Evidence gathered by Aberdonian.com would suggest that it is.
You would think that Aberdeen City Council wouldn't wish to be further embarrassed having recently seen the sentencing of a former employee who embezzled unclaimed Council Tax overpayments for 17 years.
And yet, it is evident that Aberdeen City Council is failing to properly implement second homes legislation regarding Council Tax (https://www.legislation.gov.uk/ssi/2023/389/made), which took effect from 01 April 2024. Worse still, it is choosing to persecute a small minority with this discriminatory and persecutory tax, while the majority required by law to pay this tax, get off scot-free.
In common with most Councils in Scotland, the system of collecting Council tax from those with a second home is currently operating as a voluntary declaration system with very little (if any) pursuit of those that should be paying it, but are not.
Only those who live in a second home and declare it as such to the Council are currently targeted for the punitive 100% Council Tax premium (making the total bill 200%). There must be thousands failing to declare either as a result of deliberate evasion or simply out of ignorance.
According to the latest official data (https://www.gov.scot/publications/housing-statistics-empty-properties-and-second-homes/) there are only 392 second homes in Aberdeen. For a city with the affluence that is frequently ascribed to it because of its key role in the oil industry, that seems hardly believable. Far more likely is that this figure is simply a record of those that have declared themselves to the Council while all the other people that live in second homes stay low and hidden out of sight. How many of us know someone who works in the oil industry and lives in a second home during the week before returning down south at weekends? Many, I suspect.
Those that are paying the dreaded second homes "premium" for fear of being criminalised for tax evasion face paying the equivalent of three Council tax bills. One for their primary residence and two for their second home. For many this is simply unaffordable, and leaves them with no option but to put their second home up for sale after many years of paying a full Council tax on it, and spending years making it a loved home. Yet, for many, negative equity has them trapped between being unable to sell up and unable to afford extortionate "double" Council Tax rates. And there are no discounts for second homes. Not under any circumstances.
Unlike the ability to identify all homes that should pay Council Tax (a home is there for all to be seen, it cannot easily be hidden), the Council has no realistic or practical method to identify those living in second homes. Yes, there may be ways such as reviewing registries that can identify individuals breaking the law by not paying the premium, but realistically and pragmatically, the resources are only there to identify such instances where suspicion is aroused or the Council are "tipped-off". ACC claims on its websites that it liaises with other agencies (e.g. HMRC, DWP, electoral registers, property assessors,, etc.) to ensure fraud is not carried out. But the promises are defeated by the reality. Many tenants and owners of second homes are oblivious to the need to declare and the Council is blind to their existence.
For example, there are hundreds if not thousands of workers who come to Aberdeen during the week and reside in rented accommodation. At weekends, or holidays, or days working from home they reside at their "primary residence", tens if not hundreds of miles from Aberdeen. These renters ARE liable for the Council Tax premium. Yet you can be sure that hardly anyone in this situation is paying it, and no one in the Council is pursuing it.
The only requirement that these renters must meet to be liable for the premium is:
a) the second home is furnished
b) they live (i.e. sleep) in it more than 25 days per year.
c) they have a primary residence elsewhere
IT MATTERS NOT THAT THEY ARE RENTING IT. THEY DO NOT HAVE TO OWN THE PROPERTY TO BE LIABLE.
And whilst there are exceptions to this law for certain job-related dwellings (e.g. church minister, live-in carer), the exception does not apply to cases where someone chooses to have an additional home to be closer to work while having a family home elsewhere, or where an individual is posted to a new location but maintains their previous address.
Aberdeen City Council must be losing millions of pounds every year through its inability to collect this additional tax. At at time when every penny counts, that is unacceptable.
It is time the Council contacted most employers in the Aberdeen area and requested that they remind their staff who meet the above criteria of their legal obligations, and the penalties if they do not.
Frankly, the communication with the public on this matter has been non-existent and abysmal. For example, there is nothing about second homes on the back pages of the annual Council Tax demand that is sent to every household. Come on ACC, do you want to keep people informed or not?! Surely you do not expect the public to study your website about Council Tax in order to acquaint themselves with their legal responsibilities? Put the information on the annual demand, and take out an advert in the Press and Journal or something similar to ensure people know about this! Do something to ensure this requirement to pay a Council Tax premium is paid by all that are liable, not just the semi-voluntary minority!In conclusion, unless the Council can apply this tax fairly and equitably, they should abandon this policy altogether and save everyone the misery of a persecutory and ridiculous optional law brought about by an SNP government with a hatred of anyone not homeless.
Nothing about this policy creates homes for the homeless or stops locals finding local accommodation to buy. Second home owners have zero impact on these people.
There just isn't a shortage of private homes to buy or rent in Aberdeen. There are over 2,400 homes for sale and ample to rent on the ASPC website !
If there is any city in Scotland for whom implementing a double council Tax premium on second homes was completely inappropriate, unjustifiable and an act of self-harm, then that honour belongs to Aberdeen.
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