A call to apply discretionary powers to help properties that have moved from business rates to potentially facing second homes council tax charges in the tens of thousands is to be considered by senior Pembrokeshire councillors.
At the July 16 meeting of Pembrokeshire County Council, members considered a notice of motion by Cilgerran councillor John T Davies calling for the council to apply discretionary powers not to retrospectively charge the second homes council tax premium on residential properties that have moved from business rates to residential council tax.
His motion added: “This discretion is applied on municipal years, when the VOA have failed to inform Revenue Services of the change of status within the relevant municipal year.
“Over the last year I have received a number of representations from worried and concerned council tax-payers, who have moved from business rates status to full residential council tax category.
“In these instances, within my electoral area, both the council tax liability and second homes premium have been backdated up to three years by Revenue Services resulting in extortionate sums from £25,000 to £36,000 been charged against families and individuals.
“On all these occasions all have furnished their returns to the Valuation Office Agency (VOA) within the required time frame. The VOA subsequently sit on that information up to three years and eventually inform the council’s Revenue Services to revert the status of the property to full residential council tax category.
“This leads to automatically triggering the back dating of both the council tax liability and the second homes premium, which subsequently leads to extortionate sums being demanded of no fault of the council taxpayer.
“This current practice has led to individuals experiencing undue stress and mental health issues, leading to family breakdowns and in some extreme cases, concerns for the personal safety of individuals.
“By adopting this notice of motion, the council will be applying its powers to only backdate the standard council tax liability and waiver the second homes premium for the relevant period, reducing the personal anxiety and stress on individuals and families and demonstrating compassion over compliance.”
Members agreed the matter be referred to a future meeting of the council’s Cabinet for decision.
