Glossary · UK
What is Council Tax Empty Homes Premium?
An additional council tax charge English local authorities can apply to long-term empty (unoccupied and unfurnished) properties: up to 100% after 1 year, 200% after 5 years, and 300% after 10 years.
Full Definition
The Council Tax Empty Homes Premium allows English local authorities to charge additional council tax on dwellings that are both unoccupied and substantially unfurnished -- the legal definition of a long-term empty property. From April 2024 the tiers are: 100% premium (so the total bill is double the standard rate) after the property has been empty for more than one year; 200% premium (triple the standard rate) after five years; and 300% premium (quadruple the standard rate) after ten years. Councils have discretion -- they can choose not to charge premiums or to set them at lower rates than the maximum -- so the charge varies by local authority. The empty homes premium is separate from the second homes premium, which applies to furnished properties used as an occasional dwelling and can be up to 100% from April 2025. Several exemption categories exist for empty homes: properties that have been unoccupied for less than the qualifying period, properties where the owner is in hospital or care, properties undergoing structural repairs or major refurbishment (exempt for up to 12 months), properties left empty due to a job-related move or armed forces posting, and properties subject to probate (typically exempt for up to 12 months after probate is granted). Repossessed properties are also typically exempt. Property owners who believe a premium has been applied incorrectly can challenge it through the local valuation tribunal. Wales operates its own regime: councils can charge up to 300% on long-term empty dwellings and 100% on second homes under Welsh Government powers. Scotland has different rules under separate legislation and the specific percentages and qualifying periods differ from the English scheme.