What is the official definition of a second home?

I'm.no expert but my interpretation of a second property is that you have access/option to reside in both. You can only nominate one property as your permanent residential home although I'm unclear how this is policed so to speak. In your case, from what you've said, you have one home which is your redevelopment property and no financial investment in your partner's property.

I have worked with Council Tax teams on their IT systems - including counter-fraud. The last time was 6 or 7 years ago and I haven't read the regs so this is not definitive. As I recall your partner's address will be classed as your main residence, and the refurb property is a 2nd Home. The political justification was to encourage owners to get work done quickly and not leave them empty.

For info, many councils do, or at least used to do, local and national data-matching runs to identify empty second homes.

Reply to the comment left by Simon M at 21/12/2023 - 14:48
I'm also interested in the answer to this question if anyone else has anything else to add.

What do you have to do if for example your main residence, i.e. your principle private residence, is at location (A) but you have to have another premises for work at location (B). You are paying council tax on both properties. But is location B really a 'home' if it's somewhere that you have to keep for work?

There is no specific legal definition of a second home that I'm aware of, but rather its any property that you own but don't let that's not your Principal Private Residence. Your PRR is a concept that is recognised in law for both housing and tax purposes and is defined as:
The property is the individuals main or only residence throughout the period of ownership; and has only been used as a home and nothing else.
Your PRR can change and can also be elected for tax purposes.

So in summary. It comes down to:

- whether you let it
- whether you use it for anything else, e.g. a business
- whether you elect it as your PRR for tax purposes?

I was a software developer for a large company and we looked at writing a system to detect second homes. Start by looking at what is actually your PRIMARY home - you are registered on the electoral register there, you pay council tax there in your name, your bank account is registered there and HMRC know you at that address. There are many other indicators (bills go to your primary address in your name). Once this is established, any other property you own is likely to be a second home (and in the case with a council you would have to disprove this). This approach in a modified form (bills sent to an address but you are not on the electoral register there) are used by councils to catch co-habiting benefit fraud. Councils have some very clever software !

Reply to the comment left by Beaver at 21/12/2023 - 14:52
Yes it is a home and likely your principal one as you may spend more time there. However that is moot, you definitely have two.

"Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be."
The Council do not assess who is sleeping in who's bed for the purposes of assessing council tax liability.

The most tax efficient way of declaring your living arrangements would be to nominate the property you are doing up as your residence, and claim the 25% single occupancy rate. For your partner to do likewise at their own property, again claiming the 25% discount if they are the only adult living there.

Of course, if you think that the Council are entitled to know which bed you are sleeping in, how often, and for how long, then by all means pay the full council tax bill at your partner's address, and potentially a double council tax bill at your own address if that becomes introduced in your area. Also beware that you might not get full capital gains tax relief on the property you are doing up if you decide that HMRC are also entitled to know which bed you chose to sleep in.
If it was me, and I was spending the occasional night at a partners address, however frequently, I would ensure that my bank address, my driving licence address, and the address I use for most usual correspondence, were all at the other address. And I'd keep some clothes and a bed there to. If it saves you a couple of thousand pounds per year, you can take your partner back to your house for sleepovers. I don't think you are expected to count how many nights. Just yet!
Note: If you decide to become a joint mortgagee with your partner on their property, or if you get married or enter a civil partnership, then this will probably negate all that I have said.

Reply to the comment left by Beaver at 21/12/2023 - 14:52
Probably nearly 30 years ago my father was in this position. Family home was in Cheshire where he worked. Then employer wanted him to work in Avon for 5 years, so he got a small flat where he slept and worked 4 days per week, and travelled back at weekends to live with my mum for 3 nights. Clearly, the Cheshire address was his main home, and the flat in Avon a second home. He asked the opinion of the Council who charged him full council tax on his main home, and a double rate on the flat. In my view, he could have simply kept his own counsel, and legitimately claimed that his flat was his main home since he was there 4 nights per week, and paid a single council tax with 25% single occupancy rate. Mum could have done the same. Nobody would have asked any questions as council tax would have been paid at both properties.

Our council defines a second home as a property which is furnished but is not used by someone as a main residence. This means our BTL flats are classed as second homes between tenancies because our property s are furnished. I hope they don't bring in double council tax for second homes because that would be financially hard for us. I would hope they would create another classification for rental property's which are furnished.