Local government finance circular 6/2024: council tax on second and long-term unoccupied homes guidance

7. Exclusions from the increase

7.1 Existing mandatory discounts and exemptions

The new flexibility will not affect an owner’s eligibility to claim council tax exemptions under the Council Tax (Exempt Dwellings) (Scotland) Order 1997 (‘the 1997 Order’). 

Exemptions are in place for empty homes, these include where the owner is:

• marketing it for sale or let
• in long-term residential care
• in hospital long term
• in prison
• defaulting on their mortgage and the home is or will be repossessed by a lender
• undertaking structural repairs (for up to one year after it becomes unoccupied)
• deceased (in which case the exemption is for up to 6 months after the owner’s estate has settled)

As long as an owner is eligible for an exemption, they would not be charged any council tax, regardless of how long the home has been empty.

However, where a home or owner is no longer eligible for the exemption, a Council Tax increase will apply after the property has been empty for 12 months or more.

7.2 Homes actively being marketed for sale or let

Homes being marketed for sale or let will be exempt from the council tax increase until they have been empty for two years or more.

New build properties can also qualify for this exemption from the increase. This exemption is conditional on the home being genuinely marketed for sale or let at a realistic market price. In considering whether a home is genuinely being marketed for sale or let, local authorities can have regard to any unduly restrictive conditions being attached to the sale or let as well as the sales price/ rent level. In coming to their decision on whether or not the property is being genuinely marketed for sale or let, local authorities can request and consider evidence including:

• Home report - If the property is being marketed for sale, does it have a valid home report? Most houses for sale in Scotland require a home report which also includes a valuation of the property. If the home report valuation is significantly below the advertised price, it may be that the owner is not making a genuine attempt to sell their property.
• Marketing - Are the owner’s marketing efforts providing adequate exposure to the market?  Is the property being actively marketed by an agent and/or property sale/letting website?