Do you have to pay council tax on every property you own? Are there any exceptions when it comes to second homes?
In this post we’ll explain the rules concerning council tax for second homes.
If you own multiple properties, our specialist high net worth insurance can ensure you get the tailored cover you need at a competitive price. For more information, call us on 0208 290 7779, or email personal@anthonyjones.com.
Do You Have to Pay Council Tax on a Second Home?
Usually, you do have to pay council tax on a second home. The amount you pay will depend on the local council. Some councils may give you a discount on your second home’s council tax. However, others may apply a “second homes premium”, meaning they may charge you up to twice as much for your second home’s council tax.
Contact your local council to learn more about the council tax rates for second homes in your area.
Please note that the rules are different for second homes in Scotland.
What is the Second Home Premium?
From 1 April 2025, all local councils in England are able to charge a second homes premium of up to 100% on the initial council tax bill. Some councils may choose not to charge this second homes premium. But in any case, the government has created several exemptions from the second homes premium.
Second Home Premium Exemptions
There are permanent exemptions for:
- Second homes that are annexes, forming part of the same property, that are being used as part of the main residence.
- Second homes that are provided by employers, where you need to live as part of a job.
- Second homes that are subject to certain planning restrictions, or other conditions of use, which may prevent you from using the home as your permanent residence.
In addition, there are certain scenarios where you may not have to pay the premium for up to 12 months:
- Someone has passed away, and their estate includes some property. If you have been given a grant of probate to manage this property, then you do not have to pay the second homes premium for 12 months.
- If you decide to sell or rent your second home, then you do not have to pay the premium for the duration of the sale, or while it is waiting for tenants.
Yet even if you are exempt from paying the premium, you may still need to pay the standard council tax rates. But once again, you may be eligible for a discount or an exemption.
The Risks of Leaving Your Second Home Unoccupied For Too Long
If you have got a second home, then you will need to take steps to safeguard your property for any period that you are not occupying it.
- Keep the property secure from break-ins, but also address the risks of fire, floods, and other disasters. Read our guide to keeping unoccupied homes safe here.
- If the home is unoccupied for 12 months or longer, then the local council may classify it as an “empty home”. This means you may have to pay an “empty homes premium” on the council tax.
- Most home insurance properties stop providing cover if a home is left unoccupied for a certain period of time. This is usually around two months. So if you leave your second home empty for extended periods throughout the year, you will need specialist insurance to cover your home for the unoccupied periods.
If you own a second home or a holiday, our specialist high net worth insurance can ensure you get the tailored cover you need at a competitive price. This can include specialist cover should you ever leave you unoccupied home empty for long periods. For more information, call us on 0208 290 7779, or email personal@anthonyjones.com.
