Changing a CT band – before, during or after?

Changing a CT band – before, during or after?

by Readers Question

Guest Author

11:27 AM, 9th February 2021, About 3 years ago 4

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Am in the middle of converting a three-story flat (above a shop) into separate three flats – one on each floor.

Am currently paying Council tax (CT) on the whole flat, but clearly, this needs to be amended, so each flat gets their own banding. Details on how to challenge the current banding are on the VOA sit, but no clarification if I do this now, nearer the end of the works, or at the end of the works when the individual flats are ready to be let.

Clearly, I have to give any incoming tenant details of what the banding is, so when is best to tell the VOA?

Do they backdate any CT I have paid on the building as a whole to the date when the individual TA’s start?

Many Thanks

Reluctant landlord

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LordOf TheManor

14:13 PM, 9th February 2021, About 3 years ago

When I did this the last time it was 2013 and the notification took effect almost immediately. The prevailing band was suspended during the works and the VOA verified the building changes via the planning application.

They didn't even need to come out to do the revaluation. They simply did a desktop valuation based on similar properties in the area. They wrote to me with their proposed banding, asked if I agreed with it (I did) and they said to let them know when the property was signed off. That became the start date for the new banding.

It was the same as my previous 3 experiences dating from 1995 - totally fuss-free every time. Apply now!

Reluctant Landlord

16:47 PM, 10th February 2021, About 3 years ago

Reply to the comment left by LordOf TheManor at 09/02/2021 - 14:13
suspended during the works? Really? I thought unless the whole property derelict then CT is applicable and payable regardless, and in fact, if you don't complete the works within two years it goes up to 200% CT payable!

Reluctant Landlord

16:49 PM, 10th February 2021, About 3 years ago

Reply to the comment left by LordOf TheManor at 09/02/2021 - 14:13
Torbay Council.

Unoccupied, empty and uninhabitable properties
There is no longer any reduction in council tax for empty and unfurnished properties, this changed on 1 April 2019. Before this, a reduction of up to one month could be applied for.

For all empty and unfurnished properties there is an additional charge added to the council tax bill, called a council tax levy or premium. This also applies to properties that are uninhabitable or undergoing major structural repairs.

As the levy applies to the property the extra amount will still be charged even if there is a change in ownership or tenancy.

The levy is a percentage of the full council tax charge for the property. The amount charged depends on the number of years a property has been empty.

Empty property levies
From Properties empty for Additional levy
1 April 2019 Two years but less than five years 100%
1 April 2020 Five years or more 200%
This means that from 1 April 2020, if you own a property that has been empty and unfurnished for two years your council tax will be double the normal charge and if it remains empty for five years the bill will be three times the normal charge.

LordOf TheManor

11:42 AM, 13th February 2021, About 3 years ago

Just to update this thread.... things have definitely changed with government legislation.

My old paperwork shows that I was given an A2 exemption for 12 months (granted for major structural repairs) which was lifted as soon as the council issued their 'Completion Statement' which in all my cases was always before the 12 month ran out.

From structural completion my newly created flats were empty while 2nd fix and decorating took place. I was granted 50% council tax discount for the newly re-rated unoccupied properties until the first tenants moved in.

Just as well!! Before you conclude that this was a 'gift' consider the following:

Commercial loans for non-mortgageable properties were charged at 5% over the base rate (running at +/- 10%) plus all sorts of fees as well as draw down costs all through the early and mid 1990s.

My first BTL mortgage in 1997 was at the interest rate of 8.5% which peaked at 8.95% in June 1998. The interest only loan for £55,899.00 incurred monthly payments of £416.92.

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