My siblings and I have inherited our uncle’s house in Suffolk and are planning to sell it and split the proceeds.
The property is in quite a poor state and we have been advised to make some improvements before putting it on the market.
This includes removal of furniture and lots of clutter. Re-carpeting and re-painting is required, as well as window repairs and clearing the garden.
This will take some time, and we are aware that the local council has introduced double council tax on second homes.
This means the annual bill will be around £7,000, rather than £3,500. Is there an exemption for people in our situation? And what would you advise we do?
Ed Magnus of This is Money replies: Scenarios such as this one will be cropping up all over the country at the moment.
Three quarters of local authorities in England and Wales have introduced a 100 per cent council tax premium on second homes from 1 April, according to reports.
Second homes are defined as furnished properties where nobody lives, or where the owner has their main residence elsewhere.
The change means a second home owner in England paying the typical Band D council tax of £2,171 could soon see that rise to £4,342.
Our reader has likely inherited a Band H or G property and is therefore facing a much larger bill amounting to close to £600 a month.
Luckily for them, there are some exemptions in place. We spoke with two property experts, Paula Higgins, chief executive and founder of HomeOwners Alliance and Verona Frankish, chief executive at estate agent, Yopa.
Will they need to pay double council tax?
Paula Higgins replies: The good news is that you shouldn’t have to pay any council tax initially, and definitely not double council tax for a while.
You don’t need to start paying council tax until probate is granted, as long as the property remains unoccupied.
Although the Government states that probate should take up to 16 weeks, in reality, the entire process often takes between six to 12 months. This gives you time to begin any necessary work on the property.
Once probate is granted, you may be eligible for a six-month council tax exemption, provided the property is still unoccupied and remains in the name of the deceased.
What if it takes longer than that to sell?
Paula Higgins replies: If the property is still empty after this period, you may be required to pay council tax along with an additional second homes premium.
However, this is at the discretion of your local council, so it’s important to contact them directly to confirm your specific situation.
Some councils won’t charge the premium for up to 12 months if the second home is being actively marketed for sale.
This gives you a good window to get the property ready.
There can also be exemptions for empty homes undergoing major refurbishment, though in your case it sounds like the work is mostly cosmetic.
Verona Frankish replies: In circumstances like this, you may be able to avoid paying second home council tax on your uncle’s home for up to 18 months.
The first thing to secure is what’s known as a ‘class F exemption’.
According to Mid Suffolk council, if a property is left empty due to the liable person’s death, it is exempt from council tax while the family is waiting for probate and letters of administration to be granted.
It also remains exempt for a further six months following these being granted.
This should provide you with enough time to complete all of the necessary renovations on your father’s property.
Once renovations have been completed and you look to sell the property, you should be able to secure a second exemption period of up to 12 months to cover the time that the property is actively being marketed for sale.
So all in all, you may be able to avoid paying second home income tax for as long as 18 months after probate is granted.
However, every local authority sets their own rules and will make decisions on a case by case basis, including specific timeframes and whether you receive a full exemption or simply a period of discount.
It should, therefore, be a priority to contact your council, explain the situation, and see what it is willing to offer.
More often than not, they tend to be very fair and reasonable.
