Do You Pay Council Tax on a Derelict Property?

You may not have to pay council tax on a derelict property if it is removed from the council tax list by the Valuation Office Agency (VOA). [3] For this to happen, the property must be uninhabitable and require major works or reconstruction to be made liveable again, not just routine renovation. [2, 6]

What does the VOA consider a 'derelict' property?

The Valuation Office Agency (VOA) makes a clear distinction between a property that is in poor repair and one that is truly derelict. [6] A property that simply needs redecorating, a new kitchen or bathroom, replacement windows, or has minor plaster damage is considered to be in poor repair and will not be removed from the council tax list. [3] The cost of the repairs is not the deciding factor. [6]

To be considered derelict, a property must be uninhabitable to the extent that it cannot be repaired without changing its character, which often means major reconstruction is needed. [2, 6] The VOA assesses the physical state of the building, looking for severe structural problems. [6] Features of a derelict property can include:

• Collapsed ceilings or floors. [3, 6]
• Large sections of the roof missing, causing extensive water damage. [3, 6]
• Missing external doors or window frames. [6]
• Widespread rot that has affected structural parts of the house. [6]
• Vegetation growing inside the property. [6]

Essentially, the property must have deteriorated so much that it cannot be lived in without being substantially rebuilt. [6]

How is a derelict property removed from the council tax list?

Only the Valuation Office Agency (VOA), not your local council, can decide to remove a property from the council tax list. [8] The homeowner must submit a request, often called a proposal, to the VOA to have the property's council tax band deleted. [4]

Once a proposal is made, the VOA will review the evidence to determine if the property is truly derelict. [3] A VOA listing officer will assess the physical state of the property, which may involve a site visit or a review of submitted documents. [4] If the VOA agrees that the property is derelict and uninhabitable, it will be removed from the council tax valuation list. [3]

The VOA will then inform the local council, which must stop charging council tax. [3] The deletion will be backdated to the date the VOA determines the property became uninhabitable, which can result in a refund for any council tax paid during that period. [3, 5]

What evidence is needed to prove a property is derelict?

To support a case for deleting a council tax band, you must provide strong evidence to the VOA that the property is uninhabitable due to its physical condition. [3, 4] Simply being empty is not enough. [3] Useful evidence includes:

• Labelled and dated photographs showing the property's interior and exterior condition, including specific structural problems. [3, 6]
• A structural surveyor's report detailing the defects and the work needed to make the property habitable. [3, 4]
• Detailed descriptions or builder's quotes for the required structural work. [3]
• Information on when the property was last occupied and when it became uninhabitable. [6]

This evidence helps the VOA's listing officer to make an accurate decision about the property's state and the appropriate effective date for deletion. [3]

What if the property is just being renovated?

A property undergoing normal refurbishment, even if extensive and requiring it to be empty, is not typically considered derelict. [3] However, if the property is undergoing a major renovation scheme that is so substantial it effectively makes it uninhabitable, the VOA may agree to delete its council tax band temporarily. [3, 11]

For a renovation, the band deletion is backdated to the day the work physically started on site. [19] It's important to note that gaining planning permission does not count as the start of the work. [3] You will need to provide the VOA with evidence like a description of the works, plans, and photos showing the work underway. [19]

This is different from local council discounts. Some councils used to offer short-term exemptions for uninhabitable properties, but many of these have been abolished. [13] Now, councils in England and Wales can charge a premium of up to 100% on homes empty for a year, rising further for longer periods. [9, 15]

What happens when a derelict property is made habitable again?

Once a property has been removed from the list, it remains exempt from council tax as long as it is derelict. [3] When the renovation or reconstruction work is completed, the property must be re-entered onto the council tax list. [3]

The owner should inform the local council that the works are finished. The council will then notify the VOA, who will arrange for the property to be assessed and given a new council tax band. [3] The liability for council tax starts again from the date the work was completed. [19]