Council Tax On Empty Properties And Second Homes

If you own more than one residential property, have a second home, or own an empty property, you will most likely have to pay council tax on these properties. Some exceptions may apply – read on to find out more about council tax on second homes, empty properties, and how you can reduce your council tax bill for multiple properties.

Table of Contents

Who Pays Council Tax on a Rental Property?
Do You Pay Council Tax on Second Homes?
Do You Pay Council Tax on an Empty Property?
Exceptions And Discounts On Council Tax

Who Pays Council Tax on a Rental Property?

If you rent out a property to tenants, they are usually responsible for paying the council tax. For some kinds of property, such as HMOs, the landlord is responsible for paying the council tax and will often factor this cost into the rent. If your rental property is empty, e.g. no tenants are currently in situ, then you, as the owner, will be responsible for paying the council tax.

Do You Pay Council Tax on Second Homes?

A second home, for council tax reasons, is classified as a furnished property in which nobody lives, and the owner lives in a separate property elsewhere. If you have a second home, you will likely have to pay council tax on it, as well as a higher rate of Stamp Duty and even Capital Gains Tax when you sell it. The amount will vary depending on the size and location of the property. Since the Levelling Up and Regeneration Act 2023, local councils in the UK have been allowed to change up to 100% council tax on furnished homes since April 2025. Councils would have to vote on whether to charge additional council tax on second homes and give a year’s notice before implementing the increase, so the amount you have to pay in council tax on a second home may vary depending on your local authority.

Do You Pay Council Tax on an Empty Property?

Much like second homes, you will need to pay tax on empty properties, whether that is a second home, a holiday let, a rental property with no tenants, or other residential property that you own but do not live in. The same rules apply under the Levelling Up and Regeneration Act 2023, so it is up to the local authority how much council tax you will pay on an empty property. Local councils can charge an empty homes premium on houses that are empty and unfurnished for 12 months or more on top of the regular council tax. This premium can cost up to 100% of your council tax if the property is empty for 2 years, 200% for properties empty for over 5 years, and 300% of your council tax if the property is empty for over 10 years. There are exemptions to this rule – read on to find out more.

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Exceptions And Discounts On Council Tax

There are some circumstances in which you can get a discount on council tax for second homes and empty properties. This will depend on the local authority and other factors, too. Here are some ways that you can get a discount on council tax for second homes and empty properties:

You need to live elsewhere due to work

If you need to live outside of your main home for certain periods due to your job, e.g. if you work in the armed forces and need to stay on base, you could obtain a 50% discount on the second home council tax.

Your second home is a holiday let

It used to be possible to declare a second home as a holiday let to reduce council tax obligations on said property. Recently, there has been a crackdown on second homeowners registering their second home as a business but not actually letting it out, and now it has to be made available to let for at least 70 nights over the last 12 months.

Your second home is an annexe of your home

If your second home is an annexe of your actual home, e.g. a granny flat, and occupied by a disabled family member, you can apply for a council tax exemption. You can still get 50% off if the annexe is lived in by another family member or resident of the main house. This discount can vary depending on your local authority.

The property is being actively marketed for sale or let

Properties that are available for buying or letting will be exempt from the empty homes premium on council tax for up to 12 months. Council tax is still due, but it will be charged at a normal rate and not at a premium rate.

There are extenuating circumstances

If your home is empty because you are in prison, a hospital or a care facility, your home cannot be lived in by law, it has been repossessed or bought by compulsory order, you do not have to pay council tax.

Your second home or empty property is being refurbished

Depending on the local authority, you can apply for a council tax discount for up to 12 months for unoccupied properties if they are undergoing structural repairs or alterations. This will vary, so check with your local council for more details.

There are several ways that you can reduce your council tax obligations for second homes or empty properties, depending on your personal circumstances and those of your property so it’s definitely worth looking into – your local council will be able to provide all the answers you need as they pertain to properties in your local area.
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