Empty property additional charges

As announced as part of the budget setting process for the 2024/25 year during full council on 4 March 2024, from 1 April 2025 there are two key changes that may affect your bills if your property is empty:

Unoccupied and unfurnished homes now attract a 100% premium (charged double the standard charge) where they are empty for 1 year, rather than the previous 2 years.
Second homes (any property which has “no one resident” which includes where it is not your main home and is “substantially furnished”) will immediately attract a premium of 100% from 1 April 2025 itself rather than after a period of time (such as the 1 year for the empty and unfurnished properties).

A copy of the paper approved at Cabinet can be found here: Second homes Council Tax premium which was appendix F of item 10a which was the wider budget setting paper.

Details of the full council meeting that approved the change can be found here: Council, Monday 4 March 2024

Unoccupied and Unfurnished homes

An additional amount of council tax (a premium) is charged when a property has been unoccupied and unfurnished for one year or more (previously two or more years until 1 April 2025).
This means you will be charged an additional 100% on your council tax for any properties you own that have been empty and unfurnished for one year or more. This premium applies to the property. A change of ownership or tenancy will not affect the premium. If you buy a property that has been empty and unfurnished for one or more years, you will still have to pay 200% council tax until such time as you occupy it as your main residence, you let it out or it becomes a ‘second home’ (at which point the ‘unoccupied and furnished (second home) premium would replace it in that last example).

From 1 April 2024, the following premiums apply:

100% premium for properties empty 1-5 years (you will pay double the normal charge)
200% premium for properties empty 5-10 years (you will pay triple the normal charge)
300% premium for properties empty 10 years+ (you will pay four times the normal charge)

Unoccupied and furnished (second homes)

This is any dwelling where it is not your main home and the dwelling is substantially furnished and will attract a 100% premium either from 1 April 25 (if it is already a second home) or any date after that where it is not an existing second home so you will pay double the normal council tax charge. Unless you are exempted from the premium, the additional charge is only removed when the property is back in use.

The table sets out a list of exceptions to the above premiums that were set by central government:

Class of dwelling	Application	Definition
Class E	Long-term empty homes and second homes	Dwelling which is or would be someone’s sole or main residence if they were not residing in job-related armed forces accommodation
Class F	Long-term empty homes and second homes	Annexes forming part of, or being treated as part of, the main dwelling
Class G	Long-term empty homes and second homes	Dwellings being actively marketed for sale (12 months limit
Class H	Long-term empty homes and second homes	Dwellings being actively marketed for let (12 months limit)
Class I	Long-term empty homes and second homes	Unoccupied dwellings which fell within exempt Class F and where probate has recently been granted (12 months from grant of probate/letters of administration)
Class J	Second homes only	Job-related dwellings
Class K	Second homes only	Occupied caravan pitches and boat moorings.
Class L	Second homes only	Seasonal homes where year-round, permanent occupation is prohibited, specified for use as holiday accommodation or planning condition preventing occupancy for more than 28 days continuously

You will be required to provide evidence to support your claim that you are exempted from either premium charge under the above classes of exception.

If you have any queries or questions relating to the premiums and if you may be exempted from them based on the table above please contact us on 020 7974 4444 and speak to the council tax team or email us at [email protected]. Please ensure you include your council tax account number in the subject line.