Can I offset my Council Tax on a property being renovated?

by Readers Question

10:49 AM, 29th February 2016
About 3 years ago

Can I offset my Council Tax on a property being renovated?

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Can I offset my Council Tax on a property being renovated?

I am currently renovating a property in a view to rent it out & I’m paying 150% per month council tax on it (this includes a 50% penalty for the property being unoccupied for 2 years even though I’ve only owned it 1 year)tax

Can I offset this against my tax at the end of the year? The same regarding the Electric,gas & water rates?

I do have other properties that I rent out so wondered if I can offset them as expenses ?

Many thanks

Graham



Comments

terry sullivan

11:32 AM, 29th February 2016
About 3 years ago

is the property habitable legally?

Graham Clarke

11:55 AM, 29th February 2016
About 3 years ago

Reply to the comment left by "terry sullivan" at "29/02/2016 - 11:32":

It didn't have a working central heating system till 3 months ago when a new one was installed so you could probably say it wasn't habitable.

I did try to argue the case that the property wasn't habitable so I should only be paying a percentage of the council tax but this was dismissed saying that the local council rules have now changed. I suppose it is with the local councils now having the power to set their own council tax rules & penalties etc

David Price

13:00 PM, 29th February 2016
About 3 years ago

Why not 'officially' move into the property yourself (or one of your family or friends), all you need is a bed and a few clothes on site, and then claim single occupant relief of 25%. This immediately halves your council tax bill.

Michael Barnes

19:53 PM, 29th February 2016
About 3 years ago

You have an on-going property business, so the expenses on this property can be offset against income from your other property as they arise (i.e. this tax year).

If it were your first property, then these expenses would be deducted from property income in the tax year that the property is first let.

Graham Clarke

22:42 PM, 29th February 2016
About 3 years ago

Reply to the comment left by "Michael Barnes" at "29/02/2016 - 19:53":

Great thanks Michael, I wasn't quite sure if I could offset the council tax or electric service charges etc against my other properties.
I have been to several accountants & they have either been pretty rubbish or they say I am doing a great job of my own accounts & I don't need them, but it's instances like this which is why I went to an accountant.
I have a few properties but I'm not a limited company.

Graham Clarke

22:53 PM, 29th February 2016
About 3 years ago

Reply to the comment left by "David Price" at "29/02/2016 - 13:00":

If I moved in then I would lose the 25% discount on my residential property which would nearly as bad. Plus my residential property & the area where the rented property is are totally different 'class' should I say so they would know why I have done it so not worth that risk.

Sharon Betton

12:18 PM, 9th March 2016
About 3 years ago

Our local authority would be unlikely to think a property without central heating wasn't habitable - we were told that the roof had to be off to be considered uninhabitable!


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