Part 6 (Council Tax Provisions) of the Local Government Bill came into force on 18 November 2003. It inserts new sections into the Local Government Finance Act 1992, in respect of council tax discounts and council tax demand notices.
The government has given councils new powers to enable them to fund improvements in local services, such as more affordable housing, improved transportation and policing, by restricting council tax discounts for second homes. The government has developed the policy with the view that second home owners should make a greater contribution to the local community and tax burden and estimates that an additional £65 million could be raised nationally.
The government has also suggested that limiting discounts on long-term empty properties will provide an incentive to get properties back into use.
On 18 December 2003, Guildford Borough Council Executive Committee decided to:
- Increase the amount to be charged on 'second homes' from 50% to 90%
- Increase the amount charged on 'Long Term' empty property from 50% to 100%.
The changes will take effect from the billing year 1 April 2004. An application form to apply for a 10% second home discount, or other property exemption is available from here.
The Executive decided not to set any 'Locally Defined Discounts'.