Council Tax No 7 - Single Person Relief (SPR) No 2 Discount Disregards

SPR applies to one adult residing in a dwelling. In council tax law you might ask the question: "When are more than one person equal to one person?" It is an odd question with many answers - say over 20!

The following examples of "discount disregards"are not counted when assessing occupation for SPR:

• a minor (under 18 years);
• an adult whose main residence is not the dwelling - this has been the subject of case law;
• several kinds of student, eg college or university students living at home or in digs (ie the CT payers home);
• certain trainees, such as student nurses or apprentices;
• certain non-permanent residents, eg guests staying with the taxpayer when they are on holiday;
• hospital patients and those in care, eg in care homes.

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Council Tax No 6 - Single Person Relief (SPR) No1

The Local Government Finance Act 1992 provides as a general rule that when two (or more) adult persons occupy a dwlling the result will be that the council tax payer pays the full amout of tax for the dwelling's council tax band.

When only one adult person occupies the dwelling relief is given by a 25 percent reduction ( a discount) in the amount of council tax to be paid. This may result from::

• being a one person household;
• other residents have left to reside elsewhere;
• a spouse has died;
• a marriage has ended and one peson leaves the dwelling;
• one spouse is away working elsewhere.

In most cases the individual remaining must claim the SPR. However, where a spouse dies the Registrar of Births Deaths and Marriages notifies the charging authority. The charging authority then makes the council tax adjustments to reflect the SPR.
[Note: A family's children, ie minors (under 18 years), and most students are not treated as residing in the dwelling for council tax purposes.]

The law of council tax is more complicate than I have described above. For instance case law has established that a person required to live eslewhere may be regareded as resident so the SRP is lost!

Council Tax No 5 Consultation on Residential Reliefs

The government is consulting on reform of "technical" aspects of council tax - see

http://www.communities.gov.uk/documents/localgovernment/pdf/20192051.pdf

Will follow-up this post with more details. Brief reading suggests that some of those with vacant dwellings will be subject to more council tax!

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Local Taxation - Working at Home 2 - Part of Dwelling Exclusive for Business or Not...?

This post follows No1 on this Blog.

If you are starting a new business or you are joining the growing horde of employees who work from home you may find yourself with demand for business rates which is in addition to your council tax demand!

There are a number of pointers which indicate whether part of a dwelling would become liable for assessment for business rates. The following pointers are offered:

1. if from time to time work is carried out on say, the kitchen table or in some other family-used place it should not attract an assessment for business rates;
2. similarly, if the work is essentially carried out at a desk used for the purpose in say, a reception room or bedroom and the room is used as part of the home by other members of the household, it should not attract an assessment for business rates; 
3. On the other hand, be warned, if a room, garden room, garage, shed or other accommodation is set aside and exclusively used for work purposes, it is possible that the question of an assessment for business rates will arise.

The main issues underpinning the last pointer are: 1) the degree of exclusivity of use in part of the dwelling, and  2) the nature of the work. For instance, use of the room by other members may exist from time to time but it may be insignificant. Although exemptions and reliefs from business rates are ignored in this series on Working at Home, where an exemption etc from business rates is available it may affect the outcome.

Local Taxation - Working from Home No 1 - Council Tax, Business Rates or Both

An intention to start working from a family home will involve a review of the impact of local taxation on the family budget and business budget. Briefly the points to note are as follows:

1. A dwelling which is used exclusively for residential purposes will normally result in the occupier paying council tax.
2. A dwelling which is used partly but minimally for business purposes would normally result in the occupier paying only council tax. (The issue to be considered is the extent and degree of business use.)
3. A dwelling which is used partly but significantly for business purposes would normally result in the occupier paying council tax and business rates. (The same issue of the extent and degree of business use needs to be considered.) 

The next two posts of  this series on Working at Home will examine the range of possibilities under 2 and 3 above. (Please note: In these posts the issue of the availability of exemptions and reliefs from local taxes is ignored.)


Finally, in local taxation law and practice for council tax and business rates  property may be known as a composite property. It will be a property which part residential and part business, eg a shop with  flat above, and an office premises incorporating a flat. Our three posts will deal with dwellings - houses and flats - at least initially.