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

3. Overview of powers

In relation to Council Tax charges for second and empty homes, the Regulations provide local authorities with the power to:

• apply a discount of between 10% and 50%
• apply the standard Council Tax rate, or  
• apply a council tax premium of up to 100% for second homes and on certain properties that have been empty for 12 months or more

Local authorities also have discretion to vary the council tax charged for different circumstances, and/or to apply discounts or increases in all or part of their areas, as they consider appropriate. This flexibility recognises that different pressures and factors may affect different areas. This can be done by using either postcode boundaries, council wards or data-zones. 

Housing Need and Demand Assessments and Local Housing Strategies (LHS) may inform development of Council Tax charging policies for second and empty homes. Local authorities may use these to consider the effect of second home ownership and empty properties in their areas, and whether increased levels of Council Tax would help to address any problems arising from these types of properties.

More information about factors that may inform policies and the use of discretion are set out in this guidance.