If you own a second home or leave a property empty in England, your Council Tax bill can now be doubled, tripled or even quadrupled. Since 1 April 2025, councils in England can charge a 100% premium on furnished second homes — meaning owners pay up to 200% of the normal bill. Long-term empty homes face premiums that rise the longer they stand unused, up to an extra 300%. There are important exceptions — properties being sold, recently inherited, or undergoing major repairs — and the rules differ in Wales and Scotland. Here is exactly how the 2026 premiums work and how to avoid paying more than you need to.
Related reads: see our full guide to Council Tax discounts and exemptions, and if money is tight, Council Tax Reduction can cut a main-home bill by up to 100%.
What counts as a second home or empty property?
For Council Tax, a second home is a dwelling that is no one’s sole or main residence but is substantially furnished — a holiday home, a weekday flat near work, or a property kept for family use. An empty home is one that is both unoccupied and substantially unfurnished. The two are treated differently: second homes attract a premium based simply on being a second home, while empty-home premiums escalate with the length of time the property has stood empty.
The second-home premium: 100% from April 2025
The Levelling-up and Regeneration Act gave English councils the power to charge a 100% Council Tax premium on second homes from 1 April 2025, provided they passed a resolution at least 12 months in advance. The great majority of councils — especially in coastal and rural areas with lots of holiday homes — have adopted it. Where they have, a second home is charged at 200% of the normal rate.
On the average Band D bill of about £2,392 for 2026/27, that turns a £2,392 charge into roughly £4,784 a year. In higher bands or higher-charging councils, the extra cost easily runs into thousands.
Empty-home premiums: the longer it sits, the more you pay
Empty and unfurnished homes are charged the full Council Tax after any short local grace period, and then a premium is added once the property has been empty for a defined time. In England the premium thresholds were toughened so that the one-year point now triggers the first premium:
- Empty 1–5 years: up to 100% premium (pay 200% of the bill)
- Empty 5–10 years: up to 200% premium (pay 300%)
- Empty 10+ years: up to 300% premium (pay 400%)
Second-home and empty-home premiums across the UK
| Nation | Second-home premium | Long-term empty premium |
|---|---|---|
| England | Up to 100% (from April 2025) | Up to 100% / 200% / 300% by length empty |
| Wales | Up to 300% (council discretion) | Up to 300% |
| Scotland | Up to 100% (from April 2024) | Up to 100% (up to 200% in some cases) |
| Northern Ireland | No Council Tax (domestic rates apply) | Rates system differs |
Exceptions: when the premium does not apply
Government regulations set out national exceptions where a council must not charge the premium, even if it has adopted one. The main ones are:
- Property actively for sale or let — a 12-month exception from when it is first marketed (ends sooner if it sells, lets, or is taken off the market)
- Probate — a 12-month exception after grant of probate or letters of administration for both empty and second homes
- Major repairs or structural alterations — up to 12 months while the work makes the home uninhabitable
- Job-related dwellings — a second home you must occupy for work (for example tied accommodation), where you pay full tax on your main home elsewhere
- Annexes used as part of the main home, and pitches/moorings for caravans and boats
- Seasonal homes with a planning restriction preventing year-round occupation
How the “empty” clock works — and the reset trap
The empty-home clock attaches to the property, not the owner. If you buy a house that has already been empty for years, you inherit the premium from day one — the timer does not reset when ownership changes. Briefly moving furniture in or staying for a night does not reset it either. To restart the clock, a property generally has to be genuinely lived in for a continuous period (commonly at least six weeks). Always check your council’s local policy, because the grace periods and reset rules vary.
How to reduce or avoid a premium
- Sell or let promptly — marketing the property starts the 12-month for-sale exception and removes the empty status once occupied
- Renovate within 12 months — if it is genuinely uninhabitable, claim the major-works exception with evidence
- Make it your main home — the premium only applies while it is a second or empty home
- Check whether a holiday let qualifies for business rates — a property let commercially for enough days each year may move to business rates (often with small business rate relief) instead of Council Tax; the qualifying thresholds are strict
- Apply for the relevant exception in writing — councils do not always apply them automatically
What to do if you have been charged a premium wrongly
If you believe an exception applies, or the property is wrongly classed as a second or empty home, write to your council’s Council Tax team with evidence (marketing particulars, probate date, builder’s invoices, or proof you live there). If they refuse and you still disagree, you can appeal to the Valuation Tribunal for England, which is free. Keep paying in the meantime to avoid recovery action while the dispute is resolved.
Frequently asked questions
How much is the second-home Council Tax premium in 2026?
In England, councils that have adopted the premium charge up to 100% extra, so you pay up to 200% of the normal Council Tax on a furnished second home. Wales allows up to 300% and Scotland up to 100%.
When did the second-home premium start in England?
From 1 April 2025, after councils gave the required 12 months’ notice. Most councils in second-home hotspots adopted it from that date.
Do I pay the premium if my second home is for sale?
Not for the first 12 months after it is actively marketed for sale or rent. The exception ends after 12 months, or sooner if the property sells, is let, or is taken off the market.
Does the empty-home premium reset when I buy the property?
No. The empty period runs with the property, not the owner, so a new owner inherits any existing premium. The clock usually only resets after a genuine period of occupation, often at least six weeks.
Can I switch a holiday home to business rates to avoid the premium?
Possibly. A property let commercially as self-catering accommodation for enough days a year can move onto business rates rather than Council Tax, and may then qualify for small business rate relief. The availability and letting thresholds are strict, so check the current rules before relying on this.
Last reviewed: June 2026. Council Tax premiums are set locally and the rules differ across England, Wales and Scotland — always confirm the details and exceptions with your own council. This guide is general information, not financial or legal advice.