Part of: UK Council Tax 2026 — Complete Guide to Bands, Discounts, Exemptions & Appeals → Council Tax on Second Homes — 2025-26 Premium Rules Explained
TL;DR: Empty properties face layered Council Tax rules in 2026: short-term empty properties may attract a discount or standard rate depending on the council; long-term empty properties face premiums of 100% to 300% above the standard bill; uninhabitable or actively renovated properties may qualify for a time-limited exemption. The Levelling-up and Regeneration Act 2023 brought the premium-trigger point forward to one year.
Last reviewed: 27 April 2026
The Legal Framework: LGFA 1992 and Recent Amendments
Empty property Council Tax is governed by the Local Government Finance Act 1992 (sections 11A to 12B), with significant amendments made by the Rating (Empty Properties) Act 2007, the Local Government Finance Act 2012, and most recently the Levelling-up and Regeneration Act 2023.
The framework gives billing authorities significant discretion. Different councils can and do apply different premium rates, different discount periods, and different exemption policies. The legal floor is set by statute; councils can be more generous (by offering discounts) or more aggressive (by applying maximum premiums) within the statutory parameters.
The Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) plays a limited role in empty property Council Tax - its primary function is band assignment, which applies regardless of occupancy. However, where a property is genuinely uninhabitable or has been substantially altered, a band review may be relevant.
The IRRV (Institute of Revenues, Rating and Valuation) provides professional guidance to councils on administering empty property premiums and exemptions.
Short-Term Empty Properties: Discounts or Standard Rate?
For properties that have been empty for less than one year (or the period specified in the council's scheme), billing authorities have the discretion under the Local Government Finance Act 1992 to offer a discount of up to 100% for a limited period. In practice, the landscape varies considerably:
Before April 2013: A national 6-month empty-unfurnished discount applied (Class C exemption). Properties were exempt from Council Tax for up to 6 months when empty and unfurnished.
From April 2013: The national Class C exemption was abolished. Each council now sets its own policy. Some councils have retained a short discount period (1-2 months). Most English councils now charge the full standard rate from day one of vacancy.
From April 2024 (Levelling-up and Regeneration Act 2023): Councils are no longer required to wait two years before applying the long-term empty premium - they can apply it after one year. Many councils moved to apply the 100% premium from the end of the first year of continuous vacancy.
If your property has recently become empty, check with your billing council immediately. Do not assume a discount applies - in most English councils it does not, and the standard rate is payable from day one.
Long-Term Empty Property Premiums: 100%, 200%, and 300%
For properties that have been continuously empty for extended periods, billing councils can charge substantial premiums above the standard bill. The premium structure as of 2026-27 (following the Levelling-up and Regeneration Act 2023 changes):
| Duration of Continuous Vacancy | Maximum Premium | Total Bill (Standard + Premium) |
|---|---|---|
| 1 to 5 years | 100% | Up to 200% of standard bill |
| 5 to 10 years | 200% | Up to 300% of standard bill |
| 10+ years | 300% | Up to 400% of standard bill |
The premium is applied on top of the standard Council Tax charge. A 100% premium means the bill doubles. At the England average Band D of approximately £2,280, a 100% premium produces a bill of approximately £4,560/year. A 300% premium would produce approximately £9,120/year.
These are maximum premiums - individual councils decide the actual premium level. Many councils have adopted the maximum available at each tier, particularly in areas with high levels of long-term vacancy. Councils do not need to apply the same premium as their neighbours; each council's decision is made independently through the annual budget-setting process.
The MHCLG's annual Council Tax statistics track the adoption of premiums by English councils. Most coastal, rural, and urban authorities with significant vacancy problems have adopted higher premiums.
Exemption Classes Still Applying to Empty Properties
Several statutory exemption classes still provide complete relief from Council Tax for qualifying empty properties. These exemptions are set out in the Council Tax (Exempt Dwellings) Order 1992 and subsequent amendments.
Class A - Major renovation/structural works: An unoccupied property requiring or undergoing major repair or structural alteration may be exempt for up to 12 months (and in some circumstances up to 12 months after completion of works). The works must be genuine and ongoing or clearly evidenced as required. Evidence of planning permission, building control involvement, or contractor documentation is typically required by councils.
Class B - Charity-owned: An unoccupied property owned by a registered charity, where it was last used for charitable purposes, may be exempt for up to 6 months.
Class F - Probate/estate administration: An unoccupied property where the sole or last occupant has died and which is now being administered through probate or letters of administration may be exempt for up to 6 months after the grant of probate or letters of administration. This exemption is particularly relevant for executors managing an estate.
Class G - Legal prohibition on occupation: Where a property cannot legally be occupied (for example, because a court order or planning enforcement notice prohibits it), it may be exempt.
Class Q - Property held by a trustee in bankruptcy: Properties held by a trustee in bankruptcy on behalf of a bankrupt may be exempt.
Note that Class C (unfurnished empty properties) was the old 6-month exemption that was abolished nationally in 2013. Councils can restore a local equivalent as a discount but are not required to.
What Landlords Need to Know Between Tenancies
When a rental property becomes vacant between tenancies, the landlord (as non-resident owner) becomes the liable person for Council Tax from the date the tenancy ends. The key issues for landlords:
No automatic discount: Most English councils charge the full standard rate from day one of vacancy. Some rural councils and a minority of urban councils still offer a short (1-2 month) discount. Check with the specific billing council.
