Council Tax Premiums - Policy Guidelines for Determining Local Exceptions - Appendix A

1. Purpose

This document sets out the factors that Preston City Council (The Council) will take into account when deciding if an exception to payment of the Council Tax Premiums can be granted.

The Council Tax Empty Homes Premium is a 100% increase on the Council Tax set, making the total charge 200% on properties which have been unoccupied and unfurnished for a period of at least one year.

After five years the premium increases to 200%, making a total charge of 300%. After 10 years the premium increases to 300%, making a total charge of 400%.

From 1 April 2025 the Council will charge a 100% premium on properties that are unoccupied and furnished, including second homes.

Each case will be treated strictly on its merits and all applicants will be treated equally and fairly through administration of the scheme.

2. Mandatory Exceptions to Council Tax Premiums

The Secretary of State has powers under section 11B(2)-(3) and 11D(1)-(2) of the Local Government Finance Act 1992 Act to prescribe through regulations certain classes of dwelling which may not be made subject to a premium.

The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024 prescribe nine exceptions effective from 1 November 2024, as set out below.

For guidance visit GOV.UK - Long-term empty homes and second homes: Council tax premiums and exceptions.

3. Statement of objectives

The Council will consider waiving the Council Tax Premium for applicants who meet the qualifying criteria as specified in these guidelines.

The Council will treat all applications on their individual merits, and will seek through the operation of these guidelines to grant exceptions to liability for the Council Tax Premium:

• For those owners who are genuinely attempting to sell or let their vacant property.
• Those owners who are experiencing particular legal or technical issues which is preventing the sale or letting of the property
• Those owners who are in negotiation with the Council with a genuine view to letting the property under the Council's scheme(s).
• Cases where the dwelling has remained empty beyond a one-year period due to exceptional and /or unforeseen circumstances and / or any other circumstances, proven to be beyond the control of the owner/liable person.
• Cases where imposition of the Council Tax Premium would result in hardship and a reasonable person would regard the imposition as unfair.

4. Claiming a Local Exception to the Council Tax Premium

A claim must be made on an application form provided by the Council and signed by the owner of the property or their representative.

The claimant must include any relevant supporting evidence.

A Council Officer may make an appointment to visit any applicant who for whatever reason is unable to complete the application form or to confirm the details provided which may necessitate being given access to the premises.

The Council may request any (reasonable) evidence in support of an application, but the applicant will be asked to provide the evidence within one month of such a request although this will be extended in appropriate circumstances.

The Council reserves the right to verify any information or evidence provided by the Applicant, with third parties where appropriate.

Payment of Council Tax including the premium may not be withheld whilst awaiting the outcome of an application or the review of a previous decision.

5. Period of Exception

In all cases, the Council will decide the length of time for which an exception will be awarded on the basis of the evidence supplied and the facts known.

The start date of an exception is normally the date the application is received by the Council, providing it is satisfied the reasons for the exception existed at that time and the exception will continue for a period of twelve months subject to those circumstances continuing. For dwellings being actively marketed for sale or let, the 12 months limit will apply from the date that they were actively marketed.

The Council will review the award and request confirmation that the circumstances leading to the award of the exception remain applicable The Council reserves the right to make routine inspections of the property at any point during the period of the exception.

The Council will comply with any Regulations issued by the Secretary of State in relation to any application and have regard to any related national policy guidance.

6. Awarding an Exception to liability for the Council Tax Premium

6.1 For those owners who are genuinely attempting to sell or let their property which has been vacant, a 12-month exception to both the empty and second home premiums applies to properties that are actively marketed for sale or let.

The exception will run from when the exception first applies until the end of the exception period or until the property is no longer actively marketed, sold, or let (whichever is sooner).

In deciding whether to award an exception to payment of the Council Tax Premium, the Council will take into account the following criteria:

• Has professional advice and assistance been obtained?
• A professional agent with specialist knowledge of the locality must have been engaged.
• Have any offers to purchase or rent the property been received?
• If Yes - why were those offers refused?
• Written confirmation of the reasons for refusal will be required from a professional agent
• Is the sale price or rental in line with recent sale or rental prices for similar properties in the locality?
• If no, does this property have special features that reasonably warrants a higher value or rent?
• Has the property been put up for sale by public auction?

