Council Tax unoccupied property discounts and premiums

From 01/04/2024

The period which a property must have been unoccupied and substantially unfurnished before first becoming subject to an empty property premium is reducing from 2 years to 12 months (1 year). This change is in line with new legislation, set out in The Levelling-up and Regeneration Act 2023, which received Royal ascent on 26 October 2023. A decision was made by full Council on 26 February 2024 to apply this in accordance with the new legislation. (The charge examples assume a standard Council Tax charge of £1,000.00).

Properties empty for 1 year to 5 years will be subject to a 100% premium. This means a 200% charge will be payable e.g. £2,000.00.

Properties empty for more than 5 years will be subject to a 200% premium. This means a 300% charge will be payable e.g. £3,000.00

Properties empty for more than 10 years will be subject to a 300% premium. This means a 400% charge will be payable e.g. £4,000

Prior to 1 April 2024, the following rates and periods applied:

Prior to 01/04/2020

Properties which are empty and unoccupied for two years are subject to a 50 % premium, added to the usual Council Tax charge. This means a 150% charge was payable.

From 01/04/2020

The premium increased in line with legislation.  (The charge examples assume a standard Council Tax charge of £1,000.00).

Properties empty for 2 to 5 years are subject to a 100% premium. This means a 200% charge is payable e.g. £2,000.00.

Properties empty for more than 5 years are subject to a 200% premium. This means a 300% charge is payable e.g. £3,000.00

From 01/04/21

Properties empty for more than 10 years will be subject to a 300% premium. This means a 400% charge will be payable e.g. £4,000

Please note:

The 12 month, 5 and 10 year periods start when the property first becomes empty and unoccupied and do not start again with a change of ownership.

Unoccupied and substantially furnished properties are currently charged 100% from day one, and do not  attract a premium.

However, please be aware that a premium will also apply to this type of property after 12 months, from 1 April 2025. Please see 'Unoccupied but substantially furnished properties' below.

Prior to 1 April 2025

No discount is allowed for these property types and full Council Tax is charged from day one. There are some exceptions where a 50% discount will still apply, including caravans and certain job related accommodation. If you think this may apply to you, please submit a general enquiry form.

From 1 April 2025

Properties which are unoccupied, but substantially furnished for at least 12 months (1 year) will become subject to a 100 % premium, added to the usual Council Tax charge. This means a 200% charge was payable e.g. assuming an example Council Tax charge of £1,000.00, a charge of £2000.00 will be payable).

A property is subject to this premium where:

1. there is no resident of the dwelling, and
2. the dwelling is substantially furnished.

As well as including unoccupied properties that are substantially furnished, this also includes properties which are often referred to as second homes, where a property is furnished, but is not a person’s main residence and is only occupied periodically.

This premium has been introduced in accordance with Section 80 of The Levelling-up and Regeneration Act 2023, which received Royal ascent on 26 October 2023. A decision was made by full Council on 26 February 2024 to apply this in accordance with the new legislation.

Dwellings falling into the below categories are not subject to the premium, and will continue to receive the 50% Second home reduction.

1. unoccupied caravans on pitches
2. unoccupied boats on moorings, and
3. work related accommodation.

This exception can apply for up to 12 months from the point from which the dwelling has first been marketed for sale. 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

There are a number of factors which councils may 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
• whether the dwelling is being marketed at a fair market value
• whether there are any artificial barriers on the dwelling preventing sale
• whether the dwelling has an Energy Performance Certificate (EPC) - (a valid EPC is required to sell or let any dwelling, and should be ordered before marketing a property. Please refer to Selling a home: Energy Performance Certificates - GOV.UK)
• whether the owner is taking any other reasonable steps to market the dwelling for sale

When considering whether a second or empty home is actively marketed, we will consider these as a whole. Where a property may not meet one of the described factors it may still overall be considered to be actively marketed.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

If you think your property should be excepted from a premium for the above reason you will be asked to provide evidence of your property being actively marketed for sale with any application. 

An application process will be made available from 1 April 2025 (when the exceptions first come into effect)

When will this exception not apply

Please be aware that if your property has been actively marketed for sale for at least 12-months at the time a premium becomes payable on your account,  or the premium exceptions come into effect (1 April 2025), you will not qualify for any exception period. This is because the exception to a premium only applies for up to 12 months from when the property was first actively marketed for sale. 

