100% second home uplift

[islandgirl]

Just wondering if anyone has come across this situation. We used to own a second property (in the UK not abroad) which is now in a family trust. The council want to charge the Trust a second home 100% uplift. My argument is that the Trust only owns one property so it cannot be a second home... any thoughts? All opinions or ideas welcome thank you.

[PallasAthena]

Is it occupied or used as a holiday home? The test they are applying may not be whether it is a second home but whether it is unoccupied.

Which bit of the UK? C/Tax is a devolved power and councils in Wales Scotland and England have different powers. English councils are only now getting powers that Scotland and Wales have had for some time.

Council tax: empty properties - House of Commons Library (parliament.uk)

[des8]

Assuming you are referring to a property in England (Wales & Scotland differ!) I think you need to refer to the Levelling Up and Regeneration Act 2023 sec 80 (2) (2).
Basically no resident but substantially furnished .... the council tax can be increased by an amount not exceeding 100%

[echat11]

This might help with the 'understanding' adding to the info already posted. No doubt there is a 'mechanism' for Appealing their decision.

https://news.dorsetcouncil.gov.uk/20...consideration/

https://www.lgo.org.uk/make-a-complaint/fact-sheets/benefits-and-tax/council-tax

[islandgirl]

Thank you all. The property is in Scotland. However most authorities in England are now also charging the 100% uplift. The property is not unoccupied. To be classed as such it has to be occupied less than 25 days a year and it is occupied for more days than that.

[des8]

So in Scotland the appropriate regulation would seem to be The Council Tax (Variation for Unoccupied Dwellings) (scotland) Regulations 2013

• Scottish Statutory Instruments
• 2013 No. 45

where a second home is defined
a “second home” is a dwelling which is no one’s sole or main residence, but which is furnished and in respect of which, during any period of 12 months, the person who is liable to pay the council tax that is chargeable can produce evidence to establish that it is lived in other than as a sole or main residence for at least 25 days during that period.

[Pezza54]

Please read the article "Property held on trust and liability for council tax" at www.localgovermentlawyer.co.uk

Trustees may be the legal owner of property held on trust, but LAs and the court (cases provided in the article) may hold the person(s) with beneficial interest responsible for council tax along with the trustees (jointly and severally)

Who are the trustees and who are the trust beneficiaries in your case?

[Pezza54]

In Scotland council tax premium for a second home appears to be called "Additional Dwelling Supplement" (ADS)
If you google "Revenue Scotland LBTT10063" you should see an article "Transactions involving Trusts"
For ADS to apply to a trust property much depends on the type of trust and whether a beneficiary has a relevant interest in the dwelling
There are examples in the article. Still confusing
.

[islandgirl]

Thank you all. I shall do some reading and come back (no doubt with more questions!) Thank you again - your help and wisdom is much appreciated

[PallasAthena]

Please read the article "Property held on trust and liability for council tax" at www.localgovermentlawyer.co.uk

Link didn't work for me [typo in URL?] but this one does

Local Government Lawyer

[islandgirl]

Thank you - that site is really interesting and I spent far too long on there! I understand that the council tax liability falls on the beneficiaries etc but as a group they have one property and one only...

[Pezza54]

Do the beneficiaries of the trust property have an interest in the property? Can they live there or benefit from rent?

[islandgirl]

No they can use it when they wish but it is not let out and there is no income