6.2 For those owners who are experiencing particular legal or technical issues which is preventing the sale or letting of the property

• Is there a legal difficulty or issue which is preventing the sale or letting of the property?
• A Solicitor's or Legal Conveyancer's letter should be produced in evidence detailing the reasons preventing sale or letting.
• Is a sale or letting being delayed by the actions of a Public Body?
• Full details must be provided.

6.3 Those owners who are in negotiation with the Council with a genuine view to letting the property under the Council's Management Scheme(s)

• Has there been a genuine expression of interest in transferring management of a property to the Council with a view to letting the property to local people with housing needs?
• The Council's Empty Homes Officer will be asked to confirm details of the expression.
• The exception would only be applied from the date of signing the approval notice.

6.4 Cases where the dwelling has remained empty beyond a one-year period due to exceptional and /or unforeseen circumstances and / or occasionally any other circumstances, proven to be beyond the control of the owner/liable person.

• Are the circumstances exceptional or unforeseen?
• Decision to be based on evidence, considered on the merits of each individual case.

This exception may apply after a one-year period, effective from 1 April 2024.

6.5 Properties undergoing probate

Inherited properties will have a 12-month exception from the empty and second home premiums after probate or letters of administration have been granted.

The property will be liable for the standard rate of council tax once the class F exemption has ended; but a premium cannot be levied for a 12-month period.

The Council has the discretion to award a longer period of exception based on the merits of individual cases.

6.6 Cases where imposition of the Council Tax Premium would result in hardship and a reasonable person would regard the imposition as unfair.

• Will imposition of the Council Tax Premium result in the owner suffering hardship?

• Granting an exception under this criterion is likely to be the exception rather than the rule as it is expected the majority of exceptions will have been granted under earlier criteria.

6.7 Exceptions to the empty homes premium only

Empty properties undergoing major repairs

Properties undergoing major repairs or structural alternations will have a 12-month exception from the empty homes premium.

6.8 Exceptions to the second homes premium only

Job related dwellings

An exception to the second homes premium for job-related dwellings will apply. This exception will not apply to cases where someone chooses to have an additional property to be closer to work while having a family home elsewhere or where an individual is posted to a new location but maintains their previous address.

Occupied caravan pitches and boat moorings

A pitch occupied by a caravan and a mooring occupied by a boat are an exception to the second homes premium.

Seasonal homes where year-round or permanent occupation is prohibited or has been specified use as holiday accommodation or planning condition preventing occupancy for more than 28 days continuously

Where properties have planning restrictions or other conditions on occupation or use in place which prevent year-round occupation, such properties are an exception to the second homes premium.

7. Changes of Circumstances

The Council may need to revise the decision to grant an exception to the Premium if it becomes aware that the circumstances of an applicant have materially changed.

Individuals must immediately advise the Council of any change in circumstances affecting the decision within 21 days of the change. Failure to do so may result in the exception being revoked in full.

8. Notification

The Council will inform the applicant in writing of the outcome of their application within 28 days of receipt, or as soon as possible after. Where the application is unsuccessful, the Council will set out the reasons why this decision was made and explain the right of review.

9. The right to seek a review

As the local exceptions to the Premium in this policy are determined locally any decisions are not subject to a statutory appeals mechanism.

The Council will therefore operate its own procedures for dealing with appeals against a refusal to award an exception to the Premium.

Decisions will be determined at management level by the Revenues Manager.

An applicant (or their appointee or agent) who disagrees with a decision not to award an exception may dispute the decision.

A request for a review must be made in writing to the Head of Shared Service, Revenues and Benefits within one calendar month of the written decision being issued.

The Head of Shared Service, Revenues and Benefits will review all the evidence held and may ask for further clarification to be provided.

A decision will be made within 28 days of the request for a review. The decision will be notified to the claimant in writing, setting out the reasons for the decision.

For the mandatory exceptions (classes E-M) there is a right to appeal to the Valuation Tribunal.

To be read in conjunction with the Empty Homes Charging Policy.

Preston City Council Decisions - 20 April 2017 ,13 December 2018 and January 2024.

Last Revised: January 2025.