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.