Council Tax and Empty Properties: What You Owe and When Exemptions Apply

Owning an empty property comes with council tax obligations that are widely misunderstood. Many people assume empty properties are automatically exempt from council tax — they are not. Since reforms that began in 2013, councils have had increasing powers to charge full council tax or even a premium on long-term empty properties. Here is a clear guide to the current rules in England and Wales.

The Basic Position: Empty Properties Are Not Automatically Exempt

Under the original council tax framework, empty properties received a standard 50 per cent discount. That changed in 2013, when councils in England were given discretion to charge up to 100 per cent council tax on empty and unfurnished properties from day one. Most councils now do exactly that — they charge full council tax on empty properties with no automatic discount period.

In Wales, the devolved position differs slightly, with Welsh Government guidance applying to local authorities there. Always check with your specific local council.

When Are Exemptions Available?

Despite the general trend towards full charging, a number of specific exemptions remain available in law. These are set out in Schedule 1 of the Local Government Finance Act 1992 and the Council Tax (Exempt Dwellings) Order 1992. Key exemptions that apply to empty properties include:

Class C: Empty and Unfurnished (Transitional Exemption)

Councils can grant an exemption of up to six months for a newly empty and unfurnished property. However, since the 2013 changes, councils are no longer required to do this — they can choose whether to offer it. Many councils have removed this exemption entirely. Check with your council whether they still apply it.

Class B: Unoccupied Property Owned by a Charity

A property owned by a charity and left empty while waiting to be used for charitable purposes can be exempt for up to six months.

Class D: Detained Person

A property is exempt if it is unoccupied because the resident is in prison, detained in a hospital under mental health legislation, or detained under immigration powers.

Class E: Person in Care Home or Hospital

A property previously occupied by someone who has moved into a care home or hospital on a long-term basis can be exempt while it remains unoccupied — provided the person has not acquired a new sole or main residence.

Class F: Deceased Person’s Property

After a person dies, their property can be exempt from council tax until probate is granted. Once probate is granted, a further exemption of up to six months may apply in some areas — but again, this is at the council’s discretion following the 2013 changes.

Class G: Occupation Prohibited by Law

A property that cannot legally be occupied — for example, because it is subject to a planning restriction or prohibition order — is exempt.

Class H: Awaiting Occupation by Minister of Religion

A property held for occupation by a minister of religion for their duties is exempt.

Class I: Person Receiving Care Away from Home

If the sole or main resident has moved away to receive personal care elsewhere (not a care home, but for example with a family member) and the property is left empty, an exemption may apply.

Class J: Person Providing Personal Care

If the sole or main resident has moved away to provide personal care to another person and the property is left empty, an exemption may apply.

Class K: Student Property

A property owned by a student that was the student’s main home before they began their course, and is now unoccupied, can be exempt.

Class L: Repossessed Property

A property where the mortgage lender has taken possession is exempt.

Class Q: Trustee in Bankruptcy

A property held by a trustee in bankruptcy is exempt.

Empty Property Premiums: Paying More Than 100 Per Cent

For properties that have been empty for longer periods, councils have been given the power to charge a premium — a surcharge on top of the standard council tax rate. Under the Local Government Finance Act 2012 (as amended), councils in England can charge:

• A 100 per cent premium (meaning you pay 200 per cent of the standard rate) for properties empty for more than one year
• A 200 per cent premium (300 per cent of the standard rate) for properties empty for more than five years
• A 300 per cent premium (400 per cent of the standard rate) for properties empty for more than ten years

Not all councils apply premiums at these maximum levels — the decision is at each council’s discretion. But the trend is consistently towards charging higher premiums to incentivise bringing empty properties back into use. Check your council’s published premium policy.

In Wales, similar powers apply under the Housing (Wales) Act 2014, and Welsh councils may charge premiums on long-term empty properties and second homes.

Second Homes and Furnished Empty Properties

A property that is furnished but not occupied as a main home is treated differently from an unfurnished empty property. Previously, a 50 per cent discount was available for furnished second homes. Since the council tax reforms, councils can choose to charge full council tax on second homes, and many do. Some councils also apply a premium on second homes in areas of housing pressure.

What If a Property Is Uninhabitable?

A property that is genuinely uninhabitable — for example, following a fire, flood, or structural damage — may qualify for an exemption under Class A (property that requires or is undergoing major repair or structural alteration). However, this exemption has been significantly curtailed. Check the current position with your council and ask specifically about their policy for properties requiring major repair work.

Challenging an Empty Property Bill

If you believe you are being charged council tax on an empty property incorrectly — for example, because an exemption applies — you should:

1. Contact your council in writing, stating which exemption you believe applies and the evidence supporting it.
2. If the council refuses to apply the exemption, request a formal review and obtain their decision in writing.
3. If still unresolved, appeal to the Valuation Tribunal for England or Valuation Tribunal for Wales within two months of the council’s decision.

Getting Help

If you own an empty property and are uncertain about your council tax liability, Council Tax Advisors can help you identify whether any exemption applies and how to apply for it. Contact us for free specialist advice.

Summary

1. Empty properties are not automatically exempt — most councils charge full council tax from day one
2. Specific legal exemptions exist: for deaths, care, detention, repossession, and other defined circumstances
3. Long-term empty properties can attract significant premiums above the standard rate
4. Councils have discretion over many aspects of empty property charging — check your specific council’s policy
5. If you believe an exemption applies, apply in writing and appeal to the Valuation Tribunal if refused

Disclaimer: This article is for general information only and does not constitute legal or financial advice. Rules differ between councils and change frequently. Seek advice for your specific situation.