Second home council tax: the premium, council by council

How the second homes premium works

• Legal basis: the Levelling-up and Regeneration Act 2023 let councils in England charge up to a 100% premium on second homes from 1 April 2025.
• Notice: a council must decide at least one year before the premium starts. So a council deciding in 2026 can charge from April 2027 at the earliest.
• What counts: a dwelling that is substantially furnished and is nobody's sole or main residence.
• Long-term empty homes are separate: premiums can apply after 1 year empty, up to 100% (1–5 years), 200% (5–10 years) and 300% (10 years or more).

Exceptions: when the premium should not apply

The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024 set national exceptions. For second homes:

Exceptions are not automatic: apply to your council with evidence (listing, marketing history, planning condition, grant of probate). Councils may also reduce a bill using section 13A of the Local Government Finance Act 1992.

Council tax or business rates for a holiday let?

In England, a self-catering property is assessed for business rates if it was available to let for at least 140 nights and actually let for at least 70 nights in the last 12 months (GOV.UK). Wales uses 252 and 182 nights. If it does not qualify, it pays council tax and can be charged the second homes premium. Many small holiday lets on the rating list qualify for small business rate relief, but that depends on your circumstances.

If you let the property to a tenant

A home let to an assured tenant as their main home is not a second home: the tenant is normally liable for council tax. Empty periods between tenancies can bring the long-term empty rules into play after a year. For letting rules, see the Renters' Rights Act checklist.