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England, Wales and Scotland, Second Home Council Tax Premium: Furnished Habitable Properties Not Used as Main Home, England: Up to 100% From 1 April 2025, Wales: Up to 300% From 1 April 2023, Scotland: Up to 100% Discretionary, Holiday Let Exemption: Business Rates (Not Council Tax) If Availability/Letting Days Met, Distinct From Empty Homes Premium (Unfurnished/Unoccupied)

Second Home Council Tax UK, Premiums by Nation

Second home council tax premiums UK 2026: local authorities across England, Wales, and Scotland can charge additional council tax on second homes; furnished, habitable properties not used as the owner's main residence. England: up to 100% premium from 1 April 2025 (LGFA 1992 s.11B as amended by Levelling-up and Regeneration Act 2023), owner pays double the standard council tax rate; councils must give 12 months' notice. Wales: up to 300% from 1 April 2023 (LGFA 1992 s.12A, many councils charging 150-300%; highest in Gwynedd, Pembrokeshire, Anglesey, Ceredigion). Scotland: up to 100% discretionary from 1 April 2024 (LGFA 1992 s.75B, Edinburgh, Highland, Argyll and Bute among councils implementing maximum). Crucial distinction: SECOND HOME PREMIUM applies to FURNISHED and HABITABLE properties not the main home; EMPTY HOMES PREMIUM applies to SUBSTANTIALLY UNFURNISHED and UNOCCUPIED properties. Holiday let business rates exemption: England 140 days available/70 days let; Wales 252/182 days from April 2023 (tightened); Scotland 140/70 days.

14 min readUpdated 7 June 2026Last reviewed: 10 September 2026 by Richard Wood, Foundercouncil-taxsecond-homeholiday-letempty-homes
Written and reviewed by· Founder, LetSafe UKLast reviewed: 10 September 2026

England, up to 100% premium from 1 April 2025, Wales, up to 300% from 1 April 2023 and Scotland, up to 100% from 1 April 2024

ENGLAND: the Levelling-up and Regeneration Act 2023 Part 5 Chapter 4 amended LGFA 1992 s.11B to allow councils to charge up to 100% council tax premium on second homes from 1 April 2025 (councils must give 12 months' notice). A 'second home' is a dwelling that is furnished and not the sole or main residence of any person. The 100% premium means the owner pays 200% of the standard rate. Implementation is at council discretion; high-pressure tourism and housing areas most likely to implement (Cornwall, Devon, Lake District, Yorkshire Dales, Cotswolds, North Yorkshire). Statutory exemptions: job-related dwellings; sole/main residence; properties undergoing major structural repairs (up to 12 months); annexes occupied as additional family accommodation; properties used for letting to seasonal workers. WALES: from 1 April 2023, Welsh local authorities can charge up to 300% council tax premium on second homes under LGFA 1992 s.12A (as substituted; maximum increased from 100% to 300% by Local Government Finance (Wales) Act 2024). Welsh second home premiums: Gwynedd 150%+; Pembrokeshire 200%+; Isle of Anglesey 150%+; Ceredigion 150%+; most Welsh councils now implement premiums. A 300% premium = owner pays 400% of the standard rate. SCOTLAND: from 1 April 2024, councils can charge up to 100% premium on second homes under LGFA 1992 s.75B (as amended). Edinburgh City Council, Highland Council, and Argyll and Bute Council among those implementing the maximum 100% premium.

Holiday let business rates exemption, distinction from empty homes premium and planning for landlords

HOLIDAY LET BUSINESS RATES EXEMPTION: properties qualifying as self-catering holiday accommodation are subject to non-domestic rates (business rates), NOT council tax, so neither the second home premium nor the empty homes premium applies. Business rates for holiday lets typically attract 100% Small Business Rate Relief (SBRR) in England if the rateable value is below £15,000. The qualifying tests differ by nation: ENGLAND: available for letting at least 140 days per year AND actually let for at least 70 days (evidenced to VOA). WALES: from 1 April 2023, significantly tightened, available 252 days AND actually let 182 days (previously 140/70). The Welsh tightening was a direct response to owners claiming business rates status to avoid the council tax second home premium, properties that no longer meet the new thresholds revert to council tax and the second home premium. SCOTLAND: available 140 days AND actually let 70 days (evidenced to the Scottish Assessors Association). EMPTY HOMES vs SECOND HOME: SECOND HOME PREMIUM, furnished, habitable, not main home; owner is the council tax ratepayer; premium applied on top of standard rate. EMPTY HOMES PREMIUM (LGFA 1992 s.11B England; s.12B Wales; s.75B Scotland): substantially unfurnished and unoccupied; England: 100% after 1 year, 200% after 5 years, 300% after 10 years (LURAA 2023). PLANNING FOR LANDLORDS: furnished void properties between tenancies risk the second home premium, check the specific council's policy; maintain holiday let booking records to evidence business rates qualification; in Wales, verify the tightened 252/182-day threshold is being met.

Frequently asked questions

What is the second home council tax premium in England from 2025?+

From 1 April 2025, English councils can charge up to 100% council tax premium on second homes, meaning the owner pays double the standard council tax rate. Power is in LGFA 1992 s.11B (as amended by the Levelling-up and Regeneration Act 2023). Councils must give 12 months' notice. Not all councils have implemented; most common in high-pressure areas (Cornwall, Devon, Yorkshire Dales, Lake District, Cotswolds).

What is the second home council tax premium in Wales?+

Welsh local authorities can charge up to 300% council tax premium on second homes from 1 April 2023 (maximum increased by Local Government Finance (Wales) Act 2024). A 300% premium means the owner pays 400% of the standard council tax rate. Most Welsh councils have implemented significant premiums; Gwynedd, Pembrokeshire, Isle of Anglesey, and Ceredigion have the highest rates. The premium does not apply if the property qualifies for business rates as a holiday let (252 days available; 182 days actually let per year from April 2023).

What is the difference between second home council tax and empty homes council tax?+

Second home premium applies to FURNISHED and HABITABLE properties not used as the owner's main home. Empty homes premium applies to SUBSTANTIALLY UNFURNISHED and UNOCCUPIED properties. A furnished rental property in a void period is more likely to attract the second home premium; an unfurnished unoccupied property is more likely to face the empty homes premium after any initial exemption period.

How do landlords avoid second home council tax with holiday let business rates?+

Properties qualifying as self-catering holiday accommodation for business rates purposes pay non-domestic rates (not council tax), avoiding both premiums. England: 140 days available AND 70 days actually let per year. Wales (tightened April 2023): 252 days available AND 182 days actually let. Scotland: 140 days available AND 70 days actually let. Many English and Scottish holiday lets qualify for 100% Small Business Rate Relief (zero business rates). Wales tightened thresholds specifically to prevent council tax premium avoidance via business rates status.

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