OT: Council tax

[Grumps]

Hi All, I have a 2nd home (furnished) in a borough that wants to add a council tax surcharge for such homes of 50%. I understand why, and have no objections in principle. My main home is in a borough that would not have a surcharge if it were my second home. If first borough wants to add the 50% (they keep enquiring as to my intentions for this property - inherited), do I just swap my primary residence? Are there any gotchas, and is there a proper procedure?

Or, could I nominate the surcharge property as my primary residence, and my wife nominate our current main home as hers, and then both get 25% single occupancy discount? TIA.

[Max Demian]

If you're an MP, it's called 'flipping'.

It's such an obvious dodge for a couple with two houses, I'm sure there must be a way to stop you doing it. Maybe you have to be legally separated; maybe you mustn't ever visit one another.

[jgh]

Your primary residence is that one that you spend more than 182 days in the year in.

[Fredxx]

Do you know of any student who could live there? Or say they are?

[Brian Gaff]

I do think its based on time in occupation, at least that was what Merton told a friend of mine. The point is though, with the current price of land etc, might it not just be more profitable to sell one of them and use the dosh to get a property abroad and rent it out for holidays and use it yourself in between?

Brian

[Michael Chare]

Only your primary residence is not subject to capital gains tax.

[Grumps]

Thanks, it's not really as issue of CGT. I just don't want to have to pay a council tak surcharge.

[Grumps]

Where the property is would likely raise an eyebrow if a student were to declare that they were living there. It's not reasonably close to any college or uni. Whether that'd be a concern for the council, I don't know.

[Brian Reay]

They will probably want evidence of where you spend most time.

The reduction for second homes is normally for holiday homes etc. Not intended to, for example, get a discount in on an expensive property and pay the full whack in a cheaper one to save money (more is the pity!)

[Jim GM4DHJ ...]

shocking for you to think that is a pity ...but then again masons try every fiddle going...

[dennis]

You have to live there so many days a year IIRC. I don't recall how many but it was significant.

The council tax saving isn't as significant as the capital gains tax though.

[Chris J Dixon]

It used to be the case that there was no CGT if a dependent relative lived there rent free, but I gather that loophole has now closed.

Chris

[Robin]

You can't nominate which is your main home for council tax purposes.

And there's /no/ simple rule (nights you spend where, where your ferrets live, where you keep your angle grinder, etc) that decides which is your main home.

It's decided by looking at a wide range of factors. See any of the umpteen online guides from councils. Eg pages 5-6 in

(which is just the first result of a search)

[Jim GM4DHJ ...]

that is what the handshake I have seen at interviews is all about ....

[Fredxx]

A student would have a home address and a uni address, I don't think it would be an issue, though as you say, it might raise an eye brow or two!

[invalid]

The one where they rub their thumb around your knuckles? If they do that then you know that you can not give them the job.

[Jim GM4DHJ ...]

only noticed it when he shook my fellow interviewer who I knew was a mason.....anyway he was the worst of the lot of them obviously relying on the brothers to progress in the building industry ...I snookered his chances...shame that...tee hee