class G - Dwellings where occupation is prohibited
A dwelling whose occupation is forbidden by law, or which is kept unoccupied because of impending compulsory purchase.
 
Class H - Empty dwellings for use by clergy
A vicarage or similar dwelling awaiting occupation by a minister of religion, from where he/she will perform his/her duties.
 
Class I - Dwellings left empty by persons receiving care
An unoccupied dwelling which was previously the sole or main residence of a person who would be liable but has moved elsewhere (other than a hospital, care home or hostel) to receive care required due to old age, disablement, illness, past or present alcohol or drug dependence, past or present mental disorder.
 
Class J - Dwellings left empty by care providers
An unoccupied dwelling which was previously the sole or main residence of a person who would be liable but has moved elsewhere (other than a hospital, care home or hostel) to provide care to another person who requires it due to old age, disablement, illness, past or present alcohol or drug dependence, past or present mental disorder.
 
Class K - Dwellings left empty by students
An unoccupied dwelling last occupied as the sole or main residence of a person who would now be liable but is a student and has been a student since last occupying the property or has become a student within 6 weeks of vacating the property.
 
Class L - Repossessed dwellings
An unoccupied dwelling where a repossession order has been obtained by the mortgagee.
 
Class Q - Dwellings left empty by a bankrupt
An unoccupied dwelling where the person who would be liable is a trustee in bankruptcy.
 
Class R - Unoccupied pitches and moorings
A pitch or mooring not occupied by a caravan or boat.
 
Class T - Unoccupied annexes
An unoccupied dwelling that is part of another dwelling and cannot be let separately without a breach of planning restrictions. (Planning legislation requires that, in order to be let, a property must have its own entry/exit without passing through another property.)
 
OTHER EXEMPTIONS FOR OCCUPIED PROPERTIES:
 
Class M - Halls of residence
Halls of Residence provided predominantly for accommodating students, which are owned or managed by an educational establishment or charitable body, or which are the subject of an agreement allowing an educational establishment or charitable body to nominate the majority of the occupiers.
 
Class N - Dwellings occupied by students
A dwelling occupied only by students, school or college leavers or foreign spouses of students. (Also applies during vacations if the student(s) are the liable person(s) and the property was previously used or is intended to be used as his/her/their term-time accommodation.)
 
Class O - Armed forces accommodation
A dwelling owned by the Ministry of Defence for armed forces accommodation.
 
Class P - Dwellings occupied by members of visiting forces
A dwelling where at least one person who would be liable is a member of a visiting armed force.
 
Class S - Dwellings occupied by under 18s
A dwelling occupied only by a person or persons aged under 18.
 
Class U - Dwellings occupied only by the severely mentally impaired
A dwelling occupied only by a person or persons who are severely mentally impaired, i.e. he or she suffers, for whatever reason, from severe impairment of intelligence and social functioning that appears to be permanent. (Includes people with Alzheimer's Disease and similar illnesses. The person must be certified as severely mentally impaired by a registered medical practitioner and in receipt of a 'qualifying benefit').
 
This exemption does not apply in those cases where liability falls on a non-resident owner, hence residential homes are excluded even if all the residents are severely mentally impaired.
 
Should the dwelling be occupied by both severely mentally impaired person(s) and student(s), the Class U exemption is applicable
 
Class V - Dwellings occupied by diplomats.
A dwelling where at least one person who would be liable is a foreign diplomat.
 
Class W - Annexes occupied by dependent relatives.
A dwelling which is part of another dwelling and is occupied by a person who is either aged 65 or over or severely mentally impaired or substantially permanently disabled and who is a dependent relative of the occupier of the main dwelling.
 
COMMENTARY:
 
The following definitions are relevant to this area

• an “unoccupied” dwelling is one in which no-one lives;
• a “vacant” dwelling is one which is unoccupied and substantially unfurnished;
• “vacant” in relation to a pitch or mooring applies when the caravan or boat is unoccupied;
• a “relative” of a person can be the spouse, civil partner, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, great-grandparent, great-grandchild, great-aunt, great-uncle, great-nephew, great-niece (or great-great variations from 1 April 1998). A relationship by marriage is treated as a relationship by blood and a stepchild is treated as a child; a man and woman living as husband and wife are treated as being married. Persons of the same sex who are living together as civil partners are treated as being civil partners.
• a “qualifying person” means a person who would, but for the provisions of the exempt dwellings order, be liable for the Council Tax in respect of a dwelling on a particular day as the owner; and
• a “relevant absentee” means a person who is detained elsewhere (as in Class D), or who has his sole or main residence elsewhere either to receive or provide personal care (as in Classes E, I or J).
 
Application form: 
 
If you would like an application form please contact a member of the Local Taxation Team and they will be happy to assist you with its completion.
 
Please note:
If you have been granted an exemption that you believe you are not entitled to, you are legally required to inform the Council within 21 days. Failure to do so may result in the issue of a £70.00 civil penalty.
 
Contact us:
If you require any further information about Council Tax exemptions, please contact us on (01748) 828728, or alternatively you can e-mail us at mailto:local.taxation@richmondshire.gov.uk
 
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