Council tax on empty property

Where a property is no-one’s main residence, it's the owner of the property who becomes responsible for council tax.

In council tax law unoccupied property is defined in two ways. Empty/long term empty property, and second homes.

Since 2014, owners of long-term empty property have been charged an additional council tax premium.

With effect from 1 April 2025, owners of second homes will also be charged an additional council tax premium.

With effect from 1 April 2025, the Government have announced some exceptions to both premiums, meaning the premium would not be charged in certain circumstances.

1. Empty property/Long term empty property

Empty property is unoccupied property that is substantially unfurnished. 

After a property has been unoccupied and substantially unfurnished for more than one year it is classed as long-term empty property.

We continue to offer a 100% discount for the first month where a property becomes both unoccupied and substantially unfurnished.

When a property continues to be unoccupied and substantially unfurnished, and where the initial one-month 100% discount has expired, full council tax will be payable (until such time that the council tax premium applies).

Long term empty property (property that remains unoccupied and substantially unfurnished for more than one year) attracts a Council Tax Premium.  The premium increases with the length of time the property remain unoccupied and substantially unfurnished. 

As this premium applies to the property, a change of ownership or tenancy won't affect the premium.

The premium can only be removed by bringing your property back into use by furnishing or occupying the property for a continuous six-week period.

2. Second homes

Dwellings that are substantially furnished, but only occupied sporadically, and are no one’s main residence are classed as second homes.

We don't currently offer any discount for second homes.

With effect from 1 April 2025 owners of second homes will pay a 100% council tax premium.

3. Exceptions to the long-term empty premium and second home premium

With effect from 1 April 2025 the Government have introduced some exceptions to both the long-term empty premium and the second homes premium.

This means that the premium won’t be applied for the defined period.  The standard council tax will still be payable.

Some exceptions apply to both types of unoccupied property.  Some apply to one or the other.

For information about the qualifying criteria for these exceptions, please see below. 

For further information please contact the council tax team.

 

Exceptions to both the long-term empty property premium, and the second homes premium:

Annexes and military accommodation (Class E and Class F)

Two mandatory exceptions from the empty home premium already exist:

• A dwelling which is or would be the sole or main residence of a member of the armed services, who has been provided with a dwelling as a result of such service.
• A dwelling which forms part of a single property with one or more other dwellings that is being used by a resident of one of the other dwellings as part of their sole or main residence (annexe).

These exceptions will continue to apply for long term empty homes and will also be applied in the case of the second homes premium.

Actively marketed for sale or let (Class G and Class H)

This exception can apply for up to 12 months from the point from which the dwelling has first been marketed for sale or let. The exception will end either when the 12-month period has ended, when the dwelling has been sold or let or when the dwelling is no longer actively marketed for sale or let. The following conditions will apply to this exception:

• The same owner may only make use of the exception for a particular dwelling marketed for sale once
• The exception may be used again for the same dwelling if it has been sold and has a new owner
• The same owner may make use of the exception for dwellings marketed for let multiple times, however, only after the dwellings has been let for a continuous period of at least 6 months since the exception last applied

There are a number of factors which we must take into consideration when assessing whether a dwelling is being actively marketed for sale or let. These may include:

• Whether the dwelling is clearly advertised for sale or let
• Whether the dwelling is being marketed at a fair market value
• Whether there are any artificial barriers on the dwelling preventing sale/let
• Whether the dwelling has an Energy Performance Certificate (EPC)
• Whether the owner is taking other reasonable steps to market the dwelling for sale or let
  

Probate (Class I)

There is an existing Class F council tax exemption for dwellings undergoing probate. When a dwelling has been left empty following the death of its owner or occupant, it is exempt from council tax for as long as it remains unoccupied and until probate is granted. Following a grant of probate (or the issue of letters of administration), a further six months exemption is possible, so long as the dwelling remains unoccupied and has not been transferred by the executors or administrators to the beneficiaries or sold to anyone else.

Following a grant of probate the owners of the dwelling may require further time to decide how they will manage the home or sell it. The Regulations provide for a 12-month exception to the premium for both second and empty homes. The 12-month period begins from the point probate is granted or letters of administration have been issued. This runs concurrently with the existing six-month exemption.

This exception will run for 12 months or until the dwelling has changed owner by being sold.

 

Exceptions for second homes only

Job related dwellings and caravan pitches/boat moorings (Class J and Class K)

The council tax system already contains provisions which ensure that in certain circumstances these dwellings receive a 50% council tax discount. The new exceptions mirror the provisions of these discounts to ensure these dwellings continue to receive these discounts.

Generally, a dwelling would be classed as a job-related dwelling where it is a dwelling provided by a person’s employer for the purposes of performing their work. Examples include headteachers for boarding schools who are required to live in school accommodation, or certain care workers who need to live on site to carry out their role.

Seasonal homes (Class L)

This exception applies to dwellings that could not reasonably be occupied as a permanent residence.

In applying this exception, we must consider whether there are any planning restrictions which explicitly set out that the dwelling cannot be used as a main residence. For example, where this is purpose-built holiday accommodation which can only be used as holiday accommodation.

In addition, this exception provides for dwellings which have planning restrictions whereby they cannot be occupied for at least 28 continuous days in a year. In some cases, we might categorise a dwelling with this restriction as being a person’s sole or main residence. Where this is the case, the dwelling would not be liable for the premium since this cannot apply to a main residence.

 

Exceptions for long term empty property only

Major Repairs (Class M)

Where a dwelling requires or is undergoing major repairs or is undergoing structural alteration it may be excepted from the empty home premium for up to 12 months. Where major repairs are completed in less than 12 months, the exception will still apply to the dwelling for up to six months or until the end of the 12 months whichever is sooner.

This exception only applies on empty homes. This exception cannot apply again unless the dwelling has been sold. If the dwelling is substantially furnished and becomes a second home without a resident, then this exception will end.

The Council may need to arrange a visit to confirm eligibility to this exception.