From April 2013 the national Council Tax Benefit scheme is abolished and every local council in England has to decide what type of support scheme will replace it. Every council will have ten per cent less funding from Central Government to fund the scheme.
The Lincoln scheme will lose £862,000 per year of funding (including the County Council and Police Authority’s share). This is about £160,000 a year for the City Council alone.
What does this mean for property renovators and btl landlords with regards to Lincoln council tax:
Empty Property undergoing alteration to make it habitable: Currently 100% exempt for 12 months, will carry 75% Liability, with 25% discount for 12 months.
Empty Property for less than 6 months: Currently exempt for 6 months, will have 100% discount for 2 months.
Long term empty (6 months to 2 years): Currently 50% discount permitted, will be 100% Liability.
Empty over 2 years:
Currently 50% discount permitted, will be 150% after 2 years.
There are slight variations for other parts of Lincolnshire, keep an eye out for further updates…