Second home council tax: what landlords need to know

Second home council tax is a premium of up to 100 per cent that a council can add to the standard bill on a furnished property that no one lives in as their main home. England gained the power on 1 April 2025, Wales already allows premiums of up to 300 per cent, and Scotland permits up to 100 per cent, with its cap removed from April 2026. For landlords the rule bites hardest between tenancies, because a furnished property standing empty counts as a second home from the first day, unless one of nine statutory exceptions applies.

What counts as a second home for council tax

For council tax, a second home is a dwelling that is substantially furnished but is no one's sole or main residence. The legislation does not use the phrase "second home" at all, it describes the property by its condition, furnished and without a resident. That definition pulls in holiday homes and pieds-a-terre, and, crucially for landlords, a furnished property sitting empty between lets. For the wider picture, a second home is any residential property you own that is not your main residence, which also carries a stamp duty surcharge and capital gains tax on sale.

A property with tenants living in it is not a second home. It is the tenants' main residence, so the tenants are liable for the council tax and no premium arises. The standard bill itself depends on the property's council tax band, and August records the band and valuation for each property you hold, so the bill that a premium would double is easy to see.

How much the premium adds

In England the premium is capped at 100 per cent, which doubles the standard bill. Wales allows up to 300 per cent, and Scotland up to 100 per cent, with the cap removed entirely from 1 April 2026.

The power is discretionary, so the rate depends on the local authority. In England around 211 of the 296 billing authorities switched the premium on for 2025-26, with a further 38 confirmed for April 2026, roughly 84 per cent of the country. In Wales, councils such as Gwynedd and Pembrokeshire already charge 150 to 200 per cent. In Scotland, once the cap lifts, some councils go far higher, with Midlothian setting 500 per cent and Highland 400 per cent. An English council must give at least 12 months' notice before the premium starts, and the premium sits on top of the standard band charge rather than replacing it.

Second home premium or empty homes premium

The second home premium and the empty homes premium are different charges with different triggers. The second home premium applies to a furnished property with no resident. The empty homes premium applies to a property that is both unoccupied and substantially unfurnished.

The distinction decides which charge a landlord faces. A furnished void attracts the second home premium from the day the property falls empty. A stripped, unfurnished property faces the empty homes premium instead, and only after it has stood empty for a year, a threshold reduced from two years to one in England from 1 April 2026. The empty homes premium then rises with the length of the vacancy, reaching as much as four times the standard bill for properties empty for a decade. Six weeks of genuine occupation or furnishing resets the clock.

Why it matters most between tenancies

A furnished property between tenancies is a second home for council tax from the day it falls empty, with no grace period in most of England. Across the self-managing landlords we work with, this is the council tax surprise that catches people out. They assume a flat standing empty for a few weeks between lets is treated gently, when in an adopting area the premium can apply from the first day the last tenant leaves.

The exposure is the void itself, not the letting. While a tenant is in residence the property is their main home and the council tax is theirs to pay, which is the position the bills article on who pays council tax in a rental sets out in full. The risk opens the moment the property empties and you hold furniture in it, which is why managing the length and handling of void periods now carries a direct council tax cost. Houses in multiple occupation are a separate case, the landlord is liable for the council tax by statute even when the property is fully let, though that is the standard charge rather than the second home premium.

The exceptions that protect landlords

Nine statutory exception classes, lettered E to M, remove the premium in defined circumstances, and they are mandatory, so a council cannot refuse to apply one that fits. Two matter most to landlords.

The first is the exception for a property actively marketed for let. It runs for up to 12 months from the day the property becomes a furnished void, provided you can show genuine marketing, an instructed agent or a live listing at a realistic rent. It can be claimed again once the property has been let for a continuous period, so a portfolio that turns over regularly can rely on it more than once. The second is the exception for a property undergoing major repairs or structural alteration, which runs for up to 12 months and can be used once per property. Further exceptions cover probate, for 12 months from the grant, job-related dwellings, and annexes.

Landlords using August to run their tenancies tell us the difficult part is rarely knowing the exception exists. It is holding the proof, the marketing record, the agent's instruction, the surveyor's report, in a form the council will accept, because councils grant these exceptions on paperwork, not on assertion. Tracking the 12-month window and the date marketing began is the kind of deadline that August's reminders are built to hold, so a valid claim does not lapse unnoticed.

Moving a holiday let onto business rates

A genuine holiday let can leave council tax altogether and pay business rates instead, which sidesteps both premiums. To qualify in England the property must have been available to let for at least 140 nights and actually let for at least 70 nights in the previous year, with a plan to make it available for 252 nights. Wales is tougher, at 252 nights available and 182 let, and Scotland matches England at 140 and 70.

Many single holiday lets then pay nothing at all, because a low rateable value attracts full small business rate relief. The property has to be run as a genuine commercial let, with booking and occupancy records to prove it, and a property that drops below the threshold reverts to council tax and the second home premium. Note also that the separate furnished holiday let tax regime was abolished for income tax from April 2025, which changes how the income is taxed but not the business-rates classification described here.

Second home council tax and the law

The premium rests on the Local Government Finance Act 1992, as amended by the Levelling-up and Regeneration Act 2023, which gave English councils the power to charge up to 100 per cent extra on second homes from 1 April 2025. The nine exception classes come from the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2024 and are mandatory. Wales and Scotland legislate separately under the same Act.

As of 2026 the government's guidance on the premiums and exceptions sets out how the charge and the exceptions work, and the consumer overview sits on gov.uk. Because adoption and rates are decided locally, the only way to know your exact position is to check your billing authority's policy and the date its premium began.

Frequently asked questions

Do you pay double council tax on a second home?

In England, yes, wherever the council has adopted the premium. The maximum is 100 per cent on top of the standard bill, which doubles it. Wales can charge up to 300 per cent and Scotland removes its cap from April 2026, so the bill can be higher again there.

Is a property between tenancies a second home for council tax?

Usually yes. A furnished property with no resident is a second home from the day it falls empty, so a void between tenancies can attract the premium immediately in an adopting area, unless you claim the exception for a property actively marketed for let.

How can a landlord avoid the second home premium?

Claim a statutory exception where one fits, most often the marketed-for-let exception during a void or the major-repairs exception during works, and keep the evidence the council will ask for. A property run as a genuine holiday let can move onto business rates instead and leave council tax behind.

What is the difference between the second home and empty homes premium?

The second home premium applies to a furnished property with no resident. The empty homes premium applies to one that is unfurnished and unoccupied, and only after it has stood empty for a year. A furnished void faces the second home charge from day one, an unfurnished one faces the empty homes charge later.

If you would rather keep every property's council tax band, void dates and exemption deadlines in one place, you can start with August for free.