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

11.1 Broad policy

Each local authority will be required to submit a Council Tax Assumptions (CTAS) return to Scottish Government in March each year. CTAS will include details of each of the local authority’s policy in relation to the discounts and increases for second homes and/or long-term empty homes for the forthcoming year. 

11.2 Notification of income

Local authorities will be required to provide details of the additional income collected on an annual basis to the Scottish Government through the Council Tax Receipts and Returns (CTRR) Q4 return. Where this resource is being allocated to RSLs or other organisations/individuals, this will allow the project planning and housing approval processes to be agreed as early as possible between local authorities, the Scottish Government More Homes Division and other strategic partners. 

The income collected from reducing the long-term empty homes discount below 10% or charging an increase is not ring fenced for housing and can be used at the discretion of local authorities. As this income is treated separately from that received by reducing the discount between 10% and 50%, it will be recorded in a separate column on the annual CTRR Q4 return. 

Each authority will be required to provide, on the annual CTRR Q4 return, details of the amount billed and the amount received through the additional revenue generated by reducing the discount and applying the council tax increase; and, on an amended Local Financial Return, the amount designated either for local authority expenditure and/or transfer to RSLs, and other organisations or individuals. 

11.3 Numbers of properties

The short-term working group on empty and second homes will consider and advise on amendments to the annual CTAXBASE form to reflect new legislation and evolving policy requirements.

As stated above, homes in receipt of a reduced discount, or a council tax increase will still be counted as half a dwelling for Revenue Support Grant calculation purposes.

11.4 Interaction between second and empty homes

It may be difficult for local authorities to determine whether or not a dwelling has been lived in for at least 25 days in any year, so the definition of a second home will require owners to provide evidence that the home has been lived in.

Evidence may include utility bills, TV license, electoral register, short-term let activity or anything else that a local authority deems appropriate. Local authorities may use non-ringfenced income to fund enforcement and identification work, which may involve empty homes officers monitoring the interaction between declaration of long-term empty homes and second homes.