What is the council tax premium on second homes from 2025?

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From 1 April 2025, councils in England gained a new discretionary power to charge a premium specifically on second homes -- a meaningfully different category from the long-standing empty homes premium, since second homes covered by this rule are typically furnished and may be used regularly, just not as anyone's main residence. **What counts as a 'second home' for this premium** This premium applies to dwellings that are furnished but not used as anyone's sole or main residence -- typically holiday homes, weekend retreats, or properties kept for occasional use, where the owner has a different main home elsewhere. This is distinct from the empty homes premium, which targets properties that are unoccupied AND substantially unfurnished for an extended period; a well-maintained, furnished holiday cottage used a few weekends a year falls under the second homes premium even though it is neither 'empty' nor unfurnished in the way the empty homes premium requires. **The premium rate** Councils that choose to adopt this power can charge up to a 100% premium, doubling the normal council tax bill for a qualifying second home, at the council's full discretion -- not every council has chosen to implement it, and the exact rate and any local exemptions vary significantly by local authority area, so owners of second homes should check directly with the relevant council. **Worked example** A family owns a furnished holiday cottage in a coastal town that they use for around 8 weeks a year, with their main home elsewhere. If that local council has adopted the second homes premium at the full 100% rate, their normal £1,800 annual council tax bill for the cottage becomes £3,600 a year from April 2025 onwards -- even though the property is properly furnished, well-maintained, and genuinely used by the family, simply because it is not anyone's main residence. **Why this was introduced** The policy specifically targets areas (often coastal and rural tourist destinations) where a high concentration of second homes has been blamed for pushing up local property prices and reducing the availability of homes for local permanent residents, aiming to either generate additional council revenue from second-home owners or encourage some owners to sell or let their properties to local residents instead. **Exemptions** Certain circumstances are excluded from the second homes premium, including properties that are 'job-related' second homes (such as accommodation an employer requires an employee to occupy for work purposes), certain annexes, and properties actively for sale or let, though the specific exemption criteria and any time limits vary by council -- always check current local policy rather than assuming a past exemption automatically continues to apply. **Compounding with the empty homes premium** Because the second homes premium and the empty homes premium address different scenarios (occupied-but-not-main-residence vs genuinely empty-and-unfurnished), a property cannot generally be charged both premiums simultaneously for the same period, but an owner's situation could shift between the two categories over time (for example, a furnished second home that is later cleared out and left empty long-term could move from one premium regime to the other) -- understanding which category applies, and the relevant qualifying periods and premium rate for your specific council, is essential for anyone owning a property that is not their main residence.

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