Premium risk: If the property remains empty for more than one year (the new threshold post-2023 for councils that have adopted the one-year trigger), the premium will kick in and the bill will double. Landlords who struggle to find tenants in less active markets need to be aware of this escalating liability.
Notification duty: The landlord must notify the billing council when a tenancy ends and when a new one begins. Failure to notify can result in the council backdating a bill to the liability period.
Class A works: If the property is being refurbished between tenancies, document the works thoroughly. Some councils will grant Class A exemption status for genuine major renovation during a void period.
What Homeowners Need to Know During Refurbishment
If you are refurbishing your main home or a property you own and have left it empty during works, the same framework applies. The Class A exemption may be available for genuine major structural works. However:
- "Redecoration" is not major structural alteration and will not qualify for Class A.
- The council may inspect or request evidence before granting Class A.
- The exemption runs from the start of the works period and is capped at 12 months (potentially extended in some councils for ongoing major works).
- Once Class A expires, the standard rate and eventually premiums apply.
Challenging Empty Property Billing Through the Valuation Office
Where you believe a property is genuinely uninhabitable and should not be banded at all (because it is not a "dwelling" in the statutory sense), you can make a proposal to the Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) to have it removed from the Council Tax valuation list.
A property is a "dwelling" for Council Tax purposes unless it is so structurally unsound or extensively damaged that it could not reasonably be occupied. Uninhabitable through minor disrepair or temporary vacancy does not meet this standard. The Valuation Office applies a high threshold.
If accepted, removal from the valuation list means no Council Tax is payable at all. Appeal to the Valuation Tribunal for England (VTE) if the proposal is rejected.
Frequently Asked Questions
My property has been empty for 18 months - what premium am I paying?
Following the Levelling-up and Regeneration Act 2023, councils can apply the 100% premium after one year of continuous vacancy. If your council adopted this earlier trigger date, you are likely paying double the standard bill (standard rate plus 100% premium). Check with your billing council - some still operate on the two-year trigger while others moved to one year from April 2024 or 2025.
Does the long-term empty premium apply to second homes too?
No - second homes (furnished properties not used as a sole or main residence) and long-term empty properties are different classifications with different premium structures. The 100% second home premium (available from April 2025 for councils that adopted it under the Levelling-up and Regeneration Act 2023) applies to furnished unoccupied second homes. The long-term empty premium applies to genuinely unoccupied unfurnished properties. A furnished property left empty would typically be classified as a second home, not a long-term empty property.
I inherited a property and it's been empty while probate proceeds - do I still pay?
The Class F exemption provides up to 6 months' relief from Council Tax after the grant of probate or letters of administration for a property that was solely occupied by the deceased. This does not start from the date of death but from the date the grant is issued. If probate is taking longer than 6 months (which is increasingly common), Council Tax becomes payable after the 6-month exemption period. Contact your billing council to confirm the exemption and its end date.
Can I be charged Council Tax on a property with no roof?
This depends on whether the property qualifies as a "dwelling" for Council Tax purposes. The Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) makes this determination. A property with no roof that is structurally unsafe and could not reasonably be occupied may be removable from the Council Tax valuation list on the basis that it is not a dwelling. The test is high - the property must be truly uninhabitable, not merely in poor condition. Submit a proposal to the Valuation Office with evidence of the structural state.
My council is charging me the 100% premium even though I've been trying to sell for 18 months - is that right?
Councils have discretion to grant exemptions or reduced premiums for properties actively being marketed for sale, though this is not a statutory requirement. Contact your billing council and ask whether they have a policy for properties being actively marketed. Some councils have adopted a discretionary policy of deferring the premium for genuine sale properties; most do not. If the premium is correctly applied under the council's published policy, there is no legal basis to challenge the premium itself (only to challenge whether your property is correctly classified as long-term empty).
How we verified this
The long-term empty premium framework is sourced from the Local Government Finance Act 1992 (sections 11A to 12B) as amended by the Local Government Finance Act 2012 and the Levelling-up and Regeneration Act 2023. Exemption class details are from the Council Tax (Exempt Dwellings) Order 1992. The Valuation Office's role in band and dwelling status determinations is from HMRC and gov.uk published guidance. MHCLG annual Council Tax statistics document premium adoption rates. The IRRV provides professional guidance on empty property classification and enforcement. The pre-2013 Class C exemption abolition is documented in MHCLG transitional guidance.
Sources & Verification
- Local Government Finance Act 1992 (ss11A-12B empty property premiums): https://www.legislation.gov.uk/ukpga/1992/14/contents
- Levelling-up and Regeneration Act 2023 (s77-s82 Council Tax changes): https://www.legislation.gov.uk/ukpga/2023/55/contents
- Council Tax (Exempt Dwellings) Order 1992: https://www.legislation.gov.uk/uksi/1992/558/contents
- MHCLG Council Tax empty property guidance: https://www.gov.uk/government/collections/council-tax-statistics
- Valuation Office (formerly VOA): https://www.gov.uk/government/organisations/valuation-office-agency
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
- gov.uk Council Tax when property is empty: https://www.gov.uk/council-tax/empty-properties
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.