The following examples may be helpful to illustrate this for you:

1. A property was first actively marketed for sale on 1 January 2024 and was also unoccupied and substantially unfurnished from that date.  As a result, it would have become subject to a Long term empty premium from 1 January 2025. The exceptions come into effect on 1 April 2025.  However, as the property has already been actively marketed for 12-months, before 1 April 2025, no exception period will be applicable. 
2. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. It was first actively marketed for sale on 1 June 2024. The exceptions come into effect on 1 April 2025. In this case, this property will only qualify for the exception for the remainder of the 12 months after which it was first actively marketed for sale. This means it would be required to pay a premium from 1 January 2025 until 31 March 2025 (before the exceptions came into legislation). It would then qualify for an exception from 1 April 2025 until 31 May 2025, before a premium would apply again from 1 June 2025.
3. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. It was first actively marketed for sale on 1 May 2025. In this case, a premium will be payable from 1 January 2025 until 30 April 2025. The property may then qualify for this exception for up to 12-months, from 1 May 2025 until 30 April 2026, after which a premium would again apply (if the property has remained unoccupied and substantially unfurnished).  

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

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 councils may take into consideration when assessing whether a dwelling is being actively marketed for let. These may include but are not limited to:

• whether the dwelling is clearly advertised for let
• whether the dwelling is being marketed at a fair market rent value
• whether there are any artificial barriers on the dwelling preventing let
• whether the dwelling has an Energy Performance Certificate (EPC) - (a valid EPC is required to sell or let any dwelling, and should be ordered before marketing a property. Please refer to Selling a home: Energy Performance Certificates - GOV.UK)
• whether the owner is taking any other reasonable steps to market the dwelling for  let

When considering whether a second or empty home is actively marketed, we will consider these as a whole. Where a property may not meet one of the described factors it may still overall be considered to be actively marketed.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

If you think your property should be excepted from a premium for the above reason, you will be asked to provide evidence of your property being actively marketed for let with any application. 

If you think your property should be excepted from a premium for the above reason you will be asked to provide evidence of your property being actively marketed for sale with any application. 

An application process will be made available from 1 April 2025 (when the exceptions first come into effect)

When will this exception not apply

Please be aware that if your property has been actively marketed for let for at least 12-months at the time a premium becomes payable on your account, or the premium exceptions come into effect (1 April 2025), you will not qualify for any exception period. This is because the exception to a premium only applies for up to 12 months from when the property was first actively marketed for let. 

The following examples may be helpful to illustrate this for you:

1. A property was first actively marketed for let on 1 January 2024 and was also unoccupied and substantially unfurnished from that date.  As a result, it would have become subject to a Long term empty premium from 1 January 2025. The exceptions come into effect on 1 April 2025.  However, as the property has already been actively marketed for 12-months, before 1 April 2025, no exception period will be applicable. 
2. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. It was first actively marketed for sale on 1 June 2024. The exceptions come into effect on 1 April 2025. In this case, this property will only qualify for the exception for the remainder of the 12 months after which it was first actively marketed for let. This means it would be required to pay a premium from 1 January 2025 until 31 March 2025 (before the exceptions came into legislation). It would then qualify for an exception from 1 April 2025 until 31 May 2025, before a premium would apply again from 1 June 2025.
3. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. It was first actively marketed for let on 1 May 2025. In this case, a premium will be payable from 1 January 2025 until 30 April 2025. The property may then qualify for this exception for up to 12-months, from 1 May 2025 until 30 April 2026, after which a premium would again apply (if the property has remained unoccupied and substantially unfurnished).  

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 6 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 6-month exemption.

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

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

You do not need to apply. This exception will be automatically applied to a Council Tax account when the Council is made aware that probate or letters of administration have been granted. 

This exception may apply where a dwelling requires or is undergoing major repairs or is undergoing structural alteration. 

If the criteria are met the property may be excepted from the empty home premium for up to 12 months.

Where major repairs or the alterations are completed in less than 12 months, the exception will still apply to the dwelling for up to 6 months or until the end of the 12 months, whichever is sooner.

This exception applies on empty homes only.

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.

How to apply

If you think your property should be excepted from a premium, an application process will be made available from 1 April 2025, when the exceptions come into effect. You will be asked to supply evidence, and a visit to your property by a Council Officer may be required as part of any application.

