Council Tax Empty Homes Premium: Thresholds, Exceptions and Appeals

If you own a home in England that has sat empty and unfurnished for a year or more, your council can add a council tax empty homes premium on top of the standard bill — up to 100% extra at first, rising to 300% extra once the property has been vacant for more than ten years. On a Band D property, that top tier works out to roughly £9,568 a year based on the 2026–27 English average of £2,392.¹ Whether you actually pay the premium, and how much, depends on your council’s policy and whether any exception applies.

When a Property Qualifies

The premium applies once a home has been both unoccupied and substantially unfurnished for a continuous twelve months. That threshold used to be two years but was shortened from April 2024.²

“Substantially unfurnished” is not defined in legislation, so the local authority decides. Government guidance treats a habitable home as one containing basics like a bed, chairs, a table, a wardrobe or sofa, and appliances such as a fridge, freezer, or cooker. Strip those out and the council will normally treat the property as unfurnished.³

This is different from a second home, which is furnished but not anyone’s main residence. Second homes may face their own separate premium from April 2025. The empty homes premium targets properties that are both vacant and stripped of the basics for daily living. The date furniture was removed, or a tenant left, is what starts the twelve-month clock, so keep a record.

How Much the Premium Adds to Your Bill

The maximum premium a council can charge scales with how long the property has been empty:

Empty 1 to 5 years: up to 100% premium (total bill 200% of standard)
Empty 5 to 10 years: up to 200% premium (total 300% of standard)
Empty over 10 years: up to 300% premium (total 400% of standard)²

Band H properties pay twice the Band D rate, so a top-tier premium in a higher-value band can push the annual charge above £19,000.¹ These are ceilings, not defaults. Your annual demand notice will show which tier your council has applied.

Councils Set Their Own Rates

The premium is discretionary. Each council decides independently whether to charge it, which vacancy tiers to use, and what percentage to set within the statutory cap.² Some charge the full amount from the day a property becomes eligible; others use lower percentages or only start the premium once a home has been empty for five years. Two identical houses either side of a council boundary can generate very different bills. Contact your billing authority to find out exactly what applies.

Short Reoccupation Will Not Reset the Clock

Briefly moving back in or dropping some furniture off will not restart the vacancy counter. In England, if a property is occupied for fewer than six weeks (42 days) and then empties again, the premium becomes payable immediately and the short occupation is disregarded. Only genuine occupation lasting 43 days or more restarts the clock, and a fresh twelve-month empty period then has to pass before a premium can be imposed again.³

Exceptions That Can Pause or Block the Charge

A set of mandatory exceptions took effect from April 2025 under the Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024, sitting alongside longer-standing exemptions.⁴ None of them apply automatically. You need to tell the council and, in most cases, provide evidence.

Annexes and Armed Forces Accommodation

The premium does not apply to an annexe forming part of a main residence, or where the owner is a member of the armed forces required to live in service accommodation while their own home sits empty.⁵ The 2024 regulations extend the armed forces protection to anyone whose home would be their main residence if they were not in job-related armed forces accommodation.⁴

Actively Marketed for Sale or Rent

Owners actively marketing a property for sale or letting can claim a twelve-month exception. The asking price must be one the council considers reasonable — a deliberately inflated listing designed to appear on the market without attracting buyers will not qualify.⁴ Expect to provide a listing agreement, estate agent confirmation, or copies of advertisements. The twelve months run from when the exception is granted; if the property still hasn’t sold or let after a year, the premium returns.

Empty After a Death

Before probate is granted, no council tax is due on an unoccupied property still in the deceased’s name.⁵ After probate or letters of administration are issued, a six-month exemption from council tax itself applies as long as the property remains unoccupied and hasn’t been transferred.

Separately, the 2024 regulations add a twelve-month exception from the empty homes premium starting from the date probate is granted, and councils can extend that period at their discretion.² Executors should contact the billing authority early, because these reliefs must be claimed.

Major Repairs or Structural Work

A home requiring or undergoing major repair or structural alteration qualifies for an exception of up to twelve months. Government guidance uses rebuilding walls as an example; routine redecoration will not qualify.⁶ If the work finishes early, the exception continues for up to six months after completion or until the twelve-month cap is reached, whichever comes first.² Two limits are worth knowing. The exception can only be used once per property unless it changes hands, and it ends if you furnish the home and start using it as a second home while work continues.

Hardship Reduction

Under Section 13A of the Local Government Finance Act 1992, every council has the power to reduce a bill (including one carrying a premium) by any amount, down to zero. It is a last resort for genuine financial hardship. Councils set their own criteria, and you will typically need to show that you have no assets or income to pay, that all other discounts and exemptions have been used, and that paying in full would leave you unable to meet basic living costs.

Appealing a Premium You Think Is Wrong

If the vacancy dates on your bill are incorrect, or the council has refused an exception you believe you qualify for, write to the council explaining why the charge is wrong. Keep paying the billed amount while the dispute is open.⁷

The council has two months to respond. If it rejects your challenge, you can appeal to the Valuation Tribunal within two months of that decision. If the council never replies, you have four months from the date of your initial letter to appeal. Late appeals may be accepted where circumstances beyond your control caused the delay.⁷ The tribunal charges no filing fee, but you cover your own costs. Before filing, pull together proof of when the property became empty or occupied, any evidence supporting an exception, and the demand notice showing the premium.

Telling the Council About Changes

You have a legal duty to notify the council of any change in circumstances that could affect your bill, such as the property becoming occupied or changing hands.⁶ Council tax legislation generally requires notification within 21 days, and a £70 penalty can be imposed for a first failure to report without reasonable excuse. Providing false information or deliberately failing to report a change is a criminal offence and can lead to prosecution as well as administrative penalties.

Wales and Scotland Have Different Rules

Everything above applies to England. If your property is in Wales or Scotland, the framework is different.

In Wales, councils have been able to charge up to a 300% premium on homes empty for one year or more since April 2023. There is no tiered structure — the maximum can apply from the one-year mark, at the council’s discretion.⁸

In Scotland, councils can charge up to double the usual rate on homes empty for over one year, extending to two years if the owner is actively trying to sell or let the property.⁹ Exemptions in both nations differ from the English rules, so check with the relevant local authority rather than assuming the English position applies.

1
GOV.UK. Council Tax Levels Set by Local Authorities in England 2026 to 2027
2
GOV.UK. Guidance on the Implementation of the Council Tax Premiums on Long-Term Empty Homes and Second Homes
3
GOV.UK. Council Tax Information Letter: Council Tax – Definitions of Empty Homes and Second Homes
4
GOV.UK. Council Tax Information Letter 5/2024: Exceptions to Council Tax Premiums
5
GOV.UK. How Council Tax Works: Second Homes and Empty Properties
6
GOV.UK. Paying the Right Level of Council Tax: A Plain English Guide to Council Tax
7
GOV.UK. Appeal a Council Tax Bill or Fine
8
GOV.WALES. Council Tax on Empty and Second Homes
9
mygov.scot. Council Tax for Empty Homes and Second Homes