When will this exception not apply

Please be aware that if your property has been uninhabitable state for at least 12-months at the time a premium becomes payable on your account, or the premium exceptions come into effect (1 April 2025), you will not qualify for any exception period. This is because the exception to a premium only applies for up to 12 months from when the property has been classed as uninhabitable. 

The following examples may be helpful to illustrate this for you:

1. A property has been requiring or is undergoing major repairs or is undergoing structural alteration since 1 January 2024 and was also unoccupied and substantially unfurnished from that date or earlier.  As a result, it would have become subject to a Long term empty premium from 1 January 2025. The exceptions come into effect on 1 April 2025.  However, as the property has already been in an uninhabitable state (requiring or is undergoing major repairs or is undergoing structural alteration), for 12-months before 1 April 2025, no exception period will be applicable. 
2. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. However, work commenced meaning the property was undergoing major repairs or structural alteration from 1 June 2024. The exceptions come into effect on 1 April 2025. In this case, this property will only qualify for the exception for the remainder of the 12 months after which it was first classed as uninhabitable. This means it would be required to pay a premium from 1 January 2025 until 31 March 2025 (before the exceptions came into legislation). It would then qualify for an exception from 1 April 2025 until 31 May 2025, before a premium would apply again from 1 June 2025.
3. A property has been unoccupied and substantially unfurnished since 1 January 2024. As a result, it would have become subject to a Long term empty premium from 1 January 2025. However, work commenced meaning the property was undergoing major repairs or structural alteration from  1 May 2025. In this case, a premium will be payable from 1 January 2025 until 30 April 2025. The property may then qualify for this exception for up to 12-months, from 1 May 2025 until 30 April 2026, after which a premium would again apply (if the property has remained classed as uninhabitable for the relevant period, and remained unoccupied and substantially unfurnished).  

This exception applies to 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.

The exception applies for as long as the property meets these criteria.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

You do not need to apply. If your property is classed as falling within the above criteria, this exception will be automatically applied to your Council Tax account. If you have been charged a long term empty, or unoccupied but substantially furnished premium, but believe this exception should apply, please contact us.

Council Tax legislation already contains provisions that in certain circumstances job related dwellings receive a 50% Council Tax discount. There is no change the discounts which these dwellings receive.

This exception applies to 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. The definition of a job-related dwelling for the purposes of this exception is set out in the Schedule to the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003. 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.

The exception applies for as long as the property meets these criteria.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

You do not need to apply. If your property is classed as falling within the above criteria, this exception will be automatically applied to your Council Tax account. If you have been charged a long term empty, or unoccupied but substantially furnished premium, but believe this exception should apply, please contact us.

Council Tax legislation already contains provisions that in certain circumstances unoccupied caravans and boats receive a 50% Council Tax discount. There is no change the discounts which these dwellings receive.

This exception applies to any occupied caravan pitch or boat mooring, where the caravan or boat is unoccupied.

The exception applies for as long as the property meets these criteria.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

You do not need to apply. If your property is classed as falling within the above criteria, this exception will be automatically applied to your Council Tax account. If you have been charged a long term empty, or unoccupied but substantially furnished premium, but believe this exception should apply, please contact us.

This exception applies to 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.

The exception applies for as long as the property meets these criteria.

This exception applies to both long term empty properties (unoccupied and unfurnished) and unoccupied but substantially furnished premiums.

How to apply

You do not need to apply. If your property is classed as falling within the above criteria, this exception will be automatically applied to your Council Tax account. If you have been charged a long term empty, or unoccupied but substantially furnished premium, but believe this exception should apply, please contact us.

This exception applies where there is a planning restriction to:

• seasonal homes where year-round, permanent occupation is prohibited,
• properties specified for use as holiday accommodation or
• occupancy is prevented for more than 28 days continuously.

The exception applies for as long as the property meets these criteria.

This exception applies to the unoccupied but substantially furnished premium only. A long term empty premium (unoccupied and unfurnished) premium may still apply.

How to apply

You do not need to apply. If your property is classed as falling within the above criteria, this exception will be automatically applied to your Council Tax account. If you have been charged a long term empty, or unoccupied but substantially furnished premium, but believe this exception should apply, please contact us.